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Canadian Tire Corporation Ltd
TSX:CTC.A

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Canadian Tire Corporation Ltd Logo
Canadian Tire Corporation Ltd
TSX:CTC.A
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Price: 138.23 CAD 0.09% Market Closed
Updated: Mar 2, 2024

Intrinsic Value

Canadian Tire Corp. Ltd. operates as a general merchandise retailer for gasoline, automotive, sports and home products. [ Read More ]

The intrinsic value of one CTC.A stock under the Base Case scenario is 255 CAD. Compared to the current market price of 138.23 CAD, Canadian Tire Corporation Ltd is Undervalued by 46%.

Key Points:
CTC.A Intrinsic Value
Base Case
255 CAD
Undervaluation 46%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Canadian Tire Corporation Ltd

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Fundamental Analysis

Stable Sales and Challenges in Q2
2023-Q2 Earnings Call

Stable Sales and Challenges in Q2

The company reported a stable sales performance, slightly up 0.1% from the previous year, while normalized diluted EPS remained almost flat at CAD 3.08. However, reported income dropped to CAD 1.76, down by CAD 0.67. Costs stemming from a distribution center fire are expected to decrease, but have already impacted EPS by an additional CAD 0.15. Retail sales dipped under 3% to CAD 5.2 billion, due to a 19% fall in petroleum sales. Revenue grew by 7% over last year, although gross margin faced declines due to higher write-offs and net interest expenses, with the ECL allowance finishing at 12.7% and within target.

Financials

Balance Sheet Decomposition
Canadian Tire Corporation Ltd

Current Assets 12.2B
Cash & Short-Term Investments 572.2m
Receivables 8B
Other Current Assets 3.6B
Non-Current Assets 10.5B
Long-Term Investments 494.8m
PP&E 7B
Intangibles 2.3B
Other Non-Current Assets 760.3m
Current Liabilities 7B
Accounts Payable 3B
Short-Term Debt 1.8B
Other Current Liabilities 2.2B
Non-Current Liabilities 10.7B
Long-Term Debt 5.7B
Other Non-Current Liabilities 4.9B
Efficiency
Fundamental Scores

CTC.A Profitability Score
Profitability Due Diligence

Canadian Tire Corporation Ltd's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive 3-Year Average ROE
Positive Free Cash Flow
Positive 3-Years Revenue Growth
50/100
Profitability
Score

Canadian Tire Corporation Ltd's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

CTC.A Solvency Score
Solvency Due Diligence

Canadian Tire Corporation Ltd's solvency score is 34/100. The higher the solvency score, the more solvent the company is.

Short-Term Solvency
Long-Term Solvency
Average D/E
Average Altman Z-Score
34/100
Solvency
Score

Canadian Tire Corporation Ltd's solvency score is 34/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

CTC.A Price Targets Summary
Canadian Tire Corporation Ltd

Wall Street analysts forecast CTC.A stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for CTC.A is 156.67 CAD with a low forecast of 131.3 CAD and a high forecast of 204.75 CAD.

Lowest
Price Target
131.3 CAD
5% Downside
Average
Price Target
156.67 CAD
13% Upside
Highest
Price Target
204.75 CAD
48% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

CTC.A Price
Canadian Tire Corporation Ltd

1M 1M
-6%
6M 6M
-11%
1Y 1Y
-18%
3Y 3Y
-10%
5Y 5Y
+8%
10Y 10Y
+75%
Annual Price Range
138.23
52w Low
133.76
52w High
186.2993
Price Metrics
Average Annual Return 4.01%
Standard Deviation of Annual Returns 17.85%
Max Drawdown -53%
Shares Statistics
Market Capitalization 7.7B CAD
Shares Outstanding 57 432 020
Percentage of Shares Shorted 2.05%

CTC.A Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

Canadian Tire Corporation Ltd Logo
Canadian Tire Corporation Ltd

Country

Canada

Industry

Retail

Market Cap

7.7B CAD

Dividend Yield

5.01%

Description

Canadian Tire Corp. Ltd. operates as a general merchandise retailer for gasoline, automotive, sports and home products. The company is headquartered in Toronto, Ontario and currently employs 13,435 full-time employees. The firm operates through three segments: Retail, Financial Services, and CT REIT. The Retail segment includes business, which is conducted under a number of banners, including Canadian Tire, Canadian Tire Gas (Petroleum), Mark’s, PartSource, Helly Hansen, Party City1 and various SportChek banners. This segment also includes the Dealer Loan Program. The Financial Services segment provides financial and other ancillary products and services, including Triangle-branded consumer credit cards, in-store financing, insurance products, and retail and broker deposits. In addition, Financial Services segment provides payment processing services to the Company's retail banners. The CT REIT segment operates as a closed-end real estate investment trust. This segment owns, develops and leases income-producing real estate properties across Canada.

Contact

ONTARIO
TORONTO
2180 Yonge Street
+14164808725.0
https://corp.canadiantire.ca/English/home/default.aspx

IPO

1980-03-17

Employees

13 435

Officers

CEO, President & Executive Director
Mr. Gregory Huber Hicks
CFO & Executive VP
Mr. Gregory George Craig C.M.A., CPA
Executive Vice-President of Canadian Tire Corporation Limited
Mr. James R. Christie
Executive VP & President of Canadian Tire Retail
Mr. Thomas J. Flood
Chief Information & Technology Officer
Mr. Rex W. Lee
Head of Investor Relations
Ms. Karen Keyes
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Vice-President of Communications
Stephanie Nadalin
Executive VP & Chief Human Resources Officer
Mr. Bob Hakeem
Senior Vice President of Supply Chain
Mr. John D. Salt
Executive VP and Chief Brand & Customer Officer
Ms. Susan M. O'Brien
Show Less

See Also

Discover More
What is the Intrinsic Value of one CTC.A stock?

The intrinsic value of one CTC.A stock under the Base Case scenario is 255 CAD.

Is CTC.A stock undervalued or overvalued?

Compared to the current market price of 138.23 CAD, Canadian Tire Corporation Ltd is Undervalued by 46%.