Alimentation Couche-Tard Inc (ATD) AI Stock Analysis

• Market Cap: C$65.24B
• Dividend Yield: 1.13%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.49
• Revenue Growth: 11.62%
• EPS Growth: -8.08%
• Country: CA
• Employees: 149,000
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Specialty Retail
• EPS (TTM): 0.63
• Shares Outstanding: 948,064,400
• 10 Day Avg. Volume: 1,302,960
• 30 Day Avg. Volume: 1,224,089
• PEG Ratio: 0.76
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.69
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 4.56
• Enterprise Value/Ebitda: 2.51
• 1Y Price Target: C$82.82
• Price Target Upside: 20.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: C$82.00 ▲(19.01%Upside)

Alimentation Couche-Tard Inc shows robust financial performance and strategic flexibility, supported by effective cost management and liquidity enhancement. Mixed technical indicators and fair valuation suggest a balanced risk-return profile. Strategic initiatives are in place to tackle U.S. market challenges, adding to potential growth opportunities.

Positive Factors

Growth Opportunities

Analysts believe the company has some organic growth and M&A opportunities over the medium term.

International Expansion

Momentum is building outside the U.S., which positively impacts the company's valuation.

Regulatory Changes

Europe likely to remain a bright spot with achievable consensus inside sales, benefiting from tobacco law changes and improvement in recently acquired assets.

Negative Factors

Earnings Forecast

The EPS estimate for FQ4/25 has been lowered due to a delay in the Getgo and Hutch acquisitions' close.

M&A Challenges

The transaction does not appear very compelling for ATD shareholders unless synergies are materially higher.

US Market Performance

U.S. industry fuel margin declined 10% quarter over quarter, which was a moderately worse sequential drop than expected.

Alimentation Couche-Tard Inc Business Overview & Revenue Model

Company Description

Alimentation Couche-Tard Inc. operates and licenses convenience stores. Its convenience stores sell tobacco products, grocery items, candies and snacks, beer, wine, beverages, and fresh food offerings; road transportation fuels; and aviation fuels, as well as energy for stationary engines. The company operates its convenience stores chain under the Circle K, Couche-Tard, Holiday, Ingo, and Mac's brands. It is also involved in the sale of lottery tickets, calling and gift cards, postage stamps, and bus tickets; issuance of money orders; and provision of automatic teller machines and car wash services. As of April 24, 2022, it operated and licensed 12,166 convenience stores, which include 9,808 company-operated stores in North America, Europe, and Asia, as well as approximately 1,800 stores operated under the Circle K banner in Cambodia, Egypt, Guam, Guatemala, Honduras, Indonesia, Jamaica, Macau, Mexico, New Zealand, Saudi Arabia, the United Arab Emirates, and Vietnam. The company was formerly known as Actidev Inc. and changed its name to Alimentation Couche-Tard Inc. in December 1994. Alimentation Couche-Tard Inc. was founded in 1980 and is headquartered in Laval, Canada.

How the Company Makes Money

Alimentation Couche-Tard Inc. generates revenue primarily through the sale of merchandise and fuel. The company's convenience stores offer a wide array of products, including food, beverages, snacks, and other everyday items, which contribute significantly to its overall revenue. Fuel sales are another critical revenue stream, as many of its locations provide gasoline and diesel services. The company's earnings are further bolstered by its strategic acquisitions and partnerships, allowing it to expand its market presence and optimize its operations. Couche-Tard benefits from economies of scale and a strong supply chain network, enhancing its profitability and competitive edge in the retail and fuel market.

Alimentation Couche-Tard Inc Financial Statement Overview

Summary

Alimentation Couche-Tard Inc exhibits strong financial health with consistent revenue growth, robust profitability margins, and efficient cash flow generation. The balance sheet reflects a balanced approach to leverage, supporting its growth trajectory in the retail sector. While debt levels are notable, the company’s ability to generate cash flow ensures stability and potential for continued expansion.

Income Statement

Alimentation Couche-Tard Inc demonstrates strong profitability with a gross profit margin of 17.34% and a healthy EBIT margin of 5.10% for TTM (Trailing-Twelve-Months). The net profit margin stands at 3.50%, indicating effective cost management. Revenue increased by 7.10% from the previous year, showcasing robust growth in the retail sector.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.98 and an equity ratio of 38.84%. The return on equity (ROE) is 18.26%, reflecting efficient use of equity to generate profits. Despite high debt levels, the company effectively manages its leverage.

Cash Flow

The free cash flow to net income ratio is 0.97, indicating strong cash conversion. Operating cash flow to net income ratio of 1.84 suggests efficient cash generation from operations. Although free cash flow declined slightly by 12.06% compared to the previous year, the company maintains ample liquidity.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	74.18B	69.26B	71.86B	62.81B	45.76B	54.13B
Gross Profit	12.87B	12.10B	12.05B	11.00B	10.12B	9.73B
EBITDA	6.01B	5.73B	5.82B	5.27B	5.05B	4.55B
Net Income	2.59B	2.73B	3.09B	2.68B	2.71B	2.35B
Balance Sheet
Total Assets	36.57B	36.94B	29.05B	29.59B	28.39B	25.68B
Cash, Cash Equivalents and Short-Term Investments	1.78B	1.87B	929.20M	2.17B	3.03B	3.68B
Total Debt	13.91B	14.47B	9.47B	9.44B	9.60B	10.38B
Total Liabilities	22.23B	23.64B	16.48B	17.15B	16.21B	15.61B
Stockholders Equity	14.20B	13.19B	12.56B	12.44B	12.18B	10.07B
Cash Flow
Free Cash Flow	2.53B	2.87B	2.54B	2.28B	2.86B	2.31B
Operating Cash Flow	4.77B	4.82B	4.34B	3.94B	4.09B	3.72B
Investing Cash Flow	-1.47B	-6.60B	-2.28B	-1.80B	-1.39B	-1.21B
Financing Cash Flow	-2.59B	2.21B	-3.35B	-2.95B	-3.43B	480.70M

Alimentation Couche-Tard Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATD, the sentiment is Negative. The current price of 68.9 is below the 20-day moving average (MA) of 71.79, below the 50-day MA of 71.16, and below the 200-day MA of 73.82, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 15.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ATD.

Alimentation Couche-Tard Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATD	74 Outperform	C$65.24B	18.85	18.50%	1.13%	11.62%	-8.08%
Sector *	62 Neutral	$16.34B	10.69	-6.34%	3.17%	1.66%	-24.46%
CDNTF		$7.47B	17.30	14.70%	2.70%	―	―
CDNAF		$7.51B	12.09	14.70%	3.86%	―	―
PET	78 Outperform	C$2.25B	25.18	99.31%	2.04%	4.61%	3.95%

Alimentation Couche-Tard Inc Corporate Events

Couche-Tard Expands U.S. Commercial Paper Program to $3.5 Billion

Alimentation Couche-Tard Inc. has announced an amendment to its U.S. commercial paper program, increasing the issuance limit from US$2.5 billion to US$3.5 billion. This move is intended to support general corporate purposes and reflects the company’s strategic efforts to enhance its liquidity and financial flexibility. The notes issued under this program will remain senior unsecured obligations, backed by the company’s senior revolving credit facility, which also totals US$3.5 billion, ensuring a robust liquidity backstop for note repayment. This expansion of the commercial paper program is a significant step in strengthening Couche-Tard’s financial position and operational capabilities, potentially impacting its market standing and stakeholder interests.

Alimentation Couche-Tard Reports Positive Q3 2025 Results Amid Market Challenges

Alimentation Couche-Tard Inc. reported a positive third quarter for fiscal year 2025, with net earnings attributable to shareholders reaching $641.4 million, up from $623.4 million in the previous year. The company experienced growth in same-store sales in Canada and Europe, while the U.S. market showed sequential improvement despite challenges from winter storms. The fuel business maintained market share in the U.S., and merchandise and service revenues increased by 5.0%. The company continues to focus on organic growth and acquisitions, marking the one-year anniversary of acquiring assets from TotalEnergies, which has contributed to its performance.