ALIMENTATION COUCHE-TARD INC (ATD.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ATD - CA01626P1484 - Common Stock
76.87 CAD
-0.69 (-0.89%)
ATD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 17 industry peers in the Consumer Staples Distribution & Retail industry. ATD has an average financial health and profitability rating. ATD does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year ATD was profitable.
- ATD had a positive operating cash flow in the past year.
- Each year in the past 5 years ATD has been profitable.
- In the past 5 years ATD always reported a positive cash flow from operatings.
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.
- ATD has a Return On Equity of 16.93%. This is comparable to the rest of the industry: ATD outperforms 58.82% of its industry peers.
- ATD's Return On Invested Capital of 9.29% is in line compared to the rest of the industry. ATD outperforms 52.94% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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's Profit Margin of 3.60% is fine compared to the rest of the industry. ATD outperforms 76.47% of its industry peers.
- ATD's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 5.29%, ATD perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
- In the last couple of years the Operating Margin of ATD has declined.
- ATD's Gross Margin of 18.54% is on the low side compared to the rest of the industry. ATD is outperformed by 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.
- Compared to 1 year ago, ATD has less shares outstanding
- Compared to 5 years ago, ATD has less shares outstanding
- The debt/assets ratio for ATD has been reduced compared to a year ago.
2.2 Solvency
- ATD has an Altman-Z score of 3.86. This indicates that ATD is financially healthy and has little risk of bankruptcy at the moment.
- ATD has a better Altman-Z score (3.86) than 76.47% of its industry peers.
- The Debt to FCF ratio of ATD is 5.39, which is a neutral value as it means it would take ATD, 5.39 years of fcf income to pay off 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.
- A Debt/Equity ratio of 0.90 indicates that ATD is somewhat dependend on debt financing.
- The Debt to Equity ratio of ATD (0.90) is better than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 5.39 | ||
| Altman-Z | 3.86 |
ROIC/WACC1.28
WACC7.26%
2.3 Liquidity
- A Current Ratio of 0.95 indicates that ATD may have some problems paying its short term obligations.
- With a Current ratio value of 0.95, ATD is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
- A Quick Ratio of 0.66 indicates that ATD may have some problems paying 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
- ATD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
- Measured over the past 5 years, ATD shows a small growth in Earnings Per Share. The EPS has been growing by 6.42% on average per year.
- ATD shows a decrease in Revenue. In the last year, the revenue decreased by -0.70%.
- ATD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.12% yearly.
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.
- Based on estimates for the next years, ATD will show a small growth in Revenue. The Revenue will grow by 2.02% on average per year.
EPS Next Y9.2%
EPS Next 2Y9.94%
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- Based on the Price/Earnings ratio of 20.61, the valuation of ATD can be described as rather expensive.
- ATD's Price/Earnings is on the same level as the industry average.
- ATD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 16.99, the valuation of ATD can be described as correct.
- ATD's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ATD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATD is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ATD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.84 | ||
| EV/EBITDA | 10.79 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ATD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.24
PEG (5Y)3.21
EPS Next 2Y9.94%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.17%, ATD has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.00, ATD has a dividend in line with its industry peers.
- ATD's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
- The dividend of ATD is nicely growing with an annual growth rate of 22.47%!
- 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)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 2Y9.94%
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%.