TSE:ATD
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Nervous markets await NvidiaThis summary was created by AI, based on 50 opinions in the last 12 months.
Alimentation Couche-Tard (ATD) has garnered mixed opinions among experts, mainly revolving around its recent pursuit of acquiring 7-Eleven and its operational strategy. The company is viewed as a strong player in the convenience store sector with a solid growth trajectory, underpinned by its history of successful acquisitions and effective capital allocation. However, uncertainties surrounding the 7-Eleven deal and broader economic factors have led to some skepticism about future growth. While many analysts appreciate its profitability and return on equity (ROE), concerns persist regarding potential share dilution if the acquisition goes through and the implications of a declining consumer spending environment. Overall, ATD remains considered a fundamentally sound investment, yet opinions vary on its immediate growth outlook.
ATD has a lot of available firepower, and has indicated there are still 'lots' of acquisition opportunities if 7/11 fails. It does get harder to grow as the company gets bigger, but we do not think its M&A run is over yet. We would be comfortable buying this stock if one has a 5-year timeframe. Management has proven itself over and over.
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Didn't care for its bid to acquire Seven & I, so they sold. This could be one deal too many; could indeed be game-changing, but not in the way investors hope. They'd have to issue massive equity, take on massive debt, with integration risks.
If it walked away from the deal, he might be interested again.
There are concerns it might be too diluted if the acquisition goes through. However the acquisition would be accretive and the 7-11 stores could become more profitable, as well as supplying more food for ATD's stores. It is still an uphill battle and if it doesn't go through it would allow ATD to concentrate more on organic growth.
Owned since his firm's inception. Great example of a compounder. Huge potential acquisition of 7-Eleven, and he'd prefer it not happen. This will cost much more than previous acquisitions, plus the people in Japan really don't want the deal. An acrimonious dance, and that risk is overhanging the stock. He really does not want them to overpay, wants them to stick to their track record of disciplined capital allocation.
ROC over 20 years is consistently in the 20% range. Wonderful, long-term holding. He added again around $69.
At least they're talking now, trying to figure out how they can get regulator approval (the biggest concern). Success would give ATD 80k more stores, a near-monopoly in the US, so some would have to be sold. That's a distraction. Wrestling with a low-income consumer who's having troubles with inflation and trading down, which hurts the bottom line.
For him, it's a "heads you win, tails you win" situation. If successful, ATD can improve operations and pay back acquisition debt quickly. If not, they'll do other deals and buy back a ton of stock. An absolute bargain. Once we get through the issues with the US and NA consumer, this will return to compounding greatness as before.
Well positioned, nice footprint in NA and globally. It all comes down to the Seven & I deal -- last few weeks have seen more positive rumblings of an agreement. His speculative call is that the deal will get done. Company will eventually come through. If the stock can start to form a base here, a positive trendline should start to form (though may not get back to where it was last year).
Japan is "open for business" in this new world we find ourselves in, and that's an advantage for ATD. Yield is 1.07%.
He doesn't know how the Seven & I scenario will play out. His investment thesis doesn't hinge on them completing the deal. If it goes through, massive win for shareholders, lots of efficiencies to be had. He's in the camp of the deal not going through and, if so, the company will be off to look for something else.
Massive scale. No one can do what they do. As they've gotten bigger, margin profile has actually expanded. Gushes tons of cash. 17x PE is a very fair price to pay for a well-run business. Yield is 1.1%.
The Japanese owners of 7-11 have pushed back in this attempted take-over. It's really a global company, a consumer staple in convenience stores with habitual consumers. It's up in the air if the 7-11 deal will close, but if it does, ATD will be #3 in terms of brick-and-mortar sales in North America. A solid company.
Management's been on a charm offensive in Japan. Excellent serial acquirers, financially disciplined. A sensible deal to be had. Constructive outlook doesn't hinge on a deal. Strategy is to lure shoppers in with cheap fuel, then sell merchandise at high margins. Selling alcohol in Ontario has helped same-store sales. Yield is 1.1%.
Almost 20% ROE. Grew earnings 12% compound rate over last decade. Undemanding multiple of 16x PE. Great combo of value and growth.
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
In the last year, 30 stock analysts published opinions about ATD-T. 10 analysts recommended to BUY the stock. 10 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Alimentation Couche-Tard.
Alimentation Couche-Tard was recommended as a Top Pick by on . Read the latest stock experts ratings for Alimentation Couche-Tard.
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.
30 stock analysts on Stockchase covered Alimentation Couche-Tard In the last year. It is a trending stock that is worth watching.
On 2025-06-30, Alimentation Couche-Tard (ATD-T) stock closed at a price of $67.69.
Seven & I negotiations are a big overhang. If deal goes through, anti-competition reviews will be required. Plus, would likely need to issue equity to fund it. Integration risk. To conserve cash, company's stopped buying back stock until this gets resolved. US operations are seeing softer traffic, with lower-income consumers spending less.
Low-growth area, so they've grown by acquisition. But now that they're so big, there's nothing left for them to buy. Trades at a discount, but lots of uncertainty on the name.