Alimentation Couche-Tard (TSX:ATD) - Share price, News & Analysis

ATD fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

ATD Stock Overview

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

Rewards

Trading at 23.9% below our estimate of its fair value

Earnings have grown 17.4% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of 2.6% per year for the next 3 years

Significant insider selling over the past 3 months

Alimentation Couche-Tard Competitors

Chevron

NYSE:CVX

US$350.3b

ConocoPhillips

NYSE:COP

US$145.4b

Marathon Petroleum

NYSE:MPC

US$55.2b

Valero Energy

NYSE:VLO

US$53.8b

Price History & Performance

Summary of all time highs, changes and price drops for Alimentation Couche-Tard
Historical stock prices
Current Share Price	CA$57.03
52 Week High	CA$59.60
52 Week Low	CA$43.27
Beta	0.91
1 Month Change	0.74%
3 Month Change	11.37%
1 Year Change	28.59%
3 Year Change	37.31%
5 Year Change	75.21%
Change since IPO	311,012.32%

Recent News & Updates

Feb 27

Getting In Cheap On Alimentation Couche-Tard Inc. (TSE:ATD) Is Unlikely

Alimentation Couche-Tard Inc.'s ( TSE:ATD ) price-to-earnings (or "P/E") ratio of 16.1x might make it look like a sell...

Jan 31

Is Now An Opportune Moment To Examine Alimentation Couche-Tard Inc. (TSE:ATD)?

Let's talk about the popular Alimentation Couche-Tard Inc. ( TSE:ATD ). The company's shares saw significant share...

Jan 18

Alimentation Couche-Tard (TSE:ATD) Has More To Do To Multiply In Value Going Forward

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

	ATD	CA Consumer Retailing	CA Market
7D	2.6%	3.1%	2.8%
1Y	28.6%	30.1%	5.7%

Return vs Industry: ATD exceeded the Canadian Consumer Retailing industry which returned 26.7% over the past year.

Return vs Market: ATD exceeded the Canadian Market which returned 4.7% over the past year.

Price Volatility

Is ATD's price volatile compared to industry and market?
ATD volatility
ATD Average Weekly Movement	4.5%
Consumer Retailing Industry Average Movement	4.0%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: ATD is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ATD's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1980	124,000	Brian Hannasch	https://corpo.couche-tard.com

Alimentation Couche-Tard Inc. operates and licenses convenience stores. Its convenience stores sell tobacco products, grocery items, candies and snacks, beer, wine, beverages, and fresh food offerings; road transportation fuels; and aviation fuels, as well as energy for stationary engines. The company operates its convenience stores chain under the Circle K, Couche-Tard, Holiday, Ingo, and Mac’s banners.

Alimentation Couche-Tard Fundamentals Summary

How do Alimentation Couche-Tard's earnings and revenue compare to its market cap?
ATD fundamental statistics
Market Cap	US$46.18b
Earnings (TTM)	US$2.77b
Revenue (TTM)	US$58.61b

16.7x

P/E Ratio

0.8x

P/S Ratio

Is ATD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATD income statement (TTM)
Revenue	US$58.61b
Cost of Revenue	US$47.83b
Gross Profit	US$10.78b
Other Expenses	US$8.01b
Earnings	US$2.77b

Last Reported Earnings

Jan 30, 2022

Next Earnings Date

Jun 29, 2022

Earnings per share (EPS)	2.68
Gross Margin	18.40%
Net Profit Margin	4.73%
Debt/Equity Ratio	49.0%

How did ATD perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

12%

Payout Ratio

Valuation

Is Alimentation Couche-Tard undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

23.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ATD (CA$57.03) is trading below our estimate of fair value (CA$74.94)

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

Price To Earnings Ratio

PE vs Industry: ATD is poor value based on its Price-To-Earnings Ratio (16.7x) compared to the Canadian Consumer Retailing industry average (14x).

PE vs Market: ATD is poor value based on its Price-To-Earnings Ratio (16.7x) compared to the Canadian market (11.5x).

Price to Earnings Growth Ratio

PEG Ratio: ATD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: ATD is overvalued based on its Price-To-Book Ratio (3.6x) compared to the CA Consumer Retailing industry average (2.5x).

Future Growth

How is Alimentation Couche-Tard forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-2.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATD's earnings are forecast to decline over the next 3 years (-2.6% per year).

Earnings vs Market: ATD's earnings are forecast to decline over the next 3 years (-2.6% per year).

High Growth Earnings: ATD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ATD's revenue (2.7% per year) is forecast to grow slower than the Canadian market (6.4% per year).

High Growth Revenue: ATD's revenue (2.7% 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's Return on Equity is forecast to be high in 3 years time

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

17.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ATD has high quality earnings.

Growing Profit Margin: ATD's current net profit margins (4.7%) are lower than last year (6.3%).

Past Earnings Growth Analysis

Earnings Trend: ATD's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: ATD's earnings growth over the past year (1.9%) is below its 5-year average (17.4% per year).

Earnings vs Industry: ATD earnings growth over the past year (1.9%) underperformed the Consumer Retailing industry 10.7%.

Return on Equity

High ROE: ATD's Return on Equity (21.6%) is considered high.

Financial Health

How is Alimentation Couche-Tard's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ATD's short term assets ($7.0B) exceed its short term liabilities ($5.0B).

Long Term Liabilities: ATD's short term assets ($7.0B) do not cover its long term liabilities ($11.1B).

Debt to Equity History and Analysis

Debt Level: ATD's net debt to equity ratio (29.1%) is considered satisfactory.

Reducing Debt: ATD's debt to equity ratio has reduced from 67.7% to 49% over the past 5 years.

Debt Coverage: ATD's debt is well covered by operating cash flow (63.1%).

Interest Coverage: ATD's interest payments on its debt are well covered by EBIT (15x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.76%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ATD's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.87%).

High Dividend: ATD's dividend (0.76%) is low compared to the top 25% of dividend payers in the Canadian market (4.94%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: ATD is not paying a notable dividend for the Canadian market.

Discover strong dividend paying companies

Management

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

5.9yrs

Average management tenure

CEO

Brian Hannasch (53 yo)

7.67yrs

Tenure

US$10,264,360

Compensation

Mr. Brian P. Hannasch has been the Chief Executive Officer and President of Alimentation Couche-Tard Inc. since September 24, 2014. He serves as Independent Director of AutoZone, Inc., since February 2022....

CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD10.26M) is above average for companies of similar size in the Canadian market ($USD7.51M).

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

Leadership Team

Experienced Management: ATD's management team is seasoned and experienced (5.9 years average tenure).

Board Members

Experienced Board: ATD's board of directors are considered experienced (8.5 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/27 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/01/30
Annual Earnings	2021/04/25