A Year Later: 1 Canadian Stock That Proved the Doubters Wrong, and 1 That Didn’t

Couche-Tard and goeasy show how patience can pay when strong operators keep executing through ugly headlines.

Key Points
  • Couche-Tard kept growing with scale, disciplined margins, and steady cash flow, even as fuel and traffic worries lingered.
  • Goeasy is down sharply, but it’s still growing revenue and its loan book while managing rising bad debts.
  • Valuation matters: ATD is priced for steady execution, while GSY looks cheap if credit losses stay contained.

Long-term investing wins because markets love to scare people out at the exact wrong moment. A year feels like forever when rates jump, consumers pinch pennies, and headlines never stop. But time gives strong operators room to compound, fix what needs fixing, and prove that cash flow beats noise. It also lets management teams show their character when conditions turn choppy. So, let’s look at two Canadian stocks that pushed past the skeptics.

man in suit looks at a computer with an anxious expression

Source: Getty Images

ATD

Alimentation Couche-Tard (TSX: ATD) is up about 18% in the last year, and runs Circle K and other convenience and fuel sites across North America and Europe. Doubters spent the past year fixating on softer traffic, fuel volume swings, and the idea that consumers would trade down and stop buying the high-margin extras. The Canadian stock answered with discipline. It kept pushing higher-margin merchandise, managed fuel margins, and stayed active on deals.

The numbers still look sturdy. In fiscal 2025, it generated US$6 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and US$2.6 billion in net earnings, with adjusted diluted earnings per share (EPS) of US$2.71 and free cash flow of US$1.8 billion. It also reported fiscal 2025 revenue of US$72.86 billion, which shows just how much scale sits behind those margins.

Valuation also cooled to something more reasonable for a compounder, trading at 22 times earnings. That multiple still asks for steady execution, but it no longer prices in perfection. The next year hinges on whether it can keep growing inside the store while fuel demand ebbs and flows. Deal risk also matters. Big acquisitions can create big headaches if regulators object or integration drags.

GSY

goeasy (TSX: GSY) is up down 36%, and offers consumer credit to Canadians who often sit outside prime-bank comfort zones, through easyfinancial and easyhome. Bears warned that higher rates and a weaker consumer would crush loan growth and spike losses. The Canadian stock did not pretend the cycle felt easy, but leaned into underwriting, diversified origination channels, and kept scaling products like home equity and point-of-sale financing. That approach helped it keep growing even while the macro mood stayed sour.

Its latest reported quarter showed real momentum, with a clear trade-off that investors should watch. In Q3 2025, revenue rose to $440.2 million from $383.2 million, and adjusted diluted EPS came in at $4.12. Loan originations reached $946 million, up 13%, and the consumer loan portfolio grew to $5.44 billion, up 24%. At the same time, bad debts rose, and returns dipped versus last year, which tells you the cycle still bites.

That is where valuation starts to matter. Recent figures put goeasy at nearly 8 times trailing earnings, suggesting a market that still doubts the durability of its growth. If credit losses stay contained and funding stays available, that multiple can re-rate quickly. Management also flagged about $2.31 billion in total funding capacity as of early November 2025, which helps it keep lending without starving the balance sheet. Even so, it still offers a strong 5.3% dividend yield for today’s investor.

Bottom line

A year later, the lesson looks simple. Great businesses can look messy in real time, especially when macro fears dominate the story. Couche-Tard shows how scale and steady cash flow can outlast retail worries, even when fuel volumes wobble. goeasy shows how a lender can keep growing while staying honest about credit risk and funding discipline. If you want proof that patience pays, these two names delivered it, and the next chapter still offers room for upside if execution holds and the economy cooperates, without relying on rosy forecasts or perfect market timing either.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool has a disclosure policy.

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