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 19 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ATD had positive earnings in the past year.
In the past year ATD had a positive cash flow from operations.
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
With an excellent Return On Assets value of 6.94%, ATD belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
ATD has a better Return On Equity (18.44%) than 89.47% of its industry peers.
With a decent Return On Invested Capital value of 9.98%, ATD is doing good in the industry, outperforming 78.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATD is above the industry average of 8.58%.
| 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 Profit Margin of 3.53%. This is in the better half of the industry: ATD outperforms 78.95% of its industry peers.
In the last couple of years the Profit Margin of ATD has grown nicely.
With a Operating Margin value of 5.11%, ATD perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
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: 73.68% 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
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.
ATD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.05 indicates that ATD is not in any danger for bankruptcy at the moment.
ATD has a Altman-Z score of 4.05. This is in the better half of the industry: ATD outperforms 73.68% of its industry peers.
The Debt to FCF ratio of ATD is 5.32, which is a neutral value as it means it would take ATD, 5.32 years of fcf income to pay off all of its debts.
ATD has a Debt to FCF ratio of 5.32. This is in the better half of the industry: ATD outperforms 73.68% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that ATD is somewhat dependend on debt financing.
ATD has a Debt to Equity ratio of 0.89. This is in the better half of the industry: ATD outperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 5.32 | ||
| Altman-Z | 4.05 |
ROIC/WACC1.45
WACC6.87%
2.3 Liquidity
A Current Ratio of 0.99 indicates that ATD may have some problems paying its short term obligations.
The Current ratio of ATD (0.99) is worse than 78.95% of its industry peers.
A Quick Ratio of 0.69 indicates that ATD may have some problems paying its short term obligations.
ATD has a worse Quick ratio (0.69) than 63.16% 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 -13.74% in the last year.
ATD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.10% yearly.
ATD shows a small growth in Revenue. In the last year, the Revenue has grown by 6.62%.
ATD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.22% yearly.
EPS 1Y (TTM)-13.74%
EPS 3Y4.68%
EPS 5Y11.1%
EPS Q2Q%-9.76%
Revenue 1Y (TTM)6.62%
Revenue growth 3Y14.82%
Revenue growth 5Y3.22%
Sales Q2Q%5.96%
3.2 Future
ATD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.62% yearly.
The Revenue is expected to grow by 2.50% on average over the next years.
EPS Next Y4.7%
EPS Next 2Y8.17%
EPS Next 3Y8.67%
EPS Next 5Y11.62%
Revenue Next Year8.87%
Revenue Next 2Y6.18%
Revenue Next 3Y4.62%
Revenue Next 5Y2.5%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 18.34, ATD is valued on the expensive side.
ATD's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. ATD is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.05 indicates a correct valuation of ATD.
The rest of the industry has a similar Price/Forward Earnings ratio as ATD.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, ATD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 15.05 |
4.2 Price Multiples
ATD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ATD is more expensive than 78.95% of the companies in the same industry.
ATD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ATD is more expensive than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.61 | ||
| EV/EBITDA | 10.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ATD may justify a higher PE ratio.
PEG (NY)3.91
PEG (5Y)1.65
EPS Next 2Y8.17%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
ATD has a Yearly Dividend Yield of 1.10%.
Compared to an average industry Dividend Yield of 1.55, ATD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, ATD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of ATD is nicely growing with an annual growth rate of 23.55%!
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)23.55%
Div Incr Years3
Div Non Decr Years3
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 2Y8.17%
EPS Next 3Y8.67%
TSX:ATD (2/21/2025, 7:00:00 PM)
70.26
-0.78 (-1.1%)
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 Cap66.61B
Analysts78.26
Price Target91.11 (29.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.46
Dividend Growth(5Y)23.55%
DP19.18%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)-0.16%
PT rev (3m)-1.46%
EPS NQ rev (1m)-1.82%
EPS NQ rev (3m)-6.91%
EPS NY rev (1m)-2.88%
EPS NY rev (3m)-2.69%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 15.05 | ||
| P/S | 0.64 | ||
| P/FCF | 17.61 | ||
| P/OCF | 9.76 | ||
| P/B | 3.36 | ||
| P/tB | 13.16 | ||
| EV/EBITDA | 10.38 |
EPS(TTM)3.83
EY5.45%
EPS(NY)4.67
Fwd EY6.64%
FCF(TTM)3.99
FCFY5.68%
OCF(TTM)7.2
OCFY10.24%
SpS109.15
BVpS20.92
TBVpS5.34
PEG (NY)3.91
PEG (5Y)1.65
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 | 4.05 |
F-Score4
WACC6.87%
ROIC/WACC1.45
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)-13.74%
EPS 3Y4.68%
EPS 5Y11.1%
EPS Q2Q%-9.76%
EPS Next Y4.7%
EPS Next 2Y8.17%
EPS Next 3Y8.67%
EPS Next 5Y11.62%
Revenue 1Y (TTM)6.62%
Revenue growth 3Y14.82%
Revenue growth 5Y3.22%
Sales Q2Q%5.96%
Revenue Next Year8.87%
Revenue Next 2Y6.18%
Revenue Next 3Y4.62%
Revenue Next 5Y2.5%
EBIT growth 1Y-10.89%
EBIT growth 3Y1.91%
EBIT growth 5Y8.61%
EBIT Next Year55.82%
EBIT Next 3Y20.63%
EBIT Next 5Y15.1%
FCF growth 1Y9.89%
FCF growth 3Y0.11%
FCF growth 5Y8.2%
OCF growth 1Y17.77%
OCF growth 3Y5.64%
OCF growth 5Y9.33%