Is ACI a high-quality business?

AlphaMadera's AlphaQuality grade scores Albertsons Companies, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how ACI compares to a Buffett-style quality bar.

What is Albertsons Companies, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ACI based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes ACI a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

ACI - Albertsons Companies, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $19.56 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C- 50.5 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C- 47.1

5yr Avg ROIC 8.8% 54/100
Operating Margin Trend -0.61 pp/yr 30/100

Capital Efficiency

Weight: 15%

B 70.0

5yr Avg ROE 61.1% 100/100
5yr Share-Count CAGR 3.6% 14/100

Growth Quality

Weight: 15%

D+ 42.7

5yr Revenue CAGR 3.7% 50/100
5yr EPS CAGR -38.0% 0/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

C+ 61.5

5yr FCF Margin 1.2% 31/100
5yr FCF/NI Conversion 1.07x 99/100

Balance Sheet

Weight: 20%

D 37.4

Net Debt / EBITDA 4.50x 23/100
Interest Coverage (EBIT/Int) 1.42x 19/100
Altman Z-Score 3.42 86/100

Stability

Weight: 15%

C- 49.8

EPS Volatility (σ/μ) 0.74 11/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 0/5 100/100

3 of 4 gurus held; 1 new buy; 2 trimmed; 2 full exits.

Holders: 3 -1
Avg Δ position: -42.5%
New buys: 1
Full exits: 2

Cooperman sold -100%
Laffont new
Wood sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.