Section 1: Introduction

• Inflation is the gradual loss in purchasing power, primarily due increase in the price levels of goods and services over a given period.
• The Consumer Price Index (CPI) rose 2.5% on a year-over-year basis in July, increasing at the slowest pace since March 2021 and down from a 2.7% gain in June 2024.  On a monthly basis, the CPI rose 0.4% in July, after falling 0.1% in June. Gasoline prices increased month over month in July (+2.4%), putting upward pressure on the monthly CPI figure.
• There are two types of inflationary trends - high and low inflation. The cycles of high and low inflation mainly depend on policy action by the Government to balance the demand and growth of the country.

• Alimentation Couche-Tard Inc (TSX: ATD) operates a network of convenience stores across North America. The company primarily generates income through the sale of tobacco products, groceries, beverages, fresh food. Peyto Exploration & Development Corp (TSX: PEY) is an oil and gas company that is involved in the exploration and development of natural gas.

Section 2: Company Overview

Alimentation Couche-Tard Inc (TSX: ATD) operates a network of convenience stores across North America, Ireland, Scandinavia, Poland, the Baltics, and Russia. The company primarily generates income through the sale of tobacco products, groceries, beverages, fresh food, quick service restaurants, car wash services, other retail products and services, road transportation fuel, stationary energy, marine fuel, and chemicals. Kalkine’s Inflation Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

2.1 The Key Positives, Negatives, Investment Highlights, and Risks

Section3:  Financial Highlights

 3.1 Key Financial Highlights

Section 4:  Key Metrics

Below charts depict the change in Quick Ratio, Current Ratio, EBITDA Margins and Gross Margins for the firm for the last 5 reported quarters.

Section 5:  Stock Recommendation Summary

5.1 Valuation Methodology Illustrative EV to Sales Based

 5.2 Price Performance and Stock Recommendation

The stock has witnessed a downside of ~5.44% in 1 month and of ~3.07% over the last 3 months. Moreover, the stock is trading above the average 52-week high price of CAD 87.27 and 52-week low price of CAD 68.93 providing an opportunity to ride the trend.

5.3 One-Year Technical Price Chart

One-Year Technical Price Chart (as of September 26, 2024). Source: REFINITIV, Analysis: Kalkine Group

5.4 Technical Summary

 Peyto Exploration and Development Corp.

Section 1: Company Overview

Peyto Exploration & Development Corp (TSX: PEY) is an oil and gas company that is involved in the exploration and development of natural gas. The company acquires, explores, develops and produces crude oil and unconventional natural gas reserves. Kalkine’s Inflation Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.1 The Key Positives, Negatives, Investment Highlights, and Risks

Section2:  Financial Highlights

 2.1 Key Financial Highlights

Section 3:  Key Metrics

Below charts depict the change in Debt to Equity, Gross Margin, Operating Margin of the Company for the last five reported quarters.

Section 4:  Stock Recommendation Summary

4.1 Valuation Methodology Illustrative EV to Sales Based

 4.2 Price Performance and Stock Recommendation

The stock has witnessed a change of ~0.00% in 1 month and a downside of ~0.47% over the last 3 months. Moreover, the stock is trading slightly above the average of 52-week high price of CAD 15.99 and 52-week low price of CAD 11.09 providing an opportunity to ride the trend.

4.3 One-Year Technical Price Chart

 One-Year Technical Price Chart (as of September 26, 2024). Source: REFINITIV, Analysis: Kalkine Group

4.4 Technical Summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 26, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.