Friday , July 30 2021

Supreme Stock for 2019



Alimentation Couche-Tard Inc.La (TSX: ATD.B) stock is one of the few provisions in the TSX Index that hit all the time.

A reflection of the stellar results that the company has sent, of course, but also a reflection of a changing investor.

A change that meant that stable, foreseeable, defensive supplies were in high demand.

Take a look at the company's latest results, its perspective forward, and its evaluation, all show us to the same conclusion.

Alimentation Couche-Tard is a safe bet for 2019.

Confirmed, I'm not one to be sure to enjoy buying stores when they are trading at all times.

But my investment thesis is predictable because this stock will be a constant interpreter, which gives investors a small dividend, predictable income, comprehensive cash flows, and the best experience.

And harmful protection as well as upside potential.

With a worldwide network of 10,000 stores worldwide, the company has a history of growing benefit, both organically and through acquisitions.

The company's debt burden has recently risen as a result of the company's continuous strategic acquisition strategy, which has seen three transformational acquisitions in the last three years, with the acquisition of $ 1.7 billion of 279 Esso-Marsh stations being one of the most recent .

Strong cash currents are one of the key features of the company's business model, as the company's free flow-generation (excluding acquisitions) of almost $ 3bn in the last three years has been demonstrated, its 8.6% fifth yearly annual share Increase in operation content flow and a venerable free flow of more than 2%.

So although the debt to total capitalization is high, it lowers and now stands at 48% (compared with 54% earlier this year), and the strong generation of the company can easily support this.

The last quarter, the second quarter of fiscal 2019, shows strength in the same stores and traffic, has continued margin improvements, and has continued a strong effective production.

Same-store goods sales increased 4.4% in the United States, 4.6% in Europe, and 5.1% in Canada.

EBITDA margins are expected to crawl up when the company is still reaching the expected synergies related to its CST acquisition.

On October 14, 2018, the annual synergies charged tax were $ 200 million, which will flow through revenues and margins in future quarters. The total synergy target of $ 215 million is only breathing and will be achieved.

Return on strike was stellar 24% and return on capital was impressive 12.1%.

To go ahead, we can expect more synergies of the company's recent acquisitions, as well as eliminating the balance and continue to grow both organicly and by means of acquisitions, with the aim of the company to double the company again.


Expert contributor Karen Thomas has no position in any of the provisions mentioned. It is a recommendation of Alimentation Couche-Tard Provisional Director of Canada.


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