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CTC.

Canadian Tire CorporationTSX:CTC.A Stock Report

Last Price

CA$175.68

Market Cap

CA$10.9b

7D

-4.4%

1Y

4.4%

Updated

26 Jan, 2022

Data

Company Financials +
CTC.A fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health3/6
Dividends5/6

CTC.A Stock Overview

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

Canadian Tire Corporation Competitors

Amazon.com

NasdaqGS:AMZN

US$1.4t

Walmart

NYSE:WMT

US$380.4b

Costco Wholesale

NasdaqGS:COST

US$211.7b

Wayfair

NYSE:W

US$15.6b

Price History & Performance

Summary of all time highs, changes and price drops for Canadian Tire Corporation
Historical stock prices
Current Share PriceCA$175.68
52 Week HighCA$213.85
52 Week LowCA$159.44
Beta1.38
1 Month Change-2.88%
3 Month Change-0.35%
1 Year Change4.44%
3 Year Change18.26%
5 Year Change26.94%
Change since IPO613.42%

Recent News & Updates

Jan 07
Canadian Tire Corporation (TSE:CTC.A) Seems To Use Debt Quite Sensibly

Canadian Tire Corporation (TSE:CTC.A) Seems To Use Debt Quite Sensibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Dec 23
Is Canadian Tire Corporation, Limited (TSE:CTC.A) Trading At A 37% Discount?

Is Canadian Tire Corporation, Limited (TSE:CTC.A) Trading At A 37% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Canadian Tire...

Dec 08
Here's Why I Think Canadian Tire Corporation (TSE:CTC.A) Is An Interesting Stock

Here's Why I Think Canadian Tire Corporation (TSE:CTC.A) Is An Interesting Stock

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Nov 08
Is There Now An Opportunity In Canadian Tire Corporation, Limited (TSE:CTC.A)?

Is There Now An Opportunity In Canadian Tire Corporation, Limited (TSE:CTC.A)?

While Canadian Tire Corporation, Limited ( TSE:CTC.A ) might not be the most widely known stock at the moment, it saw...

Shareholder Returns

CTC.ACA Multiline RetailCA Market
7D-4.4%0.05%-2.9%
1Y4.4%8.0%16.1%

Return vs Industry: CTC.A underperformed the Canadian Multiline Retail industry which returned 9.5% over the past year.

Return vs Market: CTC.A underperformed the Canadian Market which returned 15% over the past year.

Price Volatility

Is CTC.A's price volatile compared to industry and market?
CTC.A volatility
CTC.A Average Weekly Movement2.7%
Multiline Retail Industry Average Movement8.8%
Market Average Movement9.8%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market3.7%

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.

About the Company

FoundedEmployeesCEOWebsite
192222,593Greg Hickshttps://www.corp.canadiantire.ca

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 automotive maintenance products and accessories, parts, tires as well as automotive repair and roadside assistance; kitchen, home organization, decor and essentials, home electronics, pet, and cleaning and consumable products; tools, hardware, paint, electrical, plumbing, home environment, and smart home products; and outdoor recreation, exercise, footwear and apparel, hunting, fishing, camping, and sporting goods.

Canadian Tire Corporation Fundamentals Summary

How do Canadian Tire Corporation's earnings and revenue compare to its market cap?
CTC.A fundamental statistics
Market CapCA$10.95b
Earnings (TTM)CA$1.11b
Revenue (TTM)CA$14.97b

9.5x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTC.A income statement (TTM)
RevenueCA$14.97b
Cost of RevenueCA$9.91b
Gross ProfitCA$5.41b
ExpensesCA$4.30b
EarningsCA$1.11b

Last Reported Earnings

Oct 02, 2021

Next Earnings Date

Feb 17, 2022

Earnings per share (EPS)18.42
Gross Margin36.12%
Net Profit Margin7.40%
Debt/Equity Ratio133.5%

How did CTC.A perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

26%

Payout Ratio

Does CTC.A pay a reliable dividends?

See CTC.A dividend history and benchmarks
When do you need to buy CTC.A by to receive an upcoming dividend?
Canadian Tire Corporation dividend dates
Ex Dividend DateJan 28 2022
Dividend Pay DateMar 01 2022
Days until Ex dividend1 day
Days until Dividend pay date33 days

Does CTC.A pay a reliable dividends?

See CTC.A dividend history and benchmarks

Valuation

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

36.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTC.A (CA$173.38) is trading below our estimate of fair value (CA$281.43)

Significantly Below Fair Value: CTC.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CTC.A is good value based on its PE Ratio (9.4x) compared to the North American Multiline Retail industry average (16.4x).

PE vs Market: CTC.A is good value based on its PE Ratio (9.4x) compared to the Canadian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: CTC.A is poor value based on its PEG Ratio (14.5x)


Price to Book Ratio

PB vs Industry: CTC.A is good value based on its PB Ratio (2.1x) compared to the XN Multiline Retail industry average (3x).


Future Growth

How is Canadian Tire Corporation forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTC.A's forecast earnings growth (0.6% per year) is below the savings rate (1.6%).

Earnings vs Market: CTC.A's earnings (0.6% per year) are forecast to grow slower than the Canadian market (10.9% per year).

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

Revenue vs Market: CTC.A's revenue (2.6% per year) is forecast to grow slower than the Canadian market (5.6% per year).

High Growth Revenue: CTC.A's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTC.A's Return on Equity is forecast to be low in 3 years time (18.6%).


Past Performance

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

6.7%

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 (7.4%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: CTC.A's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: CTC.A's earnings growth over the past year (82.7%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: CTC.A earnings growth over the past year (82.7%) exceeded the Multiline Retail industry 19.6%.


Return on Equity

High ROE: CTC.A's Return on Equity (19.6%) 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$11.4B) exceed its short term liabilities (CA$6.5B).

Long Term Liabilities: CTC.A's short term assets (CA$11.4B) exceed its long term liabilities (CA$8.7B).


Debt to Equity History and Analysis

Debt Level: CTC.A's net debt to equity ratio (100%) is considered high.

Reducing Debt: CTC.A's debt to equity ratio has increased from 100.9% to 133.5% over the past 5 years.

Debt Coverage: CTC.A's debt is not well covered by operating cash flow (16.9%).

Interest Coverage: CTC.A's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Dividend

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

2.96%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 26 2022Ex Dividend DateJan 28 2022Dividend Pay DateMar 01 202232 days from Ex DividendBuy in the next 1 day to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CTC.A's dividend (3%) is higher than the bottom 25% of dividend payers in the Canadian market (1.63%).

High Dividend: CTC.A's dividend (3%) is low compared to the top 25% of dividend payers in the Canadian market (4.88%).


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 (25.8%), CTC.A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTC.A's dividends in 3 years are forecast to be well covered by earnings (33% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Greg Hicks (50 yo)

1.83yrs

Tenure

CA$4,486,947

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD3.55M) is about average for companies of similar size in the Canadian market ($USD3.35M).

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


Leadership Team

Experienced Management: CTC.A's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: CTC.A's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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
  • Implied Market Cap: CA$10.947b
  • Shares outstanding: 60.15m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 23:07
End of Day Share Price2022/01/26 00:00
Earnings2021/10/02
Annual Earnings2021/01/02


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.