Alimentation Couche-Tard Inc. Fundamental Analysis (TSX: ATD.TO)
Alimentation Couche-Tard Inc. Fundamental Analysis (TSX: ATD.TO)
Alimentation Couche-Tard Inc. (TSX: ATD.TO) shows moderate financial fundamentals with a PE ratio of 18.55, profit margin of 4.11%, and ROE of 20.01%. The company generates $75.7B in annual revenue with moderate year-over-year growth of 5.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ATD.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakATD.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentATD.TO trades at attractive valuation levels.
Growth Score
ModerateATD.TO shows steady but slowing expansion.
Financial Health Score
ModerateATD.TO shows balanced financial health with some risks.
Profitability Score
ModerateATD.TO maintains healthy but balanced margins.
Key Financial Metrics
Is ATD.TO Expensive or Cheap?
P/E Ratio
ATD.TO trades at 18.55 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ATD.TO's PEG of 1.06 indicates fair valuation.
Price to Book
The market values Alimentation Couche-Tard Inc. at 3.57 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.22 times EBITDA. This is generally considered low.
How Well Does ATD.TO Make Money?
Net Profit Margin
For every $100 in sales, Alimentation Couche-Tard Inc. keeps $4.11 as profit after all expenses.
Operating Margin
Core operations generate 6.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.01 in profit for every $100 of shareholder equity.
ROA
Alimentation Couche-Tard Inc. generates $7.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alimentation Couche-Tard Inc. generates limited operating cash flow of $5.30B, signaling weaker underlying cash strength.
Free Cash Flow
Alimentation Couche-Tard Inc. produces free cash flow of $3.34B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.63 in free cash annually.
FCF Yield
ATD.TO converts 5.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How ATD.TO Stacks Against Its Sector Peers
| Metric | ATD.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.55 | 25.81 | Better (Cheaper) |
| ROE | 20.01% | 973.00% | Weak |
| Net Margin | 4.11% | -4892.00% (disorted) | Weak |
| Debt/Equity | 1.02 | 0.60 | Weak (High Leverage) |
| Current Ratio | 1.12 | 2.32 | Neutral |
| ROA | 7.22% | 299.00% | Weak |
ATD.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alimentation Couche-Tard Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.18%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
29.67%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
69.27%
Industry Style: Cyclical, Growth, Discretionary
High Growth