📊 ACI Key Takeaways
Is Albertsons Companies, Inc. (ACI) a Good Investment?
Albertsons demonstrates solid operational profitability with 27.2% gross margins and positive 1.2B operating income, but financial health is strained by high leverage (3.36x debt/equity) and weak liquidity (0.91x current ratio). The massive 17,583.9% revenue increase appears anomalous and requires validation, while modest 1.1% net margins and declining EPS (-26.5% YoY) suggest profitability pressures despite top-line growth.
Albertsons shows durable scale and steady earnings generation, but the business operates on very thin margins and converts only a small portion of revenue into free cash flow. Balance-sheet leverage is elevated, liquidity is tight, and the very strong ROE appears driven more by a small equity base than by exceptional operating economics. Growth quality also looks questionable given the extreme revenue YoY figure and flat net income.
Why Buy Albertsons Companies, Inc. Stock? ACI Key Strengths
- Strong gross margin of 27.2% indicates effective product pricing and cost management
- Positive operating cash flow of 1.6B supports operational viability and debt servicing
- High ROE of 27.9% demonstrates efficient use of shareholder capital despite leverage
- Positive interest coverage ratio of 3.0x indicates ability to service debt obligations
- Large revenue base and positive operating income indicate resilient core grocery operations
- Operating cash flow remains solidly positive, supporting ongoing capital investment
- Gross margin of 27.2% is reasonable for a grocery retailer and suggests stable merchandising execution
ACI Stock Risks: Albertsons Companies, Inc. Investment Risks
- High leverage with debt/equity ratio of 3.36x and long-term debt of 8.4B creates refinancing vulnerability
- Weak liquidity position with current ratio of 0.91x and quick ratio of 0.20x limits financial flexibility
- Declining EPS (-26.5% YoY) and minimal net margin (1.1%) despite revenue growth signal profitability deterioration
- Exceptionally low free cash flow margin of 0.4% leaves minimal cushion for investments or shareholder returns
- Anomalous revenue growth figure (17,583.9% YoY) suggests data quality issues or accounting changes requiring investigation
- Net margin of 1.1% and operating margin of 2.0% leave little room for execution mistakes or cost inflation
- High leverage with debt/equity of 3.36x and interest coverage of 3.0x limits financial flexibility
- Free cash flow is very thin at $236.8M and data quality concerns are raised by the extreme reported revenue growth
Key Metrics to Watch
- Free cash flow trend and FCF margin expansion
- Debt/equity ratio reduction and debt refinancing schedule
- Current and quick ratios improvement for liquidity health
- Net margin sustainability and EPS recovery trajectory
- Operating cash flow consistency and capital expenditure efficiency
- Free cash flow and capex discipline
- Debt reduction and interest coverage
Albertsons Companies, Inc. (ACI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.4% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ACI Profit Margin, ROE & Profitability Analysis
ACI vs Consumer Sector: How Albertsons Companies, Inc. Compares
How Albertsons Companies, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Albertsons Companies, Inc. Stock Overvalued? ACI Valuation Analysis 2026
Based on fundamental analysis, Albertsons Companies, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Albertsons Companies, Inc. Balance Sheet: ACI Debt, Cash & Liquidity
ACI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Albertsons Companies, Inc.'s revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.27 reflects profitable operations.
ACI Revenue Growth, EPS Growth & YoY Performance
ACI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $18.8B | $145.5M | $0.55 |
| Q2 2025 | $18.6B | $145.5M | $0.25 |
| Q1 2025 | $24.3B | $236.4M | $0.41 |
| Q3 2024 | $18.6B | $145.5M | $0.62 |
| Q2 2024 | $18.3B | $145.5M | $0.25 |
| Q1 2024 | $24.1B | $240.7M | $0.41 |
| Q3 2023 | $18.2B | $266.9M | $0.20 |
| Q2 2023 | $17.9B | $266.9M | $0.46 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Albertsons Companies, Inc. Dividends, Buybacks & Capital Allocation
ACI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Albertsons Companies, Inc. (CIK: 0001646972)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACI
What is the AI rating for ACI?
Albertsons Companies, Inc. (ACI) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACI's key strengths?
Claude: Strong gross margin of 27.2% indicates effective product pricing and cost management. Positive operating cash flow of 1.6B supports operational viability and debt servicing. ChatGPT: Large revenue base and positive operating income indicate resilient core grocery operations. Operating cash flow remains solidly positive, supporting ongoing capital investment.
What are the risks of investing in ACI?
Claude: High leverage with debt/equity ratio of 3.36x and long-term debt of 8.4B creates refinancing vulnerability. Weak liquidity position with current ratio of 0.91x and quick ratio of 0.20x limits financial flexibility. ChatGPT: Net margin of 1.1% and operating margin of 2.0% leave little room for execution mistakes or cost inflation. High leverage with debt/equity of 3.36x and interest coverage of 3.0x limits financial flexibility.
What is ACI's revenue and growth?
Albertsons Companies, Inc. reported revenue of $62.9B.
Does ACI pay dividends?
Albertsons Companies, Inc. pays dividends, with $246.7M distributed to shareholders in the trailing twelve months.
Where can I find ACI SEC filings?
Official SEC filings for Albertsons Companies, Inc. (CIK: 0001646972) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACI's EPS?
Albertsons Companies, Inc. has a diluted EPS of $1.25.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ACI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Albertsons Companies, Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ACI stock overvalued or undervalued?
Valuation metrics for ACI: ROE of 27.9% (sector avg: 18%), net margin of 1.1% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy ACI stock in 2026?
Our dual AI analysis gives Albertsons Companies, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ACI's free cash flow?
Albertsons Companies, Inc.'s operating cash flow is $1.6B, with capital expenditures of $1.4B. FCF margin is 0.4%.
How does ACI compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 1.1% (avg: 8%), ROE 27.9% (avg: 18%), current ratio 0.91 (avg: 1.5).
Is Albertsons Companies, Inc. carrying too much debt?
ACI has a debt-to-equity ratio of 3.36x, which is above the Consumer sector average of 0.8x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is ACI's return on equity (ROE) so high?
Albertsons Companies, Inc. has a return on equity of 27.9%, significantly above the Consumer sector average of 18%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 1.1% net margin.