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Albertsons is a grocery store chain that operates over 2,200 stores across the United States. Its stock symbol is ACI.
The company has a market capitalization of over $7 billion. It's a significant player in the grocery market.
Albertsons has a strong presence in the western United States, with a large number of stores in California, Arizona, and Nevada.
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Financials
Albertsons Companies Inc reported a revenue of $79.9 billion USD in their earnings waterfall.
Their gross profit was $22.3 billion USD, which is the result of subtracting their cost of revenue of $57.7 billion USD from their revenue.
Albertsons Companies Inc paid a dividend of $0.48 in 2024, with a yield of 2.24%.
Here is a breakdown of their earnings waterfall:
Earnings Waterfall
The Earnings Waterfall is a crucial financial concept that helps us understand how a company's revenue trickles down to its net income. Albertsons Companies Inc, for instance, reported a revenue of $79.9 billion.
Breaking down the revenue, we see that the cost of revenue was a significant chunk at $57.7 billion. This means that for every dollar earned, Albertsons spent about 72 cents on goods and services.
The gross profit is what's left after subtracting the cost of revenue from the revenue. For Albertsons, the gross profit was a healthy $22.3 billion.
Operating expenses, which include things like salaries, rent, and marketing, ate into the gross profit, leaving Albertsons with an operating income of $2.1 billion.
Other expenses, such as interest payments and taxes, further reduced the operating income, resulting in a net income of $1 billion.
Here's a summary of the Earnings Waterfall for Albertsons Companies Inc:
Price History
The price history of Albertsons is a crucial aspect of understanding its financials. The company's stock price has fluctuated over the past 5 years, with its lowest valuation in recent history.
The all-time high Albertsons stock closing price was $36.35 on December 06, 2021. This is a significant milestone in the company's history, indicating a strong performance during that period.
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The average Albertsons stock price for the last 52 weeks is $19.86. This is a relatively stable figure, suggesting that the company's stock price has been consistent over the past year.
Albertsons has experienced a decline in stock price over the past year, with a 14.61% drop in 2024. This is a significant decrease, indicating a challenging period for the company.
Here's a summary of Albertsons' 5-year stock price history:
The company's market capitalization is $11.617 billion, indicating a significant value in the market.
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Companies Dividend Calendar
In the world of finance, understanding a company's dividend calendar can be a crucial tool for investors and shareholders. The dividend calendar is a schedule of the dates when a company pays out dividends to its shareholders.
Albertsons Companies Inc has a consistent dividend payout of $0.48 per share, as seen in their 2024 and 2023 dividend records.
The dividend yield, which is the ratio of the annual dividend payment to the stock's current price, can fluctuate. For example, in 2024, the dividend yield was 2.24%, while in 2023 it was 2.34%.
Looking at the company's dividend history, we can see that the dividend payout has been increasing over the years. In 2022, the dividend payout was $0.44, and in 2021 it was $0.20.
Here's a breakdown of Albertsons Companies Inc's dividend history:
As we can see, Albertsons Companies Inc has a relatively stable dividend payout, which can be attractive to investors looking for a steady income stream.
Valuation
Albertsons stock has been trading at its lowest valuation over the past 5 years. This could be a great opportunity for investors looking to buy in at a low price.
The average 1-year price target for Albertsons Companies Inc. is 23.7 USD, with a low forecast of 19.19 USD and a high forecast of 28.35 USD.
The capitalization of Albertsons Companies, Inc. has fluctuated over time, ranging from 9.4B to 18.75B.
The current P/E ratio for Albertsons Companies, Inc. is 12.4x, and is expected to decrease to 10.7x by 2026.
Here are some key valuation metrics for Albertsons Companies, Inc.:
The Enterprise Value (EV) of Albertsons Companies, Inc. is currently 19.13B, and the EV/Sales ratio is 0.24x.
Analysts' recommendations for Albertsons Companies, Inc. include a Hold rating from Deutsche Bank, a Neutral rating from UBS, and an Outperform rating from RBC.
News and Updates
Albertsons stock has been making headlines lately.
Albertsons Companies, Inc. recently faced mixed prospects amid a positive plan on savings, according to an analysis by RBC.
The company's fiscal Q4 results were soft, but they're still optimistic about their future.
Deutsche Bank trimmed their price target on Albertsons to $20 from $21 and kept a hold rating.
Consumer stocks were higher in late afternoon trading on January 8th.
Here's a quick rundown of some key earnings results for Albertsons:
Sector updates also showed consumer stocks mixed in afternoon trading on January 8th.
Alternatives and Opportunities
If you're considering investing in Albertsons stock, you may want to explore alternatives like Walmart, which is working hard to surpass Amazon as the nation's leading online grocery seller. Industry experts predict online grocery sales will capture 20% of total grocery retail by 2025.
Another brick-and-mortar option is Kroger, the largest supermarket chain in North America. Kroger is one of the country's best companies and best-kept secrets, with less than 5% of stocks with a market capitalization of over $10 billion outperforming its stock in 2020.
Investors looking for growth opportunities may want to consider Albertsons' untapped market in the Southeastern U.S.
Alternatives
If you're looking for alternatives to Albertsons stock, you might consider investing in online grocery sales, which are expected to capture 20% of total grocery retail by 2025 and reach $100 billion in consumer sales.
Industry experts predict that online grocery sales will continue to grow, with Walmart working hard to surpass Amazon as the nation's leading online grocery seller. Walmart sells more groceries in U.S. stores than any other retailer.
You could also consider investing in brick-and-mortar stores, like Kroger, the largest supermarket chain in North America. Kroger is one of the country's best companies and best-kept secrets.
Only about 12% of stocks with a market capitalization of over $10 billion have gone up in 2020, but less than 5% have outperformed Kroger stock. Kroger has gained a healthy 5.6% despite the rough start to 2020.
Opportunities
The grocery industry is a steady performer, with humans needing to eat no matter the state of the stock market. Despite this, Albertsons stock is still a relatively untapped market, particularly in the Southeastern U.S.
Albertsons has a significant growth opportunity in this region. The company has yet to tap into this competitive but lucrative market.
Berkshire Hathaway's recent disclosure of an equity stake in Kroger has put prospective investors on high alert for upcoming listings. This could be a sign of good things to come for Albertsons stock.
Regulatory and Filing Information
The SEC officially approved an IPO for Albertsons, valuing the company around $2 billion.
The IPO is listed under the ticker symbol "ACI" for those interested in buying shares.
Selling shareholders, including private equity firm Cerberus Capital Management, will be able to cash out their investments through the offering.
Albertsons itself won't receive any proceeds from the offering.
The largest listing was by Grocery Outlet Holding Corp., which raised a hefty $435 million.
Industry and Market Analysis
Albertsons dominates the market share in two-thirds of the 121 areas it operates in, ranking first or second in each of those areas. Their revenue has increased from $60 billion in 2018 to $61 billion in 2019.
The company's net income has also seen a significant improvement, jumping from $46 million in 2018 to $400 million in 2019. This impressive growth is a testament to their business strategy and operational efficiency.
Albertsons has managed to reduce its debt, with a net debt of $8.34 billion at the end of November 2019, down from $10.52 billion the previous year. This reduction in debt is a significant achievement, especially considering the company's revenue growth.
Their profit margin, however, remains a concern, standing at 0.8% in 2019, which is relatively low compared to other industries. Despite this, Albertsons' financial performance is still a subject of interest among investors and analysts.
Here's a snapshot of Albertsons' stock performance compared to its peers:
Market
In the grocery industry, market share is a key factor in determining a company's success. Albertsons ranks first or second in market share in two-thirds of the 121 areas in which it operates.
Their revenue has seen a slight increase from $60 billion in 2018 to $61 billion in 2019. However, this increase doesn't necessarily translate to higher profits.
Albertsons has managed to significantly reduce its debt, down from $10.52 billion in 2018 to $8.34 billion in 2019. This reduction is a positive step towards financial stability.
Their net income has also seen a notable increase, from $46 million in 2018 to $400 million in 2019. This represents a profit margin of 0.8%, which is a relatively low margin even by industry standards.
Food Retail & Distribution
Albertsons is facing mixed prospects, with a positive plan on savings but a soft fiscal Q4, according to RBC.
Albertsons' price target has been trimmed to $20 from $21 by Deutsche Bank, which still maintains a hold rating.
The company's stock price has seen a 3.42% increase in the last 5 days, but its 1-year change is a -5.15% decrease.
Here's a snapshot of how Albertsons and other major players in the food retail and distribution industry have performed in the last 5 days:
The weighted average by market capitalization shows a -0.02% change in the last 5 days, but a +63.79% increase over the past 3 years.
Frequently Asked Questions
Is Albertson a good stock to buy?
Albertsons Companies has a Moderate Buy rating, indicating potential growth, but it's essential to research further before making a decision
Does Albertsons have stock?
Yes, Albertsons Companies is publicly traded on the NYSE stock exchange. You can find more information about their stock performance and trading details.
Who owns the most Albertsons stock?
According to TipRanks data, Stephen Feinberg owns the most shares of Albertsons Companies (ACI) stock. He holds a significant portion of the company's shares among all its investors.
Sources
- https://www.alphaspread.com/security/nyse/aci/summary
- https://bullishbears.com/albertsons-stock/
- https://markets.businessinsider.com/stocks/aci-stock
- https://www.macrotrends.net/stocks/charts/ACI/albertsons/stock-price-history
- https://www.marketscreener.com/quote/stock/ALBERTSONS-COMPANIES-INC-27329659/
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