ALIMENTATION COUCHE-TARD INC (ATD.CA) Stock Fundamental Analysis
TSX:ATD - Toronto Stock Exchange - CA01626P1484 - Common Stock - Currency: CAD
Overall ATD gets a fundamental rating of 5 out of 10. We evaluated ATD against 17 industry peers in the Consumer Staples Distribution & Retail industry. ATD scores excellent on profitability, but there are some minor concerns on its financial health. ATD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATD was profitable.
In the past year ATD had a positive cash flow from operations.
ATD had positive earnings in each of the past 5 years.
ATD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ATD has a Return On Assets of 7.09%. This is amongst the best in the industry. ATD outperforms 94.12% of its industry peers.
ATD has a Return On Equity (18.26%) which is in line with its industry peers.
The Return On Invested Capital of ATD (10.09%) is better than 88.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATD is above the industry average of 7.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.09% | ||
| ROE | 18.26% | ||
| ROIC | 10.09% |
ROA(3y)9.03%
ROA(5y)9.16%
ROE(3y)22.29%
ROE(5y)22.49%
ROIC(3y)12.06%
ROIC(5y)12.01%
1.3 Margins
ATD has a Profit Margin of 3.50%. This is in the better half of the industry: ATD outperforms 76.47% of its industry peers.
ATD's Profit Margin has improved in the last couple of years.
ATD has a Operating Margin (5.08%) which is in line with its industry peers.
ATD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 17.35%, ATD is doing worse than 82.35% of the companies in the same industry.
In the last couple of years the Gross Margin of ATD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.08% | ||
| PM (TTM) | 3.5% | ||
| GM | 17.35% |
OM growth 3Y-11.24%
OM growth 5Y5.22%
PM growth 3Y-12.65%
PM growth 5Y4.9%
GM growth 3Y-7.55%
GM growth 5Y2.35%
2. Health
2.1 Basic Checks
ATD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ATD has less shares outstanding
ATD has less shares outstanding than it did 5 years ago.
ATD has a worse debt/assets ratio than last year.
2.2 Solvency
ATD has an Altman-Z score of 4.19. This indicates that ATD is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.19, ATD belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
ATD has a debt to FCF ratio of 5.50. This is a neutral value as ATD would need 5.50 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.50, ATD is doing good in the industry, outperforming 70.59% of the companies in the same industry.
ATD has a Debt/Equity ratio of 0.87. This is a neutral value indicating ATD is somewhat dependend on debt financing.
The Debt to Equity ratio of ATD (0.87) is better than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 4.19 |
ROIC/WACC1.42
WACC7.13%
2.3 Liquidity
ATD has a Current Ratio of 0.98. This is a bad value and indicates that ATD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.98, ATD is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
A Quick Ratio of 0.65 indicates that ATD may have some problems paying its short term obligations.
ATD's Quick ratio of 0.65 is on the low side compared to the rest of the industry. ATD is outperformed by 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ATD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.20%.
The Earnings Per Share has been growing by 11.10% on average over the past years. This is quite good.
The Revenue has grown by 9.19% in the past year. This is quite good.
Measured over the past years, ATD shows a small growth in Revenue. The Revenue has been growing by 3.22% on average per year.
EPS 1Y (TTM)-10.2%
EPS 3Y4.68%
EPS 5Y11.1%
EPS Q2Q%4.62%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y14.82%
Revenue growth 5Y3.22%
Sales Q2Q%6.53%
3.2 Future
Based on estimates for the next years, ATD will show a small growth in Earnings Per Share. The EPS will grow by 5.92% on average per year.
The Revenue is expected to grow by 2.78% on average over the next years.
EPS Next Y-0.16%
EPS Next 2Y3.85%
EPS Next 3Y6.76%
EPS Next 5Y5.92%
Revenue Next Year6.97%
Revenue Next 2Y5.6%
Revenue Next 3Y4.45%
Revenue Next 5Y2.78%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.15, which indicates a rather expensive current valuation of ATD.
Compared to the rest of the industry, the Price/Earnings ratio of ATD indicates a somewhat cheap valuation: ATD is cheaper than 64.71% of the companies listed in the same industry.
ATD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.15.
ATD is valuated correctly with a Price/Forward Earnings ratio of 16.36.
ATD's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.60. ATD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 16.36 |
4.2 Price Multiples
70.59% of the companies in the same industry are cheaper than ATD, based on the Enterprise Value to EBITDA ratio.
ATD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ATD is more expensive than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.6 | ||
| EV/EBITDA | 10.11 |
4.3 Compensation for Growth
ATD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.63
EPS Next 2Y3.85%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
ATD has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.
ATD's Dividend Yield is comparable with the industry average which is at 1.51.
Compared to an average S&P500 Dividend Yield of 2.42, ATD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of ATD is nicely growing with an annual growth rate of 23.55%!
ATD has paid a dividend for at least 10 years, which is a reliable track record.
ATD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)23.55%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
19.18% of the earnings are spent on dividend by ATD. This is a low number and sustainable payout ratio.
ATD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.18%
EPS Next 2Y3.85%
EPS Next 3Y6.76%
TSX:ATD (6/30/2025, 7:00:00 PM)
67.69
-1.21 (-1.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners33.34%
Inst Owner ChangeN/A
Ins Owners18.67%
Ins Owner ChangeN/A
Market Cap64.17B
Analysts80.91
Price Target84.59 (24.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend0.63
Dividend Growth(5Y)23.55%
DP19.18%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.73%
Min EPS beat(2)-4.27%
Max EPS beat(2)-1.18%
EPS beat(4)0
Avg EPS beat(4)-3.25%
Min EPS beat(4)-5.39%
Max EPS beat(4)-1.18%
EPS beat(8)3
Avg EPS beat(8)2.49%
EPS beat(12)5
Avg EPS beat(12)1.97%
EPS beat(16)8
Avg EPS beat(16)3.71%
Revenue beat(2)0
Avg Revenue beat(2)-3.93%
Min Revenue beat(2)-5.53%
Max Revenue beat(2)-2.33%
Revenue beat(4)2
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-5.53%
Max Revenue beat(4)2.54%
Revenue beat(8)3
Avg Revenue beat(8)-1.94%
Revenue beat(12)5
Avg Revenue beat(12)-0.9%
Revenue beat(16)9
Avg Revenue beat(16)-0.15%
PT rev (1m)-1.35%
PT rev (3m)-5.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.51%
EPS NY rev (1m)0%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 16.36 | ||
| P/S | 0.63 | ||
| P/FCF | 18.6 | ||
| P/OCF | 9.86 | ||
| P/B | 3.31 | ||
| P/tB | 12.14 | ||
| EV/EBITDA | 10.11 |
EPS(TTM)3.73
EY5.51%
EPS(NY)4.14
Fwd EY6.11%
FCF(TTM)3.64
FCFY5.38%
OCF(TTM)6.87
OCFY10.15%
SpS106.81
BVpS20.45
TBVpS5.58
PEG (NY)N/A
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.09% | ||
| ROE | 18.26% | ||
| ROCE | 12.78% | ||
| ROIC | 10.09% | ||
| ROICexc | 10.74% | ||
| ROICexgc | 17.13% | ||
| OM | 5.08% | ||
| PM (TTM) | 3.5% | ||
| GM | 17.35% | ||
| FCFM | 3.41% |
ROA(3y)9.03%
ROA(5y)9.16%
ROE(3y)22.29%
ROE(5y)22.49%
ROIC(3y)12.06%
ROIC(5y)12.01%
ROICexc(3y)12.89%
ROICexc(5y)13.35%
ROICexgc(3y)19.55%
ROICexgc(5y)20.21%
ROCE(3y)15.27%
ROCE(5y)15.21%
ROICexcg growth 3Y-6.79%
ROICexcg growth 5Y-2.56%
ROICexc growth 3Y-8.97%
ROICexc growth 5Y-1.97%
OM growth 3Y-11.24%
OM growth 5Y5.22%
PM growth 3Y-12.65%
PM growth 5Y4.9%
GM growth 3Y-7.55%
GM growth 5Y2.35%
F-Score6
Asset Turnover2.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 108.51% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 6.61 | ||
| Cash Conversion | 81.73% | ||
| Profit Quality | 97.42% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 4.19 |
F-Score6
WACC7.13%
ROIC/WACC1.42
Cap/Depr(3y)111.7%
Cap/Depr(5y)105.9%
Cap/Sales(3y)2.66%
Cap/Sales(5y)2.65%
Profit Quality(3y)90.83%
Profit Quality(5y)95.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.2%
EPS 3Y4.68%
EPS 5Y11.1%
EPS Q2Q%4.62%
EPS Next Y-0.16%
EPS Next 2Y3.85%
EPS Next 3Y6.76%
EPS Next 5Y5.92%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y14.82%
Revenue growth 5Y3.22%
Sales Q2Q%6.53%
Revenue Next Year6.97%
Revenue Next 2Y5.6%
Revenue Next 3Y4.45%
Revenue Next 5Y2.78%
EBIT growth 1Y-7.8%
EBIT growth 3Y1.91%
EBIT growth 5Y8.61%
EBIT Next Year52.22%
EBIT Next 3Y19.55%
EBIT Next 5Y13.59%
FCF growth 1Y-3.27%
FCF growth 3Y0.11%
FCF growth 5Y8.2%
OCF growth 1Y14.21%
OCF growth 3Y5.64%
OCF growth 5Y9.33%