Is it a good company at a reasonable price? This stock has done very well for its shareholders. Even thought the dividend is low, it has good growth. I would buy when dividend is 1% or above. A lot of the testing is saying that the stock price is expensive. It is just of a recent high, so it could be expensive. Both the Price/Graham Price Ratio and Price/Book Value Ratio testing is showing it reasonable but above the median. So, it might be on the high side. But I must admit, I do like the dividend tests best.
I do not own this stock of Alimentation Couche-Tard Inc (TSX-ATD, OTC-ANCTF). In 2004 I bought this stock as it had a good reputation and my spreadsheet showed I should do well with it. I bought more of this stock in 2006 as it had a good past record and had started to pay a dividend. By the year end I bought more as TD Bank said it was a good time to buy this stock. I sold the stock in my trading account in 2007 as I was raising mortgage money and this stock had gone down so it was cheap, tax wise, to sell. In 2013, I sold the stock in my Pension account as it had the lowest dividend yield and I had to raise money in this account because of yearly withdrawals.
When I was updating my spreadsheet, I noticed all the officers I follow bought more shares in the past years. It is mixed story with the directors. Some directors have lots of shares and two sold small amounts and one bought a small amount. However, directors often do not have shares or buy more shares very often on any company.
Note that this company has a financial year ending at the end of April each year. I am looking at the financial year end dated 26 April 2026. The financial statements are in US$, the estimates are in US$. The dividends are paid in CDN$.
If you had invested in this company in December 2015, for $1,005.02 you would have bought 33 shares at $30.46 per share. In December 2025, after 10 years you would have received $138.52 in dividends. The stock would be worth $2,473.68. Your total return would have been $2,612.20. This would be a total return of 10.25% per year with 9.43% from capital gain and 0.82% from dividends.
Cost Tot. Cost Shares Years Dividends Stock Val Tot Ret $30.46 $1,005.02 33 10 $138.52 $2,473.68 $2,612.20
You can see from the following chart, that this stock has good growth, but growth was high in the past 10 years than in the past 5 years, so growth of earnings has slowed as has cash flow. In the chart below, I am showing 5 and 10 year total growth and per year growth in columns 3 and 4. Column 5 shows growth expected over 12 months to the first quarter in 2027 (July 2026) and expected growth over this financial year of 2027.
| Yr | Item | Tot. Gwth | Per Year | Gwth | Coverage |
|---|---|---|---|---|---|
| 5 | Revenue Growth US$ | 67.19% | 10.83% | 5.36% | <-12 mths |
| 5 | AEPS Growth | 26.53% | 4.82% | 4.52% | <-12 mths |
| 5 | Net Income Growth | 16.20% | 3.05% | 2.83% | <-12 mths |
| 5 | Cash Flow Growth | 31.24% | 5.59% | ||
| 5 | Dividend Growth | 127.64% | 17.88% | 6.19% | <-12 mths |
| 5 | Stock Price Growth | 74.46% | 11.77% | 12.24% | <-12 mths |
| 10 | Revenue Growth US$ | 124.07% | 8.40% | 10.00% | <-this year |
| 10 | AEPS Growth | 197.05% | 11.50% | 6.77% | <-this year |
| 10 | Net Income Growth | 163.40% | 10.17% | -4.25% | <-this year |
| 10 | Cash Flow Growth | 184.08% | 11.01% | 5.59% | <-this year |
| 10 | Dividend Growth | 504.17% | 19.71% | 11.46% | <-this year |
| 10 | Stock Price Growth | 169.94% | 10.44% | 12.24% | <-this year |
The current dividend yield is low with dividend growth good. The current dividend yield is low (below 2%) at 1.00%. The 5, 10 and historical median dividend yields are also low at 0.85%, 0.77% and 0.70%. The dividend growth is good (15% per year or higher) at 20.5% per year over the past 5 years. The last dividend increase was in 2026 and it was for 10.3%.
The Dividend Payout Ratios (DPR) are good. The DPR for 2025 for Earnings per Share (EPS) is good at 17% with 5 year coverage at 16%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 19% with 5 year coverage at 16%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 9% with 5 year coverage at 9%. The DPR for 2025 for Free Cash Flow (FCF) is good at 21% with 5 year coverage at 17%. FCF for 2026 varies from $2,580M to $3,638M. I am using the one for 2026 of $2,580M.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 17.44% | 15.66% |
| AEPS | 18.95% | 15.75% |
| CFPS | 9.13% | 8.93% |
| FCF | 21.45% | 16.62% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.19 and currently at 0.18. The Liquidity Ratio for 2025 is low at 1.12 and too low at 0.99 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.66 and currently at 1.66. The Debt Ratio for 2025 is good at 1.60 and 1.60 currently. The Leverage and Debt/Equity Ratios for 2025 are fine at 2.69 1.68 and currently at 2.69and 1.68.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.19 | 0.18 |
| Intang/GW | 0.22 | 0.21 |
| Liquidity | 1.12 | 0.99 |
| Liq. + CF | 1.66 | 1.66 |
| Debt Ratio | 1.60 | 1.60 |
| Leverage | 2.69 | 2.69 |
| D/E Ratio | 1.68 | 1.68 |
The Total Return per Year is shown below for years of 5 to 33 to the end of 2025 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 20.49% | 12.66% | 11.56% | 1.10% |
| 2015 | 10 | 20.64% | 10.25% | 9.43% | 0.82% |
| 2010 | 15 | 24.47% | 21.85% | 20.61% | 1.25% |
| 2005 | 20 | 16.16% | 16.73% | 15.93% | 0.81% |
| 2000 | 25 | 22.47% | 21.44% | 1.03% | |
| 1995 | 30 | 24.98% | 23.93% | 1.05% | |
| 1992 | 33 | 30.54% | 29.02% | 1.51% |
The Total Return per Year is shown below for years of 5 to 33 to the end of 2025 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 17.88% | 10.89% | 9.82% | 1.07% |
| 2015 | 10 | 19.71% | 10.37% | 9.52% | 0.85% |
| 2010 | 15 | 21.50% | 19.19% | 18.04% | 1.15% |
| 2005 | 20 | 14.99% | 15.65% | 14.83% | 0.82% |
| 2000 | 25 | 21.51% | 20.44% | 1.07% | |
| 1995 | 30 | 23.71% | 22.64% | 1.08% | |
| 1992 | 33 | 29.37% | 27.79% | 1.58% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 14.74, 16.66 and 18.58. The corresponding 10 year ratios are 13.35, 15.64 and 18.28. The corresponding historical ratios are 12.77, 16.17 and 19.85. The current ratio is 18.62 based on a stock price of $86.05 and EPS estimate for 2027 of $4.62 ($3.33 US$). The current ratio is above the high ratio of the 10 year median. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 15.52, 17.79 and 20.05. The corresponding 10 year ratios are 14.30, 16.61 and 19.24. The corresponding historical ratios are 12.41, 15.41 and 18.11. The current ratio is 18.83 based on a stock price of $62.32 and AEPS estimate for 2027 of $4.59. The current ratio is between the median and the high ratio of the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$. You will get similar results in CDN$.
I get a Graham Price of $50.26. The 10-year low, median, and high median Price/Graham Price Ratios are 1.33, 1.53 and 1.77. The current ratio is 1.71 based on a stock price of $86.05. The current ratio is between the median and the high ratio of the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.
I get a 10-year median Price/Book Value per Share Ratio of 3.38. The current ratio is 3.54 based on a stock price of $62.32, Book Value of $16,179M, and Book Value per Share of $17.62. The current ratio is 4.6% above the 10 year median ratio. The current ratio is between the median and the high ratio of the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$. You will get similar results in CDN$.
I get a 10-year median Price/Cash Flow per Share Ratio of 10.18. The current ratio is 10.11 based on Cash Flow per Share estimate for 2027 of 6.17, Cash Flow of $5,663M and a stock price of $62.32. The current ratio is 0.7% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. You will get similar results in CDN$.
I get an historical median dividend yield of 0.70. The current dividend yield is 1.00% based on dividends of $0.86 and a stock price of $86.05. The current dividend yield is 43% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.
I get a 10 year median dividend yield of 0.77. The current dividend yield is 1.00% based on dividends of $0.86 and a stock price of $86.05. The current dividend yield is 29% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.
The 10-year median Price/Sales (Revenue) Ratio is 0.66. The current dividend yield is 0.68 based on Revenue estimate for 2027 of $84,154M, Revenue per Share of $91.64 and a stock price of $62.32. The current ratio is 2.9% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$. You will get similar results in CDN$.
Results of stock price testing is that the stock price is probably reasonable, but could be cheap. The dividend yield testing is saying that the stock price is cheap, but the P/S Ratio testing is saying reasonable but above the median (but not by much). The rest of the testing varies from reasonable, but above the median to expensive.
When I look at analysts’ recommendations, I find Strong Buy (8) and Buy (2). The consensus would be a Buy. The 12 month stock price consensus is $104.00 with a high of $110.00 and low of $82.00. The consensus stock price of $104 implies a total return of 21.86% with 20.86% from capital gains and 1.00% from dividends based on a current stock price of $86.05.
Most analysts on Stock Chase like this stock, but there are some Do Not Buy comments on high price and low dividend yield. Aditya Raghunath on Motley Fool thinks that you can double your money in 10 years with this stock. Joey Frenette on Motley Fool says it is a stock that pairs strong long-term drives with real profitability. The company put out a Press Release about their fourth quarter ending April 2026.
Simply Wall Street via Yahoo Finance reviews this stock and gives it a fair value of $158.60. Simply Wall Street has one warning on this stock of has a high level of debt.
Alimentation Couche-Tard Inc operates a network of convenience stores across North America, Europe, and Asia. Its operation is geographically divided into the U.S., Europe and other regions, and Canada. Revenue from external customers falls mainly into three categories: merchandise and services, road transportation fuel, and others. The company generates the majority of its revenue from the United States. Its web site is here Alimentation Couche-Tard Inc.
The last stock I wrote about was about was Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF) ... learn more. The next stock I will write about will be Exchange Income Corp (TSX-EIF, OTC-EIFZF) ... learn more on Monday, August 24, 2026 around 5 pm.
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