Building up an investment case requires looking at a stock holistically. 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. CTC.A is a well-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Canadian Tire here.
Established dividend payer and good value
CTC.A's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of CTC.A's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of CA companies with similar levels of earnings, CTC.A's share price is trading below the group's average. This further reaffirms that CTC.A is potentially undervalued.
For those seeking income streams from their portfolio, CTC.A is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.8%.
For Canadian Tire, there are three fundamental aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for CTC.A’s future growth? Take a look at our free research report of analyst consensus for CTC.A’s outlook.
- Historical Performance: What has CTC.A's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CTC.A? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.