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Canada-based consumer giant Canadian Tire (TSX:CTC) (TSX: CTC.A) touched its 52-week-high of C$ 181.75 on Thursday, January 14, 2021. The stock has gained over 8.5 per cent in the last one month, indicating a renewed interest from investors.
Canadian Tire stock nosedived to C$ 67.15 during the pandemic-led market crash in March 2020. However, it has steadily rebounded since then and rallied by more 80 per cent it the last nine months.
The scrips returned 6.10 per cent quarter-to-date (QTD), higher than the 2.44 per cent returns of S&P/TSX Capped Consumer Discretionary Index in the same period.
The nearly century-old company retails home and sports goods, and automotive parts. Apart from retail and merchandise, Canadian Tire offers services in real estate investment trust (REIT) and financial services.
The stock’s current market cap (at the end of business close on January 15, 2021) is C$ 10.7 billion.
Canadian Tire’s comparable sales increased by 18.9 per cent in third quarter of 2020 (period ending on 26 September 2020). ECommerce sales alone grew to C$ 1 billion between January to September in 2020, up 211 per cent year-over-year.
After repaying its debt notes, the company ended the third quarter with C$ 1.7 billion in cash holdings and marketable securities, and C$ 48.29 billion credit for all its segments.
The company also raised annual dividend by 3.3 per cent from C$ 4.55 per share to C$ 4.70 per share. This is the 11 years consecutive year of dividend payout increase, reflecting a dividend growth of 17.4 per cent over five years, as per TSX data.
CTC’s gross dividend stands at 2.65 per cent.
The stock’s price-to-earnings ratio is 18.27, while price-to-cashflow and price-to-book ratios are 3.87 and 2.62, respectively, as per EODHD/Others data (for last twelve months as on 25 September 2020). The return on equity is 14.71 per cent and return of assets is 3.57 per cent.
