Albertsons Companies An In-Depth Look At Operations And Financial Standing

February 10, 2025 04:52 AM PST | By Team Kalkine Media
 Albertsons Companies An In-Depth Look At Operations And Financial Standing
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Highlights:

  • Albertsons Companies operates across the U.S. retail food and drug industry, offering a diverse range of products and services.
  • The company boasts a market capitalization of over $12 billion, with a relatively stable stock beta.
  • A high debt-to-equity ratio, coupled with low quick and current ratios, highlights some of the company's financial challenges.

Albertsons Companies Inc. (NYSE:ACI)  is a significant player in the U.S. retail sector, specializing in the operation of food and drug stores. The company operates through various subsidiaries across the United States, offering a broad assortment of grocery products, health and beauty care items, pharmacy services, and general merchandise. Albertsons also manufactures and processes food products for sale within its retail locations.

Financial Overview

With a market capitalization exceeding $12 billion, Albertsons Companies holds a prominent position within the retail space. The company's price-to-earnings ratio is moderate, reflecting its valuation relative to earnings. The price-to-earnings-growth ratio stands at 1.93, indicating a balance between its earnings and growth. Additionally, the company's beta is 0.51, which is below the market average, pointing to less stock price volatility in comparison to broader market movements.

Albertsons maintains a high debt-to-equity ratio, which indicates a reliance on debt to finance a portion of its capital structure. The company's quick ratio is low, which, alongside a current ratio below one, may signal challenges in meeting short-term obligations without resorting to additional financial measures or asset sales.

Business Operations

Albertsons Companies operates extensively within the food and drug retail sector. Its stores offer a wide range of products, including groceries, health and beauty care items, pharmacy services, and general merchandise. The company’s reach within the U.S. market is substantial, with its stores serving customers in numerous states, providing fresh food items, packaged goods, and specialty products.

Additionally, Albertsons manufactures and processes food products for sale in its stores, which allows the company to oversee the quality of the items it offers. This vertical integration helps maintain consistency and control over its product offerings, benefiting both customers and the company.

The pharmacy segment is another vital part of Albertsons’ business model. Its in-store pharmacies provide prescription medications and health products, fulfilling the growing demand for convenient healthcare solutions within retail environments.

Stock Performance and Market Insights

Albertsons' stock performance has experienced fluctuations over the course of the past year, with the stock price reflecting a range between its 52-week low and high. The company’s 50-day and 200-day moving averages indicate periods of variation in the stock’s value, which can reflect broader market trends and shifts in investor sentiment. These financial metrics offer insights into the company's capacity to manage its obligations and working capital.


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