Alimentation Couche-Tard Stock Analysis – A Canadian Success Story on Which I Will Pass

Summary

  • This Alimentation Couche-Tard analysis is based on FY2017 results as at April 30, 2017 released August 3, 2017.
  • Alimentation Couche-Tard is the second largest convenience store operator in the world behind Japan’s Seven & I Holdings.
  • The company has taken on considerable debt to assist with its dramatic growth over recent years.
  • Operating margins are thin and FCF/share as at FYE2017 was lower than as at FYE 2014 and FYE2015 although it did bounce back from the FYE 2016 level.
  • Any expected return on an investment in this company will need to come from capital appreciation as the dividend is immaterial.
  • Alimentation Couche-Tard does not fit my investor profile and I will not be investing in the company.

Alimentation Couche-Tard Inc. (TSX: ATD.B) reports its financial results in USD. Its stock, however, is only traded on the TSX. The stock price and per share values reflected in this post are, therefore, reflected in CDN dollars. Continue reading “Alimentation Couche-Tard Stock Analysis – A Canadian Success Story on Which I Will Pass”