Alimentation Couche-Tard (TSX:ATD) is one of the largest corporations in Canada, having built an incredible network of stores over the past two decades. In the last 20 years, Alimentation Couche-Tard has grown exponentially, offering high returns to Canadian unitholders. Keep reading to understand why Alimentation Couche-Tard has ample space to grow from its current situation.
Alimentation Couche-Tard is a retail company operating a network of convenience stores in Europe and North America. The organization sells food, non-food goods, and gasoline for vehicles. It also provides car wash services and sells goods through franchises, independent operators, and merchandising.
Alimentation Couche-Tard has consistently provided growth to its stockholders over the last 10 years as a top performer on the Toronto Stock Exchange, thanks to its innovative and aggressive development plans in the European markets.
Growth plans remain well anchored
With more than 16,700 stores in North America and Europe, Alimentation Couche-Tard has a market capitalization of $74.454 billion. The company has shown impressive resilience and growth over the years, making it one of the best-buy stocks on the Toronto Stock Exchange.
In the previous fiscal year, Alimentation Couche-Tard has shown immense revenue growth with a 14.4% increase to $71.86 billion. It also reported earnings growth of $3.12 per common share. Currently, the stock is trading around $78, which is fairly priced, making it the right time to invest in this company for the long run. Moreover, since the beginning of the 2010s, Alimentation Couche-Tard has offered a 1,000% return to its unitholders.
Alimentation Couche-Tard expansion into the European market through the Total Energies deal showcases its strategic acquisitions to expand its business. Moreover, the company is diversifying its business to generate more revenue by providing car wash services and electric vehicle charging facilities.
Alimentation Couche-Tard plans to reach $10 billion earnings before interest, taxes, depreciation, and amortization by fiscal 2028, enabling the company to generate more revenue and distribute higher dividends to shareholders. Moreover, Alimentation Couche-Tard reinvests its profits to expand its business and has a 1.1 debt-to-equity ratio.
Strong performance over the past year
In June 2024, Alimentation Couche-Tard announced its financial reports for the fiscal year 2024. In the financial report, the company highlighted revenue of US$69,263.5 million and operating income of US$3,810.2 million. Furthermore, the net financial expenses for the year were US$387.9 million and net earnings of US$2,732.2 million.
The company also highlighted its financial earnings for the fourth quarter of fiscal year 2024. In the release, the company reported net earnings attributable to shareholders of US$43 million or US$0.47 per diluted share. The adjusted net earnings attributable to the shareholders for the period were US$461 million or US$0.48 per common share.
The verdict
Overall, Alimentation Couche-Tard is quite a popular stock in the Toronto Stock Exchange. The company carries the potential to deliver higher outputs in the market and outrank its competition. Buying the stocks of this great company with a powerful outlook is always the best investment. Therefore, investing in this company at this price is a good investment option, as the company projects its earnings growth to enhance in teens in the upcoming years.
