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Canadian Tire Corporation

TSX:CTC.A
Snowflake Description

Established dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CTC.A
TSX
CA$6B
Market Cap
  1. Home
  2. CA
  3. Retail
Company description

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. The last earnings update was 47 days ago. More info.


Add to Portfolio Compare Print
  • Canadian Tire Corporation has significant price volatility in the past 3 months.
CTC.A Share Price and Events
7 Day Returns
2.5%
TSX:CTC.A
2.3%
North America Multiline Retail
11.7%
CA Market
1 Year Returns
-41.2%
TSX:CTC.A
-12.8%
North America Multiline Retail
-26%
CA Market
CTC.A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Canadian Tire Corporation (CTC.A) 2.5% -34.9% -38.6% -41.2% -46.3% -36.1%
North America Multiline Retail 2.3% -13.4% -25.6% -12.8% 17.4% -19.6%
CA Market 11.7% -21.9% -26.6% -26% -23.6% -17.8%
1 Year Return vs Industry and Market
  • CTC.A underperformed the Multiline Retail industry which returned -12.8% over the past year.
  • CTC.A underperformed the Market in Canada which returned -26% over the past year.
Price Volatility
CTC.A
Industry
5yr Volatility vs Market
Related Companies

CTC.A Value

 Is Canadian Tire Corporation undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Canadian Tire Corporation to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Canadian Tire Corporation.

TSX:CTC.A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:CTC.A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Multiline Retail Unlevered Beta Simply Wall St/ S&P Global 0.42
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.423 (1 + (1- 26.5%) (171.68%))
0.97
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (0.97 * 5.44%)
6.72%

Discounted Cash Flow Calculation for TSX:CTC.A using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Canadian Tire Corporation is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:CTC.A DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 6.72%)
2020 592.25 Analyst x4 554.96
2021 1,062.67 Analyst x3 933.08
2022 1,378.02 Est @ 29.68% 1,133.79
2023 1,670.22 Est @ 21.2% 1,287.70
2024 1,925.35 Est @ 15.28% 1,390.94
2025 2,139.54 Est @ 11.12% 1,448.37
2026 2,315.39 Est @ 8.22% 1,468.74
2027 2,458.61 Est @ 6.19% 1,461.40
2028 2,575.69 Est @ 4.76% 1,434.61
2029 2,672.67 Est @ 3.77% 1,394.91
Present value of next 10 years cash flows CA$12,508.00
TSX:CTC.A DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$2,672.67 × (1 + 1.44%) ÷ (6.72% – 1.44%)
CA$51,361.55
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$51,361.55 ÷ (1 + 6.72%)10
CA$26,806.37
TSX:CTC.A Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$12,508.00 + CA$26,806.37
CA$39,314.37
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$39,314.37 / 61.20
CA$642.36
TSX:CTC.A Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$642.36
Current discount Discount to share price of CA$85.87
= -1 x (CA$85.87 - CA$642.36) / CA$642.36
86.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Canadian Tire Corporation is available for.
Intrinsic value
>50%
Share price is CA$85.87 vs Future cash flow value of CA$642.36
Current Discount Checks
For Canadian Tire Corporation to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Canadian Tire Corporation's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Canadian Tire Corporation's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Canadian Tire Corporation's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Canadian Tire Corporation's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CTC.A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-28) in CAD CA$12.60
TSX:CTC.A Share Price ** TSX (2020-03-30) in CAD CA$85.87
North America Multiline Retail Industry PE Ratio Median Figure of 10 Publicly-Listed Multiline Retail Companies 7.99x
Canada Market PE Ratio Median Figure of 498 Publicly-Listed Companies 10.58x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Canadian Tire Corporation.

TSX:CTC.A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:CTC.A Share Price ÷ EPS (both in CAD)

= 85.87 ÷ 12.60

6.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Canadian Tire Corporation is good value based on earnings compared to the North America Multiline Retail industry average.
  • Canadian Tire Corporation is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Canadian Tire Corporation's expected growth come at a high price?
Raw Data
TSX:CTC.A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
-8.9%per year
North America Multiline Retail Industry PEG Ratio Median Figure of 9 Publicly-Listed Multiline Retail Companies 0.24x
Canada Market PEG Ratio Median Figure of 235 Publicly-Listed Companies 0.71x

*Line of best fit is calculated by linear regression .

TSX:CTC.A PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.82x ÷ -8.9%

-0.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Canadian Tire Corporation earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Canadian Tire Corporation's assets?
Raw Data
TSX:CTC.A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-28) in CAD CA$68.12
TSX:CTC.A Share Price * TSX (2020-03-30) in CAD CA$85.87
North America Multiline Retail Industry PB Ratio Median Figure of 14 Publicly-Listed Multiline Retail Companies 0.93x
Canada Market PB Ratio Median Figure of 2,349 Publicly-Listed Companies 0.99x
TSX:CTC.A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:CTC.A Share Price ÷ Book Value per Share (both in CAD)

= 85.87 ÷ 68.12

1.26x

* Primary Listing of Canadian Tire Corporation.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Canadian Tire Corporation is overvalued based on assets compared to the North America Multiline Retail industry average.
X
Value checks
We assess Canadian Tire Corporation's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Multiline Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Multiline Retail industry average (and greater than 0)? (1 check)
  5. Canadian Tire Corporation has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CTC.A Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-8.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Canadian Tire Corporation expected to grow at an attractive rate?
  • Canadian Tire Corporation's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Canadian Tire Corporation's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Canadian Tire Corporation's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CTC.A Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CTC.A Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts -8.9%
TSX:CTC.A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 6.9%
North America Multiline Retail Industry Earnings Growth Rate Market Cap Weighted Average 6.9%
North America Multiline Retail Industry Revenue Growth Rate Market Cap Weighted Average 4.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.5%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:CTC.A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CTC.A Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 15,426 1,641 675 10
2020-12-31 14,633 1,326 304 10
2020-03-31
2019-12-31 14,622 1,064 766 11
TSX:CTC.A Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-28 13,421 1,088 778
2019-09-28 13,252 788 699
2019-06-29 13,268 805 705
2019-03-30 13,086 602 684
2018-12-29 13,032 807 692
2018-09-29 12,154 838 714
2018-06-30 12,053 937 686
2018-03-31 12,193 947 726
2017-12-30 12,346 973 735
2017-09-30 13,003 910 706
2017-07-01 12,866 993 706
2017-04-01 12,844 1,046 690
2016-12-31 12,682 986 669

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Canadian Tire Corporation's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Canadian Tire Corporation's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:CTC.A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Canadian Tire Corporation Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CTC.A Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 11.18 11.18 11.18 1.00
2020-12-31 4.95 4.95 4.95 1.00
2020-03-31
2019-12-31 12.37 12.37 12.37 1.00
TSX:CTC.A Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-28 12.60
2019-09-28 11.21
2019-06-29 11.19
2019-03-30 10.70
2018-12-29 10.67
2018-09-29 10.85
2018-06-30 10.30
2018-03-31 10.73
2017-12-30 10.70
2017-09-30 10.13
2017-07-01 9.99
2017-04-01 9.65
2016-12-31 9.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Canadian Tire Corporation is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Canadian Tire Corporation's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Canadian Tire Corporation has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CTC.A Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Canadian Tire Corporation's growth in the last year to its industry (Multiline Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Canadian Tire Corporation's year on year earnings growth rate has been positive over the past 5 years.
  • Canadian Tire Corporation's 1-year earnings growth exceeds its 5-year average (12.4% vs 3.7%)
  • Canadian Tire Corporation's earnings growth has exceeded the North America Multiline Retail industry average in the past year (12.4% vs 4.4%).
Earnings and Revenue History
Canadian Tire Corporation's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Canadian Tire Corporation Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CTC.A Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-28 13,421.00 778.40 3,092.10
2019-09-28 13,251.90 698.60 3,091.00
2019-06-29 13,267.60 705.20 3,125.90
2019-03-30 13,086.10 683.80 3,090.50
2018-12-29 13,031.50 692.10 3,101.50
2018-09-29 12,153.80 713.50 3,070.10
2018-06-30 12,052.80 686.30 3,019.80
2018-03-31 12,193.20 725.50 3,003.40
2017-12-30 12,346.10 735.00 2,946.40
2017-09-30 13,002.80 706.10 2,951.40
2017-07-01 12,865.50 705.90 2,951.50
2017-04-01 12,843.60 690.10 2,981.90
2016-12-31 12,681.60 669.10 2,998.20
2016-10-01 12,420.20 647.50 2,919.00
2016-07-02 12,418.60 670.80 2,893.20
2016-04-02 12,324.10 657.40 2,856.40
2016-01-02 12,279.60 659.40 2,821.40
2015-10-03 12,553.20 625.50 2,864.40
2015-07-04 12,496.30 598.00 2,838.00
2015-04-04 12,404.70 601.90 2,789.50
2015-01-03 12,462.90 604.00 2,752.10
2014-09-27 12,137.80 600.50 2,663.80
2014-06-28 12,023.90 573.80 2,669.70
2014-03-29 11,878.90 558.80 2,541.10
2013-12-28 11,785.60 561.20 2,550.40
2013-09-28 11,623.60 536.20 2,590.70
2013-06-29 11,497.40 522.10 2,578.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Canadian Tire Corporation has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Canadian Tire Corporation used its assets less efficiently than the North America Multiline Retail industry average last year based on Return on Assets.
  • Canadian Tire Corporation has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Canadian Tire Corporation's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Multiline Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Canadian Tire Corporation has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CTC.A Health

 How is Canadian Tire Corporation's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Canadian Tire Corporation's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Canadian Tire Corporation is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Canadian Tire Corporation's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Canadian Tire Corporation's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Canadian Tire Corporation Company Filings, last reported 3 months ago.

TSX:CTC.A Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-28 5,504.70 7,423.00 407.20
2019-09-28 5,295.40 7,962.70 459.50
2019-06-29 4,962.40 8,150.90 841.90
2019-03-30 4,937.90 8,092.80 527.30
2018-12-29 5,415.00 7,403.20 654.10
2018-09-29 5,094.40 8,016.70 597.70
2018-06-30 5,094.10 6,448.80 486.50
2018-03-31 5,109.30 6,397.20 419.70
2017-12-30 5,566.10 5,935.80 569.50
2017-09-30 5,503.80 6,430.90 799.50
2017-07-01 5,541.10 6,298.40 1,058.10
2017-04-01 5,622.70 5,841.20 556.30
2016-12-31 5,737.30 5,707.30 946.90
2016-10-01 5,590.40 5,644.30 466.80
2016-07-02 5,570.30 5,700.30 764.40
2016-04-02 5,535.70 5,619.00 661.40
2016-01-02 5,789.70 5,337.20 996.70
2015-10-03 5,679.90 5,643.10 961.90
2015-07-04 5,660.20 5,606.00 1,284.90
2015-04-04 5,664.80 5,155.50 541.20
2015-01-03 5,630.80 5,170.10 949.60
2014-09-27 5,545.20 5,348.10 587.30
2014-06-28 5,456.60 4,675.00 497.70
2014-03-29 5,469.00 5,148.50 919.20
2013-12-28 5,449.90 5,131.00 1,058.20
2013-09-28 5,002.40 5,001.90 593.00
2013-06-29 4,943.20 4,969.20 729.00
  • Canadian Tire Corporation's level of debt (134.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (92.1% vs 134.8% today).
  • Debt is not well covered by operating cash flow (14.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).
X
Financial health checks
We assess Canadian Tire Corporation's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Canadian Tire Corporation has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CTC.A Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.3%
Current annual income from Canadian Tire Corporation dividends. Estimated to be 5.54% next year.
If you bought CA$2,000 of Canadian Tire Corporation shares you are expected to receive CA$106 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Canadian Tire Corporation's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.73%).
  • Canadian Tire Corporation's dividend is below the markets top 25% of dividend payers in Canada (8.76%).
Upcoming dividend payment

Purchase Canadian Tire Corporation before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:CTC.A Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
North America Multiline Retail Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 2.5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 4.9%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:CTC.A Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 4.87 4.00
2020-12-31 4.65 4.00
2020-03-31
2019-12-31 4.18 3.00
TSX:CTC.A Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-02-13 4.550 4.178
2019-11-07 4.550 3.108
2019-08-08 4.150 2.946
2019-05-09 4.150 2.940
2019-02-14 4.150 2.832
2018-11-08 4.150 2.814
2018-08-09 3.600 2.310
2018-05-10 3.600 2.103
2018-02-15 3.600 2.100
2017-11-09 3.600 2.178
2017-08-10 2.600 1.698
2017-05-11 2.600 1.762
2017-02-16 2.600 1.638
2016-11-10 2.600 1.841
2016-08-04 2.300 1.717
2016-05-12 2.300 1.641
2016-02-18 2.300 1.710
2015-11-12 2.300 1.975
2015-08-13 2.100 1.765
2015-02-26 2.100 1.600
2014-11-06 2.100 1.715
2014-08-07 2.000 1.727
2014-05-08 2.000 1.925
2013-11-07 1.750 1.744
2013-08-08 1.400 1.512
2013-05-09 1.400 1.692
2013-03-08 1.400 1.942
2012-11-08 1.400 2.045
2012-08-09 1.200 1.692
2012-05-10 1.200 1.774
2012-02-09 1.200 1.815
2011-11-10 1.200 1.871
2011-08-11 1.100 1.935
2011-05-12 1.100 1.806
2011-02-10 1.100 1.772
2010-11-11 1.100 1.689
2010-10-07 0.840 1.439
2010-05-13 0.840 1.494
2010-02-11 0.840 1.539
2009-12-10 0.840 1.504
2009-08-13 0.840 1.484
2009-05-14 0.840 1.599

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Canadian Tire Corporation's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Canadian Tire Corporation's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Canadian Tire Corporation afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Canadian Tire Corporation has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CTC.A Management

 What is the CEO of Canadian Tire Corporation's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Greg Hicks
AGE 47
TENURE AS CEO 0 years
CEO Bio

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 the Retail Council of Canada and as a CT REIT Trustee. Mr. Hicks has been Director at CT Real Estate Investment Trust since May 09, 2018 and served as its Chief Operating Officer. He served as President of Canadian Tire Retail at Canadian Tire Corporation, Limited since November 10, 2017. Mr. Hicks served as Senior Vice President of Merchandising - Canadian Tire Retail at Canadian Tire Corp. Ltd and served as its Senior Vice President of Merchandising & Automotive Business - Canadian Tire Retail. Mr. Hicks was responsible for merchandising in the Living, Playing, Fixing and Seasonal categories and responsible for the Company’s Automotive operations including the PartSource and Petroleum business units. With solid retail experience in senior leadership positions, strong management and merchandising experience, he has tremendous ability to lead the Merchandising and Automotive teams. Before joining Canadian Tire in July 2013, he served as the Chief Operating Officer at TSC Stores L.P. Until November 2017, Mr. Hicks was Group Senior Vice-President, Consumer Products & Retail Experience, CTC(Canadian Tire Corporation). He supervised all of TSC’s business operations including merchandising, marketing, supply chain, store operations, information technology and human resources. Prior to working for TSC stores, he had a long history with Canadian Tire. He held various senior positions including Vice President of Store Design & Merchandising, Director of Automotive Operations and Marketing and various senior merchant positions within the Automotive business. He arrived at Home Office after first acquiring valuable and extensive managerial experience within Canadian Tire Retail stores. In May 2008, he was named one of Canada’s highly prestigious “Top 40 under 40” business leaders. Mr. Hicks is a past recipient of Canada’s Top 40 under 40™ Award. Mr. Hicks holds a BA from the University of Western Ontario and an HBA from the Richard Ivey Business School.

CEO Compensation
  • Insufficient data for Greg to compare compensation growth.
  • Insufficient data for Greg to establish whether their remuneration is reasonable compared to companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Canadian Tire Corporation management team in years:

2.7
Average Tenure
61
Average Age
  • The tenure for the Canadian Tire Corporation management team is about average.
Management Team

Jim Christie

TITLE
Executive VP
COMPENSATION
CA$2M

Stephen Wetmore

TITLE
Honorary Director & Advisor
COMPENSATION
CA$12M
AGE
66

Allan MacDonald

TITLE
Executive Vice-President of Retail
COMPENSATION
CA$3M
TENURE
2.3 yrs

Mahes Wickramasinghe

TITLE
Former Executive Vice President of International
COMPENSATION
CA$2M
AGE
61
TENURE
3.4 yrs

Greg Hicks

TITLE
CEO, President & Executive Director
AGE
47

Gregory Craig

TITLE
CFO & Executive VP

Rex Lee

TITLE
Senior VP & Chief Information Officer

Lisa Greatrix

TITLE
Senior Vice President of Finance & Investor Relations

Jane Shaw

TITLE
Vice President of Communications

Susan O'Brien

TITLE
Senior Vice President of Marketing
TENURE
2.7 yrs
Board of Directors Tenure

Average tenure and age of the Canadian Tire Corporation board of directors in years:

9.7
Average Tenure
66
Average Age
  • The tenure for the Canadian Tire Corporation board of directors is about average.
Board of Directors

Maureen Sabia

TITLE
Non-Executive Chairman of the Board
COMPENSATION
CA$571K
AGE
77
TENURE
13 yrs

Stephen Wetmore

TITLE
Honorary Director & Advisor
COMPENSATION
CA$12M
AGE
66

Greg Hicks

TITLE
CEO, President & Executive Director
AGE
47

Diana Chant

TITLE
Independent Director
COMPENSATION
CA$230K
TENURE
5.2 yrs

Cynthia Trudell

TITLE
Director
AGE
66
TENURE
0.8 yrs

Martha Billes

TITLE
Independent Director
COMPENSATION
CA$239K
AGE
78
TENURE
40.2 yrs

Owen Billes

TITLE
Non-Independent Director
COMPENSATION
CA$191K
AGE
49
TENURE
16.2 yrs

Jim Goodfellow

TITLE
Independent Director
COMPENSATION
CA$299K
TENURE
10.2 yrs

John A. Furlong

TITLE
Independent Director
COMPENSATION
CA$217K
AGE
68
TENURE
9.2 yrs

Claude L'Heureux

TITLE
Non-Independent Director
COMPENSATION
CA$184K
TENURE
9.2 yrs
Who owns this company?
Recent Insider Trading
  • Canadian Tire Corporation individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
23. Mar 20 Buy Claude L'Heureux Individual 20. Mar 20 20. Mar 20 3,000 CA$90.00 CA$270,000
16. Mar 20 Sell Dean McCann Individual 16. Mar 20 16. Mar 20 -10,000 CA$90.00 CA$-900,000
19. Nov 19 Buy Diana Chant Individual 19. Nov 19 19. Nov 19 50 CA$156.43 CA$7,821
17. Sep 19 Buy 8562997 Canada Inc. Company 12. Sep 19 12. Sep 19 1,057 CA$142.01 CA$150,099
14. Aug 19 Buy Diana Chant Individual 13. Aug 19 13. Aug 19 370 CA$134.80 CA$49,876
X
Management checks
We assess Canadian Tire Corporation's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Canadian Tire Corporation has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CTC.A News

Simply Wall St News

Imagine Owning Canadian Tire (TSE:CTC.A) And Wondering If The 20% Share Price Slide Is Justified

Unfortunately the Canadian Tire Corporation, Limited (TSE:CTC.A) share price slid 20% over twelve months. … Even though the Canadian Tire share price is down over the year, its EPS actually improved. … We note that for Canadian Tire the TSR over the last year was -18%, which is better than the share price return mentioned above.

Simply Wall St -

Is Canadian Tire (TSE:CTC.A) A Risky Investment?

We can see that Canadian Tire Corporation, Limited (TSE:CTC.A) does use debt in its business. … See our latest analysis for Canadian Tire What Is Canadian Tire's Debt? … Looking at the bigger picture, it seems clear to us that Canadian Tire's use of debt is creating risks for the company.

Simply Wall St -

Do Canadian Tire Corporation, Limited’s (TSE:CTC.A) Returns On Capital Employed Make The Cut?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Canadian Tire: 0.099 = CA$1.3b ÷ (CA$19b - CA$5.8b) (Based on the trailing twelve months to March 2019.) So, Canadian Tire has an ROCE of 9.9%. … Canadian Tire's Current Liabilities And Their Impact On Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Just 4 Days Before Canadian Tire Corporation, Limited (TSE:CTC.A) Will Be Trading Ex-Dividend

A useful secondary check can be to evaluate whether Canadian Tire generated enough free cash flow to afford its dividend. … Our definition of free cash flow excludes cash generated from asset sales, so since Canadian Tire is paying out such a high percentage of its cash flow, it might be worth seeing if it sold assets or had similar events that might have led to such a high dividend payment. … Canadian Tire delivered reasonable earnings per share growth in recent times, and paid out less than half its profits and 336% of its cash flow over the last year, which is a mediocre outcome.

Simply Wall St -

Should You Be Tempted To Sell Canadian Tire Corporation, Limited (TSE:CTC.A) Because Of Its P/E Ratio?

We'll apply a basic P/E ratio analysis to Canadian Tire Corporation, Limited's (TSE:CTC.A), to help you decide if the stock is worth further research. … Check out our latest analysis for Canadian Tire How Do You Calculate A P/E Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Canadian Tire: P/E of 13.52 = CA$144.63 ÷ CA$10.7 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

How Many Canadian Tire Corporation, Limited (TSE:CTC.A) Shares Did Insiders Buy, In The Last Year?

So before you buy or sell Canadian Tire Corporation, Limited (TSE:CTC.A), you may well want to know whether insiders have been buying or selling. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Canadian Tire The Last 12 Months Of Insider Transactions At Canadian Tire Over the last year, we can see that the biggest insider sale was by the , David Court, for CA$355k worth of shares, at about CA$164 per share. … Canadian Tire insiders own about CA$17m worth of shares.

Simply Wall St -

Does Canadian Tire Corporation, Limited (TSE:CTC.A) Have A Place In Your Dividend Portfolio?

Is Canadian Tire Corporation, Limited (TSE:CTC.A) a good dividend stock? … With a cash payout ratio of 336%, Canadian Tire's dividend payments are poorly covered by cash flow. … Canadian Tire is carrying net debt of 4.74 times its EBITDA, which is getting towards the upper limit of our comfort range on a dividend stock that the investor hopes will endure a wide range of economic circumstances.

Simply Wall St -

Is There An Opportunity With Canadian Tire Corporation, Limited's (TSE:CTC.A) 62% Undervaluation?

by taking the expected future cash flows and discounting them to today's value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model

Simply Wall St -

What Kind Of Shareholders Own Canadian Tire Corporation, Limited (TSE:CTC.A)?

A look at the shareholders of Canadian Tire Corporation, Limited (TSE:CTC.A) can tell us which group is most powerful. … With a market capitalization of CA$9.4b, Canadian Tire is rather large. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Should Canadian Tire Corporation, Limited’s (TSE:CTC.A) Weak Investment Returns Worry You?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

CTC.A Company Info

Description

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 general merchandise, apparel, footwear, sporting goods, and petroleum under the Canadian Tire, PartSource, Petroleum, Gas+, Party City, Mark’s, Mark’s Work Wearhouse, L’Équipeur, Helly Hansen, SportChek, Sports Experts, Atmosphere, Pro Hockey Life, National Sports, Sports Rousseau, and Hockey Experts banners. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, mixed-use commercial property, and distribution centers. The Financial Services segment provides financial and other ancillary products and services, including credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. This segment also offers payment processing services to its retail banners. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.

Details
Name: Canadian Tire Corporation, Limited
CTC.A
Exchange: TSX
Founded: 1922
CA$5,608,737,757
61,203,125
Website: http://www.corp.canadiantire.ca
Address: Canadian Tire Corporation, Limited
2180 Yonge Street,
PO Box 770,
Toronto,
Ontario, M4P 2V8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CTC.A Class A Non-Voting Shares The Toronto Stock Exchange CA CAD 13. Aug 1973
OTCPK CDNA.F Class A Non-Voting Shares Pink Sheets LLC US USD 13. Aug 1973
DB YAAA Class A Non-Voting Shares Deutsche Boerse AG DE EUR 13. Aug 1973
TSX CTC Common Shares The Toronto Stock Exchange CA CAD 13. Dec 1972
OTCPK CDNT.F Common Shares Pink Sheets LLC US USD 13. Dec 1972
Number of employees
Current staff
Staff numbers
22,439
Canadian Tire Corporation employees.
Industry
General Merchandise Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 00:13
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/13
Last earnings reported: 2019/12/28
Last annual earnings reported: 2019/12/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.