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ACI Albertsons Companies, Inc. - Fundamental Analysis

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ACI Stock | Fundamental Analysis & Investment Insights
NYSE Consumer Defensive Grocery Stores
Current Price Live
$17.06
Analyst Target
$22.0
+29.0% Upside
52W High
$23.2
52W Low
$15.8

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AI Analysis

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Confidence Score
65%
Analysis Accuracy
ACI's deterministic health score is weak, with a Piotroski F-Score of 4/9 indicating borderline financial stability and no available Altman Z-Score to assess bankruptcy risk. Despite a low forward P/E of 7.42 and a Graham Number of $12.95 suggesting overvaluation, the stock trades at $17.06, implying market optimism. Strong ROE of 29.65% and consistent earnings beats contrast with declining earnings growth and high leverage (Debt/Equity: 6.17), while insider selling and bearish technicals weigh on sentiment. Analysts recommend a 'buy' with a $22.00 target, but financial health concerns and mixed momentum create a balanced outlook.

Key Strengths

High ROE of 29.65% indicates strong return on equity relative to peers
Consistent earnings beat rate: 3 out of last 4 quarters exceeded estimates
Attractive dividend yield of 3.49% with sustainable 38.96% payout ratio
Forward P/E of 7.42 is significantly below sector average of 33.52
Analyst recommendation is 'buy' with a $22.00 average target price

Key Risks

Piotroski F-Score of 4/9 indicates weak financial health and operational instability
Extremely high Debt/Equity ratio of 6.17 raises solvency and refinancing risks
Current Ratio of 0.91 and Quick Ratio of 0.16 signal near-term liquidity pressure
Earnings growth declining YoY (-20.30%) and QoQ (-26.80%) despite recent EPS surprises
Insider selling activity: $7.58M in sales over last 6 months with no buys
AI Fair Value Estimate
Based on comprehensive analysis
$12.95
-24.1% below current price

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