Albertsons Companies, Inc.

ACI

Retail-Grocery Stores

Mkt Cap

$11.72B

PE

9.05

Debt

$8.354B

Cash

$193.2M

EV

$19.88B

FCF

$628.2M

Market Cap

$11.72B

P/E Ratio

9.05

Debt

$8.354B

Cash

$193.2M

EV

$19.88B

FCF

$628.2M

Charts data: {"Earnings":[{"time":"2016-02-26","value":-502200000},{"time":"2017-02-24","value":-373300000},{"time":"2018-02-23","value":46300000},{"time":"2019-02-22","value":131100000},{"time":"2020-02-28","value":466400000},{"time":"2021-02-26","value":764200000},{"time":"2022-02-25","value":1284000000},{"time":"2023-02-24","value":1210300000},{"time":"2024-02-23","value":1295000000}],"Sales":[{"time":"2016-02-26","value":58734000000},{"time":"2017-02-24","value":59678200000},{"time":"2018-02-23","value":59924600000},{"time":"2019-02-22","value":60534500000},{"time":"2020-02-28","value":62455100000},{"time":"2021-02-26","value":69690400000},{"time":"2022-02-25","value":71887000000},{"time":"2023-02-24","value":77649700000},{"time":"2024-02-23","value":79237700000}],"Net Margins":[{"time":"2016-02-26","value":-0.008550413729696598},{"time":"2017-02-24","value":-0.006255215472316524},{"time":"2018-02-23","value":0.0007726376146023503},{"time":"2019-02-22","value":0.0021657071587276675},{"time":"2020-02-28","value":0.0074677648422626815},{"time":"2021-02-26","value":0.010965642326633223},{"time":"2022-02-25","value":0.01786136575458706},{"time":"2023-02-24","value":0.015586666786864599},{"time":"2024-02-23","value":0.01634323055818127}],"Assets":[{"time":"2017-02-24","value":23755000000},{"time":"2018-02-23","value":21812300000},{"time":"2019-02-22","value":20776600000},{"time":"2020-02-28","value":24735100000},{"time":"2021-02-26","value":26598000000},{"time":"2022-02-25","value":28123000000},{"time":"2023-02-24","value":26168200000},{"time":"2024-02-23","value":26221100000}],"Stockholders Equity":[{"time":"2016-02-26","value":1613200000},{"time":"2017-02-24","value":1999300000},{"time":"2018-02-23","value":1398200000},{"time":"2019-02-22","value":1450700000},{"time":"2020-02-28","value":2278100000},{"time":"2021-02-26","value":1324300000},{"time":"2022-02-25","value":3024600000},{"time":"2023-02-24","value":1610700000},{"time":"2024-02-23","value":2747500000}],"ROE":[{"time":"2016-02-26","value":-0.3113067195636003},{"time":"2017-02-24","value":-0.18671535037263043},{"time":"2018-02-23","value":0.03311400371906737},{"time":"2019-02-22","value":0.09037016612669746},{"time":"2020-02-28","value":0.20473201352003864},{"time":"2021-02-26","value":0.5770595786453221},{"time":"2022-02-25","value":0.42451894465383855},{"time":"2023-02-24","value":0.751412429378531},{"time":"2024-02-23","value":0.4713375796178344}],"ROA":[{"time":"2017-02-24","value":0.026962744685329405},{"time":"2018-02-23","value":-0.0002246438935829784},{"time":"2019-02-22","value":0.03789359182926947},{"time":"2020-02-28","value":0.05809962361179053},{"time":"2021-02-26","value":0.060812843070907584},{"time":"2022-02-25","value":0.08665149521743769},{"time":"2023-02-24","value":0.08816426043824184},{"time":"2024-02-23","value":0.07890210555621237}]}

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company's food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. It 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 pharmacies, in-store branded coffee shops, adjacent fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. The company was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies, Inc. is a subsidiary of Albertsons Investor Holdings LLC.

Sector

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12/1/18
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9/8/18
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6/16/18
10-K
2/24/18

DCF

Discounted Cash Flow Valuation of Albertsons Companies, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$628.2M	$703.6M	$782.5M	$864.3M	$947.8M	$1.032B	$1.116B	$1.198B	$1.276B	$1.35B	$1.417B	$14.17B
DCF		$611.8M	$591.7M	$568.3M	$541.9M	$513.1M	$482.4M	$450.2M	$417.2M	$383.7M	$350.3M	$3.503B
Value	$8.414B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 44%

Earnings Stability 28%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	02-2016	02-2017	02-2018	02-2019	02-2020	02-2021	02-2022	02-2023	02-2024	TTM
Net Margin	-0.86%	-0.63%	0.077%	0.22%	0.75%	1.1%	1.8%	1.6%	1.6%	1.6%
ROA	-	2.7%	-0.022%	3.8%	5.8%	6.1%	8.7%	8.8%	7.9%	7.9%
ROE	-31%	-19%	3.3%	9%	20%	58%	42%	75%	47%	47%

What is the average Net Margin?

The average Net Margin over the past 5 years is +1.17%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.29%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +6.84%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.92%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +41.99%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +9.69%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	02-2016	02-2017	02-2018	02-2019	02-2020	02-2021	02-2022	02-2023	02-2024	TTM
Debt FCF	-	30.95	-22.48	32.54	20.84	3.77	4.61	14.27	13.30	13.30
Debt Equity	-	6.17	8.49	7.30	3.92	6.44	2.91	6.20	3.04	3.04
MIN
Graham Stability	-	-	-	-	-	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 13.30.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -3.29.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	02-2017	02-2019	02-2021	02-2023	Trend
Revenue	4.1%	5.5%	4.4%	2%	0.67%
Net Income	-	58%	19%	7%	-47%
Stockholders Equity	4.6%	14%	28%	71%	6.2%
FCF	6.7%	14%	-35%	-10%	-57%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +5.53%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.67%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +58.1%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -47.46%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +13.62%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +6.17%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +14.07%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -57.43%.