ALIMENTATION COUCHE-TARD INC (ATD.CA) Stock Fundamental Analysis
TSX:ATD - Toronto Stock Exchange - CA01626P1484 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to ATD. ATD was compared to 18 industry peers in the Consumer Staples Distribution & Retail industry. ATD has an excellent profitability rating, but there are some minor concerns on its financial health. ATD is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ATD was profitable.
ATD had a positive operating cash flow in the past year.
In the past 5 years ATD has always been profitable.
Each year in the past 5 years ATD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ATD (6.94%) is better than 88.89% of its industry peers.
Looking at the Return On Equity, with a value of 18.44%, ATD is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
ATD's Return On Invested Capital of 9.98% is amongst the best of the industry. ATD outperforms 88.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATD is above the industry average of 7.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 18.44% | ||
| ROIC | 9.98% |
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 better Profit Margin (3.53%) than 83.33% of its industry peers.
In the last couple of years the Profit Margin of ATD has grown nicely.
ATD's Operating Margin of 5.11% is in line compared to the rest of the industry. ATD outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of ATD has grown nicely.
With a Gross Margin value of 17.21%, ATD is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
ATD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.11% | ||
| PM (TTM) | 3.53% | ||
| GM | 17.21% |
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.
ATD has less shares outstanding than it did 1 year ago.
ATD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ATD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.11 indicates that ATD is not in any danger for bankruptcy at the moment.
ATD has a better Altman-Z score (4.11) than 77.78% of its industry peers.
ATD has a debt to FCF ratio of 5.32. This is a neutral value as ATD would need 5.32 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 5.32, ATD belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
ATD has a Debt/Equity ratio of 0.89. This is a neutral value indicating ATD is somewhat dependend on debt financing.
ATD has a better Debt to Equity ratio (0.89) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 5.32 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.47
WACC6.79%
2.3 Liquidity
ATD has a Current Ratio of 0.99. 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 0.99. This is amonst the worse of the industry: ATD underperforms 88.89% of its industry peers.
ATD has a Quick Ratio of 0.99. 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's Quick ratio of 0.69 is on the low side compared to the rest of the industry. ATD is outperformed by 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for ATD have decreased strongly by -10.20% in the last year.
Measured over the past years, ATD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.10% on average per year.
Looking at the last year, ATD shows a decrease in Revenue. The Revenue has decreased by -3.61% in the last year.
The Revenue has been growing slightly by 3.22% on average over the past years.
EPS 1Y (TTM)-10.2%
EPS 3Y4.68%
EPS 5Y11.1%
EPS Q2Q%4.62%
Revenue 1Y (TTM)-3.61%
Revenue growth 3Y14.82%
Revenue growth 5Y3.22%
Sales Q2Q%6.53%
3.2 Future
ATD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.92% yearly.
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 Year8.28%
Revenue Next 2Y5.42%
Revenue Next 3Y3.94%
Revenue Next 5Y2.78%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ATD is valuated rather expensively with a Price/Earnings ratio of 19.16.
Compared to the rest of the industry, the Price/Earnings ratio of ATD is on the same level as its industry peers.
ATD is valuated rather cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
ATD is valuated rather expensively with a Price/Forward Earnings ratio of 17.24.
Based on the Price/Forward Earnings ratio, ATD is valued a bit cheaper than 61.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ATD to the average of the S&P500 Index (21.38), we can say ATD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 17.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATD is valued a bit more expensive than 72.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATD indicates a slightly more expensive valuation: ATD is more expensive than 61.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.59 | ||
| EV/EBITDA | 10.81 |
4.3 Compensation for Growth
The decent profitability rating of ATD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.73
EPS Next 2Y3.85%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
ATD has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.45, ATD has a dividend in line with its industry peers.
With a Dividend Yield of 1.09, ATD pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
ATD pays out 19.18% 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.
DP19.18%
EPS Next 2Y3.85%
EPS Next 3Y6.76%
TSX:ATD (4/25/2025, 7:00:00 PM)
72.42
+0.19 (+0.26%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners33.93%
Inst Owner ChangeN/A
Ins Owners18.67%
Ins Owner ChangeN/A
Market Cap68.66B
Analysts81.74
Price Target85.75 (18.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0.64
Dividend Growth(5Y)23.55%
DP19.18%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.22%
Min EPS beat(2)-4.27%
Max EPS beat(2)-2.17%
EPS beat(4)0
Avg EPS beat(4)-8.86%
Min EPS beat(4)-23.6%
Max EPS beat(4)-2.17%
EPS beat(8)3
Avg EPS beat(8)1.68%
EPS beat(12)6
Avg EPS beat(12)2.85%
EPS beat(16)8
Avg EPS beat(16)3.72%
Revenue beat(2)1
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-5.53%
Max Revenue beat(2)0.97%
Revenue beat(4)2
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-7.08%
Max Revenue beat(4)2.54%
Revenue beat(8)3
Avg Revenue beat(8)-1.81%
Revenue beat(12)6
Avg Revenue beat(12)-0.47%
Revenue beat(16)9
Avg Revenue beat(16)-0.33%
PT rev (1m)-5.2%
PT rev (3m)-6.04%
EPS NQ rev (1m)-1.66%
EPS NQ rev (3m)-11.69%
EPS NY rev (1m)-4.64%
EPS NY rev (3m)-7.39%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 17.24 | ||
| P/S | 0.68 | ||
| P/FCF | 18.59 | ||
| P/OCF | 10.3 | ||
| P/B | 3.55 | ||
| P/tB | 13.89 | ||
| EV/EBITDA | 10.81 |
EPS(TTM)3.78
EY5.22%
EPS(NY)4.2
Fwd EY5.8%
FCF(TTM)3.9
FCFY5.38%
OCF(TTM)7.03
OCFY9.7%
SpS106.58
BVpS20.42
TBVpS5.21
PEG (NY)N/A
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 18.44% | ||
| ROCE | 12.64% | ||
| ROIC | 9.98% | ||
| ROICexc | 10.79% | ||
| ROICexgc | 17.46% | ||
| OM | 5.11% | ||
| PM (TTM) | 3.53% | ||
| GM | 17.21% | ||
| FCFM | 3.66% |
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-Score4
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 5.32 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 110.09% | ||
| Cap/Sales | 2.94% | ||
| Interest Coverage | 6.39 | ||
| Cash Conversion | 84.8% | ||
| Profit Quality | 103.46% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 4.11 |
F-Score4
WACC6.79%
ROIC/WACC1.47
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)-3.61%
Revenue growth 3Y14.82%
Revenue growth 5Y3.22%
Sales Q2Q%6.53%
Revenue Next Year8.28%
Revenue Next 2Y5.42%
Revenue Next 3Y3.94%
Revenue Next 5Y2.78%
EBIT growth 1Y-10.89%
EBIT growth 3Y1.91%
EBIT growth 5Y8.61%
EBIT Next Year52.9%
EBIT Next 3Y19.37%
EBIT Next 5Y13.59%
FCF growth 1Y9.89%
FCF growth 3Y0.11%
FCF growth 5Y8.2%
OCF growth 1Y17.77%
OCF growth 3Y5.64%
OCF growth 5Y9.33%