A Look at Couche-Tard's (TSX:ATD) Valuation After Strong Earnings, Dividend Hike, and Share Buyback Update

Alimentation Couche-Tard (TSX:ATD) grabbed investor attention this week after reporting higher second-quarter earnings, increasing its dividend, and completing a significant tranche of its ongoing share buyback program. These moves highlight steady growth and shareholder returns.

See our latest analysis for Alimentation Couche-Tard.

Following these positive announcements, Alimentation Couche-Tard’s share price has rebounded sharply, notching a 9.45% return over the last week and gaining more than 10% in the past three months. While the stock’s one-year total shareholder return is slightly negative, its steady long-term total return, up nearly 27% in three years and 78% in five years, underscores a resilient performance. Recent momentum may signal renewed investor optimism.

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With shares still trading at a notable discount to analyst targets and intrinsic value, yet following a strong rally, investors may wonder whether Couche-Tard is undervalued or if the market is already pricing in brighter days ahead.

Most Popular Narrative: 11.2% Undervalued

Alimentation Couche-Tard’s most widely followed valuation narrative sees the stock’s fair value as moderately above the recent close. This suggests the company could be one of the more interesting bargains in its sector. The outlook reflects expectations grounded in operating momentum and analyst optimism that extends beyond short-term performance.

Strong focus on convenience, digital engagement, and high-margin offerings is driving same-store sales, customer retention, and sustained margin improvements. Expansion via acquisitions, new store openings, and alternative energy investments is broadening revenue streams and building long-term operational resilience.

Read the complete narrative.

Why are so many analysts optimistic? The explanation centers on a roadmap that includes top-line growth, rising profitability, and an ambitious outlook for margins and future multiples. Interested in how this valuation blends new catalysts with optimistic assumptions? Click through to explore what gives this narrative its edge.

Result: Fair Value of $85.30 (UNDERVALUED)

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

However, persistent declines in fuel sales and intensifying competition could challenge Couche-Tard’s growth story if these pressures accelerate in coming quarters.

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

Build Your Own Alimentation Couche-Tard Narrative

If you want to dig deeper or challenge these conclusions, it’s quick and easy to uncover your own insights and shape your own view. Do it your way.

A great starting point for your Alimentation Couche-Tard research is our analysis highlighting 3 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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