Alimentation Couche-Tard Inc reports 28.0% EBITDA growth and 1.5 pp EBITDA Margin growth from 5.1% to 6.7%
12.07.2016 • About Alimentation Couche-Tard Inc (
$ATD.A) • By InTwits
Alimentation Couche-Tard Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 6.7% in FY2016 vs. 5.1% in FY2015 vs. 3.4% in FY2012
- Alimentation Couche-Tard Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 906 in FY2016, 635 in FY2015, 529 in FY2014, 537 in FY2013, 317 in FY2012
- The company has highly profitable business model: ROIC is at 20.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alimentation Couche-Tard Inc ($ATD.A) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 22,980 | 35,543 | 37,962 | 34,530 | 34,145 | -1.1% |
| Gross Profit | 2,975 | 4,610 | 4,988 | 5,268 | 6,081 | 15.4% |
| SG&A | 2,156 | 3,240 | 3,420 | 3,378 | 3,835 | 13.5% |
| EBITDA | 779 | 1,325 | 1,588 | 1,778 | 2,275 | 28.0% |
| Net Income | 458 | 573 | 811 | 929 | 1,194 | 28.4% |
Balance Sheet
|
|---|
| Cash | 304 | 658 | 511 | 576 | 599 | 4.1% |
| Short Term Debt | 484 | 621 | 20 | 21 | 29 | 33.6% |
| Long Term Debt | 181 | 2,984 | 2,586 | 3,047 | 2,828 | -7.2% |
Cash flow
|
|---|
| Capex | 317 | 537 | 529 | 635 | 906 | 42.7% |
Ratios
|
|---|
| Revenue growth | 23.9% | 54.7% | 6.8% | -9.0% | -1.1% | |
| EBITDA growth | 12.7% | 70.0% | 19.9% | 11.9% | 28.0% | |
| Gross Margin | 12.9% | 13.0% | 13.1% | 15.3% | 17.8% | 2.6% |
| EBITDA Margin | 3.4% | 3.7% | 4.2% | 5.1% | 6.7% | 1.5% |
| Net Income Margin | 2.0% | 1.6% | 2.1% | 2.7% | 3.5% | 0.8% |
| SG&A, % of revenue | 9.4% | 9.1% | 9.0% | 9.8% | 11.2% | 1.4% |
| CAPEX, % of revenue | 1.4% | 1.5% | 1.4% | 1.8% | 2.7% | 0.8% |
| ROIC | 19.8% | 15.9% | 14.2% | 18.0% | 20.7% | 2.7% |
| ROE | 22.0% | 21.2% | 22.6% | 23.7% | 26.7% | 3.1% |
| Net Debt/EBITDA | 0.5x | 2.2x | 1.3x | 1.4x | 1.0x | -0.4x |
Alimentation Couche-Tard Inc ($ATD.A) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 8,980 | 8,437 | 9,331 | 7,397 | -2.3% | -5.7% | 2.5% | 1.5% |
| EBITDA | 524 | 685 | 607 | 461 | 12.6% | 35.1% | 19.0% | 55.7% |
| Net Income | 298 | 416 | 274 | 200 | 10.5% | 45.2% | 10.5% | 58.9% |
Balance Sheet
|
|---|
| Cash | 819 | 473 | 972 | 599 | 36.7% | -20.5% | 103.4% | 4.1% |
| Short Term Debt | 22 | 23 | 21 | 29 | -89.8% | 44.7% | 46.8% | 33.6% |
| Long Term Debt | 2,951 | 2,179 | 2,749 | 2,828 | 30.7% | 2.1% | 65.2% | -7.2% |
Ratios
|
|---|
| Gross Margin | 15.8% | 18.1% | 18.6% | 18.8% | 1.9% | 3.8% | 1.9% | 2.7% |
| EBITDA Margin | 5.8% | 8.1% | 6.5% | 6.2% | 0.8% | 2.5% | 0.9% | 2.2% |
| Net Income Margin | 3.3% | 4.9% | 2.9% | 2.7% | 0.4% | 1.7% | 0.2% | 1.0% |
Revenue and profitability
The company's Revenue decreased slightly on 1.1%. Annual revenue decline showed slowdown in FY16Q4 - revenue increased slightly on 1.5%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.5 pp from 5.1% to 6.7% in FY2016.
Gross Margin increased on 2.6 pp from 15.3% to 17.8% in FY2016. SG&A as a % of Revenue increased slightly on 1.4 pp from 9.8% to 11.2% in FY2016.
Net Income marign increased slightly on 0.80 pp from 2.7% to 3.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Alimentation Couche-Tard Inc's CAPEX/Revenue was 2.7% in FY2016. Alimentation Couche-Tard Inc showed small growth in CAPEX/Revenue of 1.1 pp from 1.5% in FY2013 to 2.7% in FY2016. For the last three years the average CAPEX/Revenue was 2.0%.
Return on investment
The company operates at high and attractive ROIC (20.66%) and ROE (26.72%). ROIC increased on 2.7 pp from 18.0% to 20.7% in FY2016. ROE increased on 3.1 pp from 23.7% to 26.7% in FY2016.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 1.4x to 1.0x in FY2016. Debt decreased on 6.9% while cash increased on 4.1%.
Management team
The company's CEO Brian P Hannasch has spent 4 years at the company. The company's CFO is Claude Tessier. Claude Tessier has 2 years tenure at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Alimentation Couche-Tard Inc benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Flyer Industries Inc ($NFI) | | 38.6% | 21.0% | 6.1% | 47.8% |
| Hardwoods Distribution Inc ($HWD) | | 21.3% | 22.8% | 25.4% | 38.1% |
| Spin Master Corp ($TOY) | | 21.5% | 41.0% | 22.9% | 31.3% |
| Great Canadian Gaming Corp ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| |
|---|
| Median (36 companies) | | 4.9% | 6.9% | 6.8% | 5.0% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($IGG) | 89.3% | 82.4% | 85.3% | 92.9% | 88.1% |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| Canlan Ice Sports Corp ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| |
|---|
| Median (37 companies) | 36.1% | 31.6% | 32.5% | 31.5% | 34.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | 44.4% |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (39 companies) | 8.1% | 9.8% | 12.3% | 10.1% | 15.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | 9.3% |
| WestJet Airlines Ltd ($WJA) | 7.9% | 19.5% | 18.6% | 22.5% | 22.4% |
| Westshore Terminals Investment Corp ($WTE) | 25.7% | 11.5% | 6.2% | 21.2% | |
| Innova Gaming Group Inc ($IGG) | 20.6% | 26.7% | 15.9% | 15.6% | 15.1% |
| Exchange Income Corp ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (42 companies) | 2.7% | 3.1% | 3.4% | 3.4% | 4.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($TOY) | | 19.2% | 56.9% | 48.2% | 44.5% |
| Magna International Inc ($MG) | 16.3% | 18.6% | 25.2% | 21.9% | 21.2% |
| Linamar Corp ($LNR) | 12.9% | 17.0% | 21.7% | 23.7% | 19.8% |
| Sleep Country Canada Holdings Inc ($ZZZ) | | | 9.7% | 12.7% | 19.0% |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (42 companies) | 10.5% | 12.5% | 10.8% | 10.6% | 11.2% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | 8.6x |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | 13.7x |
| Second Cup Ltd/The ($SCU) | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x |
| Amaya Inc ($AYA) | 17.9x | 1.8x | 13.5x | 6.6x | 5.0x |
| Performance Sports Group Ltd ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| |
|---|
| Median (35 companies) | 1.9x | 2.8x | 2.4x | 2.5x | 2.1x |
|---|
