Friday , May 7 2021

Top shares for 2019

Alimentation Couche-Tard Inc.. (TSX: ATD.B) is one of the rare actions of the TSX index that affects all times.

A reflection of the stellar results that the company publishes, certainly, but also a reflection of the changing feelings of investors.

A change that meant that stable, predictable, defensive stocks are in high demand.

Looking at the company's recent results, its forward-looking prospects and its assessment, all refer us to the same conclusion.

Couche-Tard's alimony is a safe bet for 2019.

I must admit, I am not the one who must enjoy buying shares when they trade at all times.

But my investment thesis is based on the fact that this action will be a stable contractor that gives investors a small dividend, a predictable revenue stream, big cash flows and top profitability.

Both flawed protection, as well as around potential.

With a global network of 10,000 stores globally, the company has a history of profitable growth, both organically and through acquisitions.

The company's long-term burden has grown recently as a result of a continuing aggressive acquisition strategy for the company, which has seen three transformational acquisitions in the last three years, with the acquisition of 279 million dollars from 279 ESO gas stations is one of the newest.

The strong cash flows is one of the key features of the company's business model, as demonstrated by generating free cash flow in the company (excluding acquisitions) of nearly $ 3 billion over the past three years, its annual growth rate of 8 , 6% cash flow and a respectable free money supply of over 2%.

So, although the debt to total capitalization remains high, it is declining and now stands at 48% (versus 54% earlier this year), and the strong cash flow generation of the company can easily support this.

The last quarter, the second quarter of fiscal year 2019, shows continued strength in sales and trade with the same store, continuous margin squeeze and continuous cash flow generation.

Sales of goods with the same store increased by 4.4% in the United States, 4.6% in Europe and 5.1% in Canada.

The margins of EBITDA are expected to increase as the company continues to realize the expected synergies associated with its acquisition of CST.

As on October 14, 2018, the annual synergy rate was $ 200 million, which will be on the costs and margins in the coming quarters. The total $ 215 million synergy target is just fading and will be achieved.

Return of capital was 24% of the stars, and return of capital was impressively 12.1%.

In addition, we can expect continuous synergies from the company's recent acquisitions, as well as balance sheet and continuous growth, both organic and acquisitions, in order to double the company once again.

Karaman Thomas has no place in any of the listed actions. Couche-Tard's alimentation is a recommendation from Stock Advisor Canada.

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