Investment Thesis
Albertsons demonstrates solid operational profitability with 27.2% gross margins and positive 1.2B operating income, but financial health is strained by high leverage (3.36x debt/equity) and weak liquidity (0.91x current ratio). The massive 17,583.9% revenue increase appears anomalous and requires validation, while modest 1.1% net margins and declining EPS (-26.5% YoY) suggest profitability pressures despite top-line growth.
ACI Strengths
- Strong gross margin of 27.2% indicates effective product pricing and cost management
- Positive operating cash flow of 1.6B supports operational viability and debt servicing
- High ROE of 27.9% demonstrates efficient use of shareholder capital despite leverage
- Positive interest coverage ratio of 3.0x indicates ability to service debt obligations
ACI Risks
- High leverage with debt/equity ratio of 3.36x and long-term debt of 8.4B creates refinancing vulnerability
- Weak liquidity position with current ratio of 0.91x and quick ratio of 0.20x limits financial flexibility
- Declining EPS (-26.5% YoY) and minimal net margin (1.1%) despite revenue growth signal profitability deterioration
- Exceptionally low free cash flow margin of 0.4% leaves minimal cushion for investments or shareholder returns
- Anomalous revenue growth figure (17,583.9% YoY) suggests data quality issues or accounting changes requiring investigation
Key Metrics to Watch
- Free cash flow trend and FCF margin expansion
- Debt/equity ratio reduction and debt refinancing schedule
- Current and quick ratios improvement for liquidity health
- Net margin sustainability and EPS recovery trajectory
- Operating cash flow consistency and capital expenditure efficiency
ACI Financial Metrics
Revenue
$62.9B
Net Income
$698.2M
EPS (Diluted)
$1.25
Free Cash Flow
$236.8M
Total Assets
$27.1B
Cash Position
$195.1M
ACI Profitability Ratios
Gross Margin
27.2%
Operating Margin
2.0%
Net Margin
1.1%
ROE
27.9%
ROA
2.6%
FCF Margin
0.4%
ACI Balance Sheet & Liquidity
Current Ratio
0.91x
Quick Ratio
0.20x
Debt/Equity
3.36x
Debt/Assets
0.0%
Interest Coverage
2.98x
Long-term Debt
$8.4B
Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: Mar 19, 2026 |
Data as of: 2025-11-29 |
Powered by Claude AI