Wednesday, March 5, 2014

Canadian Tire Corp

And old and dear friend has just died. I will not have time to do a blog entry on Thursday, March 6, 2014. I should be able to continue on Friday, but that is not certain at this time.

On my other blog I am today writing about possible stocks to buy continue...

I own this stock of Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF). In 2000 when I first bought this stock, it was on the Investment Reporter's list of conservative Canadian stocks. I bought this stock for my Canadian Trading account in 2009. I bought it because I have done well with it in my Pension Account and it was a consumer stock.

The dividend on this stock is in the low range and the increases good. The 5 year median dividend yield is 1.75% and the current dividend yield is 1.75%. The dividend increases over the past 5 and 10 years was at 10.8% and 13.4% per year. The last dividend increase occurred this year and it was for 25%.

The Dividend Payout Ratios are low with the 5 year DPR for EPS at 19.7% and the DPR for CFPS at 8.3%. The DPRs for 2013 are 20.3% for EPS and 9.16% for CFPS.

The total return over the past 5 and 10 years is at 13.37% and 7.21% per year. The capital gain portion of this return is 11.66% and 5.91% per year. The dividend portion of this return is at 1.71% and 1.31% per year. What I have made on my total holdings is 12.82% per year with 11.23% per year from capital gains and 1.59% per year from dividends.

The outstanding shares have basically not changed over the past 5 and 10 years. Shares have increased due to Stock Options and DRIP. Shares have decreased due to Buy Backs. There has been reasonable to good growth in revenue, earnings and cash flow.

Revenue per Share has increased by 5.7% and 6% per year over the past 5 and 10 years. EPS have grown at 8.5 and 8.9% per year over the past 5 and 10 years. Cash Flow per Share has grown at 16.2% and 8.7% per year over the past 5 and 10 years.

Each year over the past 10 years, Return on Equity has been 10% or above. The 5 year median ROE is 10.5%. The ROE for 2013 is at 10.4%. The ROE on comprehensive income is 11.4% for 2013.

The debt ratios are fairly good. The Liquidity Ratio is quite good at 1.85. The Debt Ratios are good at 1.67. The Leverage and Debt/Equity Ratios at 2.50 and 1.50 are ok.

I have done quite well with this stock. It is a stock to buy for diversification into consumer stocks. See my spreadsheet at ctc.htm.

This is the first of two parts. The second part will be posted on Friday, March 7, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.

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.

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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.

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