Is Alimentation Couche-Tard (TSX: ATD) a growth stock to buy right now?

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Is Alimentation Couche-Tard (TSX: ATD) a growth stock to buy right now?

 Is Alimentation Couche-Tard (TSX: ATD) a growth stock to buy right now?
Image source: © 2022 Kalkine Media®

Highlights

  • Alimentation said its total revenues jumped 34.3 per cent year-over-year in Q4 2022
  • The Canadian retailer is set to also pay a quarterly dividend of C$ 0.11 on July 22
  • ATD stocks gained by over four per cent in nine months

Canadian investors focused on long-term growth could explore Alimentation Couch-Tard (TSX: ATD) stock as the large-cap company continues to expand its store network and retail footprints globally through acquisition and other growth strategies.

Speaking of acquisition and growth, Alimentation Couch-Tard has drawn some attention amid speculations of being a potential bidder for Suncor (TSX: SU)’s retail business, Petro-Canada. These reports surfaced as the oil producer revealed on Monday, July 18, that it is considering alternative options (including sale) for its downstream unit to enhance shareholders’ value. However, it is believed that there would be competition and concentration issues for the Circle K owner.

While the Canadian convenience store owner has not commented on the matter, it is believed that if the speculations turn real, it could significantly extend Alimentation's retail network. On that note, let us talk about Alimentation's financial and stock performance.

Alimentation Couche-Tard Inc (TSX: ATD)’s Q4 FY2022 financial results

Alimentation posted total revenues of US$ 16.43 billion in the last quarter of FY2022, signaling a year-over-year (YoY) rise of 34.3 per cent. The company improved its gross profit by 9.5 per cent to US$ 2.55 billion in Q4 2022 relative to US$ 2.33 billion a year ago.

The Laval-headquartered company reported a decreasing net profit of US$ 477.7 million in the latest quarter, down by 15.3 per cent from US$ 563.9 million in Q4 2021. This TSX-listed retailer is set to also pay a quarterly dividend of C$ 0.11 on July 22.

Is Couche-Tard (TSX: ATD) a growth stock to buy right now?©Kalkine Media®; ©Garis Studio via Canva.com

Alimentation’s stock performance

ATD stocks zoomed by over four per cent in the period of nine months. This retail stock grew by almost 14 per cent from a 52-week low of C$ 45.23 (March 8).

According to Refinitiv findings, Couch-Tard stocks have been on a mixed trend since April 2022. On Monday, July 18, recorded a Relative Strength Index (RSI) value of 41.62, with volumes in red but above the oversold territory.

At 10.55 AM EST on Tuesday, July 19, ATD stocks were trading in green with a growth of about one per cent at C$ 52 apiece.

Bottomline

Alimentation Couche-Tard is also tapping into the emerging electric vehicles (EV) market as it launched its first Circle K fast EV charging sites In Rock Hill, South California, and plans to expand charging units to 200 Circle K and Couch-Tard stores in the coming two years. Hence, growth seekers could consider ATD stocks for possible benefits from its expansion strategies in the long run.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

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