Canadian Tire
Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. The last earnings update was 14 days ago. More info.
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CTC.A Share Price and Events
7 Day Returns
1 Year Returns
CTC.A Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Canadian Tire (CTC.A) | -1% | -7.7% | -4.6% | -16.5% | -2.8% | 33.4% |
| North America Multiline Retail | -0.1% | -8.2% | -1.7% | 0.9% | 14% | 14.7% |
| CA Market | 0.6% | -1.6% | 1.6% | -1.2% | 12.2% | 5.5% |
1 Year Return vs Industry and Market
- CTC.A underperformed the Multiline Retail industry which returned 0.9% over the past year.
- CTC.A underperformed the Market in Canada which returned -1.2% over the past year.
Price Volatility
Related Companies
CTC.A Value
Is Canadian Tire undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Canadian Tire
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Canadian Tire.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 10 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7.8% |
| Perpetual Growth Rate | 10-Year CA Government Bond Rate | 1.9% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year CA Govt Bond Rate | 1.9% |
| Equity Risk Premium | S&P Global | 6% |
| Multiline Retail Unlevered Beta | Simply Wall St/ S&P Global | 0.52 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.524 (1 + (1- 26.5%) (117.53%)) |
0.985 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.98 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.985 * 5.96%) |
7.81% |
Discounted Cash Flow Calculation for TSX:CTC.A using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Canadian Tire is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (CAD, Millions) | Source |
Present Value Discounted (@ 7.81%) |
|
|---|---|---|---|
| 2019 | 652.00 | Analyst x3 | 604.74 |
| 2020 | 812.20 | Analyst x3 | 698.73 |
| 2021 | 941.10 | Est @ 15.87% | 750.93 |
| 2022 | 1,051.14 | Est @ 11.69% | 777.94 |
| 2023 | 1,143.32 | Est @ 8.77% | 784.83 |
| 2024 | 1,220.18 | Est @ 6.72% | 776.88 |
| 2025 | 1,284.72 | Est @ 5.29% | 758.69 |
| 2026 | 1,339.80 | Est @ 4.29% | 733.86 |
| 2027 | 1,387.83 | Est @ 3.59% | 705.07 |
| 2028 | 1,430.77 | Est @ 3.09% | 674.20 |
| Present value of next 10 years cash flows | CA$7,265.86 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= CA$1,430.77 × (1 + 1.95%) ÷ (7.81% – 1.95%) |
CA$24,858.27 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= CA$24,858.27 ÷ (1 + 7.81%)10 |
CA$11,713.56 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= CA$7,265.86 + CA$11,713.56 |
CA$18,979.42 |
| Equity Value per Share (CAD) |
= Total value / Shares Outstanding
= CA$18,979.42 / 61.78 |
CA$307.23 |
| Calculation | Result | |
|---|---|---|
| Value per share (CAD) | From above. | CA$307.23 |
| Current discount | Discount to share price of
CA$138.74
= -1 x (CA$138.74 - CA$307.23) / CA$307.23 |
54.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Canadian Tire's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Canadian Tire's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Canadian Tire's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Canadian Tire's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-30) in CAD | CA$10.70 |
| TSX:CTC.A Share Price ** | TSX (2019-05-23) in CAD | CA$138.74 |
| North America Multiline Retail Industry PE Ratio | Median Figure of 9 Publicly-Listed Multiline Retail Companies | 11.29x |
| Canada Market PE Ratio | Median Figure of 542 Publicly-Listed Companies | 15.02x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Canadian Tire.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = TSX:CTC.A Share Price ÷ EPS (both in CAD) = 138.74 ÷ 10.70 |
12.97x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Canadian Tire is overvalued based on earnings compared to the North America Multiline Retail industry average.
- Canadian Tire is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does
Canadian Tire's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 12.97x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts |
11%per year |
| North America Multiline Retail Industry PEG Ratio | Median Figure of 9 Publicly-Listed Multiline Retail Companies | 1.36x |
| Canada Market PEG Ratio | Median Figure of 249 Publicly-Listed Companies | 1.17x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 12.97x ÷ 11% |
1.17x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Canadian Tire is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Canadian Tire's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-30) in CAD | CA$62.87 |
| TSX:CTC.A Share Price * | TSX (2019-05-23) in CAD | CA$138.74 |
| North America Multiline Retail Industry PB Ratio | Median Figure of 14 Publicly-Listed Multiline Retail Companies | 1.73x |
| Canada Market PB Ratio | Median Figure of 2,403 Publicly-Listed Companies | 1.44x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = TSX:CTC.A Share Price ÷ Book Value per Share (both in CAD) = 138.74 ÷ 62.87 |
2.21x |
* Primary Listing of Canadian Tire.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Canadian Tire is overvalued based on assets compared to the North America Multiline Retail industry average.
Value checks
We assess Canadian Tire's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Multiline Retail industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Multiline Retail industry average (and greater than 0)? (1 check) Canadian Tire has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
CTC.A Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Canadian Tire's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
- Canadian Tire's earnings growth is positive but not above the Canada market average.
- Canadian Tire's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| TSX:CTC.A Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts | 11% |
| TSX:CTC.A Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts | 5.1% |
| North America Multiline Retail Industry Earnings Growth Rate | Market Cap Weighted Average | 12.1% |
| North America Multiline Retail Industry Revenue Growth Rate | Market Cap Weighted Average | 4% |
| Canada Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| Canada Market Revenue Growth Rate | Market Cap Weighted Average | 6% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| Date (Data in CAD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 15,942 | 1 | ||
| 2020-12-31 | 15,238 | 1,350 | 838 | 9 |
| 2019-12-31 | 14,684 | 1,294 | 771 | 10 |
| Date (Data in CAD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-30 | 13,111 | 602 | 684 |
| 2018-12-29 | 13,032 | 807 | 692 |
| 2018-09-29 | 13,089 | 838 | 714 |
| 2018-06-30 | 12,751 | 937 | 686 |
| 2018-03-31 | 12,662 | 947 | 726 |
| 2017-12-30 | 12,346 | 973 | 735 |
| 2017-09-30 | 12,313 | 910 | 706 |
| 2017-07-01 | 12,413 | 993 | 706 |
| 2017-04-01 | 12,621 | 1,046 | 690 |
| 2016-12-31 | 12,681 | 986 | 669 |
| 2016-10-01 | 12,420 | 833 | 648 |
| 2016-07-02 | 12,419 | 724 | 671 |
| 2016-04-02 | 12,324 | 875 | 657 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
All data from Canadian Tire Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CAD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | ||||
| 2020-12-31 | 13.89 | 14.20 | 13.73 | 4.00 |
| 2019-12-31 | 12.67 | 12.90 | 12.46 | 4.00 |
| Date (Data in CAD Millions) | EPS * |
|---|---|
| 2019-03-30 | 10.70 |
| 2018-12-29 | 10.67 |
| 2018-09-29 | 10.85 |
| 2018-06-30 | 10.30 |
| 2018-03-31 | 10.73 |
| 2017-12-30 | 10.70 |
| 2017-09-30 | 10.13 |
| 2017-07-01 | 9.99 |
| 2017-04-01 | 9.65 |
| 2016-12-31 | 9.25 |
| 2016-10-01 | 8.84 |
| 2016-07-02 | 9.04 |
| 2016-04-02 | 8.74 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Canadian Tire will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Canadian Tire's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Canadian Tire has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
CTC.A Past Performance
How has Canadian Tire performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Canadian Tire's year on year earnings growth rate has been positive over the past 5 years.
- Canadian Tire's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Canadian Tire's 1-year earnings growth is negative, it can't be compared to the North America Multiline Retail industry average.
Earnings and Revenue History
All data from Canadian Tire Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CAD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-30 | 13,111.00 | 683.80 | 3,090.50 | |
| 2018-12-29 | 13,031.50 | 692.10 | 3,101.50 | |
| 2018-09-29 | 13,089.10 | 713.50 | 3,087.40 | |
| 2018-06-30 | 12,751.20 | 686.30 | 3,019.80 | |
| 2018-03-31 | 12,662.00 | 725.50 | 3,003.40 | |
| 2017-12-30 | 12,346.10 | 735.00 | 2,946.40 | |
| 2017-09-30 | 12,313.30 | 706.10 | 2,951.40 | |
| 2017-07-01 | 12,412.90 | 705.90 | 2,951.50 | |
| 2017-04-01 | 12,620.60 | 690.10 | 2,981.90 | |
| 2016-12-31 | 12,681.00 | 669.10 | 2,998.20 | |
| 2016-10-01 | 12,420.20 | 647.50 | 2,919.00 | |
| 2016-07-02 | 12,418.60 | 670.80 | 2,893.20 | |
| 2016-04-02 | 12,324.10 | 657.40 | 2,856.40 | |
| 2016-01-02 | 12,279.60 | 659.40 | 2,821.40 | |
| 2015-10-03 | 12,553.20 | 625.50 | 2,864.40 | |
| 2015-07-04 | 12,496.30 | 598.00 | 2,838.00 | |
| 2015-04-04 | 12,404.70 | 601.90 | 2,789.50 | |
| 2015-01-03 | 12,462.90 | 604.00 | 2,752.10 | |
| 2014-09-27 | 12,137.80 | 600.50 | 2,663.80 | |
| 2014-06-28 | 12,023.90 | 573.80 | 2,669.70 | |
| 2014-03-29 | 11,878.90 | 558.80 | 2,541.10 | |
| 2013-12-28 | 11,785.60 | 561.20 | 2,550.40 | |
| 2013-09-28 | 11,623.60 | 536.20 | 2,590.70 | |
| 2013-06-29 | 11,497.40 | 522.10 | 2,578.10 | |
| 2013-03-30 | 11,467.50 | 500.90 | 2,720.20 | |
| 2012-12-29 | 11,427.20 | 498.90 | 2,700.60 | |
| 2012-09-29 | 11,395.60 | 502.40 | 2,619.30 | |
| 2012-06-30 | 11,270.70 | 507.50 | 2,559.20 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Canadian Tire has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Canadian Tire used its assets less efficiently than the North America Multiline Retail industry average last year based on Return on Assets.
- Canadian Tire has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Canadian Tire's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Multiline Retail industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Canadian Tire has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
CTC.A Health
How is Canadian Tire's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Canadian Tire's finances.
The net worth of a company is the difference between its assets and liabilities.
- Canadian Tire is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Canadian Tire's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Canadian Tire Company Filings, last reported 1 month ago.
| Date (Data in CAD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-30 | 4,937.90 | 10,392.10 | 527.30 |
| 2018-12-29 | 5,415.00 | 7,403.20 | 654.10 |
| 2018-09-29 | 5,094.40 | 8,016.70 | 597.70 |
| 2018-06-30 | 5,094.10 | 6,448.80 | 486.50 |
| 2018-03-31 | 5,109.30 | 6,397.20 | 419.70 |
| 2017-12-30 | 5,566.10 | 5,935.80 | 569.50 |
| 2017-09-30 | 5,503.80 | 6,430.90 | 799.50 |
| 2017-07-01 | 5,541.10 | 6,298.40 | 1,058.10 |
| 2017-04-01 | 5,622.70 | 5,841.20 | 556.30 |
| 2016-12-31 | 5,737.30 | 5,707.30 | 946.90 |
| 2016-10-01 | 5,590.40 | 5,644.30 | 466.80 |
| 2016-07-02 | 5,570.30 | 5,700.30 | 764.40 |
| 2016-04-02 | 5,535.70 | 5,619.00 | 661.40 |
| 2016-01-02 | 5,789.70 | 5,337.20 | 996.70 |
| 2015-10-03 | 5,679.90 | 5,643.10 | 961.90 |
| 2015-07-04 | 5,660.20 | 5,606.00 | 1,284.90 |
| 2015-04-04 | 5,664.80 | 5,155.50 | 541.20 |
| 2015-01-03 | 5,630.80 | 5,170.10 | 949.60 |
| 2014-09-27 | 5,545.20 | 5,348.10 | 587.30 |
| 2014-06-28 | 5,456.60 | 4,675.00 | 497.70 |
| 2014-03-29 | 5,469.00 | 5,148.50 | 919.20 |
| 2013-12-28 | 5,449.90 | 5,131.00 | 1,058.20 |
| 2013-09-28 | 5,002.40 | 5,001.90 | 593.00 |
| 2013-06-29 | 4,943.20 | 4,969.20 | 729.00 |
| 2013-03-30 | 4,815.90 | 5,039.90 | 499.70 |
| 2012-12-29 | 4,764.30 | 5,625.60 | 1,182.80 |
| 2012-09-29 | 4,643.90 | 5,172.30 | 514.20 |
| 2012-06-30 | 4,578.10 | 5,117.10 | 543.90 |
- Canadian Tire's level of debt (210.5%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (94% vs 210.5% today).
- Debt is not well covered by operating cash flow (5.8%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 7x coverage).
Financial health checks
We assess Canadian Tire's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Canadian Tire has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
CTC.A Dividends
What is Canadian Tire's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
CA$2,000 of
Canadian Tire
shares you are expected to receive
CA$60
in your first year as a dividend.
Dividend Amount
- Canadian Tire's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).
- Canadian Tire's dividend is below the markets top 25% of dividend payers in Canada (5.68%).
Upcoming dividend payment
Purchase Canadian Tire before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| North America Multiline Retail Industry Average Dividend Yield | Market Cap Weighted Average of 9 Stocks | 3% |
| Canada Market Average Dividend Yield | Market Cap Weighted Average of 331 Stocks | 3.5% |
| Canada Minimum Threshold Dividend Yield | 10th Percentile | 1.2% |
| Canada Bottom 25% Dividend Yield | 25th Percentile | 2% |
| Canada Top 25% Dividend Yield | 75th Percentile | 5.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in CA$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | ||
| 2020-12-31 | 4.63 | 3.00 |
| 2019-12-31 | 4.18 | 3.00 |
| Date (Data in CA$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-09 | 4.150 | 2.934 |
| 2019-02-14 | 4.150 | 2.832 |
| 2018-11-08 | 4.150 | 2.814 |
| 2018-08-09 | 3.600 | 2.310 |
| 2018-05-10 | 3.600 | 2.103 |
| 2018-02-15 | 3.600 | 2.100 |
| 2017-11-09 | 3.600 | 2.178 |
| 2017-08-10 | 2.600 | 1.698 |
| 2017-05-11 | 2.600 | 1.762 |
| 2017-02-16 | 2.600 | 1.638 |
| 2016-11-10 | 2.600 | 1.841 |
| 2016-08-04 | 2.300 | 1.717 |
| 2016-05-12 | 2.300 | 1.641 |
| 2016-02-18 | 2.300 | 1.710 |
| 2015-11-12 | 2.300 | 1.975 |
| 2015-08-13 | 2.100 | 1.765 |
| 2015-02-26 | 2.100 | 1.600 |
| 2014-11-06 | 2.100 | 1.715 |
| 2014-08-07 | 2.000 | 1.727 |
| 2014-05-08 | 2.000 | 1.925 |
| 2013-11-07 | 1.750 | 1.744 |
| 2013-08-08 | 1.400 | 1.512 |
| 2013-05-09 | 1.400 | 1.692 |
| 2013-03-08 | 1.400 | 1.942 |
| 2012-11-08 | 1.400 | 2.045 |
| 2012-08-09 | 1.200 | 1.692 |
| 2012-05-10 | 1.200 | 1.774 |
| 2012-02-09 | 1.200 | 1.815 |
| 2011-11-10 | 1.200 | 1.871 |
| 2011-08-11 | 1.100 | 1.935 |
| 2011-05-12 | 1.100 | 1.806 |
| 2011-02-10 | 1.100 | 1.772 |
| 2010-11-11 | 1.100 | 1.689 |
| 2010-10-07 | 0.840 | 1.439 |
| 2010-05-13 | 0.840 | 1.494 |
| 2010-02-11 | 0.840 | 1.539 |
| 2009-12-10 | 0.840 | 1.504 |
| 2009-08-13 | 0.840 | 1.484 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Canadian Tire's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.8x coverage).
- Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
Income/ dividend checks
We assess Canadian Tire's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Canadian Tire afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Canadian Tire has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
CTC.A Management
CEO
| COMPENSATION | CA$11,924,488 |
| AGE | 65 |
| TENURE AS CEO | 2.8 years |
CEO Bio
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 President until November 2013 and retired as CEO in December 2014, after which he was appointed as CTC’s Non-Executive Deputy Chairman of the Board. Mr. Wetmore was re-appointed as President and CEO in July 2016. Prior to joining the executive team at CTC, Mr. Wetmore was President and Chief Executive Officer of Bell Aliant Regional Communications Income Fund (now Bell Aliant, a subsidiary of BCE Inc.), Group President, Corporate Performance and National Markets of Bell Canada and Executive Vice-President of BCE Inc., President and CEO of Aliant Inc., President and CEO of NewTel Enterprises Ltd., President of Air Atlantic, and Managing Director of Scotia Holding PLC. He also served as a Director of Aliant Inc., Axia NetMedia Corporation, Manitoba Telecom Services Inc. and Stratos Global Corporation. Mr. Wetmore was Chair of the Atlantic Provinces’ Economic Council and Nova Scotia Council on Higher Education and has actively promoted education through his leadership affiliations with Dalhousie University, Memorial University, University College of Cape Breton, the Shad Valley Institute, RCS Netherwood and the Canadian Youth Business Fundraising Committee. He has been a Director of Canadian Tire Corp. Ltd since 2003. He has also been a Director of the C.D. Howe Institute and a Member of the Financial Executives Institute. His Public Board Memberships during Last Five Years at CTC since 2003. He was Director at CT Real Estate Investment Trust from September 2013 to May 08, 2018.
CEO Compensation
- Stephen's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
- Stephen's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure
Average tenure and age of the Canadian Tire management team in years:
- The tenure for the Canadian Tire management team is about average.
Management Team
Stephen Wetmore
CEO, President & Non-Independent Director
CA$12M
65
2.8 yrs
Dean McCann
Executive VP & CFO
CA$2M
59
7.2 yrs
Jim Christie
Executive VP
CA$2M
Allan MacDonald
Executive Vice-President of Retail
CA$3M
1.5 yrs
Mahes Wickramasinghe
Executive VP of International & Chief Corporate Officer
CA$2M
60
2.6 yrs
Rex Lee
Senior VP & Chief Information Officer
Lisa Greatrix
Senior Vice President of Finance & Investor Relations
Jane Shaw
Vice President of Communications
Susan O'Brien
Senior Vice President of Marketing
1.9 yrs
Robyn Collver
Senior Vice-President of Risk & Regulatory Affairs
Board of Directors Tenure
Average tenure and age of the Canadian Tire board of directors in years:
- The tenure for the Canadian Tire board of directors is about average.
Board of Directors
Maureen Sabia
Non-Executive Chairman of the Board
CA$571K
76
12.2 yrs
Stephen Wetmore
CEO, President & Non-Independent Director
CA$12M
65
16.3 yrs
Jim Goodfellow
Independent Director
CA$299K
9.3 yrs
Diana Chant
Independent Director
CA$230K
4.3 yrs
Pat Connolly
Independent Director
CA$212K
2.7 yrs
Martha Billes
Independent Director
CA$239K
77
39.3 yrs
Owen Billes
Non-Independent Director
CA$191K
48
15.3 yrs
John A. Furlong
Independent Director
CA$217K
67
8.3 yrs
Claude L'Heureux
Non-Independent Director
CA$184K
8.3 yrs
Pierre Boivin
Independent Director
CA$208K
64
6 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (CA$) | Value (CA$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 13. Dec 18 | Buy | Diana Chant | Individual | 13. Dec 18 | 13. Dec 18 | 350 | CA$143.68 | CA$50,288 | ||
| 07. Sep 18 | Sell | David Court | Individual | 29. Aug 18 | 29. Aug 18 | -2,165 | CA$163.90 | CA$-354,845 | ||
| 07. Sep 18 | Buy | David Court | Individual | 29. Aug 18 | 29. Aug 18 | 2,165 | CA$163.81 | CA$354,653 | ||
Management checks
We assess Canadian Tire's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Canadian Tire has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
CTC.A News
Simply Wall St News
Is There An Opportunity With Canadian Tire Corporation, Limited's (TSE:CTC.A) 62% Undervaluation?
by taking the expected future cash flows and discounting them to today's value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model
Simply Wall St - – Full articleWhat Kind Of Shareholders Own Canadian Tire Corporation, Limited (TSE:CTC.A)?
A look at the shareholders of Canadian Tire Corporation, Limited (TSE:CTC.A) can tell us which group is most powerful. … With a market capitalization of CA$9.4b, Canadian Tire is rather large. … Taking a look at our data on the ownership groups (below), it's seems that.
Simply Wall St - – Full articleShould Canadian Tire Corporation, Limited’s (TSE:CTC.A) Weak Investment Returns Worry You?
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Simply Wall St - – Full articleShould Canadian Tire (TSE:CTC.A) Be Disappointed With Their 38% Profit?
For example, the Canadian Tire Corporation, Limited (TSE:CTC.A) share price is up 38% in the last 5 years, clearly besting than the market return of around 7.6% (ignoring dividends). … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Over half a decade, Canadian Tire managed to grow its earnings per share at 8.9% a year.
Simply Wall St - – Full articleCanadian Tire Corporation, Limited (TSE:CTC.A): Exploring Free Cash Flows
Canadian Tire Corporation, Limited (TSE:CTC.A) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … Free cash flow (FCF) is the amount of cash Canadian Tire has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.
Simply Wall St - – Full articleShould You Take Comfort From Insider Transactions At Canadian Tire Corporation, Limited (TSE:CTC.A)?
So before you buy or sell Canadian Tire Corporation, Limited (TSE:CTC.A), you may well want to know whether insiders have been buying or selling. … Canadian Tire Insider Transactions Over The Last Year. … In total, Canadian Tire insiders bought more than they sold over the last year
Simply Wall St - – Full articleWhat Makes Canadian Tire Corporation, Limited (TSE:CTC.A) A Great Dividend Stock?
Canadian Tire Corporation, Limited (TSE:CTC.A) has pleased shareholders over the past 10 years, by paying out dividends. … The stock currently pays out a dividend yield of 2.9%, and has a market cap of CA$9.3b. … Let's take a look at Canadian Tire in more detail.
Simply Wall St - – Full articleWhy Canadian Tire Corporation, Limited (TSE:CTC.A) Is An Attractive Investment To Consider
Today I've chosen to put the spotlight on Canadian Tire Corporation, Limited (TSE:CTC.A) due to its excellent fundamentals in more than one area. … that has been a rockstar for income investors, currently trading at an attractive share price
Simply Wall St - – Full articleWill Canadian Tire Corporation, Limited's (TSE:CTC.A) Earnings Grow In The Next 12 Months?
On 29 December 2018, Canadian Tire Corporation, Limited (TSE:CTC.A) released its earnings update. … as a 18% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of 5.1%.
Simply Wall St - – Full articleCanadian Tire Corporation, Limited (TSE:CTC.A): Are Analysts Bullish?
Help shape the future of investing tools and receive a $20 prize! … The most recent earnings announcement Canadian Tire Corporation, Limited's (TSE:CTC.A) released in December 2018a
Simply Wall St - – Full articleCTC.A Company Info
Description
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 general merchandise, apparel, footwear, sporting equipment, gasoline, sporting goods and active wear, and workwear under the Canadian Tire, SportChek, Sports Experts, National Sports, Pro Hockey Life, Atmosphere, Mark’s, PartSource, Gas+, and Helly Hansen banners. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, mixed-use commercial property, and distribution centers. The Financial Services segment provides financial and other ancillary products and services, including credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. The company was founded in 1922 and is headquartered in Toronto, Canada.
Details
| Name: | Canadian Tire Corporation, Limited |
| CTC.A | |
| Exchange: | TSX |
| Founded: | 1922 |
| CA$8,842,062,754 | |
| 61,775,456 | |
| Website: | http://www.corp.canadiantire.ca |
| Address: |
Canadian Tire Corporation, Limited 2180 Yonge Street, P.O. Box 770, Toronto, Ontario, M4P 2V8, Canada |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| TSX | CTC.A | Class A Non-Voting Shares | The Toronto Stock Exchange | CA | CAD | 13. Aug 1973 | |
| OTCPK | CDNA.F | Class A Non-Voting Shares | Pink Sheets LLC | US | USD | 13. Aug 1973 | |
| DB | YAAA | Class A Non-Voting Shares | Deutsche Boerse AG | DE | EUR | 13. Aug 1973 | |
| TSX | CTC | Common Shares | The Toronto Stock Exchange | CA | CAD | 13. Dec 1972 | |
| OTCPK | CDNT.F | Common Shares | Pink Sheets LLC | US | USD | 13. Dec 1972 |
Number of employees
Current staff
Industry
| General Merchandise Stores | |
| Retail |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/23 23:34 |
| End of day share price update: | 2019/05/23 00:00 |
| Last estimates confirmation: | 2019/05/16 |
| Last earnings filing: | 2019/05/09 |
| Last earnings reported: | 2019/03/30 |
| Last annual earnings reported: | 2018/12/29 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
