Thursday , December 9 2021

Stock & # 39; America for 2019



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Alimentation Couche Late Inc.. (TSX: ATD.B) is one of the few stocks in the TSX index hitting all time highs.

Reflecting the stellar results that the company has been publishing, for sure, but also a reflection of changing investor sentiment.

Change meant that stocks & # 39; stable and predictable defense were in high demand.

Looking at the recent results of the company, its outlook & # 39; forward, and its assessment, all jindikawna to the same conclusion.

Alimentation Couche Late is a safe bet for 2019.

Certainly, I am not one who necessarily enjoy buying stocks when they are trading at higher levels all the time.

But the argument & # 39; My investment is based on the fact that this stock will be a steady performer that gives small investors a dividend, flow & # 39; predictable income streams & # 39; broad money and profitability & # 39; top notch.

And the negative protection as well as potential & # 39; above.

B & # 39; & # 39 overall network; 10,000 stores worldwide, the company has a history & # 39; profitable growth, both organically and through & # 39; acquisitions.

The debt load of the company has increased recently as a result of the continuing aggressive strategy of the company acquisition, considering three acquisitions transformation in & # 39; the last three years, with the acquisition of & # 39; $ 1.7 billion & # 39; 279 of Esso gas station branded as one of the last.

Flows & # 39; strong cash is one of the key features of the model of the company's business, as evidenced by the free cash flow generation of the company (excluding acquisitions) of & # 39; nearly $ 3 billion in the last three years. cash flow, and margin & # 39; respectable free flow & # 39; cash & # 39; more than 2%.

So although the debt with the ratio of total capitalization remains & # 39; high, is declining and now stands at 48% (against 54% earlier this year), and generation b & # 39; robust of the company's liquidity can & # 39; easily support.

Last quarter, the second quarter of fiscal 2019, showing continued strength in sales and same store traffic, continuous improvement in margins, and generating b & # 39; & # 39 of robust, continuous liquidity.

Sales & # 39; at the same store goods increased 4.4% in the US, 4.6% in Europe, and 5.1% in Canada.

The EBITDA margins are expected to increase the ramp as the company continues to achieve the expected synergies related to its acquisition CST.

As at 14 & # 39, October 2018, rate & # 39; Annual synergies run & # 39 was $ 200 million, which will pass on costs and margins in future quarters. The target & # 39; & # 39 overall synergy; $ 215 million is only breaths & # 39; away and will be carried out.

Return on equity was stellar 24% and return on equity was an impressive 12.1%.

Working & # 39; forward, we expect continued synergies from recent acquisitions the company, as well as reducing the balance of the balance sheet, and continued growth both organically and through & # 39; acquisitions, with the company's goal to double the company again & # 39; other.


The Fool contributor Karen Thomas m & # 39; has no position in & # 39; any of the stocks mentioned. Alimentation Couche Late recommendation is & # 39; Stock Advisor Canada.

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