TSX:CTC.A

Stock Analysis Report

Canadian Tire Corporation

Executive Summary

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada.

Snowflake

Fundamentals

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Canadian Tire Corporation's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.5%

CTC.A

1.9%

CA Multiline Retail

0.2%

CA Market


1 Year Return

-3.1%

CTC.A

14.3%

CA Multiline Retail

1.2%

CA Market

Return vs Industry: CTC.A underperformed the Canadian Multiline Retail industry which returned 14.3% over the past year.

Return vs Market: CTC.A underperformed the Canadian Market which returned 1.2% over the past year.


Shareholder returns

CTC.AIndustryMarket
7 Day0.5%1.9%0.2%
30 Day2.0%2.9%-2.5%
90 Day0.7%12.0%-1.5%
1 Year-0.5%-3.1%17.3%14.3%4.7%1.2%
3 Year17.0%9.7%51.9%41.1%14.0%3.8%
5 Year29.7%17.5%53.4%34.6%26.4%8.1%

Price Volatility Vs. Market

How volatile is Canadian Tire Corporation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Canadian Tire Corporation undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CTC.A (CA$144.46) is trading below our estimate of fair value (CA$363.97)

Significantly Undervalued: CTC.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CTC.A is poor value based on its PE Ratio (12.9x) compared to the Multiline Retail industry average (12.9x).

PE vs Market: CTC.A is good value based on its PE Ratio (12.9x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CTC.A is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CTC.A is overvalued based on its PB Ratio (2.3x) compared to the XN Multiline Retail industry average (1.9x).


Next Steps

Future Growth

How is Canadian Tire Corporation forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTC.A's forecast earnings growth (12% per year) is above the savings rate (1.9%).

Earnings vs Market: CTC.A's earnings (12% per year) are forecast to grow slower than the Canadian market (13.3% per year).

High Growth Earnings: CTC.A's earnings are forecast to grow, but not significantly.

Revenue vs Market: CTC.A's revenue (5.1% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: CTC.A's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if CTC.A's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Canadian Tire Corporation performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CTC.A's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: CTC.A's earnings growth over the past year (2.7%) is below its 5-year average (4% per year).

Earnings vs Industry: CTC.A earnings growth over the past year (2.7%) exceeded the Multiline Retail industry -7%.


Return on Equity

High ROE: CTC.A's Return on Equity (16.3%) is considered low.


Return on Assets

ROA vs Industry: CTC.A's Return on Assets is below or equal to the Multiline Retail industry average last year.


Return on Capital Employed

ROCE Improving: CTC.A has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Canadian Tire Corporation's financial position?


Financial Position Analysis

Short Term Liabilities: CTC.A's short term assets (CA$9.5B) exceeds its short term liabilities (CA$5.3B)

Long Term Liabilities: CTC.A's short term assets (9.5B) exceeds its long term liabilities (9.0B)


Debt to Equity History and Analysis

Debt Level: CTC.A's debt to equity ratio (164.3%) is considered high

Reducing Debt: CTC.A's debt to equity ratio has increased from 73.5% to 164.3% over the past 5 years.

Debt Coverage: CTC.A's debt is not well covered by operating cash flow (9.9%).

Interest Coverage: CTC.A's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: CTC.A has a high level of physical assets or inventory.

Debt Coverage by Assets: CTC.A's debt is covered by short term assets (assets are 1.171350x debt).


Next Steps

Dividend

What is Canadian Tire Corporation's current dividend yield, its reliability and sustainability?

2.87%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Canadian Tire Corporation before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.9%marketbottom25%2.0%markettop25%5.9%industryaverage2.4%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CTC.A's dividend (2.87%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: CTC.A's dividend (2.87%) is low compared to the top 25% of dividend payers in the Canadian market (5.94%).

Stable Dividend: CTC.A's dividends per share have been stable in the past 10 years.

Growing Dividend: CTC.A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.9%), CTC.A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Canadian Tire Corporation's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Stephen Wetmore (66yo)

3.3yrs

Tenure

CA$11,924,488

Compensation

Mr. Stephen G. Wetmore is President and Chief Executive Officer of Canadian Tire Corporation, Limited (“CTC”). Mr. Wetmore was first appointed as President and CEO of CTC in January 2009. He served as Pres ...


CEO Compensation Analysis

Compensation vs. Market: Stephen's total compensation ($USD9.04M) is about average for companies of similar size in the Canadian market ($USD3.99M).

Compensation vs Earnings: Stephen's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.0yrs

Average Tenure

61yo

Average Age

Experienced Management: CTC.A's management team is considered experienced (3 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

66yo

Average Age

Experienced Board: CTC.A's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: CTC.A insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$150,09917 Sep 19
8562997 Canada Inc.
EntityCompany
Shares1,057
Max PriceCA$142.01
BuyCA$49,87614 Aug 19
Diana Chant
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares370
Max PriceCA$134.80
BuyCA$50,28813 Dec 18
Diana Chant
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares350
Max PriceCA$143.68

Ownership Breakdown


Management Team

  • Stephen Wetmore (66yo)

    CEO, President & Non-Independent Director

    • Tenure: 3.3yrs
    • Compensation: CA$11.92m
  • Jim Christie

    Executive VP

    • Tenure: 0yrs
    • Compensation: CA$1.77m
  • Robyn Collver

    Senior Vice-President of Risk & Regulatory Affairs

    • Tenure: 0yrs
  • Dean McCann (60yo)

    Executive VP & CFO

    • Tenure: 7.6yrs
    • Compensation: CA$1.86m
  • Mahes Wickramasinghe (61yo)

    Executive VP of International & Chief Corporate Officer

    • Tenure: 3yrs
    • Compensation: CA$1.77m
  • Allan MacDonald

    Executive Vice-President of Retail

    • Tenure: 1.9yrs
    • Compensation: CA$2.80m
  • Lisa Greatrix

    Senior Vice President of Finance & Investor Relations

    • Tenure: 0yrs
  • Susan O'Brien

    Senior Vice President of Marketing

    • Tenure: 2.3yrs
  • Jane Shaw

    Vice President of Communications

    • Tenure: 0yrs
  • Rex Lee

    Senior VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Pierre Boivin (65yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: CA$208.00k
  • Stephen Wetmore (66yo)

    CEO, President & Non-Independent Director

    • Tenure: 3.3yrs
    • Compensation: CA$11.92m
  • Maureen Sabia (77yo)

    Non-Executive Chairman of the Board

    • Tenure: 12.6yrs
    • Compensation: CA$570.81k
  • Martha Billes (78yo)

    Independent Director

    • Tenure: 39.8yrs
    • Compensation: CA$238.73k
  • Owen Billes (49yo)

    Non-Independent Director

    • Tenure: 15.8yrs
    • Compensation: CA$190.74k
  • Diana Chant

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: CA$229.75k
  • Jim Goodfellow

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: CA$299.25k
  • John A. Furlong (68yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: CA$216.50k
  • Claude L'Heureux

    Non-Independent Director

    • Tenure: 8.8yrs
    • Compensation: CA$184.00k
  • David Court (62yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: CA$213.75k

Company Information

Canadian Tire Corporation, Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canadian Tire Corporation, Limited
  • Ticker: CTC.A
  • Exchange: TSX
  • Founded: 1922
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: CA$10.653b
  • Shares outstanding: 72.19m
  • Website: https://www.corp.canadiantire.ca

Number of Employees


Location

  • Canadian Tire Corporation, Limited
  • 2180 Yonge Street
  • P.O. Box 770
  • Toronto
  • Ontario
  • M4P 2V8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTCTSX (The Toronto Stock Exchange)Common SharesCACADDec 1972
CDNT.FOTCPK (Pink Sheets LLC)Common SharesUSUSDDec 1972
CTC.ATSX (The Toronto Stock Exchange)YesClass A Non-Voting SharesCACADAug 1973
YAAADB (Deutsche Boerse AG)YesClass A Non-Voting SharesDEEURAug 1973
CDNA.FOTCPK (Pink Sheets LLC)YesClass A Non-Voting SharesUSUSDAug 1973

Biography

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. The company operates through three segments: Retail, CT REIT, and Financial Services. The Retail segment retails  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:34
End of Day Share Price2019/10/16 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.