Added to YB: 2026-07-29
Pitch date: 2026-07-29
ACI [bullish]
Albertsons Companies, Inc.
+0.81%
current return
Author Info
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Company Info
Albertsons Companies, Inc., through its subsidiaries, operates in the food and drug retail industry in the United States.
Market Cap
$6.0B
Pitch Price
$12.28
Price Target
N/A
Dividend
5.49%
EV/EBITDA
4.64
P/E
99.07
EV/Sales
0.26
Sector
Consumer Staples Distribution and Retail
Category
dividend
EVP buys the earnings dip at a grocer ($2mm)
ACI (earnings): Grocer missed hard: sales +0.2% but gross margin -~50bps, operating income -41%, net income -64%; mgmt cut EBITDA/EPS/sales guidance, so the -20% dip left EV/EBITDA at 5.9x (still ~7% below 5Y median—no cheaper). Root cause is low-income consumers trading down to private label and losing share to Walmart/Aldi; price cuts show no volume lift yet, digital growth is margin-dilutive, input costs rising. Q2 EBITDA decline expected similar to Q1, improving in H2. Offsets: 13% total capital return yield, 4.7% dividend, $2bn productivity target over 3yrs (1/3 in FY26); $21bn debt but maturities start 2029. Macro headwinds seen persisting near-term.
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