Albertsons Companies, Inc. (NYSE:ACI), a leading grocery retailer in the United States, operates under various banners such as Safeway, Vons, and Jewel-Osco. The company focuses on providing a wide range of grocery products and services, including fresh produce, pharmacy services, and digital shopping options. Albertsons competes with other major grocery chains like Kroger and Walmart.
On July 15, 2025, ACI reported impressive earnings per share (EPS) of $1.63, significantly surpassing the estimated $0.53. This strong performance was accompanied by revenue of approximately $24.88 billion, exceeding the estimated $24.69 billion. The company's robust financial results highlight its ability to outperform market expectations and deliver value to shareholders.
Albertsons' first quarter 2025 results showcased a same-store sales growth of 2.8%, driven by gains in its pharmacy and digital sectors. The company achieved an adjusted EBITDA of $1.11 billion and an adjusted EPS of $0.55. Despite lower profitability compared to the previous year, management raised its fiscal year 2025 same-store sales growth outlook to a range of 2% to 2.75%.
The company's digital transformation is a key driver of growth, with e-commerce revenue increasing by 25% year over year, now representing 9% of total grocery sales. Investments in digital capabilities, proprietary mobile apps, and interactive features are enhancing customer engagement. Albertsons leverages its e-commerce scale and operational efficiencies through a store-based fulfillment model, although its e-commerce penetration still lags behind some peers.
Albertsons' financial metrics indicate a relatively low valuation compared to its earnings, with a price-to-earnings (P/E) ratio of approximately 7.27. The price-to-sales ratio stands at 0.21, and the enterprise value to sales ratio is 0.46. However, the company faces challenges with a high debt-to-equity ratio of 4.44 and a current ratio of 0.82, suggesting potential difficulties in covering short-term liabilities.
