Albertsons Companies, Inc. (ACI)
Consumer Defensive · NYQ · US
Fundamentals
Valuation and ratings
Albertsons Companies, Inc. trades at USD14.56, which is 46% above the USD7.82 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 27 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 37.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Albertsons Companies, Inc.
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.
ACI passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
10 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Mason Hawkins, SOUTHEASTERN ASSET MANAGEMENT INC/TN/$252.87M · 6.5% of book
- Ken Griffin, CITADEL ADVISORS LLC$205.39M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$101.84M · 0.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$88.26M · 0.1% of book
- Harry Burn, SOUND SHORE MANAGEMENT INC /CT/$70.45M · 2.4% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Albertsons Companies, Inc. (ACI) undervalued?
Against our discounted cash flow estimate of USD7.82, ACI at USD14.56 is 46% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own ACI?
10 of the institutions we track reported a position in ACI in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is ACI's P/E ratio?
ACI trades at 37.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.