One Canadian company that’s down sharply from its highs — but still looks fundamentally strong — is Alimentation Couche-Tard (TSX: ATD.B). Its share price has fallen about 24%, largely due to broader market rotations and sentiment shifts, not because its business model has broken. For long-term investors focused on buying durable companies at cheaper valuations, this pullback could be a rare entry point.
Couche-Tard is a global leader in convenience retail, operating thousands of gas stations and convenience stores across North America, Europe and Asia. Its business thrives on recurring consumer demand for fuel, daily necessities and quick convenience purchases — categories that tend to hold up even in softer economic environments. That makes it both a defensive cash-flow generator and a growth business that can expand through both same-store improvements and strategic acquisitions.
What sets Couche-Tard apart is its scale and operational efficiency. The company constantly optimizes pricing, supplier terms and in-store offerings to improve profitability, and its loyalty programs and fuel partnerships help drive repeat traffic. In many markets, its stores are deeply embedded in local communities, which gives it pricing power and a built-in customer base that’s hard for smaller players to replicate.
The recent drop in share price has more to do with valuation compression — investors rotating out of retail and back into cyclical tech names — rather than deteriorating fundamentals. Couche-Tard still generates strong free cash flow and allocates capital to both share buybacks and dividend enhancements, which are key ingredients for long-term shareholder value.
Also Read: Long term investing in Canada
If you’re a buy-and-hold investor with a multi-year horizon, this is exactly the kind of setup that can deliver both income and growth over time. Buying a quality company at a discount and letting compounding work in your favour — especially inside tax-advantaged accounts like a TFSA or RRSP — is often more effective than trying to time every market swing.
Also Read: Top Canadian tech AI stocks
Of course, no stock is “perfect.” Retail and energy price exposure mean earnings can vary with economic cycles and fuel costs. But for investors willing to look beyond short-term noise and focus on long-term structural strength, Couche-Tard’s current valuation could offer a compelling entry point to a forever holding.
Sign Up For our Newsletters to get latest updates
