Is It Too Late To Consider Buying Alimentation Couche-Tard Inc. (TSE:ATD)?

Alimentation Couche-Tard Inc. (TSE:ATD) saw a decent share price growth in the teens level on the TSX over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Alimentation Couche-Tard’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Alimentation Couche-Tard

What Is Alimentation Couche-Tard Worth?

Good news, investors! Alimentation Couche-Tard is still a bargain right now. My valuation model shows that the intrinsic value for the stock is CA$79.37, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Alimentation Couche-Tard’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of Alimentation Couche-Tard look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 1.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Alimentation Couche-Tard, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since ATD is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ATD for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ATD. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

It can be quite valuable to consider what analysts expect for Alimentation Couche-Tard from their most recent forecasts. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Alimentation Couche-Tard, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.