Finding companies that exhibit solid value while also holding excellent growth upside today is difficult to do, particularly as valuation multiples become increasingly stretched. In this article, I’m going to discuss one Canadian company with such characteristics I think investors should keep an eye on.
Alimentation Couche-Tard (TSX:ATD.B) is a global player in the gas station and convenience store business. The company has thousands of locations around the world. Couche-Tard’s business model has been centered on its acquisition acumen, and this has been a key focus for investors in the past. I think we could see increased acquisition activity in the coming months, particularly in the U.S. market.
The company has built up market share in this market in recent years. Major oil companies are continuing to divest assets to shore up balance sheets in this uncertain time.
Alimentation Couche-Tard has the balance sheet room and the green light from investors to continue acquiring small chains of gas stations/convenience stores. The company remains especially adept at integrating new acquisitions into their business model to further profitability.
The company’s valuation multiple remains very attractive, when compared to other high-growth businesses. This makes Couche-Tard a great "growth-at-a great-price” option for investors. I would encourage investors to consider picking up shares of Couche-Tard on any dips moving forward.
Invest wisely, my friends.
