Canadian Tire Corp. Ltd. (CTC.A) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Canadian Tire Corp. Ltd.

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MedMen Enterprises, Inc.

Why is Canadian Tire Corp. Ltd. ?

High Management Efficiency with a high ROCE of 15.73%

The company has declared Positive results for the last 3 consecutive quarters

DIVIDEND PER SHARE(HY) Highest at CAD 2.21
INTEREST COVERAGE RATIO(Q) Highest at 661.68
RAW MATERIAL COST(Y) Fallen by -1.41% (YoY)

With ROE of 15.23%, it has a very attractive valuation with a 1.51 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.83%, its profits have risen by 8.7% ; the PEG ratio of the company is 1.1

Majority shareholders : Mutual Funds

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Canadian Tire Corp. Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Canadian Tire Corp. Ltd.

24.36%

2.40

22.06%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.87%

EBIT Growth (5y)

-1.03%

EBIT to Interest (avg)

5.64

Debt to EBITDA (avg)

2.28

Net Debt to Equity (avg)

0.99

Sales to Capital Employed (avg)

1.38

Tax Ratio

21.51%

Dividend Payout Ratio

66.84%

Pledged Shares

Institutional Holding

1.99%

ROCE (avg)

15.73%

ROE (avg)

19.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.71

EV to EBIT

10.62

EV to EBITDA

6.87

EV to Capital Employed

1.39

EV to Sales

0.91

PEG Ratio

Dividend Yield

ROCE (Latest)

13.07%

ROE (Latest)

11.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 2.05

INTEREST COVERAGE RATIO(Q)

Highest at 762.03

RAW MATERIAL COST(Y)

Fallen by -6.31% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.39 times

NET SALES(Q)

Highest at CAD 4,551.1 MM

OPERATING PROFIT(Q)

Highest at CAD 646.2 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.2 %

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 952.1 MM

NET PROFIT(Q)

At CAD 211 MM has Fallen at -48.72%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.05 times

PRE-TAX PROFIT(Q)

Fallen at -39.77%

Here's what is working for Canadian Tire Corp. Ltd.

Interest Coverage Ratio

Highest at 762.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at CAD 2.05 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales

Highest at CAD 4,551.1 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 646.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 14.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 4.39 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -6.31% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 201.2 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Canadian Tire Corp. Ltd.

Net Profit

At CAD 211 MM has Fallen at -48.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 952.1 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Pre-Tax Profit

Fallen at -39.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Debtors Turnover Ratio

Lowest at 2.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio