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Alimentation Couche-Tard

TSX:ATD.B
Snowflake Description

Proven track record and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ATD.B
TSX
CA$48B
Market Cap
  1. Home
  2. CA
  3. Consumer Retailing
Company description

Alimentation Couche-Tard Inc. operates and licenses convenience stores. The last earnings update was 66 days ago. More info.


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ATD.B Share Price and Events
7 Day Returns
0.2%
TSX:ATD.B
1.2%
CA Consumer Retailing
-1.7%
CA Market
1 Year Returns
54.8%
TSX:ATD.B
25.6%
CA Consumer Retailing
-2.4%
CA Market
ATD.B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Alimentation Couche-Tard (ATD.B) 0.2% 7.4% 15.3% 54.8% 46% 187%
CA Consumer Retailing 1.2% 5.7% 10.4% 25.6% 18.4% 90.6%
CA Market -1.7% -3.5% -0.2% -2.4% 10.4% 3.7%
1 Year Return vs Industry and Market
  • ATD.B outperformed the Consumer Retailing industry which returned 25.6% over the past year.
  • ATD.B outperformed the Market in Canada which returned -2.4% over the past year.
Price Volatility
ATD.B
Industry
5yr Volatility vs Market

Value

 Is Alimentation Couche-Tard undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Alimentation Couche-Tard to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Alimentation Couche-Tard.

TSX:ATD.B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:ATD.B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.26
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.256 (1 + (1- 26.5%) (21.39%))
0.529
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.8 * 5.96%)
6.72%

Discounted Cash Flow Calculation for TSX:ATD.B using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Alimentation Couche-Tard is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:ATD.B DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.72%)
2019 1,960.53 Analyst x4 1,837.17
2020 1,828.92 Analyst x4 1,606.00
2021 1,869.80 Analyst x2 1,538.58
2022 1,922.00 Analyst x1 1,482.01
2023 2,055.00 Analyst x1 1,484.86
2024 2,707.00 Analyst x1 1,832.89
2025 2,957.20 Est @ 9.24% 1,876.30
2026 3,165.80 Est @ 7.05% 1,882.26
2027 3,340.61 Est @ 5.52% 1,861.21
2028 3,489.25 Est @ 4.45% 1,821.70
Present value of next 10 years cash flows $17,222.97
TSX:ATD.B DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $3,489.25 × (1 + 1.95%) ÷ (6.72% – 1.95%)
$74,605.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $74,605.31 ÷ (1 + 6.72%)10
$38,950.68
TSX:ATD.B Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $17,222.97 + $38,950.68
$56,173.65
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $56,173.65 / 564.33
$99.54
TSX:ATD.B Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:ATD.B)
1.345
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $99.54 x 1.345
CA$133.92
Value per share (CAD) From above. CA$133.92
Current discount Discount to share price of CA$84.49
= -1 x (CA$84.49 - CA$133.92) / CA$133.92
36.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Alimentation Couche-Tard is available for.
Intrinsic value
37%
Share price is CA$84.49 vs Future cash flow value of CA$133.92
Current Discount Checks
For Alimentation Couche-Tard to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Alimentation Couche-Tard's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Alimentation Couche-Tard's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Alimentation Couche-Tard's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Alimentation Couche-Tard's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:ATD.B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-03) in USD $3.43
TSX:ATD.B Share Price ** TSX (2019-05-24) in CAD CA$84.49
TSX:ATD.B Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.743 $62.8
Canada Consumer Retailing Industry PE Ratio Median Figure of 6 Publicly-Listed Consumer Retailing Companies 22.1x
Canada Market PE Ratio Median Figure of 544 Publicly-Listed Companies 14.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Alimentation Couche-Tard.

TSX:ATD.B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:ATD.B Share Price ÷ EPS (both in USD)

= 62.8 ÷ 3.43

18.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alimentation Couche-Tard is good value based on earnings compared to the CA Consumer Retailing industry average.
  • Alimentation Couche-Tard is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Alimentation Couche-Tard's expected growth come at a high price?
Raw Data
TSX:ATD.B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-2.4%per year
North America Consumer Retailing Industry PEG Ratio Median Figure of 17 Publicly-Listed Consumer Retailing Companies 2.17x
Canada Market PEG Ratio Median Figure of 250 Publicly-Listed Companies 1.14x

*Line of best fit is calculated by linear regression .

TSX:ATD.B PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.32x ÷ -2.4%

-7.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alimentation Couche-Tard earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Alimentation Couche-Tard's assets?
Raw Data
TSX:ATD.B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-03) in USD $15.62
TSX:ATD.B Share Price * TSX (2019-05-24) in CAD CA$84.49
TSX:ATD.B Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.743 $62.8
Canada Consumer Retailing Industry PB Ratio Median Figure of 12 Publicly-Listed Consumer Retailing Companies 2.14x
Canada Market PB Ratio Median Figure of 2,405 Publicly-Listed Companies 1.41x
TSX:ATD.B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:ATD.B Share Price ÷ Book Value per Share (both in USD)

= 62.8 ÷ 15.62

4.02x

* Primary Listing of Alimentation Couche-Tard.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alimentation Couche-Tard is overvalued based on assets compared to the CA Consumer Retailing industry average.
X
Value checks
We assess Alimentation Couche-Tard's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Alimentation Couche-Tard has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Alimentation Couche-Tard expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alimentation Couche-Tard expected to grow at an attractive rate?
  • Alimentation Couche-Tard's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Alimentation Couche-Tard's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Alimentation Couche-Tard's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:ATD.B Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:ATD.B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -2.4%
TSX:ATD.B Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 2%
Canada Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 16.9%
Canada Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 2.6%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:ATD.B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:ATD.B Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-04-30 3,493
2023-04-30 3,332
2022-04-30 3,165
2021-04-30 3,022
2020-04-30 60,665 2,786 1,853 7
2019-04-30 59,365 2,872 1,876 7
TSX:ATD.B Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-02-03 59,619 3,095 1,935
2018-10-14 58,896 2,553 1,805
2018-07-22 56,334 2,356 1,765
2018-04-29 51,394 2,163 1,674
2018-02-04 47,402 2,038 1,557
2017-10-15 43,026 1,996 1,362
2017-07-23 39,331 2,034 1,251
2017-04-30 37,905 1,926 1,209
2017-01-29 35,679 1,874 1,135
2016-10-09 33,594 1,799 1,122
2016-07-17 33,586 1,901 1,216
2016-04-24 34,145 1,888 1,191

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Alimentation Couche-Tard's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Alimentation Couche-Tard's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:ATD.B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Alimentation Couche-Tard Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ATD.B Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-04-30
2023-04-30
2022-04-30
2021-04-30
2020-04-30 3.29 3.38 3.20 2.00
2019-04-30 3.32 3.42 3.22 2.00
TSX:ATD.B Past Financials Data
Date (Data in USD Millions) EPS *
2019-02-03 3.43
2018-10-14 3.20
2018-07-22 3.12
2018-04-29 2.96
2018-02-04 2.75
2017-10-15 2.40
2017-07-23 2.20
2017-04-30 2.13
2017-01-29 2.00
2016-10-09 1.98
2016-07-17 2.14
2016-04-24 2.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Alimentation Couche-Tard will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Alimentation Couche-Tard's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Alimentation Couche-Tard has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Alimentation Couche-Tard performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Alimentation Couche-Tard's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Alimentation Couche-Tard's year on year earnings growth rate has been positive over the past 5 years.
  • Alimentation Couche-Tard's 1-year earnings growth exceeds its 5-year average (24.4% vs 17.3%)
  • Alimentation Couche-Tard's earnings growth has not exceeded the CA Consumer Retailing industry average in the past year (24.4% vs 24.4%).
Earnings and Revenue History
Alimentation Couche-Tard's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Alimentation Couche-Tard Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ATD.B Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-03 59,619.10 1,934.80 5,609.70
2018-10-14 58,895.90 1,805.10 5,496.70
2018-07-22 56,333.70 1,764.50 5,396.70
2018-04-29 51,394.40 1,673.60 5,112.70
2018-02-04 47,402.20 1,557.20 4,806.80
2017-10-15 43,026.20 1,361.80 4,467.00
2017-07-23 39,331.10 1,250.80 4,194.80
2017-04-30 37,904.50 1,208.90 4,081.60
2017-01-29 35,679.00 1,135.20 4,015.70
2016-10-09 33,594.30 1,122.20 3,893.30
2016-07-17 33,585.60 1,216.40 3,848.00
2016-04-24 34,144.60 1,191.20 3,812.40
2016-01-31 34,033.00 1,113.20 3,712.30
2015-10-11 33,809.70 1,087.20 3,571.80
2015-07-19 34,319.20 957.70 3,470.50
2015-04-26 34,529.90 929.30 3,379.50
2015-02-01 36,202.20 948.20 3,367.90
2014-10-12 38,187.60 882.20 3,423.20
2014-07-20 38,251.20 825.50 3,429.50
2014-04-27 37,962.10 811.20 3,422.50
2014-02-02 37,780.30 812.80 3,415.60
2013-10-13 38,154.20 773.00 3,462.40
2013-07-21 38,432.00 724.80 3,469.60
2013-04-28 35,543.40 572.80 3,238.30
2013-02-03 32,809.10 544.20 2,958.30
2012-10-14 27,947.80 488.80 2,515.60
2012-07-22 23,814.00 421.00 2,218.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Alimentation Couche-Tard has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Alimentation Couche-Tard used its assets more efficiently than the CA Consumer Retailing industry average last year based on Return on Assets.
  • Alimentation Couche-Tard's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Alimentation Couche-Tard's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Alimentation Couche-Tard has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Alimentation Couche-Tard's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Alimentation Couche-Tard's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Alimentation Couche-Tard's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Alimentation Couche-Tard's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Alimentation Couche-Tard's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Alimentation Couche-Tard Company Filings, last reported 3 months ago.

TSX:ATD.B Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-03 9,088.70 7,584.30 690.20
2018-10-14 8,569.60 8,098.80 621.10
2018-07-22 8,138.40 8,600.50 739.40
2018-04-29 7,890.40 9,060.40 668.00
2018-02-04 7,752.40 9,487.20 546.00
2017-10-15 6,953.20 7,852.60 994.80
2017-07-23 6,673.80 8,150.40 1,034.00
2017-04-30 6,009.60 3,666.60 645.20
2017-01-29 5,810.30 3,941.20 614.10
2016-10-09 5,586.10 3,853.90 830.60
2016-07-17 5,274.70 3,116.60 620.90
2016-04-24 5,041.10 3,062.10 599.40
2016-01-31 4,733.50 3,108.80 972.10
2015-10-11 4,692.70 2,448.30 473.10
2015-07-19 4,206.00 3,202.70 818.90
2015-04-26 3,903.00 3,229.90 575.80
2015-02-01 3,972.10 1,870.70 478.00
2014-10-12 4,136.60 2,245.80 594.90
2014-07-20 4,121.30 2,520.90 599.20
2014-04-27 3,976.60 2,680.30 511.10
2014-02-02 3,739.60 2,864.00 549.80
2013-10-13 3,677.70 3,192.40 772.80
2013-07-21 3,365.90 3,418.50 621.70
2013-04-28 3,216.70 3,625.50 658.30
2013-02-03 3,218.90 3,661.90 400.60
2012-10-14 2,920.90 3,810.40 560.20
2012-07-22 2,288.50 4,231.60 520.90
  • Alimentation Couche-Tard's level of debt (83.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (76.4% vs 83.4% today).
  • Debt is well covered by operating cash flow (40.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.5x coverage).
X
Financial health checks
We assess Alimentation Couche-Tard's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Alimentation Couche-Tard has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Alimentation Couche-Tard's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.59%
Current annual income from Alimentation Couche-Tard dividends. Estimated to be 0.74% next year.
If you bought CA$2,000 of Alimentation Couche-Tard shares you are expected to receive CA$12 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Alimentation Couche-Tard's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.05%).
  • Alimentation Couche-Tard's dividend is below the markets top 25% of dividend payers in Canada (5.75%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:ATD.B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Canada Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:ATD.B Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-04-30
2023-04-30
2022-04-30
2021-04-30 0.50 1.00
2020-04-30 0.44 2.00
2019-04-30 0.39 2.00
TSX:ATD.B Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-19 0.370 0.630
2018-11-27 0.293 0.564
2018-09-05 0.301 0.624
2018-07-09 0.301 0.654
2018-03-20 0.270 0.653
2017-11-28 0.275 0.559
2017-09-06 0.279 0.591
2017-07-12 0.282 0.597
2017-03-14 0.262 0.585
2016-11-22 0.265 0.586
2016-08-30 0.228 0.474
2016-07-12 0.234 0.509
2016-03-16 0.202 0.484
2015-11-24 0.185 0.448
2015-09-01 0.164 0.367
2015-07-15 0.166 0.381
2015-03-17 0.139 0.360
2014-11-25 0.141 0.396
2014-09-10 0.157 0.489
2014-09-03 0.163 0.495
2014-07-08 0.146 0.528
2014-03-18 0.119 0.446
2013-11-26 0.119 0.491
2013-08-30 0.111 0.518
2013-07-15 0.095 0.492
2013-03-19 0.095 0.510
2012-11-27 0.097 0.593
2012-09-05 0.099 0.630
2012-07-10 0.098 0.615
2012-03-13 0.096 0.771
2011-11-22 0.095 0.991
2011-08-30 0.078 0.845
2011-07-12 0.084 0.854
2011-03-10 0.067 0.766
2010-11-23 0.065 0.759
2010-08-24 0.050 0.678
2010-07-13 0.050 0.755
2010-03-09 0.049 0.854
2009-11-24 0.043 0.683
2009-08-25 0.042 0.734
2009-07-24 0.042 0.800
2009-07-16 0.042 0.849
2009-07-15 0.042 0.872

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alimentation Couche-Tard is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.
  • Alimentation Couche-Tard is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Alimentation Couche-Tard's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Alimentation Couche-Tard's dividends as it is not paying a notable one for Canada.
Future Payout to shareholders
  • No need to calculate the sustainability of Alimentation Couche-Tard's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Alimentation Couche-Tard's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Alimentation Couche-Tard afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Alimentation Couche-Tard has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Alimentation Couche-Tard's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Hannasch
COMPENSATION $8,768,891
TENURE AS CEO 4.7 years
CEO Bio

Mr. Brian P. Hannasch has been the Chief Executive Officer and President of Alimentation Couche-Tard Inc. since September 24, 2014. Mr. Hannasch served as the Chief Operating Officer of Alimentation Couche-Tard Inc. from May 2010 to September 24, 2014. He joined the Alimentation Couche-Tard Inc. in 2001 and during his 17 years with Alimentation Couche-Tard. He served as Senior Vice President of US Operations at Alimentation Couche-Tard Inc. from May 2008 to 2010. He was responsible for the business units of the Midwest US, Arizona, West Coast US and Western Canada. He served as Senior Vice President of Western North America at Alimentation Couche-tard Inc. from December 2004 to 2008 and its Vice President of Integration from 2003 to December 2004. From 2000 to 2001, Mr. Hannasch served as Vice-President of Operations for Bigfoot Food Stores LLC. He served as Vice President of Operations, U.S. Midwest at Alimentation Couche-Tard Inc. from 2001 to 2004, where he was responsible for all aspects of U.S. operations. From 1989 to 2000, he was employed by BP Amoco in various positions of increasing responsibility. He served as Vice-President of Marketing for the U.S. Midwest Business Unit of BP Amoco. He serves as Chairman of the Board for Statoil Fuel & Retail ASA and has been its Director since July 2, 2012. He has been a Director of Alimentation Couche-Tard Inc since 2014. He has been a Member of the board of directors of the Association for Convenience & Fuel Retailing (NACS) since 2016. Mr. Hannasch was named CEO of the year by The Globe and Mail in 2016. Mr. Hannasch holds a B.A. in Finance from Iowa State University and an MBA in Marketing and Finance from the University of Chicago.

CEO Compensation
  • Brian's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brian's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Alimentation Couche-Tard management team in years:

3.3
Average Tenure
69
Average Age
  • The tenure for the Alimentation Couche-Tard management team is about average.
Management Team

Alain Bouchard

TITLE
Co-Founder & Executive Chairman
COMPENSATION
$5M
AGE
69

Brian Hannasch

TITLE
President
COMPENSATION
$9M
TENURE
4.7 yrs

Jacques D'Amours

TITLE
Co-Founder & Corporate Director
COMPENSATION
$102K
TENURE
39.3 yrs

Richard Fortin

TITLE
Co-Founder & Corporate Director
COMPENSATION
$184K
AGE
69

Réal Plourde

TITLE
Co-Founder & Corporate Director
COMPENSATION
$179K

Claude Tessier

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
54
TENURE
3.3 yrs

Deb Lefevre

TITLE
Chief Information Officer
COMPENSATION
$2M
TENURE
2.1 yrs

Kevin Lewis

TITLE
Chief Marketing Officer
COMPENSATION
$2M
TENURE
1.8 yrs

Jean Ayas

TITLE
Manager of Investor Relations

François Ramsay

TITLE
VP, General Counsel & Secretary
Board of Directors Tenure

Average tenure and age of the Alimentation Couche-Tard board of directors in years:

6.4
Average Tenure
69
Average Age
  • The tenure for the Alimentation Couche-Tard board of directors is about average.
Board of Directors

Alain Bouchard

TITLE
Co-Founder & Executive Chairman
COMPENSATION
$5M
AGE
69
TENURE
4.7 yrs

Brian Hannasch

TITLE
President
COMPENSATION
$9M
TENURE
5.3 yrs

Jacques D'Amours

TITLE
Co-Founder & Corporate Director
COMPENSATION
$102K
TENURE
31.3 yrs

Richard Fortin

TITLE
Co-Founder & Corporate Director
COMPENSATION
$184K
AGE
69
TENURE
31.3 yrs

Réal Plourde

TITLE
Co-Founder & Corporate Director
COMPENSATION
$179K
TENURE
31.3 yrs

Mélanie Kau

TITLE
Lead Director
COMPENSATION
$171K
TENURE
1.7 yrs

Eric Boyko

TITLE
Director
COMPENSATION
$58K
AGE
48
TENURE
1.7 yrs

Jean Élie

TITLE
Independent Corporate Director
COMPENSATION
$149K
AGE
74
TENURE
20.3 yrs

Nathalie Bourque

TITLE
Independent Corporate Director
COMPENSATION
$117K
TENURE
7.2 yrs

Dan Rabinowicz

TITLE
Independent Corporate Director
COMPENSATION
$113K
TENURE
5.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
27. Dec 18 Buy Eric Boyko Individual 27. Dec 18 27. Dec 18 2,000 CA$66.06 CA$132,120
13. Dec 18 Buy Suzanne Poirier Individual 13. Dec 18 13. Dec 18 1,500 CA$68.21 CA$102,315
02. Nov 18 Sell Jean Élie Individual 02. Nov 18 02. Nov 18 -2,250 CA$63.02 CA$-141,802
18. Oct 18 Buy Ina Strand Individual 17. Oct 18 17. Oct 18 1,200 CA$61.91 CA$74,291
27. Sep 18 Sell Richard Fortin Individual 26. Sep 18 27. Sep 18 -151,000 CA$65.88 CA$-9,914,807
19. Sep 18 Sell Richard Fortin Individual 18. Sep 18 18. Sep 18 -25,000 CA$66.39 CA$-1,659,750
20. Sep 18 Sell Richard Fortin Individual 19. Sep 18 19. Sep 18 -24,000 CA$66.34 CA$-1,592,131
18. Sep 18 Sell Richard Fortin Individual 17. Sep 18 17. Sep 18 -15,000 CA$66.13 CA$-991,950
08. Aug 18 Sell Réal Plourde Individual 08. Aug 18 08. Aug 18 -35,900 CA$60.31 CA$-2,165,129
07. Aug 18 Sell Réal Plourde Individual 07. Aug 18 07. Aug 18 -49,100 CA$60.21 CA$-2,956,311
06. Aug 18 Sell Réal Plourde Individual 03. Aug 18 03. Aug 18 -11,000 CA$60.05 CA$-660,550
31. Jul 18 Sell Réal Plourde Individual 30. Jul 18 30. Jul 18 -1,000 CA$60.10 CA$-60,100
30. Jul 18 Sell Fondation Ariane Riou et Réal Plourde, Endowment Arm Company 27. Jul 18 27. Jul 18 -10,000 CA$60.09 CA$-600,900
30. Jul 18 Sell Réal Plourde Individual 27. Jul 18 27. Jul 18 -53,000 CA$60.21 CA$-3,191,130
16. Jul 18 Buy Claude Tessier Individual 13. Jul 18 13. Jul 18 2,800 CA$61.95 CA$173,460
12. Jul 18 Buy Eric Boyko Individual 12. Jul 18 12. Jul 18 2,000 CA$60.93 CA$121,860
X
Management checks
We assess Alimentation Couche-Tard's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Alimentation Couche-Tard has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Are Investors Undervaluing Alimentation Couche-Tard Inc. (TSE:ATD.B) By 36%?

(TSE:ATD.B) as an investment opportunity by taking the foreast future cash flows of the company and discounting them back to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $1.96k $1.83k $1.87k $1.92k $2.06k $2.71k $2.96k $3.17k $3.34k $3.49k Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x2 Analyst x1 Analyst x1 Analyst x1 Est @ 9.24% Est @ 7.05% Est @ 5.52% Est @ 4.45% Present Value ($, Millions) Discounted @ 6.72% $1.84k $1.61k $1.54k $1.48k $1.48k $1.83k $1.88k $1.88k $1.86k $1.82k Present Value of 10-year Cash Flow (PVCF)= $17.22b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.7%.

Simply Wall St -

Should You Be Adding Alimentation Couche-Tard (TSE:ATD.B) To Your Watchlist Today?

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Alimentation Couche-Tard (TSE:ATD.B). … View our latest analysis for Alimentation Couche-Tard How Quickly Is Alimentation Couche-Tard Increasing Earnings Per Share? … You can't deny that Alimentation Couche-Tard has grown its earnings per share at a very impressive rate.

Simply Wall St -

Why Alimentation Couche-Tard Inc.'s (TSE:ATD.B) CEO Pay Matters To You

Brian Hannasch has been the CEO of Alimentation Couche-Tard Inc. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Brian Hannasch's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is Alimentation Couche-Tard Inc.'s (TSE:ATD.B) Balance Sheet Strong Enough To Weather A Storm?

Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as Alimentation Couche-Tard Inc. … Let’s take a look at Alimentation Couche-Tard’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Alimentation Couche-Tard Inc. (TSE:ATD.B) Is Employing Capital Very Effectively

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Have Insiders Been Selling Alimentation Couche-Tard Inc. (TSE:ATD.B) Shares?

Alimentation Couche-Tard Insider Transactions Over The Last Year. … We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price. … In total, Alimentation Couche-Tard insiders sold more than they bought over the last year.

Simply Wall St -

Did You Miss Alimentation Couche-Tard's (TSE:ATD.B) Impressive 141% Share Price Gain?

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, Alimentation Couche-Tard achieved compound earnings per share (EPS) growth of 19% per year.

Simply Wall St -

Why We’re Not Impressed By Alimentation Couche-Tard Inc.’s (TSE:ATD.B) 12% ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Boasting A 22% Return On Equity, Is Alimentation Couche-Tard Inc (TSE:ATD.B) A Top Quality Stock?

Our data shows Alimentation Couche-Tard has a return on equity of 22% for the last year. … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.22 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Estimating The Fair Value Of Alimentation Couche-Tard Inc (TSE:ATD.B)

Does the share price for Alimentation Couche-Tard Inc (TSE:ATD.B) reflect it's really worth? … Today, I will calculate the stock's intrinsic value. … by taking the foreast future cash flows of the company and discounting them back to today's value.

Simply Wall St -

Company Info

Description

Alimentation Couche-Tard Inc. operates and licenses convenience stores. Its convenience stores sell tobacco products, grocery items, beverages, and fresh food offerings; road transportation fuel; and stationary energy, marine fuel, aviation fuel, and chemicals. The company operates its convenience store and road transportation fuel retailing chain under various banners, including Circle K, Couche-Tard, Holiday, Ingo, Mac’s, Re.Store, and Topaz. It is also involved in the sale of lottery tickets, calling cards, gift cards, postage stamps, and bus tickets; issuance of money orders; and provision of automatic teller machines, cashing checks, and car wash services. As at April 30, 2018, it operated and licensed 12,740 convenience stores, which include 9,718 company-operated stores in North America, Ireland, Scandinavia, Poland, the Baltics, and Russia, as well as 2,000 stores, which are operated under the Circle K banner in China, Costa Rica, Egypt, Guam, Honduras, Hong Kong, Indonesia, Macau, Malaysia, Mexico, the Philippines, Saudi Arabia, the United Arab Emirates, and Vietnam. The company was formerly known as Actidev Inc. and changed its name to Alimentation Couche-Tard Inc. in December 1994. Alimentation Couche-Tard Inc. was founded in 1980 and is headquartered in Laval, Canada.

Details
Name: Alimentation Couche-Tard Inc.
ATD.B
Exchange: TSX
Founded: 1980
CA$47,716,118,643
564,334,053
Website: http://corpo.couche-tard.com
Address: Alimentation Couche-Tard Inc.
4204 Industriel Boulevard,
Laval,
Quebec, H7L 0E3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX ATD.B Class B Subordinate Voting Shares The Toronto Stock Exchange CA CAD 22. Jun 1995
OTCPK ANCU.F Class B Subordinate Voting Shares Pink Sheets LLC US USD 22. Jun 1995
DB CJA Class B Subordinate Voting Shares Deutsche Boerse AG DE EUR 22. Jun 1995
TSX ATD.A Class A Multiple Voting Shares The Toronto Stock Exchange CA CAD 06. Nov 1990
OTCPK ANCT.F Class A Multiple Voting Shares Pink Sheets LLC US USD 06. Nov 1990
Number of employees
Current staff
Staff numbers
130,000
Alimentation Couche-Tard employees.
Industry
Food Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 23:32
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/03/19
Last earnings reported: 2019/02/03
Last annual earnings reported: 2018/04/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.