A Look at Couche-Tard (TSX:ATD)'s Valuation Following Strong Q1 Results and GetGo Acquisition

Alimentation Couche-Tard (TSX:ATD) just posted stronger first-quarter results, showing positive same-store sales globally and a turnaround in U.S. growth. The company also completed its acquisition of nearly 270 GetGo stores.

See our latest analysis for Alimentation Couche-Tard.

Despite volatile periods this year, Alimentation Couche-Tard's latest operational wins have captured some renewed optimism. The stock’s total return over the past year remains slightly negative at -1.6%. However, its three- and five-year total shareholder returns of 17.4% and 61.3% respectively point to steadily compounding long-term value, even as short-term momentum has been somewhat muted.

If today’s news has you thinking bigger about growth stories, this could be the perfect prompt to discover fast growing stocks with high insider ownership

With ATD shares still trading well below analyst targets despite fresh growth signals, it is worth asking whether investors have an attractive entry point now, or if the market has already accounted for the company’s future gains.

Most Popular Narrative: 17.1% Undervalued

With the narrative fair value set at CA$85.29 and the stock recently closing at CA$70.70, there is a notable disconnect between analyst projections and current market pricing. This gap hints at significant drivers underpinning the bullish analyst outlook.

Expansion via acquisitions, new store openings, and alternative energy investments is broadening revenue streams and building long-term operational resilience.

Read the complete narrative.

Want the formula behind that big valuation gap? It is not just about more stores—this narrative leans heavily on future earnings, rising margins, and a market multiple that rivals top industry players. Curious which game-changing numbers anchor that fair value? The answers might surprise you.

Result: Fair Value of $85.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent declines in fuel demand and integration risks from rapid expansion could quickly test whether Couche-Tard's growth narrative holds up in practice.

Find out about the key risks to this Alimentation Couche-Tard narrative.

Build Your Own Alimentation Couche-Tard Narrative

If you want to look under the hood yourself or bring a different perspective, you can independently analyze the numbers and build your own narrative in just a few minutes. Do it your way

A great starting point for your Alimentation Couche-Tard research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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