Alimentation Couche-Tard Inc.

Convenience shops are owned and operated by Alimentation Couche-Tard Inc. Its convenience stores provide a variety of goods, including cigarettes, groceries, sweets, drinks, fresh food, beer, wine, and aviation fuels as well as stationary engine fuel. Under the Circle K, Couche-Tard, Holiday, Ingo, and Mac brands, the corporation runs a chain of convenience stores.

In addition, it sells lottery tickets, calling and gift cards, postal stamps, bus tickets, and issues money orders in addition to operating ATMs and offering car wash services. As of April 24, 2022, it had 12,166 convenience stores under its control or under license, including 9,808 Circle K-branded stores in Asia, Europe, and North America, as well as about 1,800 stores in Cambodia, Egypt, Guam, Jamaica, Macau, Mexico, New Zealand, Saudi Arabia, the United Arab Emirates, and Vietnam.

Actidev Inc. was the business's previous name before it was renamed Alimentation Couche-Tard Inc. in December 1994. The Canadian company Alimentation Couche-Tard Inc. was established in 1980 and has its headquarters in Laval.

Lately

This Thursday, July 14th, Alimentacion Couche-Tard Inc traded at 52.75, down 0.13 or 0.25 percent from the previous trading session. Looking back, Alimentacion Couche-Tard Inc. dropped 2.41 percent over the previous four weeks. Its price increased by 6.57 percent during the previous 12 months. Based on the previous 21 years of stock performance, Alimentation Couche-Tard has traditionally increased by 32.7 percent during the next 52 weeks.

In 16 of the 21 years, Alimentation Couche-Tard increased over the next 52-week period, giving historical accuracy of 76.19 percent. When investing, they often search for equities that do better than the market as a whole. Additionally, active stock selection might result in extra profits even if it entails risks and necessitates diversification.

Financials

Alimentation Couche-Tard was able to increase its earnings per share at a 20 percent annual rate for a period of half a decade. The EPS rise is more spectacular than the 11 percent annual increase in share price during the same time. So one may get the conclusion that the stock is now being treated with increased caution by the larger market.

For instance, long-term owners of Alimentation Couche-Tard Inc. (TSE: ATD) have seen their shares climb by 71 percent over the past five years, well outpacing the market's return of about 22 percent (not including dividends). However, more recent increases haven't been as strong, with dividends included, shareholders only seeing a 7.7 percent raise.

The net debt to equity ratio of 31% for ATD is regarded as acceptable. Over the last five years, ATD's debt to equity ratio has decreased from 61.4 percent to 48.2 percent. Operating cash flow is sufficient for covering ATD's debt (65.8 percent ). EBIT more than covers ATD's debt interest payments (12.7x coverage).

ATD anticipates profit growth of 8% annually, which is higher than the savings rate (1.6 percent ). Earnings at ATD are anticipated to increase by 8% annually, outpacing the Canadian market (7.2 percent per year).

Dividend

The distinction between total shareholder return (TSR) and share price return should be taken into account when analyzing investment returns. The TSR, based on the supposition that dividends are reinvested, includes the value of any spin-offs or discounted capital raisings in addition to any payouts. It's fair to conclude that for equities that pay a dividend, the TSR provides a more thorough picture. For the previous five years, Alimentation Couche-Tard has had a TSR of 77%.