Albertsons Companies, Inc. (ACI) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Albertsons Companies, Inc. (ACI) Consumer Business Overview

Albertsons Companies, Inc. is a major player in the U.S. grocery store sector, operating 2,276 stores under various banners. The company distinguishes itself through its integrated retail offerings, including pharmacies, fuel centers, and digital platforms, catering to diverse consumer needs in the competitive consumer defensive market.

What Is the Investment Thesis for ACI?

Albertsons Companies, Inc. presents a mixed investment thesis. The company's established presence in the consumer defensive sector, with a wide network of stores and integrated services, provides a stable revenue base. The dividend yield of 3.87% offers an income stream for investors. However, the company's low profit margin of 0.3% raises concerns about operational efficiency and profitability. The P/E ratio of 36.60 suggests a reasonable valuation, but future growth will depend on Albertsons' ability to improve margins and adapt to changing consumer preferences. Upcoming catalysts include potential synergies from ongoing operational improvements and digital platform enhancements. Potential risks include increased competition from other grocery retailers and fluctuations in consumer spending.

Based on FMP financials and quantitative analysis

ACI Key Highlights

Operates 2,276 stores under various banners across the United States as of February 26, 2022, providing a wide retail footprint.

• Maintains 1,722 pharmacies and 1,317 in-store branded coffee shops, enhancing customer convenience and driving additional revenue streams.
• Offers a dividend yield of 3.87%, providing an attractive income component for investors.
• Gross margin of 26.7% indicates solid performance in managing the cost of goods sold.
• Beta of 0.25 suggests lower volatility compared to the overall market, making it a relatively stable investment.

Who Are ACI's Competitors?

ACI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are ACI's Key Strengths?

Large store network across the United States.

• Strong brand recognition with various banners.
• Integrated services including pharmacies and fuel centers.
• Established distribution and manufacturing infrastructure.

What Are ACI's Weaknesses?

Low profit margin of 0.3%.

• Intense competition in the grocery store industry.
• Exposure to fluctuations in consumer spending.
• Dependence on traditional retail model.

What Could Drive ACI Stock Higher?

Continued expansion of digital platforms and e-commerce capabilities.

• Development and launch of new private label products to increase profitability.
• Enhancement of pharmacy services to capitalize on healthcare demand.
• Potential strategic partnerships to expand product offerings and reach.

What Are the Key Risks for ACI?

Rich valuation — a P/E of 36.60 runs well above the Consumer Defensive sector’s ~27.60x, leaving little room for a miss.

• Increased competition from online retailers and discounters.
• Rising labor costs and supply chain disruptions.
• Changes in consumer preferences and shopping habits.
• Economic downturns impacting consumer spending.

What Are the Growth Opportunities for ACI?

• Expansion of Digital Platforms: Albertsons has the opportunity to further expand its digital platforms to capture a larger share of the online grocery market. By enhancing its e-commerce capabilities and improving the online customer experience, Albertsons can attract new customers and increase sales. Timeline: Ongoing, with continuous improvements planned over the next 3-5 years.
• Private Label Brand Development: Albertsons can increase profitability by focusing on the development and expansion of its private label brands. Private label brands typically offer higher margins compared to national brands. By introducing new and innovative private label products, Albertsons can attract price-conscious consumers and increase customer loyalty. Market size: Private label market is expected to grow by 5% annually. Timeline: Ongoing, with new product launches planned each year.
• Enhancement of Pharmacy Services: Albertsons can enhance its pharmacy services to capitalize on the growing demand for healthcare products and services. By offering a wider range of pharmacy services, such as vaccinations and health screenings, Albertsons can attract new customers and increase revenue. The pharmacy services market is projected to grow by 6% annually. Timeline: Ongoing, with expansion of services planned over the next 2-3 years.
• Optimization of Store Network: Albertsons can optimize its store network by closing underperforming stores and opening new stores in high-growth markets. This will improve overall profitability and efficiency. Market size: The grocery store market is expected to grow by 3% annually. Timeline: Ongoing, with store openings and closures planned each year.
• Strategic Partnerships: Albertsons can form strategic partnerships with other companies to expand its product offerings and reach new customers. For example, it could partner with meal kit delivery services or online retailers. Market size: The meal kit delivery market is projected to reach $20 billion by 2027. Timeline: Ongoing, with potential partnerships to be explored over the next 1-2 years.

What Are ACI's Competitive Advantages?

• Scale: Operates a large network of 2,276 stores, providing significant economies of scale.
• Brand Recognition: Owns well-known banners such as Albertsons, Safeway, and Vons, fostering customer loyalty.
• Integrated Services: Offers a range of services, including pharmacies and fuel centers, enhancing customer convenience.
• Distribution Network: Maintains 22 distribution centers and 20 manufacturing facilities, ensuring efficient supply chain management.

What Does ACI Do?

Founded in 1860 and headquartered in Boise, Idaho, Albertsons Companies, Inc. has evolved into one of the largest food and drug retailers in the United States. The company operates through its subsidiaries, managing a vast network of 2,276 stores as of February 26, 2022. These stores function under well-known banners such as 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. Albertsons' retail footprint extends across a wide geographic area, providing grocery products, general merchandise, health and beauty care products, pharmacy services, and fuel. Beyond its retail operations, Albertsons also engages in manufacturing and processing food products for in-store sales. The company enhances its customer experience through 1,722 pharmacies, 1,317 in-store branded coffee shops, and 402 adjacent fuel centers. Albertsons also maintains 22 distribution centers and 20 manufacturing facilities to support its extensive retail network. Furthermore, Albertsons has invested in various digital platforms to cater to the evolving needs of its customers, positioning itself as a comprehensive retail solution in the consumer defensive sector.

What Products and Services Does ACI Offer?

• Operates a chain of food and drug stores across the United States.
• Offers a wide range of grocery products, including fresh produce, meat, and dairy.
• Provides general merchandise, such as household goods and apparel.
• Sells health and beauty care products.
• Operates pharmacies within its stores, providing prescription and over-the-counter medications.
• Offers fuel at adjacent fuel centers.
• Manufactures and processes food products for sale in its stores.
• Provides various digital platforms for online shopping and delivery.

How Does ACI Make Money?

• Generates revenue through the sale of grocery products, general merchandise, and health and beauty care products in its retail stores.
• Earns revenue from pharmacy services, including the dispensing of prescription medications.
• Generates revenue from fuel sales at its adjacent fuel centers.
• Increases profitability through the manufacturing and processing of food products for in-store sales.

What Industry Does ACI Operate In?

Albertsons Companies, Inc. operates within the competitive grocery store industry, a segment of the broader consumer defensive sector. The industry is characterized by stable demand, but also by intense competition and relatively low profit margins. Market trends include increasing demand for online grocery shopping, heightened focus on private-label brands, and growing consumer interest in health and wellness products. Albertsons competes with other major grocery chains, as well as smaller regional players and online retailers. The company's scale and diversified offerings provide a competitive advantage, but it must continue to adapt to changing consumer preferences and technological advancements to maintain its market position.

Who Are ACI's Key Customers?

• Individual consumers seeking grocery products and household goods.
• Customers requiring prescription medications and pharmacy services.
• Consumers purchasing fuel at adjacent fuel centers.
• Households looking for a convenient shopping experience through digital platforms.

Albertsons Companies, Inc. (ACI) Valuation Context

Valued at $5.68B, ACI is classified as a mid-cap stock. Analyst price targets span from $10.00 to $19.00, with a consensus of $13.36. At the current price of $11.70, that implies approximately 14% upside potential. Relative to its peer group, ACI's quantitative score of 56/100 is roughly in line with the peer average of 59/100.

ACI Revenue & Earnings Trend

In Q1 FY2026, ACI generated $24.94B in top-line revenue, marking a sequential increase of 23.2%. The company recorded net income of $84.7M, with diluted EPS of $0.17. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Consumer Defensive company. Across the four most recent quarters, ACI averaged $0.02 in diluted EPS.

Company Profile

Albertsons Companies, Inc. operates in the Grocery Stores industry within the Consumer Defensive sector. It is headquartered in Boise, US. The company is led by CEO Susan Morris. ACI has traded publicly since 2020.

Return on equity for Albertsons Companies, Inc. stands at 8.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.8%, showing how much profit it generates from its asset base. ACI trades at a trailing price-to-earnings ratio of 36.60, above the Consumer Defensive sector average of ~27.60x. Its free cash flow yield is 27.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.86 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 2.7%, the inverse of the P/E and a quick read on earnings relative to price.

Albertsons Companies, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.31 places it in the safe zone, indicating low near-term bankruptcy risk.

Albertsons Companies, Inc. has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 4.9% above estimates on average.

Wall Street analysts project Albertsons Companies, Inc. revenue of about $81.84B for fiscal 2027, with EPS near $1.79. The estimate reflects 13 contributing analysts.

Over the past six months, Albertsons Companies, Inc. insiders filed 94 SEC Form 4 transactions — 0 sales and 94 purchases. On net that is roughly 1.2M shares acquired (about $2.5M) — insiders putting money in tends to read as conviction.

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