Canadian Tire Corp

Sound bite for Twitter and StockTwits is: Dividend Growth stock. On a number of tests this stock seems to be relatively expensive. However, using the dividend yield test it is not. I do tend to like to dividend yield test best. I also tested it using P/S Ratio and P/CF Ratio and find for the first one it is expensive, but not for the second one. See my spreadsheet on Canadian Tire Corp.

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 trading account in 2009 because I have done well with it in my Pension Account and it was a consumer stock.

A lot of Canadians shop in Canadian Tire but I wonder how many think of investing in this stock. I have done well since I first bought this stock in 2000 and also more purchases in 2009 and 2010. I also sold some in 2014 because I needed cash in my RRSP and I tend to sell stocks with the lowest yield. My total return to date is 14.23% per year with 12.69% per year attributable to capital gains and 1.54% to dividends.

Dividends on this stock are low. The current dividend yield is 1.70% based on dividends of $2.60 and a stock price of $152.62. The 5 year median dividend yield is 1.71%, the 10 year median dividend yield is 1.70% and the historical dividend yield is 1.68%.

The dividend increases are moderate at 15.9% and 13.30% per year over the past 5 and 10 years. The dividend payments have covered some 44.8% of the cost of my stock. On the original stock I bought in 2000, I am earning 11.65% on my original purchase price. For the stock I bought in 2009, I am earning a yield on my original purchase price of 5.02%.

The Dividend Payout Ratios are low. The Dividend Payout Ratio for 2016 is 24.95%. The 5 year ratio would be 23.09%. The DPR for CFPS was 10.33% for 2016 with a 5 year ratio of 11.25%.

The debt is low and the debt ratios are good. The Liquidity Ratio for 2016 is 1.85. The Debt Ratio for 2016 was 1.60. Leverage and Debt/Equity Ratios for 2016 was 2.67 and 1.67. These last two ratios are good for a retail company.

The 5 year low, median and high median Price/Earnings per Share Ratios are 12.24, 13.04 and 14.84. The corresponding 10 year ratios are 10.00, 12.07 and 14.70. The corresponding historical ratios are 10.27, 13.33 and 15.66. The current P/E Ratio is 15.26 based on a stock price of $152.62 and 2017 EPS estimate of $10.00. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $125.33. The 10 year low, median and high median Price/Graham Price Ratios are 0.68, 0.83 and 1.04. The current P/GP Ratios is 1.22 based on a stock price of $152.62. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year Price/Book Value per Share Ratio of 1.28. The current P/B Ratio is 2.19 a value some 71% higher. The current P/B Ratio is based on a stock price of $152.62 and a BVPS of $69.81. This stock price testing suggests that the stock price is relatively expensive.

The current dividend yield is 1.70%. The historical median dividend yield is 1.68% a value some 1.4% lower. The current dividend yield is based on a stock price of $152.62 and dividends of $2.60. This stock price testing suggests that the stock price is relatively reasonable and just above the median.

The 10 year P/S Ratio is 0.56 and the current P/S Ratio at 0.80 is some 43% higher. The current P/S Ratio is based on 2017 Revenue estimate of $13.506M and Revenue per Share of $190.91. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year Price/Cash Flow per Share Ratio of 8.96. The current P/CF Ratio is 8.48 based on CFPS estimate for 2017 of $17.50 and a stock price of $152.62. The current P/CF Ratio is some 2.7% below the 10 year median P/CF Ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

When I look at analysts' recommendations, I find Strong Buy, Buy and Hold Recommendations. Most of the recommendations are a buy and the consensus recommendation would be a buy. The 12 month target price is $173.83. This implies a total return of 15.60% with 13.90% from capital gains and 1.70% from dividends.

Marina Strauss in the Globe and Mail talks about this company having a strong fourth quarter in 2016. Demetris Afxentiou of Motley Fool likes this stock. See what analysts are saying about this stock on Stock Chase .

Canadian Tire operates several retail businesses that offer everyday products and services through a network of over 1,700 locations across the country. The key banners that the company operates under include Canadian Tire Retail, FGL Sports, Mark's, Petroleum, Part Source, and Financial Services. Its web site is here Canadian Tire Corp.

The last stock I wrote about was about was H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF)... learn more . The next stock I will write about will be Goodfellow Inc. (TSX-GDL, OTC-GFELF)... learn more on Friday, March 10, 2017 around 5 pm. Tomorrow on my other blog I will write about Something to Buy March 2017... learn more on Thursday, March 9, 2017 around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.