* Note: Prices are in Million (M) USD.
Description:
Albertsons Companies, Inc. participates in the pharmacy and food operation in the United States.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $151 M
Debt : $14,314 M
EBITDA : $3,893 M
Net Debt (Debt - Cash): $14,163 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Retail trade
Industry: Convenience stores
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 8.96
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 13 overlapping fiscal years (max 20).Average Free Cash Flow: $481 M
Average Revenue: $56,242 M
Revenue Converted To Free Cash Flow (%): 0.9%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-02-28): $80,391 M
Revenue 4 Years Ago (2021-02-28): $69,690 M
Last 5 Years Average Revenue Growth: 3%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-02-28): $584 M
Share Count 5 Years Ago (2021-02-28): $578 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.20
Trailing 12-Month Earnings Per Share (EPS): $2.10
Average Earnings Per Share (EPS): $2.15
Dividend Per Share (DPS): $1
Payout Ratio: 25%
Dividend Yield: 3%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 12 valid ROE years (max 20).Average ROE: 25.3%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $19
52-Week Low: $17
Threshold Price (15% Above 52-Week Low): $19
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $10,743 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 21 points to above Albertsons Companies (ACI) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• ROE Based PE
30.24 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 5 Years Avg P/E (8.00)
× EPS ($2.15) = $17.20.
Last 5 Years Avg PE 8, Fair Value PE 15, Industry Based PE 20, Growth Based PE 3, RCFC Based PE 10.68, ROE Based PE 30.24, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 14.86. Value-Trades has assined P/E value 14.86. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.15.
The fair value of Albertsons Companies (ACI) stock should be (14.86 x $2.15) = $31.94.
