Canadian Tire Corporation Ltd

CTC-T

TSE:CTC

223.50
6.75 (3.11%)
Canadian Tire Corporation, Limited is a Canadian retail company which sells a wide range of automotive, hardware, sports and leisure, and home products. Some stores also sell toys and food products.
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Analysis and Opinions about CTC-T

Signal
Opinion
Expert
BUY
BUY
May 25, 2020

It has not picked up to the same extent as HD-N. We are dealing with a general consumer related store whereas HD-N has benefited from the home renovation space because at home what else are you going to do with your day when shut in but renovate. As stores start to re-open again and assuming there are no setbacks, then he feels CTC-T stock will continue to appreciate. It is a solid company and much more diversified than it was ten years ago.

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It has not picked up to the same extent as HD-N. We are dealing with a general consumer related store whereas HD-N has benefited from the home renovation space because at home what else are you going to do with your day when shut in but renovate. As stores start to re-open again and assuming there are no setbacks, then he feels CTC-T stock will continue to appreciate. It is a solid company and much more diversified than it was ten years ago.

DON'T BUY
DON'T BUY
February 3, 2020

Iconic Canadian brand but operating in a very competitive space. Most products are AMZN-Q'able. They have the credit card business which brings in 25% of their earnings but it is essentially sub-prime lending. Loan losses are skyrocketing at a time when bankrupsies are skyrocketing. It is not timely from this perspective. They have been buying back stock but he thinks the runway for that is getting pretty short.

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Iconic Canadian brand but operating in a very competitive space. Most products are AMZN-Q'able. They have the credit card business which brings in 25% of their earnings but it is essentially sub-prime lending. Loan losses are skyrocketing at a time when bankrupsies are skyrocketing. It is not timely from this perspective. They have been buying back stock but he thinks the runway for that is getting pretty short.

COMMENT
COMMENT
December 11, 2019
Voting share divergence? Split share structures can go wrong sometimes. The A shares, gives the founders a larger voting right. This could be an example of an activist voting issue. The CTC shares hardly trade -- only 200 shares a day approximately.
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Voting share divergence? Split share structures can go wrong sometimes. The A shares, gives the founders a larger voting right. This could be an example of an activist voting issue. The CTC shares hardly trade -- only 200 shares a day approximately.
DON'T BUY
DON'T BUY
December 6, 2019
The short seller in the states, Spruce point, by going through their debt structure. They also said the company’s not moving fast enough into e-commerce. The short seller sees 50% downsides. From a technical perspective, they don’t do well in January. Resistance is around $160 and we‘ve pulled back.
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The short seller in the states, Spruce point, by going through their debt structure. They also said the company’s not moving fast enough into e-commerce. The short seller sees 50% downsides. From a technical perspective, they don’t do well in January. Resistance is around $160 and we‘ve pulled back.
BUY
BUY
November 26, 2019
Likes the company. There is a lot of negative sentiment around the name especially due to the Amazon effect. However, they are investing in proprietary brands which is positive. Their real estate and financial service is doing well. There is a lot of value here and is quite cheap.
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Likes the company. There is a lot of negative sentiment around the name especially due to the Amazon effect. However, they are investing in proprietary brands which is positive. Their real estate and financial service is doing well. There is a lot of value here and is quite cheap.
SELL STRENGTH
SELL STRENGTH
November 18, 2019
There is only so much they can do with their retail model. He has been waiting to lighten up for his clients that have this. You are looking at continuing tough competition.
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There is only so much they can do with their retail model. He has been waiting to lighten up for his clients that have this. You are looking at continuing tough competition.
SELL
SELL
July 11, 2019

Facing a 20% loss. Sell? It's missed earnings in 5 of the last 7 quarters, and it's exposed to the consumer discretionary space, which is vulnerable in a downturn. Also, it's vulnerable to Amazon. Their chart is making lower highs and lows as the TSX is moving the opposite direction. It isn't cheap, trading at 2.4x book value vs. 1.7x historic average. Also, past major downturns fell 60%.

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Facing a 20% loss. Sell? It's missed earnings in 5 of the last 7 quarters, and it's exposed to the consumer discretionary space, which is vulnerable in a downturn. Also, it's vulnerable to Amazon. Their chart is making lower highs and lows as the TSX is moving the opposite direction. It isn't cheap, trading at 2.4x book value vs. 1.7x historic average. Also, past major downturns fell 60%.

BUY WEAKNESS
BUY WEAKNESS
June 3, 2019
It has come down a bit and so might be a buy. They have done a tremendous job growing the business over the years in the face of intense competition. Management does not see a slowdown. They made an acquisition of a fashion business but there are some synergies. It is not expensive but you need to be aware of some of the risks.
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It has come down a bit and so might be a buy. They have done a tremendous job growing the business over the years in the face of intense competition. Management does not see a slowdown. They made an acquisition of a fashion business but there are some synergies. It is not expensive but you need to be aware of some of the risks.
DON'T BUY
DON'T BUY
February 13, 2019
The company trades at 12 times earnings, but despite the reasonable metrics, she does not own a lot in the retail brick and mortar space in Canada. The online competition is fierce. She does not see strong growth prospects here.
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The company trades at 12 times earnings, but despite the reasonable metrics, she does not own a lot in the retail brick and mortar space in Canada. The online competition is fierce. She does not see strong growth prospects here.
HOLD
HOLD
December 12, 2018
He does not own it presently. He is surprised at how it has pulled back -- thinking it is based on general market conditions. He thinks they did an excellent job with Mark's and SportChek and expects another acquisition over time. As long term investor should continue to hold. (Analysts’ price target is $185.00)
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He does not own it presently. He is surprised at how it has pulled back -- thinking it is based on general market conditions. He thinks they did an excellent job with Mark's and SportChek and expects another acquisition over time. As long term investor should continue to hold. (Analysts’ price target is $185.00)
DON'T BUY
DON'T BUY
October 17, 2018

Well-run retailer, but he's concenered with outside disruption, a digital competitor. It could happen. In retail, he considers the future. They have a decent balance sheet though.

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Well-run retailer, but he's concenered with outside disruption, a digital competitor. It could happen. In retail, he considers the future. They have a decent balance sheet though.

BUY WEAKNESS
BUY WEAKNESS
September 24, 2018

One of the few great Canadian retail stocks. There's support below current levels. When a quality stock is down 10-20%, then buy more. Buy if you can't do that, then maybe you shouldn't be owning it in the first place.

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One of the few great Canadian retail stocks. There's support below current levels. When a quality stock is down 10-20%, then buy more. Buy if you can't do that, then maybe you shouldn't be owning it in the first place.

HOLD
HOLD
September 18, 2018

This is a great company. When WalMart entered Canada, they considered Canadian Tire the one company that was unassailable. They’ve done a good job of diversifying and of controlling the sports business in Canada. Their business model--control small-town Canada--has been very dependable. However, they are dependent on external factors. For example, it has to snow enough for them to sell snow-seasonal items. The stock has done very well over the past 5 years. He sees no reason not to own it, but he wouldn’t buy more. It costs too much.

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This is a great company. When WalMart entered Canada, they considered Canadian Tire the one company that was unassailable. They’ve done a good job of diversifying and of controlling the sports business in Canada. Their business model--control small-town Canada--has been very dependable. However, they are dependent on external factors. For example, it has to snow enough for them to sell snow-seasonal items. The stock has done very well over the past 5 years. He sees no reason not to own it, but he wouldn’t buy more. It costs too much.

DON'T BUY
DON'T BUY
July 27, 2018

The stock has done well, but its growth is limited by limited Canadian consumer spending. He owns Loblaws and Leons instead. He thinks the valuation is too expensive at this level.

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The stock has done well, but its growth is limited by limited Canadian consumer spending. He owns Loblaws and Leons instead. He thinks the valuation is too expensive at this level.

HOLD
HOLD
May 25, 2018

It's a decent long-term hold. A good operator. The debt-ridden Canadian consumer makes him nervous, so he's avoiding this space for now. As interest rates rise, consumers may spend less at Canadian Tire. The stock has been underperforming. There could be an entry point in the fall.

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It's a decent long-term hold. A good operator. The debt-ridden Canadian consumer makes him nervous, so he's avoiding this space for now. As interest rates rise, consumers may spend less at Canadian Tire. The stock has been underperforming. There could be an entry point in the fall.

PAST TOP PICK
PAST TOP PICK
May 23, 2018

(A Top Pick February 22/18 Down 6%) The Helly-Hansen acquisition has brought headwinds to this stock. They have made acquisitions in the past, but this seemed strange and very expensive. The seasonal peak for this stock is January 11 to April 12, so he would not hold this now.

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(A Top Pick February 22/18 Down 6%) The Helly-Hansen acquisition has brought headwinds to this stock. They have made acquisitions in the past, but this seemed strange and very expensive. The seasonal peak for this stock is January 11 to April 12, so he would not hold this now.

HOLD
HOLD
February 22, 2018

[What is P/B, like Canadian Tire's?] P/B is the price of the stock against its accounting book value, the money that's gone into creating the existing company. Some say it's an historic measure which get distorted over time, like a factory they own that's greatly appreciated in value. He uses it to measure how management uses shareholders' money, but you must also look at P/E and ROE. Canadian Tire is selling at a higher historic P/B because it's done so well, especially in the face of Home Depot and Walmart. They may have challenges online battling Amazon. Would like to see Canadian Tire at a lower P/B perhaps between 1.5x and 2.5.

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[What is P/B, like Canadian Tire's?] P/B is the price of the stock against its accounting book value, the money that's gone into creating the existing company. Some say it's an historic measure which get distorted over time, like a factory they own that's greatly appreciated in value. He uses it to measure how management uses shareholders' money, but you must also look at P/E and ROE. Canadian Tire is selling at a higher historic P/B because it's done so well, especially in the face of Home Depot and Walmart. They may have challenges online battling Amazon. Would like to see Canadian Tire at a lower P/B perhaps between 1.5x and 2.5.

DON'T BUY
DON'T BUY
February 6, 2018

It’s one of the few names in the retail space that has done quite well despite the current challenges to bricks and mortar. Their share price has outperformed the TSX since 2010-2011. They have diversified, with Canadian Tire stores generating 65% of sales, FGL Sports generating about 20% and Marks generating 15%. They have lots of cash,they have slowly loosened up the purse strings by raising the dividend and they have a very healthy balance sheet.

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It’s one of the few names in the retail space that has done quite well despite the current challenges to bricks and mortar. Their share price has outperformed the TSX since 2010-2011. They have diversified, with Canadian Tire stores generating 65% of sales, FGL Sports generating about 20% and Marks generating 15%. They have lots of cash,they have slowly loosened up the purse strings by raising the dividend and they have a very healthy balance sheet.

BUY
BUY
February 23, 2017

The season period is January to Mid-April. It was in an ascending bullish triangle and then it popped when they came out with great earnings. This is very positive. It has still has room to move higher.

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The season period is January to Mid-April. It was in an ascending bullish triangle and then it popped when they came out with great earnings. This is very positive. It has still has room to move higher.

WAIT
WAIT
October 31, 2016

He tends not to ‘step into traffic’ and initiate new positions before important news releases. Wait for the earnings. We have seen two or three months of very weak Canadian retail sales growth and so the stock has come down.

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He tends not to ‘step into traffic’ and initiate new positions before important news releases. Wait for the earnings. We have seen two or three months of very weak Canadian retail sales growth and so the stock has come down.

COMMENT
COMMENT
July 14, 2016

It had a very good run and had a bit of a dip here. The worst for Canada has been seen from an energy price perspective. The retail area is economically sensitive and hot hit.

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It had a very good run and had a bit of a dip here. The worst for Canada has been seen from an energy price perspective. The retail area is economically sensitive and hot hit.

WATCH
WATCH
February 29, 2016

1.7% yield. It is coming along. They have been increasing their dividend. The retail business is tough. There is lots of competition. There does not seem to be a long term sustainable advantage that gets them to the 5% yield that he likes to see. Also, there has been financial engineering like spinning out their real estate. He is passing and would not be considering it except at a bottom.

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1.7% yield. It is coming along. They have been increasing their dividend. The retail business is tough. There is lots of competition. There does not seem to be a long term sustainable advantage that gets them to the 5% yield that he likes to see. Also, there has been financial engineering like spinning out their real estate. He is passing and would not be considering it except at a bottom.

BUY
BUY
January 11, 2016

He has been looking closely at it for about 8 months. He will be buying it in the near future. You could call it consumer discretionary, but it is not overly cyclical. They have done a great job with the products they have put in the store. The balance sheet looks good.

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He has been looking closely at it for about 8 months. He will be buying it in the near future. You could call it consumer discretionary, but it is not overly cyclical. They have done a great job with the products they have put in the store. The balance sheet looks good.

BUY
BUY
September 10, 2015

This is one of the companies in his safety and value portfolio. Valuations are okay, 15 times and he does not expect huge increases in earnings. They are in great shape on a balance sheet. He has had no sell signals. They are showing good quarterly earnings momentum.

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This is one of the companies in his safety and value portfolio. Valuations are okay, 15 times and he does not expect huge increases in earnings. They are in great shape on a balance sheet. He has had no sell signals. They are showing good quarterly earnings momentum.

BUY
BUY
July 20, 2015

It got revalued. It benefits from Target walking away from Canada. They executed well and are good long term thinkers. He thinks it will continue.

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It got revalued. It benefits from Target walking away from Canada. They executed well and are good long term thinkers. He thinks it will continue.

HOLD
HOLD
March 20, 2015

Has had a phenomenal run. It was not affected by Target coming into Canada. The vast majority of what they sell is imported from the US so the fall in the Canadian dollar will squeeze margins are cause price increases. Be cautious on this one.

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Has had a phenomenal run. It was not affected by Target coming into Canada. The vast majority of what they sell is imported from the US so the fall in the Canadian dollar will squeeze margins are cause price increases. Be cautious on this one.

DON'T BUY
DON'T BUY
December 29, 2014

(These are the voting shares and have very little volume.) The company has done a great job in developing its market profile. Its performance, until just recently, has had a pretty good run. The continuing decline in the Canadian$ makes purchases of foreign goods more expensive for any importer in the retail business. He would look elsewhere for retail exposure. If he were going to own it, he would own the A shares, because if something goes wrong, the B shares would be difficult to get out of.

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(These are the voting shares and have very little volume.) The company has done a great job in developing its market profile. Its performance, until just recently, has had a pretty good run. The continuing decline in the Canadian$ makes purchases of foreign goods more expensive for any importer in the retail business. He would look elsewhere for retail exposure. If he were going to own it, he would own the A shares, because if something goes wrong, the B shares would be difficult to get out of.

BUY WEAKNESS
BUY WEAKNESS
March 28, 2014

One of the few retailers she owns. They had benefited from the bad weather and she expects Q1 to look pretty good. Have announced that they are looking at monetizing their financial service subsidiary and are also looking at a real estate REIT transaction at some point. There are events happening and she would definitely hang onto this. She is personally buying it on dips.

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One of the few retailers she owns. They had benefited from the bad weather and she expects Q1 to look pretty good. Have announced that they are looking at monetizing their financial service subsidiary and are also looking at a real estate REIT transaction at some point. There are events happening and she would definitely hang onto this. She is personally buying it on dips.

DON'T BUY
DON'T BUY
May 15, 2013

When they announced they were going to spin off a REIT, while retaining 80 to 90% of the REIT, why did the stock go up so much since the value is already there? The psychological aspects of the stock market are not always rational. Investors are hoping for increased dividend. He doesn't own Canadian Tire, but the REIT might be interesting to him.

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When they announced they were going to spin off a REIT, while retaining 80 to 90% of the REIT, why did the stock go up so much since the value is already there? The psychological aspects of the stock market are not always rational. Investors are hoping for increased dividend. He doesn't own Canadian Tire, but the REIT might be interesting to him.

DON'T BUY
DON'T BUY
May 13, 2013

Just as a pure retail play very expensive right now.

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Just as a pure retail play very expensive right now.

HOLD
HOLD
May 10, 2013

The REIT would be the third largest REIT in Canada. You have a lot of the value out of it by the announcement. They have done the right thing for the shareholders and the markets have correctly given most but not all of the value.

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The REIT would be the third largest REIT in Canada. You have a lot of the value out of it by the announcement. They have done the right thing for the shareholders and the markets have correctly given most but not all of the value.

HOLD
HOLD
April 12, 2013

This is a good one. Seasonality tends to be from November right through until the end of April. Couple of days ago it hit a five-year high. Significantly outperforming the Canadian market.

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This is a good one. Seasonality tends to be from November right through until the end of April. Couple of days ago it hit a five-year high. Significantly outperforming the Canadian market.

WAIT
WAIT
April 5, 2013

There is a definite wall ahead of it (an area of resistance) at $74 and it needs to break through this before he would buy it. You might choose to take profits at that level.

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There is a definite wall ahead of it (an area of resistance) at $74 and it needs to break through this before he would buy it. You might choose to take profits at that level.

WAIT
WAIT
March 1, 2013

Chart shows that it has a rolling top from early 2012. The little action in the last few months indicates that it doesn’t want to go anywhere. He would like to see a breakout above $73 or come back to the mid-$60. If you own it, you could consider taking some off the table.

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Chart shows that it has a rolling top from early 2012. The little action in the last few months indicates that it doesn’t want to go anywhere. He would like to see a breakout above $73 or come back to the mid-$60. If you own it, you could consider taking some off the table.

HOLD
HOLD
January 14, 2013

Good company. A tough business with more competitors coming in. Seem to be doing the right things. Decent yield.

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Good company. A tough business with more competitors coming in. Seem to be doing the right things. Decent yield.

HOLD
HOLD
August 9, 2010
Canadian retailer and their well being is tied to the economy. Although the economy has come back quite a bit, there has been a downshift in spending. Have staying power and good real estate holdings. If you have better names in the retail section, this could be a source of cash if you own.
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Canadian retailer and their well being is tied to the economy. Although the economy has come back quite a bit, there has been a downshift in spending. Have staying power and good real estate holdings. If you have better names in the retail section, this could be a source of cash if you own.
WEAK BUY
WEAK BUY
July 22, 2010
Doesn’t like the retail area at this time. Has a concern about slowing. He has always shopped here. Are forever bringing in new products.
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Doesn’t like the retail area at this time. Has a concern about slowing. He has always shopped here. Are forever bringing in new products.
BUY
BUY
June 11, 2010
General view is that dual class views are a negative (e.g. Magna). The family built a great company. It is a very small negative. Very positive on Canadian retail. But it is becoming more competitive. Thinks highly of them as a company.
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General view is that dual class views are a negative (e.g. Magna). The family built a great company. It is a very small negative. Very positive on Canadian retail. But it is becoming more competitive. Thinks highly of them as a company.
HOLD
HOLD
April 23, 2009
Less downside risk. Not the risk in the financial market. It’s cheap because the growth is lower.
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Less downside risk. Not the risk in the financial market. It’s cheap because the growth is lower.
PAST TOP PICK
PAST TOP PICK
October 2, 2008
(Top Pick Oct 5/07, Down 40%)Used to hold up well in bad economic times because if you couldn’t buy a new item, you would buy the tools to maintain it. Let it come back a little bit more before coming back in. Getting really cheap.
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(Top Pick Oct 5/07, Down 40%)Used to hold up well in bad economic times because if you couldn’t buy a new item, you would buy the tools to maintain it. Let it come back a little bit more before coming back in. Getting really cheap.