Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell ACI stock, we need to analyze both technical and fundamental factors.

Technical Analysis:

ACI's stock price has been relatively stable recently, with a slight decline in the regular market. The stock closed at $21.15 on 2025-03-10, with a regular market percentage change of -1.44%. The RSI values (RSI_6: 57.43, RSI_12: 56.39, RSI_14: 56.30) suggest that the stock is in a neutral zone, neither overbought nor oversold. The MACD is slightly positive, indicating a weak bullish signal.

Fundamental Analysis:

Albertsons Companies, Inc. (ACI) has shown mixed performance recently. The company has faced challenges due to the termination of its merger with Kroger (KR), which has led to a lawsuit. However, ACI has been focusing on improving its e-commerce capabilities, with an 11% increase in digital sales, which is a positive sign.

The company's financial health is stable, with a net margin of 2.13% and an ROE of 12.55%. However, the debt-to-equity ratio of 4.22 suggests that the company carries significant debt, which could be a concern.

Analyst Sentiment:

Analysts have mixed opinions on ACI. Some analysts have upgraded their ratings, citing the company's potential for growth and profitability, while others have downgraded their ratings due to concerns about market share losses and competitive pressures. The average price target for ACI is $23.42, suggesting a potential upside of approximately 11% from the current price.

Valuation Analysis:

ACI's valuation metrics suggest that the stock might be undervalued. The P/E ratio is lower than the industry average, and the company's focus on improving its operations and expanding its private brand portfolio could lead to future growth.

Conclusion:

Based on the analysis, ACI stock is currently in a neutral position. While there are positive signs such as increased digital sales and a lower P/E ratio, there are also challenges like high debt levels and competitive pressures. It might be wise to hold the stock and monitor the company's progress in improving its operations and managing its debt.

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Price Prediction for ACI Stock in 2025

Based on current trends and analysis, ACI stock is predicted to reach $23.50 by the end of 2025. This forecast is supported by strong sales growth and positive analyst sentiment. However, legal challenges and debt management could impact the stock's performance.

The S1 support level for ACI Stock is $19.94 ,The R1 resistant level for ACI Stock is $21.48.

As of the end of day on 2025-03-14, the price of ACI Stock was $21.08.

The target price for ACI Stock according to analyst rating is 23.09, with the highest price target at 26.00 and the lowest at 19.00. Analysts have a Moderate Buy rating on ACI Stock overall.

The market cap of ACI is $12.2B.

Analysis and Insights

To determine whether ACI is overvalued, we analyze its financial performance, valuation metrics, and market trends.

Valuation Metrics:

ACI's current P/E ratio is 10.35, which is lower than the industry average, suggesting it may not be overvalued. However, the EV/EBITDA of 4.88 indicates a reasonable valuation compared to peers.

Financial Performance:

• Revenue: ACI's revenue has been inconsistent, with Q4 2024 at $18.34B but dropping in subsequent quarters.
• Net Income: Volatile, with a significant drop in Q2 2025, raising concerns about stability.
• Debt-to-Equity Ratio: High at 293.67%, indicating heavy leverage and potential risk.

Profitability and Liquidity:

• Gross Margin: 27.9%, decent but not exceptional.
• ROE: 2.57%, low, indicating weak returns on equity.
• Current Ratio: 0.93, below 1, signaling potential liquidity issues.

Market Trends:

ACI's stock price has been declining, reflecting investor sentiment on its financial health and future prospects.

Conclusion:

While valuation metrics suggest ACI isn't overvalued, inconsistent revenue, high debt, low ROE, and liquidity concerns indicate it is likely overvalued given its fundamentals.

Albertsons Companies, Inc. is a food and drug retailer in the United States. The Company is engaged in the operation of food and drug retail stores that offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel and other items and services in its stores or through digital channels. The Company operates approximately 2,271 stores across 34 states and the District of Columbia under 24 banners including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw's, Star Market, Market Street, Haggen, Kings Food Markets and Balducci's Food Lovers Market. The Company operates approximately 1,722 pharmacies, 1,328 in-store branded coffee shops, 401 associated fuel centers, 22 dedicated distribution centers, 19 manufacturing facilities and various digital platforms. Its own brands include Signature SELECT, Open Nature, Signature Cafe, Lucerne, Waterfront BISTRO, Primo Taglio, Signature Care, Signature Reserve and Value Corner.

The predicted price for ACI stock by 2030 is approximately $30 per share. This forecast is based on moderate growth expectations, considering the company's stable market position and analyst consensus.

ACI has a total of 107300 employees.