Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Albertsons Companies, Inc. (ACI)

Company Dividend Discount ModelIndustry: Grocery StoresSector: Consumer Defensive

Valuation Snapshot

Stable Growth$98.80 - $328.79$308.06
Multi-Stage$100.01 - $109.90$104.86
Blended Fair Value$206.46
Current Price$19.06
Upside983.22%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%23.94%0.510.487.210.360.160.000.000.430.000.00
YoY Growth--6.84%-93.38%1,911.57%121.34%0.00%0.00%-100.00%0.00%0.00%-100.00%
Dividend Yield--2.43%2.33%36.28%1.23%0.97%0.00%0.00%2.80%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)977.30
(-) Cash Dividends Paid (M)325.70
(=) Cash Retained (M)651.60
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)195.46122.1673.30
Cash Retained (M)651.60651.60651.60
(-) Cash Required (M)-195.46-122.16-73.30
(=) Excess Retained (M)456.14529.44578.30
(/) Shares Outstanding (M)578.38578.38578.38
(=) Excess Retained per Share0.790.921.00
LTM Dividend per Share0.560.560.56
(+) Excess Retained per Share0.790.921.00
(=) Adjusted Dividend1.351.481.56
WACC / Discount Rate4.59%4.59%4.59%
Growth Rate3.18%4.18%5.18%
Fair Value$98.80$308.06$328.79
Upside / Downside418.36%1,516.26%1,625.02%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)977.301,018.141,060.681,105.011,151.181,199.291,235.26
Payout Ratio33.33%44.66%56.00%67.33%78.67%90.00%92.50%
Projected Dividends (M)325.70454.71593.94744.01905.581,079.361,142.62

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate4.59%4.59%4.59%
Growth Rate3.18%4.18%5.18%
Year 1 PV (M)430.58434.76438.93
Year 2 PV (M)532.57542.95553.42
Year 3 PV (M)631.74650.28669.19
Year 4 PV (M)728.12756.76786.24
Year 5 PV (M)821.79862.39904.59
PV of Terminal Value (M)54,700.5957,403.2560,211.68
Equity Value (M)57,845.4060,650.3963,564.05
Shares Outstanding (M)578.38578.38578.38
Fair Value$100.01$104.86$109.90
Upside / Downside424.73%450.18%476.61%

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