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Investor Insights

This summary was created by AI, based on 57 opinions in the last 12 months.

Alimentation Couche-Tard (ATD-T) has been experiencing a consolidation in its stock price, with concerns around the potential pursuit of Seven & I and the impact of a potential deal at a reasonable price. The company has been commended for its profitability and return on equity, but experts are split on their views regarding the potential acquisition. While some see it as a great opportunity for shareholders, others question the long-term growth prospects given the company's reliance on acquisitions and potential challenges in the convenience store and gas station industry. Overall, the stock has shown resilience in the face of market fluctuations, and its performance is closely tied to news around the Seven & I deal.

Consensus
Mixed
Valuation
Fair Value
WEAK BUY
Founder won't be pursuing hostile takeover of Seven & I.

Stock price actually incorporates all the news. Stock hit a peak earlier in February; since then, trading right around $78 plus or minus $5. This consolidation could go on for a long time. Before you can ID the next trend, you have to wait for it to break out -- below $73 or above $85. 

You can buy this now for diversification, but it won't be anything exciting. Keep an eye on that lower level. If it dropped below $70, then $60 or below is quite possible. You can discount the news as not important. Stock's been almost a double over the past 2 years.

food stores
TOP PICK

Very profitable, ~20% ROE. Compounded EPS at 13% over last decade. Lean and efficient operator. Experienced consolidator in a fragmented industry. Closely watching its pursuit of Seven & I, would be synergistic if deal got done at a reasonable price. Pullback is very timely for a great company. Yield is 0.96%.

(Analysts’ price target is $86.79)
food stores
DON'T BUY

He bought it a year ago. It started a base and then broke down so he sold it two weeks ago.

food stores
WEAK BUY
Dropped from July. Buy or sell?

Gigantic acquisition proposal in Japan, would need debt to make this happen. Deal going through would be absolutely tremendous for shareholders. Business not doing great right now, low-income consumer not spending as much at convenience stores. 

Stock's fallen too much, given that the concerns are well known. At lowest valuation seen in a long time.

food stores
PAST TOP PICK
(A Top Pick Oct 18/23, Up 1%)

Wonderful business. Announcement of Seven & I deal took a lot of wind out of the stock. Fear that a deal this big will necessitate equity dilution. If it does the deal, will likely work well. They don't do deals that don't work. If the deal doesn't go through, it's back to business as usual -- buying back shares and looking for other companies.

17x PE. Consolidating in the industry, which few can do. The bigger it gets, the more profitable it becomes. He'd buy here, even without clarity on the Seven & I deal.

food stores
DON'T BUY

He cut it loose for losing momentum, moving sideways for much of the year. Considering the massive bid for 7-11, he won't be looking at this for a while.

food stores
WAIT

It has been a strong performing company and the only issue is the entry level. How much more productive will the earnings growth be. Wait and see what happens with how the acquisition works out, how it's financed, etc.

food stores
BUY ON WEAKNESS

Recent M&A with 7-Eleven hard to predict. Very good capital allocation skills throughout the years. Would recommend buying with current share price weakness. Very strong business. Excellent management team. 

food stores
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 21/23, Up 12.9%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ATD has triggered its stop at $74.  To remain disciplined, we recommend covering the position at this time.  When combined with previous guidance, this will result in a net investment gain of 18%.  

food stores
SELL

Sold because analysis told him growth was slowing. Other things to do. Opportunity with 7-Eleven is far from a done deal. If successful, he'd take a hard look at re-entering. 

Made a lower high compared to earlier in the summer, and now making a lower low. Not a chart for him, as it signals change in the behaviour of the stock. Until something happens to put the technicals right, or there's growth acceleration, he wouldn't add.

food stores
BUY ON WEAKNESS

He questions 10-30 years from now if their distribution of goods through gas stations will exist. They missed their last 3 earnings reports. In the mid-$60s he might buy, but currently he won't. He doesn't like ATD long term.

food stores
BUY
ATD vs. PKI

Hands down, slam dunk in favour of ATD. Bigger and better. Scale is a significant advantage, especially on sale of fuel. Better at merchandising. More diverse global footprint. Amazing serial acquirer. Hunting big game with bid for 7-Eleven. He's OK holding whether it gets 7-Eleven or not.

PKI has an activist investor rattling its cage for some time, with no resolution in sight. Activists usually get involved when assets are being mismanaged or under-managed, or management team's off course. Not earning same profits as ATD, despite similar end-markets.

food stores
DON'T BUY

He doesn't own it based on ESG grounds--a large art of their business is selling tobacco. The company is so large that organic sales are flat at the convenience store and gas station level. They must make ever-growing acquisitions to move the needle. It's not obvious they will succeed in buying the massive 7-11 chain; the Japanese government is resisting the deal. ATD growth looks unclear.

food stores
Unspecified

It is a great company with a great M&A strategy. He likes it but would choose a competitor a lot smaller with a similar type of model.

food stores
BUY
Buy it now or after the 7-11 deal?

ATD is a tremendous capital allocator over many years. They don't overpay when buying companies. Is confident they can synergize 7-11, which would be their biggest purchase ever. Buy on any pullback. Is not afraid of an equity dilution, because there's a need for it sometimes.

food stores
Showing 1 to 15 of 162 entries

Alimentation Couche-Tard(ATD-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 31

Neutral - Hold Signals / Votes : 5

Bearish - Sell Signals / Votes : 9

Total Signals / Votes : 45

Stockchase rating for Alimentation Couche-Tard is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Alimentation Couche-Tard(ATD-T) Frequently Asked Questions

What is Alimentation Couche-Tard stock symbol?

Alimentation Couche-Tard is a Canadian stock, trading under the symbol ATD-T on the Toronto Stock Exchange (ATD-CT). It is usually referred to as TSX:ATD or ATD-T

Is Alimentation Couche-Tard a buy or a sell?

In the last year, 45 stock analysts published opinions about ATD-T. 31 analysts recommended to BUY the stock. 9 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Alimentation Couche-Tard.

Is Alimentation Couche-Tard a good investment or a top pick?

Alimentation Couche-Tard was recommended as a Top Pick by on . Read the latest stock experts ratings for Alimentation Couche-Tard.

Why is Alimentation Couche-Tard stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Alimentation Couche-Tard worth watching?

45 stock analysts on Stockchase covered Alimentation Couche-Tard In the last year. It is a trending stock that is worth watching.

What is Alimentation Couche-Tard stock price?

On 2024-12-11, Alimentation Couche-Tard (ATD-T) stock closed at a price of $81.26.