Is it a good company at a reasonable price? This company certainly has done well in the past for its shareholders. Some Directors own a significant number of shares, like the Chairman who owns 13%. Other only own 2 to3%. Dividends maybe low, but increases are good. Most testing is saying that the stock price is reasonable, but the dividend tests show that it is relatively cheap.
I do not own this stock of Alimentation Couche-Tard Inc (TSX-ATD, OTC-ANCUF), but I used to. In 2004 I bought this stock as it had a good reputation and my spreadsheet showed I should do well with it. The only problem I had with it then was it had no dividend. 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 that they appointed a new CEO. He was already an officer of the company. The chairman of the company, Alain Bouchard owns around 13% of the company. Note that this company has a year-end around April 30 each year. The year end date for 2025 was April 27, 2025.
If you had invested in this company in December 2014, for $1,022.49 you would have bought 42 shares at $24.35 per share. In December 2024, after 10 years you would have received $147.84 in dividends. The stock would be worth $3,348.24. Your total return would have been $3,496.08. This would be a total return of 13.33% per year with 12.59% from capital gain and 0.74% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $24.35 | $1,022.49 | 42 | 10 | $147.84 | $3,348.24 | $3,496.08 |
The dividends are low, so if you buy this stock what sort of dividends would you get in the future? This chart is an attempt to show this. If dividends continue to increase by 23.51% as they have in the past 5 years, what you would get in dividends in 5, 10 and 15 years is shown in the Dividends Paid (Div Pd) column. The next column shows what your yield on the current stock price of $69.70 would be. The last column shows the percentage of your stock’s price would be covered by dividends in 5, 10 and 15 years.
| Div Pd | Div Yield | Years | At IRR | Div Cov |
|---|---|---|---|---|
| $2.24 | 3.22% | 5 | 23.51% | 8.92% |
| $6.44 | 9.24% | 10 | 23.51% | 31.34% |
| $18.51 | 26.56% | 15 | 23.51% | 95.77% |
The current dividend yield is low with dividend growth good. The current dividend yield is low (below 2%) at 1.12%. The 5, 10 and historical dividend yields are also low at 0.84%, 0.71% and 0.68%. The dividend growth is good (15% per year and higher) at 23.5% per year over the past 5 years. The last dividend increase was in 2024 and it was for 11.4%.
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 20% with 5 year coverage at 14%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 20% with 5 year coverage at 14%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 10% with 5 year coverage at 8%. The DPR for 2024 for Free Cash Flow (FCF) is good at 19% with 5 year coverage at 14%. There is no agreement on FCF. In 2025 the FCF varied from $1,804, to $3,777M.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 19.72% | 14.35% |
| AEPS | 19.72% | 14.06% |
| CFPS | 10.33% | 8.49% |
| FCF | 19.59% | 14.03% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.18 and currently at 0.18. The Liquidity Ratio for 2024 is low at 0.96 and 0.99 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.53 and currently at 1.59. The Debt Ratio for 2024 is good at 1.65 and 1.65 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.56 and 1.55 and currently at 2.56 and 1.55.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.18 | 0.18 |
| Intang/GW | 0.22 | 0.22 |
| Liquidity | 0.96 | 0.99 |
| Liq. + CF | 1.53 | 1.59 |
| Debt Ratio | 1.65 | 1.65 |
| Leverage | 2.56 | 2.56 |
| D/E Ratio | 1.55 | 1.55 |
The Total Return per year is shown below for years of 5 to 32 to the end of 2024 in CDN$. 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. |
|---|---|---|---|---|---|
| 2019 | 5 | 23.51% | 14.86% | 13.94% | 0.92% |
| 2014 | 10 | 23.80% | 13.33% | 12.59% | 0.74% |
| 2009 | 15 | 25.62% | 24.36% | 23.24% | 1.12% |
| 2004 | 20 | 16.60% | 18.65% | 17.92% | 0.73% |
| 1999 | 25 | 24.09% | 23.21% | 0.88% | |
| 1994 | 30 | 27.02% | 26.09% | 0.93% | |
| 1992 | 32 | 31.57% | 30.31% | 1.26% |
The Total Return per year is shown below for years of 5 to 32 to the end of 2024 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. |
|---|---|---|---|---|---|
| 2019 | 5 | 21.80% | 12.97% | 12.02% | 0.95% |
| 2014 | 10 | 20.57% | 10.98% | 10.25% | 0.72% |
| 2009 | 15 | 22.65% | 22.07% | 20.94% | 1.13% |
| 2004 | 20 | 15.07% | 17.74% | 16.94% | 0.80% |
| 1999 | 25 | 22.82% | 21.87% | 0.95% | |
| 1994 | 30 | 25.05% | 24.10% | 0.95% | |
| 1992 | 32 | 30.21% | 28.85% | 1.36% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 12.77, 15.44 and 18.11. The corresponding 10 year ratios are 13.35, 15.64 and 18.28. The corresponding historical ratios are 12.64, 16.06 and 19.97. The current P/E Ratio is 17.62 based on a stock price of $69.70 and EPS estimate for 2026 of $3.96 ($2.86 US$). The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. 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 12.38,14.97 and 17.56. The corresponding 10 year ratios are 14.31, 16.83 and 19.68. The corresponding historical ratios are 12.33, 15.38 and 17.79. The current P/E Ratio is 17.64 based on a stock price of $50.45 and EPS estimate for 2026 of $2.86. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.
I get a Graham Price of $44.13. The 10-year low, median, and high median Price/Graham Price Ratios are 1.35, 1.57 and 1.81. The current P/GP Ratio is 1.58 based on a stock price of $69.70. This ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.
I get a 10-year median Price/Book Value per Share Ratio of 3.47. The current ratio is 3.20 based on a Book Value of $14,947M, Book Value per share of $15.77 and a stock price of $50.45. The current ratio is 8% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get a similar result in CDN$.
I also have a Book Value per Share estimate for 2025 of $17.53. This implies a ratio of 2.88 and a Book Value of $16,620M with a stock price of $50.45. This ratio is 17% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get a similar result in CDN$.
I get a 10-year median Price/Cash Flow per Share Ratio of 10.34. The current ratio is 9.34 based on Cash Flow per Share estimate for 2026 of $5.40, Cash Flow of $5,120M, and a stock price of $50.45. The current ratio is 10% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get a similar result in CDN$.
I get an historical median dividend yield of 0.68%. The current dividend yield is 1.12% based on a stock price of $69.70 and dividends of $0.78. The current dividend is 65% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$. Dividends are paid in CDN$.
I get a 10 year median dividend yield of 0.71%. The current dividend yield is 1.12% based on a stock price of $69.70 and dividends of $0.78. The current dividend is 57% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$. Dividends are paid in CDN$.
The 10-year median Price/Sales (Revenue) Ratio is 0.68. The current Ratio is 0.64 based on Revenue estimate for 2026 of $74,942M, Revenue per Share of $79.04. This current ratio is 6% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get a similar result in CDN$.
Results of stock price testing is that the stock price is reasonable and may even be cheap. The dividend yield tests are saying that the stock price is cheap. The P/S Ratio test says that the stock price is reasonable. The rest of the testing is saying that the stock price is reasonable and either above or below the median.
When I look at analysts’ recommendations, I find Strong Buy (9), Buy (5), and Hold (2). The consensus is a Strong Buy. The 12 month stock price is $83.11 ($59.99 US$) with a high of $94.35 ($68.10 US$) and low of7 $5.14 ($54.24 US$). The consensus stock price of $83.11 implies a total return of 20.36% with 1.12% from dividends and 19.24% from capital gains based on a current stock price of $69.70.
Few analysts follow this stock on Stock Chase , but they do like this stock. Joey Frenette on Motley Fool in August says that this company was downgraded after it could not buy 7-Eleven stores. Jitendra Parashar on Motley Fool says this company combine reliable cash with growth potential. The company put out a press release via Newswire about this company’s fourth quarter of April 2025.
Simply Wall Street via Yahoo Finance reviews this stock. They have one warning of has a high level of debt.
Alimentation Couche-Tard Inc operates a network of convenience stores across North America, Europe, and Asia. In addition, the company operates more stores under the Circle K banner in other countries such as Indonesia, Egypt, Macau, and others. 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. 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 Friday, August 29, 2025 around 5 pm. Tomorrow on my other blog I will write about Flow State vs. Cash Flow.... learn more on Thursday, August 28, 2025 around 5 pm.
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