TSX:ATD.B

Stock Analysis Report

Alimentation Couche-Tard

Executive Summary

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

Rewards

Trading at 21.3% below its fair value

Earnings are forecast to grow 4.15% per year

Earnings grew by 12.3% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record and fair value.


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

Stable Share Price: ATD.B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

ATD.B

1.8%

CA Consumer Retailing

1.5%

CA Market


1 Year Return

24.1%

ATD.B

14.5%

CA Consumer Retailing

9.8%

CA Market

Return vs Industry: ATD.B exceeded the Canadian Consumer Retailing industry which returned 12.1% over the past year.

Return vs Market: ATD.B exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

ATD.BIndustryMarket
7 Day2.7%1.8%1.5%
30 Day5.3%2.7%2.4%
90 Day13.1%2.4%6.2%
1 Year24.8%24.1%16.1%14.5%13.4%9.8%
3 Year46.7%44.1%33.3%21.3%17.7%7.0%
5 Year94.4%89.2%58.1%40.1%36.5%16.4%

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 compared to its fair value and its price relative to the market?

20.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATD.B (CA$43.79) is trading below our estimate of fair value (CA$55.65)

Significantly Below Fair Value: ATD.B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ATD.B is good value based on its PE Ratio (18.7x) compared to the Consumer Retailing industry average (19x).

PE vs Market: ATD.B is poor value based on its PE Ratio (18.7x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: ATD.B is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: ATD.B is overvalued based on its PB Ratio (3.9x) compared to the CA Consumer Retailing industry average (1.8x).


Next Steps

Future Growth

How is Alimentation Couche-Tard forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATD.B's forecast earnings growth (4.2% per year) is above the savings rate (1.4%).

Earnings vs Market: ATD.B's earnings (4.2% per year) are forecast to grow slower than the Canadian market (10.3% per year).

High Growth Earnings: ATD.B's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATD.B's revenue (3.6% per year) is forecast to grow slower than the Canadian market (5% per year).

High Growth Revenue: ATD.B's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ATD.B's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATD.B has high quality earnings.

Growing Profit Margin: ATD.B's current net profit margins (3.5%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: ATD.B's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: ATD.B's earnings growth over the past year (12.3%) is below its 5-year average (17.1% per year).

Earnings vs Industry: ATD.B earnings growth over the past year (12.3%) exceeded the Consumer Retailing industry -10.8%.


Return on Equity

High ROE: ATD.B's Return on Equity (20.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alimentation Couche-Tard's financial position?


Financial Position Analysis

Short Term Liabilities: ATD.B's short term assets ($4.7B) do not cover its short term liabilities ($5.7B).

Long Term Liabilities: ATD.B's short term assets ($4.7B) do not cover its long term liabilities ($9.7B).


Debt to Equity History and Analysis

Debt Level: ATD.B's debt to equity ratio (66.6%) is considered high.

Reducing Debt: ATD.B's debt to equity ratio has increased from 54.2% to 66.6% over the past 5 years.

Debt Coverage: ATD.B's debt is well covered by operating cash flow (52.7%).

Interest Coverage: ATD.B's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet

Inventory Level: ATD.B has a high level of physical assets or inventory.

Debt Coverage by Assets: ATD.B's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

0.55%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.9%markettop25%5.4%industryaverage1.3%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: ATD.B's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: ATD.B's dividend (0.56%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


Stability and Growth of Payments

Stable Dividend: ATD.B is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: ATD.B is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ATD.B is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATD.B's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


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?

4.0yrs

Average management tenure


CEO

Brian Hannasch 0

5.3yrs

Tenure

US$9,422,166

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

Compensation vs Market: Brian's total compensation ($USD7.21M) is about average for companies of similar size in the Canadian market ($USD7.32M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.0yrs

Average Tenure

55yo

Average Age

Experienced Management: ATD.B's management team is considered experienced (4 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

66yo

Average Age

Experienced Board: ATD.B's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$6,383,74617 Oct 19
Richard Fortin
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Corporate Director
Shares157,000
Max PriceCA$40.66
BuyCA$84,90302 Oct 19
Hans-Olav Høidahl
EntityIndividual
Shares4,200
Max PriceCA$20.21
SellCA$1,244,89926 Sep 19
Richard Fortin
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Corporate Director
Shares30,000
Max PriceCA$41.55
BuyCA$165,76123 Sep 19
Eric Boyko
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceCA$41.44
BuyCA$75,00620 Sep 19
Ina Strand
EntityIndividual
Shares1,800
Max PriceCA$41.67
BuyCA$40,58518 Sep 19
Valery Zamuner
EntityIndividual
Shares1,000
Max PriceCA$40.58
BuyCA$101,78818 Sep 19
Claude Tessier
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,500
Max PriceCA$40.72
BuyCA$43,29511 Sep 19
Valery Zamuner
EntityIndividual
Shares1,000
Max PriceCA$43.30
BuyCA$18,66119 Aug 19
Niall Anderton
EntityIndividual
Shares448
Max PriceCA$41.65
BuyCA$102,90208 Aug 19
Claude Tessier
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,500
Max PriceCA$41.16
BuyCA$103,63623 Jul 19
Stéphane Trudel
EntityIndividual
Shares2,600
Max PriceCA$39.86
SellCA$126,21812 Jul 19
Jean Élie
EntityIndividual
Shares3,000
Max PriceCA$42.07

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Alain Bouchard (70yo)

    Co-Founder & Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: US$5.03m
  • Jacques D'Amours

    Co-Founder & Corporate Director

    • Tenure: 32yrs
    • Compensation: US$113.17k
  • Richard Fortin (70yo)

    Co-Founder & Corporate Director

    • Tenure: 32yrs
    • Compensation: US$194.02k
  • Brian Hannasch

    President

    • Tenure: 5.3yrs
    • Compensation: US$9.42m
  • Réal Plourde

    Co-Founder & Corporate Director

    • Tenure: 32yrs
    • Compensation: US$188.15k
  • Claude Tessier (55yo)

    Chief Financial Officer

    • Tenure: 4yrs
    • Compensation: US$2.17m
  • Deb Lefevre (51yo)

    Chief Technology Officer

    • Tenure: 1yrs
    • Compensation: US$2.30m
  • Alex Miller (46yo)

    Executive Vice President of Commercial Optimization

    • Tenure: 3.9yrs
    • Compensation: US$1.91m
  • Kevin Lewis

    Chief Marketing Officer

    • Tenure: 2.5yrs
    • Compensation: US$2.13m
  • Jean Ayas

    Manager of Investor Relations


    Board Members

    • Alain Bouchard (70yo)

      Co-Founder & Executive Chairman

      • Tenure: 5.3yrs
      • Compensation: US$5.03m
    • Jean Bernier (62yo)

      Corporate Director

      • Tenure: 0.3yrs
      • Compensation: US$1.90m
    • Jacques D'Amours

      Co-Founder & Corporate Director

      • Tenure: 32yrs
      • Compensation: US$113.17k
    • Richard Fortin (70yo)

      Co-Founder & Corporate Director

      • Tenure: 32yrs
      • Compensation: US$194.02k
    • Brian Hannasch

      President

      • Tenure: 5.3yrs
      • Compensation: US$9.42m
    • Réal Plourde

      Co-Founder & Corporate Director

      • Tenure: 32yrs
      • Compensation: US$188.15k
    • Eric Boyko (49yo)

      Independent Director

      • Tenure: 2.3yrs
      • Compensation: US$127.54k
    • Nathalie Bourque

      Independent Corporate Director

      • Tenure: 7.8yrs
      • Compensation: US$117.47k
    • Mélanie Kau

      Lead Director

      • Tenure: 2.3yrs
      • Compensation: US$207.20k
    • Dan Rabinowicz

      Independent Corporate Director

      • Tenure: 6.3yrs
      • Compensation: US$125.45k

    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$49.948b
    • Shares outstanding: 1.12b
    • Website: https://corpo.couche-tard.com

    Number of Employees


    Location

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

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    ATD.ATSX (The Toronto Stock Exchange)Class A Multiple Voting SharesCACADNov 1990
    ANCT.FOTCPK (Pink Sheets LLC)Class A Multiple Voting SharesUSUSDNov 1990
    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

    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 stationary energy, marine fuel, aviation fuel, and chemicals. The company operates its convenience stores chain under various banners, including Circle K, Corner Stone, 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 and car wash services. As of April 28, 2019, it operated and licensed 12,575 convenience stores, which include 9,794 company-operated stores in North America, Ireland, Scandinavia, Poland, the Baltics, and Russia, as well as 2,150 stores, which are operated under the Circle K banner in Cambodia, China, Costa Rica, Egypt, Guam, Honduras, Hong Kong, Indonesia, Macau, Mexico, Mongalia, New Zealand, 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. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 23:31
    End of Day Share Price2020/01/17 00:00
    Earnings2019/10/13
    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.