Executive Summary
Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. More Details
Snowflake Analysis
Adequate balance sheet average dividend payer.
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
0.6%
CTC.A
-0.3%
CA Multiline Retail
-0.5%
CA Market
1 Year Return
21.8%
CTC.A
38.9%
CA Multiline Retail
1.6%
CA Market
Return vs Industry: CTC.A underperformed the Canadian Multiline Retail industry which returned 38.9% over the past year.
Return vs Market: CTC.A exceeded the Canadian Market which returned 1.6% over the past year.
Shareholder returns
| CTC.A | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | -0.3% | -0.5% |
| 30 Day | 4.3% | 7.1% | 3.4% |
| 90 Day | 16.5% | 12.9% | 13.2% |
| 1 Year | 26.3%21.8% | 41.0%38.9% | 5.3%1.6% |
| 3 Year | 12.4%3.2% | 64.2%55.4% | 13.1%2.3% |
| 5 Year | 83.9%62.9% | 127.3%102.9% | 66.0%40.5% |
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
6 days ago | Simply Wall St
Shareholders Of Canadian Tire Corporation (TSE:CTC.A) Must Be Happy With Their 90% Return3 weeks ago | Simply Wall St
Should You Be Concerned About Canadian Tire Corporation, Limited's (TSE:CTC.A) ROE?1 month ago | Simply Wall St
Canadian Tire Corporation (TSE:CTC.A) Takes On Some Risk With Its Use Of DebtValuation
Is Canadian Tire Corporation undervalued compared to its fair value and its price relative to the market?
18.16x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CTC.A (CA$177.53) is trading above our estimate of fair value (CA$96.8)
Significantly Below Fair Value: CTC.A is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CTC.A is good value based on its PE Ratio (18.2x) compared to the XN Multiline Retail industry average (25.6x).
PE vs Market: CTC.A is poor value based on its PE Ratio (18.2x) compared to the Canadian market (16.6x).
Price to Earnings Growth Ratio
PEG Ratio: CTC.A is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: CTC.A is good value based on its PB Ratio (2.6x) compared to the XN Multiline Retail industry average (2.9x).
Next Steps
Future Growth
How is Canadian Tire Corporation forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
23.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CTC.A's forecast earnings growth (23.4% per year) is above the savings rate (1.5%).
Earnings vs Market: CTC.A's earnings (23.4% per year) are forecast to grow slower than the Canadian market (25.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CTC.A's revenue (3.6% per year) is forecast to grow slower than the Canadian market (7.9% per year).
High Growth Revenue: CTC.A's revenue (3.6% 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
Next Steps
Past Performance
How has Canadian Tire Corporation performed over the past 5 years?
-0.2%
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 (4.5%) are lower than last year (5%).
Past Earnings Growth Analysis
Earnings Trend: CTC.A's earnings have declined by 0.2% 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 (-14.5%) over the past year, making it difficult to compare to the Multiline Retail industry average (35.8%).
Return on Equity
High ROE: CTC.A's Return on Equity (13%) is considered low.
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$10.3B) exceed its short term liabilities (CA$5.4B).
Long Term Liabilities: CTC.A's short term assets (CA$10.3B) exceed its long term liabilities (CA$9.1B).
Debt to Equity History and Analysis
Debt Level: CTC.A's debt to equity ratio (148.2%) is considered high.
Reducing Debt: CTC.A's debt to equity ratio has increased from 99.3% to 148.2% over the past 5 years.
Debt Coverage: CTC.A's debt is well covered by operating cash flow (34.5%).
Interest Coverage: CTC.A's interest payments on its debt are well covered by EBIT (4.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Canadian Tire Corporation current dividend yield, its reliability and sustainability?
2.65%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CTC.A's dividend (2.65%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).
High Dividend: CTC.A's dividend (2.65%) is low compared to the top 25% of dividend payers in the Canadian market (5.03%).
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 (46.6%), 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?
0.8yrs
Average management tenure
CEO
Greg Hicks (49 yo)
0.83
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive VP of Canadian Tire Corporation | no data | CA$2.97m | 0.014% CA$ 1.5m | |
| Executive VP of International & President of Canadian Tire Financial Services | 4.25yrs | CA$2.85m | 0.0050% CA$ 549.9k | |
| CEO, President & Executive Director | 0.83yr | no data | 0.0067% CA$ 733.9k | |
| CFO & Executive VP | 0.83yr | no data | 0.013% CA$ 1.4m | |
| Senior VP & Chief Information Officer | no data | no data | no data | |
| Senior Vice President of Finance & Investor Relations | no data | no data | no data | |
| Vice President of Communications | no data | no data | no data | |
| Executive VP & Chief Human Resources Officer | no data | no data | no data | |
| Senior Vice-President of Risk & Regulatory Affairs and Chief Sustainability Officer | no data | no data | no data | |
| Senior Vice President of Supply Chain | no data | no data | 0% CA$ 0 | |
| Senior Vice President of Real Estate | no data | no data | no data | |
| Chief Brand & Customer Officer | no data | no data | 0.0054% CA$ 585.8k |
0.8yrs
Average Tenure
Experienced Management: CTC.A's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Executive Director | 0.83yr | no data | 0.0067% CA$ 733.9k | |
| Independent Director | 1.67yrs | CA$143.32k | no data | |
| Independent Non-Executive Chairman of the Board | 13.83yrs | CA$573.43k | no data | |
| Independent Director | 41yrs | CA$247.47k | 2.31% CA$ 251.9m | |
| Non-Independent Director | 17yrs | CA$200.74k | 0.022% CA$ 2.4m | |
| Independent Director | 6yrs | CA$250.50k | 0.0037% CA$ 397.5k | |
| Independent Director | 11yrs | CA$319.37k | 0.0099% CA$ 1.1m | |
| Independent Director | 4.67yrs | CA$216.00k | 0.000040% CA$ 4.4k | |
| Independent Director | 10yrs | CA$220.63k | no data | |
| Non-Independent Director | 10yrs | CA$197.00k | 0.014% CA$ 1.5m | |
| Independent Director | 5.42yrs | CA$226.50k | 0.0036% CA$ 387.7k | |
| Independent Director | 4.25yrs | CA$221.00k | no data |
8.0yrs
Average Tenure
65yo
Average Age
Experienced Board: CTC.A's board of directors are considered experienced (8 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 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 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$10.889b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CTC | TSX (The Toronto Stock Exchange) | Common Shares | CA | CAD | Dec 1972 | |
| CDNT.F | OTCPK (Pink Sheets LLC) | Common Shares | US | USD | Dec 1972 | |
| CTC.A | TSX (The Toronto Stock Exchange) | Yes | Class A Non-Voting Shares | CA | CAD | Aug 1973 |
| YAAA | DB (Deutsche Boerse AG) | Yes | Class A Non-Voting Shares | DE | EUR | Aug 1973 |
| CDNA.F | OTCPK (Pink Sheets LLC) | Yes | Class A Non-Voting Shares | US | USD | Aug 1973 |
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 gener...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/17 23:26 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/26 |
| Annual Earnings | 2019/12/28 |
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.