ALIMENTATION COUCHE-TARD INC (ATD.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ATD - CA01626P1484 - Common Stock
73.68 CAD
-1.79 (-2.37%)
Overall ATD gets a fundamental rating of 4 out of 10. We evaluated ATD against 17 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of ATD get a neutral evaluation. Nothing too spectacular is happening here. ATD is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- ATD had positive earnings in the past year.
- ATD had a positive operating cash flow in the past year.
- Each year in the past 5 years ATD has been profitable.
- Each year in the past 5 years ATD had a positive operating cash flow.
1.2 Ratios
- ATD's Return On Assets of 6.41% is amongst the best of the industry. ATD outperforms 88.24% of its industry peers.
- The Return On Equity of ATD (16.93%) is comparable to the rest of the industry.
- ATD has a Return On Invested Capital (9.29%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ATD is above the industry average of 8.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 16.93% | ||
| ROIC | 9.29% |
ROA(3y)8.24%
ROA(5y)8.66%
ROE(3y)20.85%
ROE(5y)21.27%
ROIC(3y)11.24%
ROIC(5y)11.67%
1.3 Margins
- ATD has a better Profit Margin (3.60%) than 76.47% of its industry peers.
- In the last couple of years the Profit Margin of ATD has declined.
- ATD has a Operating Margin (5.29%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of ATD has declined.
- ATD has a Gross Margin of 18.54%. This is amonst the worse of the industry: ATD underperforms 88.24% of its industry peers.
- In the last couple of years the Gross Margin of ATD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.29% | ||
| PM (TTM) | 3.6% | ||
| GM | 18.54% |
OM growth 3Y-2.95%
OM growth 5Y-1.83%
PM growth 3Y-6.06%
PM growth 5Y-4.02%
GM growth 3Y0.66%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATD is still creating some value.
- ATD has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ATD has been reduced compared to 5 years ago.
- Compared to 1 year ago, ATD has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.83 indicates that ATD is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.83, ATD is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- ATD has a debt to FCF ratio of 5.39. This is a neutral value as ATD would need 5.39 years to pay back of all of its debts.
- ATD's Debt to FCF ratio of 5.39 is fine compared to the rest of the industry. ATD outperforms 70.59% of its industry peers.
- ATD has a Debt/Equity ratio of 0.90. This is a neutral value indicating ATD is somewhat dependend on debt financing.
- ATD has a better Debt to Equity ratio (0.90) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 5.39 | ||
| Altman-Z | 3.83 |
ROIC/WACC1.28
WACC7.24%
2.3 Liquidity
- ATD has a Current Ratio of 0.95. This is a bad value and indicates that ATD is not financially healthy enough and could expect problems in meeting its short term obligations.
- ATD has a Current ratio of 0.95. This is amonst the worse of the industry: ATD underperforms 88.24% of its industry peers.
- ATD has a Quick Ratio of 0.95. 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 Quick ratio value of 0.66, ATD is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.00% over the past year.
- The Earnings Per Share has been growing slightly by 6.42% on average over the past years.
- Looking at the last year, ATD shows a decrease in Revenue. The Revenue has decreased by -0.70% in the last year.
- The Revenue has been growing slightly by 6.12% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y1.26%
EPS 5Y6.42%
EPS Q2Q%5.41%
Revenue 1Y (TTM)-0.7%
Revenue growth 3Y5.07%
Revenue growth 5Y6.12%
Sales Q2Q%2.65%
3.2 Future
- The Earnings Per Share is expected to grow by 7.92% on average over the next years.
- The Revenue is expected to grow by 2.02% on average over the next years.
EPS Next Y9.17%
EPS Next 2Y9.98%
EPS Next 3Y11.51%
EPS Next 5Y7.92%
Revenue Next Year1.97%
Revenue Next 2Y3.07%
Revenue Next 3Y2.2%
Revenue Next 5Y2.02%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 19.91, ATD is valued on the expensive side.
- ATD's Price/Earnings is on the same level as the industry average.
- ATD is valuated rather cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 16.39, which indicates a correct valuation of ATD.
- ATD's Price/Forward Earnings is on the same level as the industry average.
- ATD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.91 | ||
| Fwd PE | 16.39 |
4.2 Price Multiples
- ATD's Enterprise Value to EBITDA ratio is in line with the industry average.
- ATD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.23 | ||
| EV/EBITDA | 10.62 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.17
PEG (5Y)3.1
EPS Next 2Y9.98%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
- ATD has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
- ATD's Dividend Yield is comparable with the industry average which is at 2.25.
- Compared to the average S&P500 Dividend Yield of 1.82, ATD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
- The dividend of ATD is nicely growing with an annual growth rate of 22.47%!
- ATD has been paying a dividend for at least 10 years, so it has a reliable track record.
- ATD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)22.47%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- ATD pays out 20.22% of its income as dividend. This is a sustainable payout ratio.
- ATD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.22%
EPS Next 2Y9.98%
EPS Next 3Y11.51%
ALIMENTATION COUCHE-TARD INC / ATD.CA FAQ
Can you provide the ChartMill fundamental rating for ALIMENTATION COUCHE-TARD INC?
ChartMill assigns a fundamental rating of 4 / 10 to ATD.CA.
What is the valuation status of ALIMENTATION COUCHE-TARD INC (ATD.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to ALIMENTATION COUCHE-TARD INC (ATD.CA). This can be considered as Overvalued.
What is the profitability of ATD stock?
ALIMENTATION COUCHE-TARD INC (ATD.CA) has a profitability rating of 5 / 10.
Can you provide the financial health for ATD stock?
The financial health rating of ALIMENTATION COUCHE-TARD INC (ATD.CA) is 5 / 10.
How sustainable is the dividend of ALIMENTATION COUCHE-TARD INC (ATD.CA) stock?
The dividend rating of ALIMENTATION COUCHE-TARD INC (ATD.CA) is 5 / 10 and the dividend payout ratio is 20.22%.