One-glance verdict
Undervalued
$79.99 our estimate vs market $57.24
28% below our estimate, below the bear case
Fundamentals snapshot
Alimentation Couche-Tard Inc.
ANCTF · PNK · Consumer Cyclical · Specialty Retail
Current price
$57.24
52-week range
$48.03 - $67.06
Market cap
$52.54B
Balance sheet
Watch
6.43x Adequate
Net debt $12.25B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 5.0% last year.
- Reward Returns 19.6% on equity, ahead of 33% of its peers.
- Risk Net debt grew 55.7% over 3 years.
- Risk Operating margin compressed from 5.8% to 5.6% over 3 years.
What this company does
Alimentation Couche-Tard Inc.
Alimentation Couche-Tard operates thousands of Circle K convenience stores and gas stations around the world. The company makes money from selling both fuel and in-store items like snacks and drinks, but the in-store products have much higher profit margins (the percentage of each sale that is actual profit). This business model is effective because the essential need for gas constantly brings customers to its stores, where they are likely to also buy these more profitable convenience goods.
How the company got here
Alimentation Couche-Tard started in 1980 with a single convenience store in Quebec, Canada, founded by Alain Bouchard. The company grew by buying up other small store chains, first in Quebec and then across the rest of Canada. A major turning point came in 2003 when it bought the American chain Circle K, which it then used as its main brand for global expansion. Another key move was the 2012 purchase of Statoil Fuel & Retail, which gave the company a large footprint in Europe. Through a long series of these strategic acquisitions, the company transformed from a local shop into one of the world's largest operators of convenience stores and gas stations.
What it actually does
You've likely seen their stores, which are mainly called Circle K or, in Quebec, Couche-Tard. They are convenience stores that are often attached to gas stations, designed for people on the go. Inside, you can buy everyday items like snacks, drinks, coffee, and tobacco products. Many locations also offer quick meal options, car washes, and lottery tickets. The company's main goal is to provide a quick and easy stop for fuel and convenience items.
Road Transportation Fuel
This is the company's largest business segment by sales, making up the majority of its total revenue (the total money collected from sales). Most of the company's convenience stores have gas stations where customers can buy fuel for their cars and trucks. While fuel sales bring in a lot of money, the profit margin (the portion of the sale price that is actual profit) is lower than what the company makes on items inside the store. The fuel business is crucial because it drives customer traffic to the stores, creating opportunities to sell higher-profit items.
Merchandise and Services
This part of the business includes everything sold inside the convenience stores, from coffee and snacks to lottery tickets and car washes. While it brings in less total revenue than fuel, it is significantly more profitable for the company. This is because the markup on items like a cup of coffee or a bag of chips is much higher than on a gallon of gas. This segment is a key focus for growth, as the company aims to get each customer who stops for gas to also come inside and buy something.
What management is betting on now
The company's current strategy is called “Core + More,” which focuses on strengthening its main business while investing in new growth areas. The 'Core' part involves improving the customer experience for its most popular products like fuel, coffee, and snacks. The 'More' part is a bet on expanding its food offerings, aiming to compete more with quick-service restaurants. Management is also investing in technology and data analytics to better understand customer habits and improve the efficiency of its supply chain (the system for getting products to its stores).
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $79.99 vs current price $57.24
Our most-likely fair value is $79.99 a share — about 39.7% above today's price of $57.24, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $12.3B. Interest coverage 6.4x.
Net debt
$12.25B
Interest coverage
6.43x
Alimentation Couche-Tard Inc.'s profit covers its interest bill about 6.4 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
ANCTF
BASELINE
Alimentation Couche-Tard Inc.
Total debt $15.45B Interest coverage 6.43x This is the baseline the peer rows are being compared against.
Total debt $2.89B Interest coverage 10.70x +66% vs ANCTF Carries about 1.7x more debt cushion than ANCTF.
Total debt $2.76B Interest coverage 6.67x +4% vs ANCTF Has roughly the same debt cushion as ANCTF.
Total debt $24.87B Interest coverage 8.55x +33% vs ANCTF Carries about 1.3x more debt cushion than ANCTF.
Total debt $34.29B Interest coverage 4.08x -36% vs ANCTF Carries about 1.6x less debt cushion than ANCTF.
Total debt $2.33B Interest coverage 1.10x -83% vs ANCTF Carries about 5.8x less debt cushion than ANCTF.
What you should know
The case for and against ANCTF
3 Rewards
2 Risks
Rewards
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Revenue grew 5.0% last year.
-
Returns 19.6% on equity, ahead of 33% of its peers.
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Free cash flow was positive in 4/10 years.
Risks
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Net debt grew 55.7% over 3 years.
-
Operating margin compressed from 5.8% to 5.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.64x
Forward P/E
—
P/B
3.25x
P/S
0.65x
EV/EBITDA
10.10x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
18.2%
Operating margin
5.6%
Net margin
3.9%
ROE
19.6%
ROA
7.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.92x
Current ratio
1.26x
Quick ratio
0.85x
Total debt
$15.45B
Total cash
$3.20B
Growth
How the business has been compounding
Revenue TTM
$80.86B
Revenue 5Y CAGR
2.1%
EPS TTM
3.44
EPS 5Y CAGR
3.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.36B
Free CF TTM
$3.37B
FCF margin
4.2%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
17.5%
Last ex-div date
2026-09-11