
TSE:CTC.A
This summary was created by AI, based on 9 opinions in the last 12 months.
Canadian Tire Corporation Ltd. (CTC.A) has received mixed reviews from various experts, reflecting a range of opinions about its current performance and future potential. Many acknowledge its solid business fundamentals, noting a recent earnings report that demonstrates significant year-over-year growth, with EPS up by 38%. However, concerns about the broader economic environment and consumer sentiment, particularly regarding discretionary spending, have led to warnings about the stock's volatility. While some experts appreciate its turnaround efforts and fair valuation at approximately 15x normalized earnings, others prefer more defensive names in the sector, highlighting the risks inherent in the consumer market. Overall, the consensus leans toward caution, with suggestions to potentially take profits while remaining optimistic about the company's long-term efficacy.
After 30 years in the business he notices that CTC has been the most consistently retailer--but too expensive. He's a value player. CTC has survived the Amazon onslaught, but it has slumped this past year given the Amazon effect. CTC has a great balance sheet and fine inventory control. They have the heart of Canadians. They will continue to do well, but the retail sector is tough now.
Easy to short a stock that's already been beaten up. Nothing in the numbers says they're having trouble. Last quarter wasn't great. Retail is tough. Looks cheap, buying back stock, trying for 10% EPS growth this year. He doesn't like retail against Amazon, which he owns. Could be a trade.
It's looking a bit expensive. However, they have fantastic urban locations. The real estate itself is worth a lot. They haven't done anything different recently and Amazon is a big competitor. In danger of some market erosion. Right now it's around 15x multiple. Maybe should be around 10 times, so it could go down 30% from where they are right now.
There are better growth names out there as they are limited to the Canadian consumer market only. They have an advantage on larger garden items over Amazon for savings in shipping, but it is not enough to entice her.