TSX:ATD.B

Stock Analysis Report

Alimentation Couche-Tard

Executive Summary

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


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.6%

ATD.B

2.6%

CA Consumer Retailing

1.1%

CA Market


1 Year Return

-13.9%

ATD.B

-3.0%

CA Consumer Retailing

-22.9%

CA Market

Return vs Industry: ATD.B underperformed the Canadian Consumer Retailing industry which returned -3% over the past year.

Return vs Market: ATD.B exceeded the Canadian Market which returned -22.9% over the past year.


Shareholder returns

ATD.BIndustryMarket
7 Day4.6%2.6%1.1%
30 Day-17.3%-9.1%-17.3%
90 Day-19.9%-7.0%-23.4%
1 Year-13.4%-13.9%-1.7%-3.0%-20.4%-22.9%
3 Year16.1%14.0%19.3%8.5%-12.7%-20.8%
5 Year40.4%36.5%32.7%17.7%0.1%-14.9%

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?

35.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATD.B (CA$34.66) is trading below our estimate of fair value (CA$54.04)

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 (13.3x) compared to the Consumer Retailing industry average (16.3x).

PE vs Market: ATD.B is poor value based on its PE Ratio (13.3x) compared to the Canadian market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: ATD.B is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: ATD.B is overvalued based on its PB Ratio (2.8x) compared to the CA Consumer Retailing industry average (1.1x).


Next Steps

Future Growth

How is Alimentation Couche-Tard forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATD.B's forecast earnings growth (4.8% per year) is above the savings rate (1.4%).

Earnings vs Market: ATD.B's earnings (4.8% per year) are forecast to grow slower than the Canadian market (5.2% per year).

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

Revenue vs Market: ATD.B's revenue (1.3% per year) is forecast to grow slower than the Canadian market (3.3% per year).

High Growth Revenue: ATD.B's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATD.B's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

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

16.9%

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 (3.6%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: ATD.B's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: ATD.B's earnings growth over the past year (7.2%) is below its 5-year average (16.9% per year).

Earnings vs Industry: ATD.B earnings growth over the past year (7.2%) exceeded the Consumer Retailing industry 7%.


Return on Equity

High ROE: ATD.B's Return on Equity (20.7%) is considered high.


Next Steps

Financial Health

How is Alimentation Couche-Tard's financial position?


Financial Position Analysis

Short Term Liabilities: ATD.B's short term assets ($5.4B) exceed its short term liabilities ($4.4B).

Long Term Liabilities: ATD.B's short term assets ($5.4B) do not cover its long term liabilities ($10.4B).


Debt to Equity History and Analysis

Debt Level: ATD.B's debt to equity ratio (65.1%) is considered high.

Reducing Debt: ATD.B's debt to equity ratio has increased from 47.9% to 65.1% 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 (8.9x coverage).


Balance Sheet


Next Steps

Dividend

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

0.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ATD.B's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.68%).

High Dividend: ATD.B's dividend (0.79%) is low compared to the top 25% of dividend payers in the Canadian market (8.42%).


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

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Brian Hannasch

5.58s

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 ($USD6.67M) is about average for companies of similar size in the Canadian market ($USD6.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alain Bouchard
Co-Founder & Executive Chairman5.58yrsUS$5.03m1.22% $476.0m
Brian Hannasch
President5.58yrsUS$9.42m0.057% $22.1m
Jacques D'Amours
Co-Founder & Corporate Director32.25yrsUS$113.17k1.47% $573.0m
Richard Fortin
Co-Founder & Corporate Director32.25yrsUS$194.02k0.80% $310.1m
Réal Plourde
Co-Founder & Corporate Director32.25yrsUS$188.15k1.99% $773.3m
Claude Tessier
Chief Financial Officer4.25yrsUS$2.17m0.0016% $626.7k
Kevin Lewis
Chief Marketing Officer2.75yrsUS$2.13m0.000010% $3.9k
Timothy Miller
Executive Vice President of Commercial Optimization4.17yrsUS$1.91m0.00049% $190.7k
Deborah L. Lefevre
Chief Technology Officer1.25yrsUS$2.30m0.000060% $23.4k
Jean Ayas
Manager of Investor Relationsno datano datano data

4.2yrs

Average Tenure

53yo

Average Age

Experienced Management: ATD.B's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alain Bouchard
Co-Founder & Executive Chairman5.58yrsUS$5.03m1.22% $476.0m
Brian Hannasch
President5.58yrsUS$9.42m0.057% $22.1m
Jacques D'Amours
Co-Founder & Corporate Director32.25yrsUS$113.17k1.47% $573.0m
Richard Fortin
Co-Founder & Corporate Director32.25yrsUS$194.02k0.80% $310.1m
Réal Plourde
Co-Founder & Corporate Director32.25yrsUS$188.15k1.99% $773.3m
Jean Bernier
Corporate Director0.58yrUS$1.90m0.0028% $1.1m
Eric Boyko
Independent Director2.58yrsUS$127.54k0.0019% $720.1k
Nathalie Bourque
Independent Corporate Director8.08yrsUS$131.15k0.0078% $3.0m
Mélanie Kau
Lead Director2.58yrsUS$207.20kno data
Daniel Rabinowicz
Independent Corporate Director6.58yrsUS$125.45k0.0014% $560.5k

6.4yrs

Average Tenure

66yo

Average Age

Experienced Board: ATD.B's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$38.924b
  • 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 Analysis2020/04/07 05:07
End of Day Share Price2020/04/06 00:00
Earnings2020/02/02
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.