Alimentation Couche-Tard: Cheap Quality Compounder or Gasoline Dinosaur ?
Disclaimer: This is not investment advice. PLEASE DO YOU OWN RESEARCH !!!
Management Summary:
Alimentation Couche-Tard (“CT”) is one of the historically best performing Canadian companies, operating gas stations and convenience stores around the world with a focus on North America.
The company currently looks like a very interesting GARP (growth at a reasonable price) stock. Over the last 10 years, the company showed exceptionally good numbers: 23% EPS CAGR and 10 year average returns on capital >20% (23% ROE, ~20% ROCE). The business model is very resilient, Covid-19 actually led to an increase in margins and profits, both on the convenience store segment as well as in fuel despite declining sales.