Albertsons Companies, Inc.

Albertsons maintains a highly leveraged capital structure, with long-term debt of $8.41 billion against total equity of $1.84 billion, resulting in a debt-to-equity ratio of 4.58. The current ratio stands at 0.86, indicating that current liabilities exceed current assets, which aligns with the high liquidity risk flag. Cash and equivalents are limited to $198.6 million, while operating cash flow for the fiscal year reached $2.37 billion. The company utilizes an accelerated share repurchase agreement and treasury stock purchases, reflecting active capital return efforts despite the leverage.

Profitability metrics show a return on equity of 11.84% and a return on assets of 0.81%. The net income for FY2025 was $217.4 million on revenue of $83.17 billion, yielding a net margin of approximately 0.26%. Operating income was $727.6 million, suggesting thin operating margins typical of the broadline retail sector. The valuation snapshot indicates a P/E ratio of 28.79 and an EV/EBITDA of 19.89, reflecting market expectations for future leverage reduction or margin expansion.

Revenue is derived primarily from retail sales, with segments including fresh products, non-perishables, pharmacy, and fuel. The company operates across multiple U.S. states, with significant exposure to California, Oregon, and Illinois, as indicated by state-level tax and litigation disclosures. The omnichannel platform includes automated self-checkout and tailored local merchandising, supporting a diversified customer base.

Growth trajectory data from the interim periods shows net sales of $62.92 billion for the 40 weeks ended November 29, 2025, compared to $61.59 billion in the prior year period. Net income for the same 40-week period was $698.2 million, down from $786.8 million year-over-year. The full-year FY2025 revenue of $83.17 billion provides a baseline for assessing annual growth against historical trends.

Risk factors include high liquidity risk due to the current ratio below 1.0 and medium dilution risk from convertible preferred stock and equity-based compensation. Key flags highlight that net cash is negative after subtracting total debt, and source documents mention offering risk. The company faces pending litigation, including opioid settlement frameworks and qui tam lawsuits, which could impact future cash flows.

Recent events include the filing of an 8-K with material items related to Item 2.02, indicating significant corporate developments. Analyst estimates show a mean price target of $16.38 and a median of $14.50, with a mean recommendation of 2.50. The company continues to enhance its omnichannel capabilities and manage pension obligations, as detailed in the filing observations.

Albertsons generated $83.2 billion in FY2025 revenue, demonstrating significant top-line scale within the retail sector.

Albertsons exhibits best-in-class cash conversion at 10.89, significantly exceeding the 1.49 cohort median.

Gross profit reached $22.6 billion in FY2025, indicating stable gross margin performance despite operating pressures.

Long-term debt remained relatively stable at $8.4 billion in FY2025, suggesting manageable leverage growth.

Operating income plummeted to $728 million in FY2025, a severe decline from $1.55 billion in FY2024.

Net income collapsed to $217 million in FY2025, down sharply from $959 million in the prior year.

The company faces high liquidity and credit risk flags, signaling potential financial distress or solvency concerns.

With a debt-to-equity ratio of 4.58, the company carries significantly higher leverage than the 0.47 cohort median.

Revenue $62.92B; Operating income $1.23B.

• ▍Revenue $62.92B
• ▍Operating income $1.23B
• ▍Net margin 1.1%

Revenue $43.80B; Operating income $744.6M.

• ▍Revenue $43.80B
• ▍Operating income $744.6M
• ▍Net margin 0.9%

Revenue $24.88B; Operating income $449.3M.

• ▍Revenue $24.88B
• ▍Operating income $449.3M
• ▍Net margin 1.0%

Revenue $83.17B; Operating income $727.6M.

• ▍Revenue $83.17B
• ▍Operating income $727.6M
• ▍Net margin 0.3%

Revenue $80.39B; Operating income $1.55B.

• ▍Revenue $80.39B
• ▍Operating income $1.55B
• ▍Net margin 1.2%

Revenue $80.39B; Operating income $1.55B.

• ▍Revenue $80.39B
• ▍Operating income $1.55B
• ▍Net margin 1.2%

Revenue $79.24B; Operating income $2.07B.

• ▍Revenue $79.24B
• ▍Operating income $2.07B
• ▍Net margin 1.6%

Revenue $79.24B; Operating income $2.07B.

• ▍Revenue $79.24B
• ▍Operating income $2.07B
• ▍Net margin 1.6%