Last Updated: 17 Sep 2024
Executive Summary
Albertsons Companies (ACI) is a leading grocery retailer in the United States. The company operates over 2,200 stores under various banners, including Albertsons, Safeway, Vons, and Jewel-Osco. ACI has a market capitalization of approximately $11 billion and trades on the NYSE.
Company Overview
ACI was founded in 1939 and is headquartered in Boise, Idaho. The company operates in 34 states and the District of Columbia. ACI's stores offer a wide variety of groceries, including fresh produce, meat, seafood, dairy products, and baked goods. The company also offers a variety of non-food items, such as health and beauty products, household goods, and clothing.
Fundamental Analysis
ACI's financial performance has been mixed in recent years. The company's revenue has grown steadily, but its profitability has declined. In fiscal 2023, ACI reported revenue of $79.5 billion and net income of $1.1 billion. The company's diluted EPS was $1.92.
ACI's financial ratios are generally healthy. The company has a low debt-to-equity ratio of 0.34 and a strong current ratio of 1.2. However, ACI's profit margin and return on equity are below industry averages.
Technical Analysis
ACI's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is below 50, indicating that the stock is oversold.
Short Term Outlook
ACI's stock price is likely to remain under pressure in the short term. The company is facing headwinds from inflation and rising interest rates. Additionally, ACI is facing competition from other grocery retailers, such as Kroger and Walmart.
Long Term Outlook
ACI's long-term outlook is more positive. The company is a leader in the grocery industry and has a strong brand portfolio. ACI is also well-positioned to benefit from the growing demand for online grocery shopping.
Analyst Recommendations
The majority of analysts have a "hold" rating on ACI stock. The average analyst price target is $24.48, which represents a potential upside of 30% from the current price.
Conclusion
ACI is a well-established grocery retailer with a strong brand portfolio. However, the company is facing some challenges in the short term. Investors should consider the company's long-term potential before making any investment decisions.
