mardi 8 septembre 2020

Couche-Tard still kicks your ass

We're all talking about techno stocks while Couche-Tard, one of the most boring companies in the world, makes more and more money, every year since 1986.  

I'm a little late about this, but forgive me, I was staring at some mountain in Alberta while it happened: during the last quarter, Couche-Tard earned 70 cents per diluted share, up from 48 cents per share a year earlier. Analysts estimates were 40 cents per share for the last quarter. 

A lot of people still overlook Couche-Tard even if their business model still kicks asses. Their same store sales are still growing in a very nice way, which has hardly been the case of MTY (a business with much more diversity) over the last years. 

Average estimates are about 2US$ EPS in 2021 and the stock is currently sold for 33,60$ US $. So it means that the stock is currently sold for less than 17 times next year EPS. For such a great company, it's not expensive. I wouldn't say that it's cheap, but for a company that may very well double it's earnings over the next 5 years (it's debt level is currently medium but it drops every quarter), it's to me one of the best buys on the market right now. 

It's a recession proof model, what do you want more? You want the next big thing? 

Well, fuck you. 

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