ACI

Albertsons Companies

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Defensive

industry

Grocery Stores

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/14/26

Business Summary

Albertsons operates a large-scale grocery retail platform generating cash through high-volume, low-ticket consumer staples sales across physical stores. The model depends on inventory velocity, vendor relationships, and private-label penetration to preserve margins while turning working capital efficiently. Scale allows procurement leverage and distribution efficiencies that smaller competitors struggle to match. Cash flow durability comes from recurring consumer demand for food and household staples, making revenue relatively defensive even when margins fluctuate.

VALUATION

P/E

11.2

Market Cap ($M USD)

$8,880

Forward P/E

7.5

PEG

1.5

PRICE TO SALES

0.1

PRICE TO BOOK

3.6

EV / EBITDA

5.8

5-Year Average P/E

DIVIDEND

Yield

3.50%

Annual Payout

$0.60

Payout Ratio

39.00%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

24.50%

Financial Health & Profitability

Earnings Per Share

$1.54

Next Year EPS Growth Estimate

$2.30

Next Year Revenue Growth Estimate

-0.40%

Return on Equity (ROE)

34.80%

Operating Margin

1.90%

Debt-to-Equity

6.2

Piotroski F-Score

6

Altman Z-Score

3.5

Return on Invested Capital (ROIC)

7.40%%

Current Ratio

0.9

Quick Ratio

Gainseekers Quantitative Analysis

Summary

Albertsons screens like a statistically cheap but fundamentally conflicted deep value play. A trailing P/E of 11.2 collapsing to a 7.5 Forward P/E suggests the market is discounting either volatile forward earnings or balance sheet stress, yet an Altman Z-Score of 3.5 indicates no immediate bankruptcy risk. The disconnect between a modest PEG Forward of 1.5 and a rock-bottom Price/Sales of 0.1 signals a business priced for stagnation despite material revenue scale. However, a negative Return on Equity of -0.40% alongside a high 34.80% Operating Margin raises quality-of-earnings questions, making this less of a clean compounder and more of a controversial yield-heavy value bet.

AI Exposure / Tech Reliance

Grocery retail is operationally intensive, and AI adoption would primarily enhance supply chain optimization, inventory forecasting, and margin control rather than transform the core model. With an Operating Margin of 34.80%, even incremental efficiency gains from automation could meaningfully protect profitability in a low-margin industry. However, as a Consumer Defensive grocery operator, technological differentiation is likely incremental rather than disruptive, limiting outsized AI-driven upside.

The Bull Case

A value-oriented investor sees a 6.2 TTM Yield, a compressed 7.5 Forward P/E, and a 0.1 Price/Sales ratio and immediately recognizes asymmetric upside if earnings merely stabilize. The Piotroski F-Score of 6 indicates acceptable financial health rather than distress, while a 7.40% ROIC suggests the company is generating returns above minimal capital cost thresholds. The 34.80% Operating Margin stands out in a grocery context and implies strong cost discipline or mix advantages. Combined with a solid Altman Z-Score of 3.5, this is the profile of a cash-generative defensive name being priced as if deterioration is imminent.

The Bear Case

The bear case is not subtle: Debt/Equity of 1.90% signals leverage sensitivity, and a Current Ratio of 0.9 reflects tight liquidity. A Short % of Float at 24.50% is extremely elevated and indicates that sophisticated investors are positioning for downside, likely tied to the collapse from 5.8 EPS to 1.54 EPS Next Year (Est.). The PEG Forward of 1.5 is not cheap enough to justify growth optimism, especially with Return on Equity at -0.40%, and institutional ownership at $21.94 suggests limited sponsorship stability. This is a stock where one earnings miss could validate the short thesis quickly.

Market Sentiment & Smart Money

Short Interest %

12.30%

Analyst Consensus

2.17

Average Analyst Price Target

$21.94

Institutional Ownership %

95.70%

1-Year Beta

-0.35

Insider Buying % (6 Mo)

1.50%%

Distance to 52-Week High

75.90%%

Distance to 52-Week Low

109.40%%