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ACIAlbertsons Companies, Inc.
$11.95$5.9B
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  4. Financial Ratios

Albertsons Companies, Inc. (ACI) Financial Ratios

Latest Ratios: P/E Ratio 29.9x · EV/EBITDA 6.2x · ROE 8.3%. (2014–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

ACI Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$5.9B$9.8B$12.0B$11.9B$10.6B$13.9B$9.3B————
Enterprise Value$21.0B$24.9B$25.9B$26.0B$25.2B$26.2B$23.6B————
P/E Ratio →29.8844.7512.539.198.7610.8011.00————
P/S Ratio0.070.120.150.150.140.190.13————
P/B Ratio3.565.333.544.346.594.587.06————
P/FCF11.1018.5816.0118.9615.177.274.11————
P/OCF2.474.144.484.483.723.942.40————

P/E links to full P/E history page with 30-year chart

ACI EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.300.320.330.320.360.34————
EV / EBITDA6.247.426.405.755.285.536.33————
EV / EBIT29.2932.2516.3512.4710.5210.2314.22————
EV / FCF—47.2134.5441.3335.9513.7410.41————

ACI Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin25.1%25.1%27.7%27.8%28.0%28.8%29.3%28.2%27.9%27.3%27.9%
Operating Margin0.9%0.9%1.9%2.6%3.0%3.4%2.3%2.3%1.3%-0.1%1.0%
Net Profit Margin0.3%0.3%1.2%1.6%1.9%2.3%1.2%0.7%0.2%0.1%-0.6%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE8.3%8.3%31.3%59.5%65.3%74.5%47.2%25.0%9.2%3.3%-25.0%
ROA0.8%0.8%3.3%4.5%5.1%5.4%3.0%1.9%0.6%0.2%-1.6%
ROIC3.1%3.1%6.8%9.4%11.0%11.8%7.6%7.8%4.9%-0.3%3.5%
ROCE3.5%3.5%7.1%9.9%10.8%10.8%7.4%7.6%4.6%-0.3%3.3%

ACI Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity8.338.334.195.189.325.0612.136.447.308.979.00
Debt / EBITDA4.564.563.513.163.153.234.303.974.196.815.11
Net Debt / Equity—8.224.105.119.034.0810.806.236.638.488.11
Net Debt / EBITDA4.504.503.433.113.052.603.833.843.816.444.61
Debt / FCF—28.6318.5322.3720.796.486.2933.1229.57—27.89
Interest Coverage1.531.533.374.105.915.313.111.881.07-0.120.50

ACI Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.860.860.900.840.741.001.020.971.211.221.18
Quick Ratio0.200.200.220.180.180.460.390.230.370.340.41
Cash Ratio0.030.030.050.030.060.360.260.080.190.140.22
Asset Turnover—3.112.742.752.702.342.372.292.812.662.51
Inventory Turnover12.0412.0411.6511.5711.6911.3711.4610.3110.079.859.64
Days Sales Outstanding—4.093.793.343.232.852.893.073.533.753.86

ACI Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield4.9%3.3%2.5%2.3%39.3%1.5%1.0%————
Payout Ratio148.4%148.4%30.8%21.3%275.7%12.8%11.0%——540.0%—

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield3.3%2.2%8.0%10.9%11.4%9.3%9.1%————
FCF Yield9.0%5.4%6.2%5.3%6.6%13.8%24.3%————
Buyback Yield25.3%15.1%0.7%0.3%0.4%0.2%20.1%————
Total Shareholder Yield30.2%18.4%3.1%2.6%39.7%1.7%21.1%————
Shares Outstanding—$547M$584M$581M$534M$475M$578M$580M$581M$584M$584M

Key Metrics

Growth RegimeDecelerating
ProfitabilityStrained
Balance SheetStrained
Cash FlowStable
Top Statement Risk

Elevated leverage and margin compression

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Margin Squeeze Reflects Structural Pressures

Gross margin fell to 26.6% in Q1 FY2026 from 27.1% a year earlier, per company filings, while operating margin contracted to 1.1%, indicating persistent cost pressures.

The 26.6% gross margin in Q1 FY2026 is below the 27-28% range seen in FY2024, suggesting ACI is unable to fully pass through input cost inflation. Operating margin of 1.1% is razor-thin, leaving little buffer for wage or commodity shocks. The Q4 FY2025 operating loss of -2.4% highlights the fragility of the model, though Q1 FY2026's recovery to positive territory suggests some stabilization. Investors should monitor whether gross margin erosion is cyclical or structural, as the company's high fixed-cost base amplifies any revenue softness.

Return on Capital Decays Amid Rising Debt

ROIC fell to 1.2% in Q1 FY2026 from 2.1% a year earlier, as reported in financial statements, while ROE swung to 4.9% from 7.2%, reflecting a shrinking equity base.

ROIC of 1.2% is well below the cost of capital, indicating that ACI is not generating sufficient returns on its invested capital. The decline from 2.1% in Q1 FY2025 suggests deteriorating operational efficiency, compounded by a rising debt load. ROE of 4.9% is artificially flattered by the shrinking equity base (down to $1.6B), masking the underlying weakness in earnings power. The negative ROE in Q4 FY2025 (-22.2%) underscores the volatility in returns, driven by one-time charges and margin compression. Without a meaningful improvement in operating margins, returns on capital are likely to remain subpar.

Working Capital Efficiency Holds Steady

Cash conversion cycle improved to 11 days in Q1 FY2026 from 10 days a year earlier, per SEC filings, with DSO stable at 4 days and DPO at 25 days.

The cash conversion cycle of 11 days is remarkably short, reflecting the grocery model's rapid inventory turnover and favorable payment terms with suppliers. DSO of 4 days indicates minimal receivables, typical for a cash-based retail business. DPO of 25 days suggests ACI is not stretching supplier payments aggressively, which could be a source of liquidity if needed. Asset turnover of 0.93x in Q1 FY2026 is slightly above the trailing average, indicating efficient use of its asset base despite the heavy PPE investment. However, the thin margins mean that even small working capital inefficiencies could have outsized impacts on cash flow.

Leverage Spikes to Critical Levels

Debt-to-equity surged to 9.74 in Q1 FY2026 from 4.19 in Q4 FY2024, per financial statements, while interest coverage fell to 1.48x, indicating heightened refinancing risk.

The debt-to-equity ratio of 9.74 is extreme, driven by a shrinking equity base (down to $1.6B) and total debt of $15.7B. Interest coverage of 1.48x in Q1 FY2026 is barely above 1x, leaving little room for earnings deterioration before debt service becomes a strain. The Q4 FY2025 negative interest coverage (-3.54x) highlights the risk of operating losses. While the company generates strong operating cash flow ($866M in Q1 FY2026), the high leverage limits financial flexibility and increases vulnerability to rising interest rates. Investors should monitor the company's ability to refinance maturing debt, especially if the Kroger merger fails and standalone prospects weaken.

Liquidity Buffer Remains Thin

Current ratio of 0.84 in Q1 FY2026, per company data, indicates current liabilities exceed current assets, with cash of only $293.4M against $15.7B debt.

The current ratio of 0.84 suggests ACI would struggle to cover short-term obligations without relying on operating cash flow or external financing. The quick ratio of 0.21 is particularly low, reflecting heavy inventory dependence and minimal cash reserves. Under a severe stress scenario—such as a prolonged sales decline or a spike in interest rates—the thin liquidity buffer could force asset sales or emergency financing. However, the company's consistent operating cash flow (cumulative $8.4B over ten quarters) provides some cushion, though it is largely committed to debt service and capex. Investors should watch for any deterioration in working capital or access to credit markets.

P/E Misleads on Earnings Power

The trailing P/E of 29.95 is distorted by depressed earnings, while forward P/E of 6.59, per valuation data, better reflects normalized cash generation, but EV/EBITDA of 6.25 is the more reliable metric.

The trailing P/E of 29.95 is misleading because it is based on TTM net income that includes significant one-time charges, such as the Q4 FY2025 loss. The forward P/E of 6.59 appears more reasonable, but it relies on analyst estimates that may not capture the full extent of margin pressure. EV/EBITDA of 6.25 is a more appropriate valuation metric for a capital-intensive grocer, as it normalizes for depreciation and capital structure. However, even this multiple is below peers like Kroger (9.65) and Walmart (20.08), suggesting the market is pricing in significant operational risk. Investors should focus on EV/EBITDA and free cash flow yield rather than P/E, which is distorted by non-recurring items and the company's high leverage.

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Includes 30+ ratios · 12 years · Updated daily

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ACI — Frequently Asked Questions

Quick answers to the most common questions about buying ACI stock.

What is Albertsons Companies, Inc.'s P/E ratio?

Albertsons Companies, Inc.'s current P/E ratio is 29.9x. The historical average is 16.2x. This places it at the 83th percentile of its historical range.

What is Albertsons Companies, Inc.'s EV/EBITDA?

Albertsons Companies, Inc.'s current EV/EBITDA is 6.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.1x.

What is Albertsons Companies, Inc.'s ROE?

Albertsons Companies, Inc.'s return on equity (ROE) is 8.3%. The historical average is 18.0%.

Is ACI stock overvalued?

Based on historical data, Albertsons Companies, Inc. is trading at a P/E of 29.9x. This is at the 83th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Albertsons Companies, Inc.'s dividend yield?

Albertsons Companies, Inc.'s current dividend yield is 4.93% with a payout ratio of 148.4%.

What are Albertsons Companies, Inc.'s profit margins?

Albertsons Companies, Inc. has 25.1% gross margin and 0.9% operating margin.

How much debt does Albertsons Companies, Inc. have?

Albertsons Companies, Inc.'s Debt/EBITDA ratio is 4.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.