Executive Summary
Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value with adequate balance sheet and pays a dividend.
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
Stable Share Price: CTC.A is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CTC.A's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.8%
CTC.A
1.6%
CA Multiline Retail
0.9%
CA Market
1 Year Return
97.3%
CTC.A
67.7%
CA Multiline Retail
39.2%
CA Market
Return vs Industry: CTC.A exceeded the Canadian Multiline Retail industry which returned 68.1% over the past year.
Return vs Market: CTC.A exceeded the Canadian Market which returned 41.1% over the past year.
Shareholder returns
| CTC.A | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 1.6% | 0.9% |
| 30 Day | 5.5% | 10.2% | 3.0% |
| 90 Day | 4.0% | 4.4% | 7.5% |
| 1 Year | 104.4%97.3% | 69.6%67.7% | 43.9%39.2% |
| 3 Year | 19.1%9.1% | 85.3%75.6% | 32.5%19.8% |
| 5 Year | 56.4%38.3% | 115.2%92.9% | 59.3%35.1% |
Long-Term 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
4 days ago | Simply Wall St
With A 15% Return On Equity, Is Canadian Tire Corporation, Limited (TSE:CTC.A) A Quality Stock?2 weeks ago | Simply Wall St
Canadian Tire Corporation (TSE:CTC.A) Takes On Some Risk With Its Use Of Debt1 month ago | Simply Wall St
Is Canadian Tire Corporation, Limited (TSE:CTC.A) Trading At A 27% Discount?Valuation
Is Canadian Tire Corporation undervalued compared to its fair value and its price relative to the market?
9.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CTC.A (CA$186) is trading below our estimate of fair value (CA$227.09)
Significantly Below Fair Value: CTC.A is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CTC.A is good value based on its PE Ratio (15.1x) compared to the XN Multiline Retail industry average (21.9x).
PE vs Market: CTC.A is good value based on its PE Ratio (15.1x) compared to the Canadian market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: CTC.A is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: CTC.A is good value based on its PB Ratio (2.5x) compared to the XN Multiline Retail industry average (3.8x).
Future Growth
How is Canadian Tire Corporation forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
4.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CTC.A's forecast earnings growth (8.4% per year) is above the savings rate (1.5%).
Earnings vs Market: CTC.A's earnings (8.4% per year) are forecast to grow slower than the Canadian market (22.2% per year).
High Growth Earnings: CTC.A's earnings are forecast to grow, but not significantly.
Revenue vs Market: CTC.A's revenue (5.3% per year) is forecast to grow slower than the Canadian market (7.1% per year).
High Growth Revenue: CTC.A's revenue (5.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CTC.A's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Canadian Tire Corporation performed over the past 5 years?
-0.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CTC.A has high quality earnings.
Growing Profit Margin: CTC.A's current net profit margins (5.4%) are lower than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: CTC.A's earnings have declined by 0.1% per year over the past 5 years.
Accelerating Growth: CTC.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CTC.A had negative earnings growth (-2.7%) over the past year, making it difficult to compare to the Multiline Retail industry average (55.1%).
Return on Equity
High ROE: CTC.A's Return on Equity (14.8%) is considered low.
Financial Health
How is Canadian Tire Corporation's financial position?
Financial Position Analysis
Short Term Liabilities: CTC.A's short term assets (CA$10.5B) exceed its short term liabilities (CA$5.2B).
Long Term Liabilities: CTC.A's short term assets (CA$10.5B) exceed its long term liabilities (CA$9.3B).
Debt to Equity History and Analysis
Debt Level: CTC.A's debt to equity ratio (136.1%) is considered high.
Reducing Debt: CTC.A's debt to equity ratio has increased from 92.4% to 136.1% over the past 5 years.
Debt Coverage: CTC.A's debt is well covered by operating cash flow (30.8%).
Interest Coverage: CTC.A's interest payments on its debt are well covered by EBIT (5.9x coverage).
Balance Sheet
Dividend
What is Canadian Tire Corporation current dividend yield, its reliability and sustainability?
2.56%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CTC.A's dividend (2.53%) is higher than the bottom 25% of dividend payers in the Canadian market (1.48%).
High Dividend: CTC.A's dividend (2.53%) is low compared to the top 25% of dividend payers in the Canadian market (4.83%).
Stability and Growth of Payments
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 (37.2%), 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
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Greg Hicks (49 yo)
1.08yrs
Tenure
Mr. Gregory Hubert Hicks, also known as Greg, serves as President, Chief Executive Officer and Executive Director at Canadian Tire Corporation, Limited since March 12, 2020. Mr. Hicks serves as Chair of th...
Leadership Team
Experienced Management: CTC.A's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
Experienced Board: CTC.A's board of directors are considered experienced (8.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CTC.A insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$11.260b
- Shares outstanding: 60.81m
- Website: https://www.corp.canadiantire.ca
Number of Employees
Location
- Canadian Tire Corporation, Limited
- 2180 Yonge Street
- PO Box 770
- Toronto
- Ontario
- M4P 2V8
- Canada
Listings
Biography
Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. The company operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails autom...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/10 23:54 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2021/01/02 |
| Annual Earnings | 2021/01/02 |
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.