Alimentation Couche-Tard Inc.'s (TSX: ATD.B) stock is one of the few stocks of the TSX Index, which has reached its highest level in all times. The final results show that the company is a reflection of changing the sentiment of the investor. Stable, predictable, a change that means that defense stocks are in high demand. An overview, forward perspective and valuation of the company's latest results all point to the same conclusion. Alimentation Couche-Tard is a safe bet for 2019. Undoubtedly, I don't want to enjoy buying stocks while trading.
Alimentation Couche-Tard Inc. (TSX: ATD.B) is one of the few stocks that reach the highest level of all time in the TSX Index.
The final results show that the company is a reflection of changing the sentiment of the investor.
Stable, predictable, a change that means that defense stocks are in high demand.
An overview, forward perspective and valuation of the company's latest results all point to the same conclusion.
Alimentation Couche-Tard is a safe bet for 2019.
Of course, you don't have to be accustomed to trading at the highest levels of all time.
However my investment thesis is based on the fact that these stock investors will be a stable performer giving a small dividend, a predictable revenue stream, abundant cash flows and top notch profitability.
And downward protection as well as potential upwards.
With a global network of 10,000 stores worldwide, the company has a profitable growth history through both organic and acquisitions.
The company's debt burden rose as a result of the company's continuous aggressive acquisition strategy in the last three years, making three alternate acquisitions and took the takeover of the 279 Esso brand gas station's latest $ 1.7 billion.
Strong cash flows are one of the main features of the company's business model with the company's free annual cash flow creation of $ 3 billion over the past three years (excluding acquisitions) and the annual compound annual growth rate of 8.6%. cash flow and a respected free cash flow margin above 2%.
Thus, despite the high levels of total capitalization of debt, there is a downturn and is now at 48% (compared to 54% this year), and the company's strong cash flow production can easily support this.
The last quarter, the second quarter of the 2019 fiscal year, continued strengthening in the same store sales and traffic, continued margin improvements and continued strong cash flow.
Sales of the same store increased 4.4% in the US, 4.6% in Europe and 5.1% in Canada.
EBITDA margins are expected to rise as the company continues to capture the expected synergy with the CST acquisition.
On October 14, 2018, the annual synergies rate would have been $ 200 million, which would flow to spending and margins in the next quarter. The total synergy target of $ 215 million is breathing but will be successful.
Return on equity was 24%, and the return on capital was as impressive as 12.1%.
Going forward, we can expect that the company will continue to grow continuously, both organically and through acquisitions, in addition to the recent acquisitions of the company, as well as the lowering of the balance sheet. The company's goal is to double the company once again.
Fence contributor Karen Thomas does not have a position in any of these shares. A recommendation of the Alimentation Couche-Tard Stock Consultant Canada.