Canadian Tire Corp 2

I own this stock (TSX-CTC.A). From when I originally bought this stock in 2000 I have made a total return of 10.33% per year with 1.74% of the total return per year attributable to dividends. This is a consumer discretionary stock. It has performed as I had expected it to.

This stock is now on one of the dividend lists that I follow of Dividend Aristocrats (see indices). This stock just recently appeared on this list. For more information on this lists and how it is decided to put stocks on the list, see Passive Income Earner .

When I look at insider trading I find $18.6M of insider selling and $4.8M of insider buying. The insider selling was by officers of the company. The insider buying was by officers and directors. All insider but the directors have more options than shares.

Over all the officers have more shares than options, but that is because of a few with large amount of shares. The majority of the officers have more options than shares. However, the selling does not seem to be of options, but of shares that were owned. There are certainly a number of insiders who own millions in shares.

There are some 8 institutions that own 13% of the outstanding shares. Over the past 3 months they have increased their shares by almost 16%.

I get 5 year median low and high Price/Earnings Ratios of 9.41 and 13.95. The current P/E of 10.64 is below the median ratio and shows a relatively reasonable stock price at $65.10. I get a Graham Price of $86.34 and the current stock price is some 25% lower. The median and low difference between the Graham Price and the stock price is the stock price being 19% and 35% lower. This also shows a reasonable stock price.

The 10 year Price/Book Value Ratio is 1.35. The current P/B Ratio is 1.20. The current one is 11% below the 10 year ratio and shows a reasonable stock price. The 5 year median Dividend Yield is 1.53% and the current dividend yield of 1.84% is some21% higher. This shows a good stock price.

When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold ones. The consensus would be a Buy. One Buy, says that the dual class shares is a negative, but in this case a small negative as he thinks highly of the company. One analyst says he cautious about the retail side of this business and therefore has a hold recommendation. Another with a Hold feels that the company is in a very competitive environment and they have to integrate Forzani Group.

One analyst with a buy recommendation said that Canadian Tire is a good company, with a strong balance sheet and improving margins. CTC is a buy for both income and gains.

There is an interesting article about Canadian Tire money on G&M. This newspaper also had an article on 4th quarterly results and a jump in sales. I realize there is an Canadian Tire sucks site. However, I have shopped at my local Canadian Tire store for almost 40 years and I have never had a problem. I have also taken my car there for servicing and never had a problem. I would imagine that any retail store would have some dissatisfied customers.

I am satisfied with my investment in this stock and I intend to hold on to the shares I have.

Canadian Tire Corp engages in retail sales, financial services and petroleum sales. They own Canadian Tire Store, Gas Outlets, Parts Source Stores and Mark's Work Warehouse. The Canadian Tire stores offer a unique range of automotive, sports and leisure and home products. The company is controlled by the Billes family who own most of the voting shares. Its web site is here Canadian Tire. See my spreadsheet at ctc.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.