
TSE:CTC.A
This summary was created by AI, based on 6 opinions in the last 12 months.
Experts generally have a cautious outlook on Canadian Tire Corporation (CTC.A), highlighting its recent earnings improvement with a 38% year-over-year EPS growth and a transformation that is showing positive results. However, concerns over consumer spending and economic conditions in Canada linger, particularly as 60% of CTC.A's sales are discretionary. While its valuation at approximately 15x normalized earnings seems fair and has attracted analysts' price targets that range from $150 to $200, the company is still seen as facing challenges such as competition from e-commerce and discount retailers. Some analysts prefer stocks with more defensive profiles, suggesting a more conservative investment approach given the uncertain economic landscape. Overall, while CTC.A has solid fundamentals and a good yield, experts recommend a cautious stance or considering profit-taking at current levels.
CTC’A trades at a 9.92x PE, pays a 3.95% dividend yield backed by a safe 33.24% payout ratio. That valuation, by the way, has been the same since last July and is a far cry from July 2020 through June 2021 when it topped 17x. CTC’A is trending above its 50-day moving average of $154.53 and 200-day of $159.03, while the street sees a higher PE of 10.16x. Quarterly revenue growth YOY rose 3.9% and earnings growth 4.6%. Read: Canadian Tire, Savaria & XLI
Whatever you need to buy, it's always an option. Management's done a good job moving competition away from online retailers. Impressive profitability of ROE around 18%, well above TSX average. Strong balance sheet. Expects nice capital appreciation. Yield is 4.30%.
(Analysts’ price target is $186.73)Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. A more pure Canadian stock play. CTC is very well run, and good growth is expected after a small slowdown this year. EPS is 17.03 with a yield of 2.33%. Unlock Premium - Try 5i Free
Trades reasonably around 10x PE. They execute well and pays an okay dividend. They spun off their real estate, which helped them. A great Canadian brand and does well in less-populated parts of Canada. There'll be some volatility in some earnings, but this will do well over time.