TSX:ATD.B

Stock Analysis Report

Alimentation Couche-Tard

Executive Summary

Alimentation Couche-Tard Inc. operates and licenses convenience stores.

Snowflake

Fundamentals

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

How has Alimentation Couche-Tard's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

TSX:ATD.B

0.3%

CA Consumer Retailing

0.4%

CA Market


1 Year Return

35.6%

TSX:ATD.B

15.0%

CA Consumer Retailing

-1.9%

CA Market

ATD.B outperformed the Consumer Retailing industry which returned 12.1% over the past year.

ATD.B outperformed the Market in Canada which returned -2% over the past year.


Share holder returns

ATD.BIndustryMarket
7 Day-0.7%0.3%0.4%
30 Day-3.3%-0.2%-0.03%
90 Day2.7%3.5%-1.7%
1 Year36.4%35.6%23.0%15.0%1.5%-1.9%
3 Year38.9%36.4%23.2%11.9%18.7%8.3%
5 Year176.8%169.6%91.8%68.1%15.8%-0.3%

Price Volatility Vs. Market

How volatile is Alimentation Couche-Tard's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

33%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Alimentation Couche-Tard is poor value based on expected growth next year.


Price Based on Value of Assets

Alimentation Couche-Tard is overvalued based on assets compared to the CA Consumer Retailing industry average.


Next Steps

Future Growth

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

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Alimentation Couche-Tard's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Alimentation Couche-Tard's earnings are expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

Alimentation Couche-Tard's revenue growth is positive but not above the Canada market average.

Alimentation Couche-Tard's earnings growth is positive but not above the Canada market average.

Alimentation Couche-Tard's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Alimentation Couche-Tard is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

17.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 is less than its 5-year average (9.9% vs 17.3%)

Alimentation Couche-Tard's earnings growth has not exceeded the CA Consumer Retailing industry average in the past year (9.9% vs 9.9%).


Return on Equity

Alimentation Couche-Tard has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Alimentation Couche-Tard used its assets more efficiently than the CA Consumer Retailing industry average last year based on Return on Assets.


Return on Capital Employed

Alimentation Couche-Tard's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Alimentation Couche-Tard's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Alimentation Couche-Tard's level of debt (78.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (67.2% vs 78.5% today).

Debt is well covered by operating cash flow (42.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

0.74%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Alimentation Couche-Tard's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.06%).

Alimentation Couche-Tard's dividend is below the markets top 25% of dividend payers in Canada (5.72%).

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

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.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Brian Hannasch

4.8yrs

Tenure

US$8,768,891

Compensation

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 ...


CEO Compensation Analysis

Brian's remuneration is about average for companies of similar size in Canada.

Brian's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

70yo

Average Age

The tenure for the Alimentation Couche-Tard management team is about average.


Board Age and Tenure

6.6yrs

Average Tenure

70yo

Average Age

The tenure for the Alimentation Couche-Tard board of directors is about average.


Insider Trading

Alimentation Couche-Tard individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$126,21812 Jul 19
Jean Élie
EntityIndividual
Role
Member of the Board of Directors
Shares1,500
Max PriceCA$84.15
SellCA$5,602,25217 Apr 19
Brian Hannasch
EntityIndividual
Role
President
Member of the Board of Directors
Shares75,000
Max PriceCA$80.88
BuyCA$132,12027 Dec 18
Eric Boyko
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceCA$66.06
BuyCA$102,31513 Dec 18
Suzanne Poirier
EntityIndividual
Shares1,500
Max PriceCA$68.21
SellCA$141,80202 Nov 18
Jean Élie
EntityIndividual
Role
Member of the Board of Directors
Shares2,250
Max PriceCA$63.02
BuyCA$74,29118 Oct 18
Ina Strand
EntityIndividual
Shares1,200
Max PriceCA$61.91
SellCA$9,914,80727 Sep 18
Richard Fortin
EntityIndividual
Role
Co-Founder & Corporate Director
Member of the Board of Directors
Shares151,000
Max PriceCA$65.88
SellCA$1,592,13120 Sep 18
Richard Fortin
EntityIndividual
Role
Co-Founder & Corporate Director
Member of the Board of Directors
Shares24,000
Max PriceCA$66.34
SellCA$1,659,75019 Sep 18
Richard Fortin
EntityIndividual
Role
Co-Founder & Corporate Director
Member of the Board of Directors
Shares25,000
Max PriceCA$66.39
BuyCA$40,35018 Sep 18
Darrell Davis
EntityIndividual
Shares9,000
Max PriceCA$4.48
SellCA$991,95018 Sep 18
Richard Fortin
EntityIndividual
Role
Co-Founder & Corporate Director
Member of the Board of Directors
Shares15,000
Max PriceCA$66.13
SellCA$4,412,23411 Sep 18
Brian Hannasch
EntityIndividual
Role
President
Member of the Board of Directors
Shares71,457
Max PriceCA$66.23
BuyCA$15,88411 Sep 18
Brian Hannasch
EntityIndividual
Role
President
Member of the Board of Directors
Shares3,543
Max PriceCA$4.48
SellCA$2,165,12908 Aug 18
Réal Plourde
EntityIndividual
Role
Co-Founder & Corporate Director
Member of the Board of Directors
Shares35,900
Max PriceCA$60.31
SellCA$2,956,31107 Aug 18
Réal Plourde
EntityIndividual
Role
Co-Founder & Corporate Director
Member of the Board of Directors
Shares49,100
Max PriceCA$60.21
SellCA$660,55006 Aug 18
Réal Plourde
EntityIndividual
Role
Co-Founder & Corporate Director
Member of the Board of Directors
Shares11,000
Max PriceCA$60.05
SellCA$60,10031 Jul 18
Réal Plourde
EntityIndividual
Role
Co-Founder & Corporate Director
Member of the Board of Directors
Shares1,000
Max PriceCA$60.10
SellCA$3,191,13030 Jul 18
Réal Plourde
EntityIndividual
Role
Co-Founder & Corporate Director
Member of the Board of Directors
Shares53,000
Max PriceCA$60.21
SellCA$600,90030 Jul 18
Fondation Ariane Riou et Réal Plourde, Endowment Arm
EntityCompany
Shares10,000
Max PriceCA$60.09

Ownership Breakdown


Management Team

  • Réal Plourde

    Co-Founder & Corporate Director

    • Compensation: $178.97k
  • Richard Fortin (70yo)

    Co-Founder & Corporate Director

    • Compensation: $183.91k
  • Alain Bouchard (70yo)

    Co-Founder & Executive Chairman

    • Compensation: $4.84m
  • Christine Anagnostou

    Corporate Secretariat & Legal Counsel

  • Deb Lefevre

    Chief Technology Officer

    • Tenure: 0.5yrs
    • Compensation: $2.30m
  • Jean Ayas

    Manager of Investor Relations

  • Kevin Lewis

    Chief Marketing Officer

    • Tenure: 2.0yrs
    • Compensation: $2.29m
  • Brian Hannasch

    President

    • Tenure: 4.8yrs
    • Compensation: $8.77m
  • Jacques D'Amours

    Co-Founder & Corporate Director

    • Tenure: 39.5yrs
    • Compensation: $101.99k
  • Claude Tessier (55yo)

    Chief Financial Officer

    • Tenure: 3.5yrs
    • Compensation: $2.09m

Board Members

  • Réal Plourde

    Co-Founder & Corporate Director

    • Tenure: 31.5yrs
    • Compensation: $178.97k
  • Richard Fortin (70yo)

    Co-Founder & Corporate Director

    • Tenure: 31.5yrs
    • Compensation: $183.91k
  • Mélanie Kau

    Lead Director

    • Tenure: 1.8yrs
    • Compensation: $171.47k
  • Alain Bouchard (70yo)

    Co-Founder & Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: $4.84m
  • Nathalie Bourque

    Independent Corporate Director

    • Tenure: 7.3yrs
    • Compensation: $117.47k
  • Brian Hannasch

    President

    • Tenure: 5.5yrs
    • Compensation: $8.77m
  • Jacques D'Amours

    Co-Founder & Corporate Director

    • Tenure: 31.5yrs
    • Compensation: $101.99k
  • Dan Rabinowicz

    Independent Corporate Director

    • Tenure: 5.8yrs
    • Compensation: $112.75k
  • Eric Boyko (49yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: $57.66k
  • Jean Élie (75yo)

    Independent Corporate Director

    • Tenure: 20.5yrs
    • Compensation: $148.75k

Company Information

Alimentation Couche-Tard Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alimentation Couche-Tard Inc.
  • Ticker: ATD.B
  • Exchange: TSX
  • Founded: 1980
  • Industry: food retail
  • Sector: consumer retailing
  • Market Cap: CA$44.837b
  • Shares outstanding: 564.18m
  • Website: Click here

Number of Employees


Location

  • Alimentation Couche-Tard Inc.
  • 4204 Industriel Boulevard
  • Laval
  • Quebec
  • H7L 0E3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATD.BTSX (The Toronto Stock Exchange)YesClass B Subordinate Voting SharesCACADJun 1995
ANCU.FOTCPK (Pink Sheets LLC)YesClass B Subordinate Voting SharesUSUSDJun 1995
CJADB (Deutsche Boerse AG)YesClass B Subordinate Voting SharesDEEURJun 1995
ATD.ATSX (The Toronto Stock Exchange)Class A Multiple Voting SharesCACADNov 1990
ANCT.FOTCPK (Pink Sheets LLC)Class A Multiple Voting SharesUSUSDNov 1990

Biography

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 stati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/24 01:09
End of Day Share Price2019/07/23 00:00
Earnings2019/04/28
Annual Earnings2019/04/28


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.