Among all mid-single digit yielding Canadian equities out there, there happens to be a few companies that appear to be steals on the basis of value right now. In this article, I'm going to discuss one such company. Alimentation Couche-Tard (TSX:ATD.B) is a stock I think could prove to be one of the best long term picks for conservative investors with a relatively long term investment time horizon.
Couche-Tard is in the business of growing its footprint of gas stations and convenience stores globally, both organically as well as through acquisitions. Couche-Tard’s management team is among the best in terms of finding undervalued assets and investing in said assets to produce cashflow generating and highly productive additions to which conglomerate.
The growth profile this company has been able to provide investors with in the past blows many away when they begin to dig into the numbers, and in this context of growth, Couche-Tard does look very cheap now.
With some assets continuing to see depressed prices, at least in part due to the coronavirus pandemic, Couche-Tard may actually be a beneficiary of such an environment moving forward. With a value-conscious acquisition team only willing to pay a fair price for assets, Couche-Tard investors can rest assured that optimal capital allocation will continue to drive earnings and profits higher for years to come.
I would highly encourage Canadian investors to check out Couche-Tard at these levels.
Invest wisely, my friends.
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