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Opinions Geoff Scott
Alimentation Couche-Tard (B)ATD.B.TOBUY ON WEAKNESSMar 20, 2018
Geoff ScottOwned
$59.60
Stock price when the opinion was issued
$49.67
As of Dec 07, 2021. Market Open.
food stores
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PAST TOP PICK
(A Top Pick Feb 01/22, Up 12%)
Well-run and positioned to offer e-charging stations given all their stations and locations. Well-financed. Still has a little more upside.
Michael SprungOwned
food stores
TOP PICK
They report today. It's growing well-known abroad. They've performed well in the past 5 years. Free cash flow has grown 15% a year and the dividend 22% annually. The family owners gave up their voting rights, so the stock is friendlier to investors. If there is a recession, they have a growing private label group of brands to cushion the blow, since consumers will buy those instead of spending on pricey restaurants. Carrefour was a blip that didn't work. Otherwise, their M&A remains disciplined so they can make acquisitions going forward. (Analysts’ price target is $68.18)
food stores
PAST TOP PICK
(A Top Pick Dec 17/21, Up 19%) A fine business with many opportunities. Strong balance sheet. With weakening markets, more acquisitions lie ahead.
Chris BlumasOwned
food stores
BUY
They sell non-discretionary items like the morning coffee and gasoline. The operate in Canada and abroad. They use their size to smartly price gas. Customers then spend in their gas stations things like candy bars which boast high margins. Really likes it and continues to buy it.
Brian MaddenOwned
food stores
BUY
Has long liked this, as it has been compounding and making money for shareholders for decade. They just sorted an issue with the competition bureau over a mid-sized acquisition. See what the quarter reports after today's bell. A fine operator. They use gasoline selling to sell high-margin items like candy and hot dogs. Great operators and buyers in the fragmented convenience store industry. Have spread even to Hong Kong. They have firepower that they will spend to keep building. Likes it.
Brian MaddenOwned
food stores
BUY
SLF vs. ATD'B ATD is doing very well because oil prices are high. Also, they are on the verge of buying a company. Both add to upside. SLF is the best Canadian insurer, with stable, but slow earnings growth. It will benefit from higher interest rates. Buy and put away and own for the dividend. Shares are down 5-10% from last year's high, so good to enter now.
food stores
TOP PICK
There's a lot of growth potential with international exposure across North America and Europe. Post-Covid, traffic to their stores will pick up. ATD will be competitive among EV charging stations. (Analysts’ price target is $56.93)
Michael SprungOwned
food stores
BUY ON WEAKNESS
It is a forward looking company with very good management. Has owned for a long time. A defensive play. Buy on softness.
Rick StuchberryOwned
food stores
STRONG BUY
Sunset clause on voting share structure has been triggered, so there's only one class of shares. He'd recommend it very strongly. Benefits from the expanding economy we hope to have over the next few years.
Michael SprungOwned
food stores
BUY ON WEAKNESS
Well run. Collapsing of dual class structure is a positive. Tremendous growth opportunities internationally. Getting pricey here, try around $47-48. Reasonable valuation. Ability to grow by acquisition is getting tougher. Huge free cashflow. Aggressive share buybacks, expect dividend increases. Strong balance sheet. Earned the right to be respected for a growth by acquisition story.
John O'Connell, CFAOwned
food stores
HOLD
The company is doing all the right things. They have been strong operators as well. It is a tough position right now due to the sharp increase in wages. There may not be a short term solution to this and they have been slow on their investment plans. They exited on the recent earnings and don't see it improving unless a major acquisition is announced soon.
food stores
PAST TOP PICK
(A Top Pick Dec 02/20, Up 5%) Accelerating organic growth initiatives, rather than "if you build it, they will come" strategy. Headwinds over next several quarters are acute labour shortages and wage pressures. These are not permanent; buy on dips.
Brian MaddenOwned
food stores
BUY
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They slightly missed on earnings with EPS at $0.65. Revenues were up 33.5% from last year. Same store sales were up 1.4% in the US and 3.9% in Europe. A fine quarter. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
food stores
PAST TOP PICK
(A Top Pick Sep 16/20, Up 16%) He would buy it again. This was a re-opening trade. He thinks we are still in that position. The gas station business has done well as volumes have come off. They took COVID as an opportunity to build out their in-house brands. These have been rolled out across the world and will contribute meaningfully to the bottom line going forward.
food stores
Couche-Tard is a strong Canadian business that has executed their strategy of consolidating the convenience store exit globally, with a lot of discipline. This quarter, they had weakness in their gasoline margins and wage pressures in the U.S. There were also one-time issues, such as storms and the cost of a large new acquisition. (The stock dropped 6.75% on the day of this interview.) He has liked this company for a long time and thinks it is worth buying at the right time.