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Opinions Brian Madden
Alimentation Couche-TardATD.TOBUYJul 21, 2022
Brian MaddenStock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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Premium content
Are excellent in buying companies, particularly in the U.S. But the PE now is high. If you're long-term, buy this.
Michael Sprung
Wonderful business. Very well run, global. Excellent job with the difficult task of making convenience stores profitable. Valuation of 17x is above his buy price. Long growth runway. Add on pullback.
Chris BlumasHe's owned, sold, and owned, and doesn't know if he'll ever sell it again ;) Best in class, amazing acquirers, global, great balance sheet and free cashflow. Company estimates that by 2028, they'll get to $10B of EBIDA. Gross margins are hovering around 33%. Cost savings, and AI should help margins. Fuel sales were lower, and this impacted them.
Likes that the price slowly gravitates upward, rather than lots of volatility. Yield is 0.71%.
Paul Gardner, CFAHas done well for him. A long-term hold. Highly diversified geographically with 14,000 stores in 24 countries. Boasts one of the largest revenues in Canada. They execute M&A like a well-oiled machine, regularly buying companies and still has a lot of cash to buy more. Strong balance sheet. Pays a little dividend yield. Trades at 17x PE, a premium to the market, but worth it. A quality compounder.
Robert GillPremium contentVery good at allocating capital. Reasonable valuation, strong balance sheet. First-class operator. Future is very bright. Yield is 0.76%.
(Analysts’ price target is $82.47)Chris BlumasContinues to execute M&A and current operations very well. Expects higher fuel margins and better merchandise sales next quarter, as we've just come off the summer. Headwinds in cost of goods due to inflation. Potential to charge EVs at home is not a threat.
Michael SprungPremium contentFile under steady grower. This collection of over 14,300 convenience stores in 25 countries, from Indonesia to Canada, has seen shares rise around 120% in the past five years, easily outpacing the TSX at 24%. ATD grows by buying smaller chains and mom-and-pop operations in a still-fragmented market. Circle-K, On The Run and 7-jours are merely some of the brands they own. Many stores are part of gas stations. Gas itself pays razor-thin margins, but lures drivers into the shops to buy high-margin snacks and smokes.
Premium contentWe reiterate ATD, operator of over 14,000 convenience stores in 25 countries, as a TOP PICK. It supports a ROE of 24% and trades at 18x earnings. Quarterly cash reserves are growing, while stock is bought back and debt is retired. We recommend trailing up the stop (from $63) to $67, looking to achieve $82 -- upside potential of 16%. Yield 0.5%
(Analysts’ price target is $82.00)Almost 70% of revenue comes from US, less than 15% from Canada, the rest from Europe. Master acquirer and they execute extremely well. Quiet, not flashy, management. Not much of a yield, but free cashflow used to buy back shares and do M&As. Even after the runup, he'd buy.
Lorne SteinbergGreat long-term hold. Quality, great management team. Balance sheet continues to improve. Gas margins holding firm. Travel continues. Never a bad time to add this name, if you think in years and not months.
James Telfser
