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

-0.9%

ATD.B

-2.7%

CA Consumer Retailing

-0.1%

CA Market


1 Year Return

27.6%

ATD.B

25.7%

CA Consumer Retailing

0.9%

CA Market

Return vs Industry: ATD.B exceeded the Canadian Consumer Retailing industry which returned 25.7% over the past year.

Return vs Market: ATD.B exceeded the Canadian Market which returned 0.9% over the past year.


Shareholder returns

ATD.BIndustryMarket
7 Day-0.9%-2.7%-0.1%
30 Day-4.6%-2.5%-2.1%
90 Day-2.6%2.9%-1.6%
1 Year28.4%27.6%34.2%25.7%4.4%0.9%
3 Year20.4%18.2%29.1%18.0%15.5%5.2%
5 Year121.8%115.9%86.9%64.8%25.7%7.5%

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?

19.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ATD.B (CA$39.68) is trading below our estimate of fair value (CA$49.03)

Significantly Undervalued: ATD.B is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ATD.B is good value based on its PE Ratio (17.7x) compared to the Consumer Retailing industry average (20.9x).

PE vs Market: ATD.B is poor value based on its PE Ratio (17.7x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ATD.B is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: ATD.B is overvalued based on its PB Ratio (3.6x) compared to the CA Consumer Retailing industry average (2.1x).


Next Steps

Future Growth

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

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATD.B's forecast earnings growth (4.1% per year) is above the savings rate (1.9%).

Earnings vs Market: ATD.B's earnings (4.1% per year) are forecast to grow slower than the Canadian market (13.2% per year).

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

Revenue vs Market: ATD.B's revenue (5.1% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: ATD.B's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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


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 (8.9%) is below its 5-year average (17.1% per year).

Earnings vs Industry: ATD.B earnings growth over the past year (8.9%) underperformed the Consumer Retailing industry 8.9%.


Return on Equity

High ROE: ATD.B's Return on Equity (19.8%) is considered low.


Return on Assets

ROA vs Industry: ATD.B has a higher Return on Assets than the Consumer Retailing industry average last year.


Return on Capital Employed

ROCE Improving: ATD.B's Return on Capital Employed has declined over the past 3 years.


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 ($5.9B)

Long Term Liabilities: ATD.B's short term assets (4.7B) do not cover its long term liabilities (9.9B)


Debt to Equity History and Analysis

Debt Level: ATD.B's debt to equity ratio (69.6%) is considered high

Reducing Debt: ATD.B's debt to equity ratio has increased from 61% to 69.6% over the past 5 years.

Debt Coverage: ATD.B's debt is well covered by operating cash flow (48.1%).

Interest Coverage: ATD.B's interest payments on its debt are well covered by EBIT (8.6x 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?

0.62%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ATD.B's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: ATD.B's dividend (0.62%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

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 .


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?

3.7yrs

Average management tenure


CEO

Brian Hannasch 0

5.1yrs

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 ($USD7.14M) is about average for companies of similar size in the Canadian market ($USD6.86M).

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


Management Age and Tenure

3.7yrs

Average Tenure

55yo

Average Age

Experienced Management: ATD.B's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

66yo

Average Age

Experienced Board: ATD.B's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: ATD.B insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$1,244,89926 Sep 19
Richard Fortin
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Corporate Director
Shares30,000
Max PriceUS$41.55
BuyUS$165,76123 Sep 19
Eric Boyko
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$41.44
BuyUS$75,00620 Sep 19
Ina Strand
EntityIndividual
Shares1,800
Max PriceUS$41.67
BuyUS$101,78818 Sep 19
Claude Tessier
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,500
Max PriceUS$40.72
BuyUS$40,58518 Sep 19
Valery Zamuner
EntityIndividual
Shares1,000
Max PriceUS$40.58
BuyUS$43,29511 Sep 19
Valery Zamuner
EntityIndividual
Shares1,000
Max PriceUS$43.30
BuyUS$18,66119 Aug 19
Niall Anderton
EntityIndividual
Shares448
Max PriceUS$41.65
BuyUS$102,90208 Aug 19
Claude Tessier
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,500
Max PriceUS$41.16
BuyUS$103,63623 Jul 19
Stéphane Trudel
EntityIndividual
Shares2,600
Max PriceUS$39.86
SellUS$126,21812 Jul 19
Jean Élie
EntityIndividual
Shares3,000
Max PriceUS$42.07
BuyUS$132,12027 Dec 18
Eric Boyko
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$33.03
BuyUS$102,31513 Dec 18
Suzanne Poirier
EntityIndividual
Shares3,000
Max PriceUS$34.11
SellUS$141,80202 Nov 18
Jean Élie
EntityIndividual
Shares4,500
Max PriceUS$31.51
BuyUS$74,29118 Oct 18
Ina Strand
EntityIndividual
Shares2,400
Max PriceUS$30.95

Ownership Breakdown


Management Team

  • Alain Bouchard (70yo)

    Co-Founder & Executive Chairman

    • Tenure: 5.1yrs
    • Compensation: US$5.03m
  • Jacques D'Amours

    Co-Founder & Corporate Director

    • Tenure: 31.8yrs
    • Compensation: US$113.17k
  • Richard Fortin (70yo)

    Co-Founder & Corporate Director

    • Tenure: 31.8yrs
    • Compensation: US$194.02k
  • Brian Hannasch

    President

    • Tenure: 5.1yrs
    • Compensation: US$9.42m
  • Réal Plourde

    Co-Founder & Corporate Director

    • Tenure: 31.8yrs
    • Compensation: US$188.15k
  • Claude Tessier (55yo)

    Chief Financial Officer

    • Tenure: 3.8yrs
    • Compensation: US$2.17m
  • Deb Lefevre (51yo)

    Chief Technology Officer

    • Tenure: 0.8yrs
    • Compensation: US$2.30m
  • Alex Miller (46yo)

    Executive Vice President of Commercial Optimization

    • Tenure: 3.7yrs
    • Compensation: US$1.91m
  • Kevin Lewis

    Chief Marketing Officer

    • Tenure: 2.3yrs
    • Compensation: US$2.13m
  • Jean Ayas

    Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Alain Bouchard (70yo)

    Co-Founder & Executive Chairman

    • Tenure: 5.1yrs
    • Compensation: US$5.03m
  • Jean Bernier (62yo)

    Corporate Director

    • Tenure: 0.08yrs
    • Compensation: US$1.90m
  • Jacques D'Amours

    Co-Founder & Corporate Director

    • Tenure: 31.8yrs
    • Compensation: US$113.17k
  • Richard Fortin (70yo)

    Co-Founder & Corporate Director

    • Tenure: 31.8yrs
    • Compensation: US$194.02k
  • Brian Hannasch

    President

    • Tenure: 5.1yrs
    • Compensation: US$9.42m
  • Réal Plourde

    Co-Founder & Corporate Director

    • Tenure: 31.8yrs
    • Compensation: US$188.15k
  • Eric Boyko (49yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$127.54k
  • Nathalie Bourque

    Independent Corporate Director

    • Tenure: 7.6yrs
    • Compensation: US$117.47k
  • Mélanie Kau

    Lead Director

    • Tenure: 2.1yrs
    • Compensation: US$207.20k
  • Dan Rabinowicz

    Independent Corporate Director

    • Tenure: 6.1yrs
    • 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$44.682b
  • Shares outstanding: 1.13b
  • 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 stati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:32
End of Day Share Price2019/10/15 00:00
Earnings2019/07/21
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.