Albertsons Companies, Inc.

Valuation Analysis

About the Company

Albertsons Companies, Inc., through its subsidiaries, operates in the food and drug retail industry in the United States. The company's food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, vaccines, fuel, and other items and services. It also operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, ACME, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci's Food Lovers Market; and in-store pharmacies and branded coffee shops, fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho.

Albertsons Companies, Inc. Stock at a Glance

Albertsons Companies, Inc. (ACI) is currently trading at $15.41 with a market capitalization of $7.6B. The trailing P/E ratio stands at 38.52x, with a forward P/E of 6.26x. The 52-week range spans from $15.01 to $22.78; the current price is 32.4% below the yearly high. Year-over-year revenue growth stands at +7.7%. The net profit margin stands at 0.26%.

💰 Dividend

Albertsons Companies, Inc. pays an annual dividend of $0.68 per share, representing a yield of 4.41%. The payout ratio stands at 150%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

16 analysts rate Albertsons Companies, Inc. (ACI) on consensus: Buy. The average price target is $20.94, implying +35.87% from the current price. Analyst price targets range from $14.00 to $26.00.

Albertsons Companies, Inc.: The Investment Case in Detail

Albertsons Companies, Inc. (ACI) operates in the Consumer Defensive — specifically Grocery Stores — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Wall Street consensus sits at Buy with an average price target implying roughly 35.87% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

With a net margin of just 0.26%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. The debt-to-equity ratio of 833.07% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn. Short interest sits at 13.72% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

The PEG ratio at 1.36 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 6.3x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 6.26x is meaningfully below the trailing 38.52x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 35.87% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (13.72%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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