Related posts

Wall Street ends winning streakNew highs post-FedOil climbs, stocks moderately move
Investor Insights

This summary was created by AI, based on 42 opinions in the last 12 months.

Experts have mixed opinions on the company Alimentation Couche-Tard. While some see it as a top-quality, well-run, and global leader in the convenience store industry, others are concerned about its high valuation and dependence on gas sales. The company has a strong history of growth through acquisitions and has a well-diversified geographic presence. Overall, the stock is seen as a long-term hold, with potential for further growth. However, there are concerns about its valuation and the impact of emerging trends such as the shift to electric vehicles.

Consensus
Mixed
Valuation
Fair Value
Similar
7-Eleven, SEVN
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
Unspecified

It is looking to buy a company with 5 times as many stores and it means buying all these new locations for $600 000 each. If it improves these locations it could be a big win for ATD shareholders. Generally its merchandising hasn't been living up to expectations.

food stores
HOLD

Incredible business over the long term. Regardless of short term concerns on 7-Eleven M&A, would be a great investment. Good for long term investors. 

food stores
WEAK BUY

Are good at buying companies and synergizing. 7-11 would be a huge deal and ATD can unlock synergy. There's a question of ATD diluting shares to pay for the deal, but the deal will be creative and the PE will rise after the deal. Also, a government could block the deal on anti-monopoly grounds. This pullback is probably a good opportunity.

food stores
PAST TOP PICK
(A Top Pick Aug 29/23, Up 11%)

Poised to take a giant, bold leap forward with proposed friendly acquisition of 7-Eleven, the largest convenience store in the world by # of outlets. Biggest by market value is actually ATD itself. Acquisition is a big "if", would be synergistic. Shrew operators, extremely capable serial acquirers in a fragmented industry.

Fingers crossed for success in Japan. They won't do a deal unless it creates shareholder value. So if a deal is successful, you can bet dollars to doughnuts it will be priced well, strategic, synergistic, and will be reflected in a higher share price in due course.

food stores
DON'T BUY
Their proposed massive 7/11 purchase

They have a good track record of buying an integrating gas stations. The 7/11 deal is complex. 7/11's parent company is worth US$38 billion vs. ATD's C$75 billion. This could take years, and the Japanese parent has to review the deal and settle on a price (nobody knows), then there's regulatory approval in the U.S. ATD's net debt-to-EBITDA is 2.2x which is in their target range, so ATD will have to issue equity. She wouldn't buy this, based on this deal.

food stores
HOLD

Amazingly well run. Talented founder is still there; probably won't see anything negative until he leaves. Cigarette consumption continues to drop worldwide, gasoline consumption will probably follow. So you have to rely on snacks and acquisitions for revenue growth. 

Still opportunities, no reason to sell.

food stores
Showing 1 to 15 of 156 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 : 7

Total Signals / Votes : 43

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, 43 stock analysts published opinions about ATD-T. 31 analysts recommended to BUY the stock. 7 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?

43 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 2024-10-11, Alimentation Couche-Tard (ATD-T) stock closed at a price of $72.27.