Canadian Tire Corporation Ltd (CTC-T) — Stockchase (2024)

Sep 12, 2024, 6:44 pm

Consensus

Mixed

Valuation

Undervalued

Similar

Walmart Inc, WMT-N

Traditional bricks and mortar business that will face competition from eCommerce. Undifferentiated shopping experience that is not enjoyable. Discretionary product offering makes it difficult to retain customers. Would not recommend investing at this time. Housing slowdown in Canada will also be hard on the business.

specialty stores

specialty stores

Why own this now? There's so much online competition and inflation is hurting the Canadian consumer. They bought back a lot of shares in 2023, but didn't work for their shares. Needs to see lower inflation and better employment numbers first.

specialty stores

Many retailers are coming off a rough quarter, but CTC is a seasonally sensitive stock. Last winter saw weak demand for winter items like snowblowers (due to a mild winter), and that's impacted CTC shares. Assuming regular seasonal weather in spring and summer, business should pick up. Hold if you already own and don't sell. He doesn't see long-term weakness.

specialty stores

Does not own shares. Retail business tough. Current valuation starting to enter attractive area. Competition amongst retail very hard to earn profits on (high capital investments). Consumers not coming back to brand - yet, would wait to buy.

specialty stores

Does not own shares, and would not recommend buying. Not a strong business model. Footprint limited to Canada with low growth.

specialty stores

Retail is a difficult business to operate in. Capital intensive business with lots of inventory. If recession occurs, will be hard on business. Better options for investors out there.

specialty stores

Historically a great Canadian retail business. However, business not performing as well due to eCommerce etc. Unsure on future of business. Better names for retail companies like Aritzia.

specialty stores

Another iconic national brand, Canadian Tire is the dark horse on this list. It's no secret that retail has struggled this year as higher wages, costlier shipping and theft (aka “shrinkage”) have battered the sector. Canadian Tire has sunk 30% off its 52-week highs and recently made a new low of $131.46. At the same time, the stock's PE has fallen below 10x compared to its five-year median of 11.5x.

specialty stores

specialty stores

It is reflecting the lower demand of the Canadian consumer and has pretty much penetrated the Canadian market.

specialty stores

Long period of low dividend yield. Current share price a good price to buy at. Likes automotive aspect of business. Improving business prospects.

specialty stores

Online shopping taking major toll on business.
Not as many visitors in the past.
Business not competing well with Amazon.
Rewards program not very good.
Not a good time to invest in business.

specialty stores

specialty stores

Latest corporate earnings surprisingly good.
Very strong brand across Canada.
Well managed company.
Current valuation is trading at a fair price.
Will continue to watch outlook for business.

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