Canadian Tire Number Of Shares Shorted vs. Return On Equity

CTC-A Stock  CAD 154.72  1.52  0.97%   
Based on the measurements of profitability obtained from Canadian Tire's financial statements, Canadian Tire's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Canadian Tire's ability to earn profits and add value for shareholders. At this time, Canadian Tire's Price To Sales Ratio is comparatively stable compared to the past year. Days Sales Outstanding is likely to gain to 178.75 in 2024, whereas Operating Cash Flow Sales Ratio is likely to drop 0.06 in 2024. At this time, Canadian Tire's Income Before Tax is comparatively stable compared to the past year. Net Income is likely to gain to about 513 M in 2024, despite the fact that Total Other Income Expense Net is likely to grow to (649.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.340.3231
Sufficiently Up
Slightly volatile
Net Profit Margin0.01220.0128
Sufficiently Down
Pretty Stable
Operating Profit Margin0.06350.0754
Fairly Down
Slightly volatile
Pretax Profit Margin0.05180.0344
Way Up
Pretty Stable
Return On Assets0.00920.0097
Notably Down
Slightly volatile
Return On Equity0.03650.0384
Notably Down
Very volatile
For Canadian Tire profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canadian Tire to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Canadian Tire utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Canadian Tire's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Canadian Tire over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Canadian Tire's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canadian Tire is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canadian Tire's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Canadian Tire Return On Equity vs. Number Of Shares Shorted Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Canadian Tire's current stock value. Our valuation model uses many indicators to compare Canadian Tire value to that of its competitors to determine the firm's financial worth.
Canadian Tire is number one stock in number of shares shorted category among its peers. It also is number one stock in return on equity category among its peers . The ratio of Number Of Shares Shorted to Return On Equity for Canadian Tire is about  6,846,349 . At this time, Canadian Tire's Return On Equity is comparatively stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Canadian Tire's earnings, one of the primary drivers of an investment's value.

Canadian Return On Equity vs. Number Of Shares Shorted

Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.

Canadian Tire

Shares Shorted

 = 

Shorted by Public

+

by Institutions

 = 
768.85 K
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Canadian Tire

Return On Equity

 = 

Net Income

Total Equity

 = 
0.11
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Canadian Return On Equity Comparison

Canadian Tire is currently under evaluation in return on equity category among its peers.

Canadian Tire Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Canadian Tire, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Canadian Tire will eventually generate negative long term returns. The profitability progress is the general direction of Canadian Tire's change in net profit over the period of time. It can combine multiple indicators of Canadian Tire, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-181.8 M-172.7 M
Operating Income1.3 B858.7 M
Income Before Tax572.8 M721 M
Total Other Income Expense Net-683.9 M-649.7 M
Net Income339.1 M513 M
Income Tax Expense233.7 M207.3 M
Net Income From Continuing Ops339.1 M322.1 M
Net Income Applicable To Common Shares1.2 B838.5 M
Net Interest Income-321.5 M-337.6 M
Interest Income4.6 M8.7 M
Change To Netincome11.4 M10.8 M
Net Income Per Share 3.79  4.98 
Income Quality 3.99  4.19 
Net Income Per E B T 0.37  0.73 

Canadian Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Canadian Tire. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Canadian Tire position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Canadian Tire's important profitability drivers and their relationship over time.

Use Canadian Tire in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Canadian Tire position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Canadian Tire will appreciate offsetting losses from the drop in the long position's value.

Canadian Tire Pair Trading

Canadian Tire Pair Trading Analysis

The ability to find closely correlated positions to Canadian Tire could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Tire when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Canadian Tire - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Canadian Tire to buy it.
The correlation of Canadian Tire is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Canadian Tire moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Tire moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Canadian Tire can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Canadian Tire position

In addition to having Canadian Tire in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Data Storage
Data Storage Theme
Companies making data storages or providing data storage services. The Data Storage theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Data Storage Theme or any other thematic opportunities.
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Additional Tools for Canadian Stock Analysis

When running Canadian Tire's price analysis, check to measure Canadian Tire's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Canadian Tire is operating at the current time. Most of Canadian Tire's value examination focuses on studying past and present price action to predict the probability of Canadian Tire's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canadian Tire's price. Additionally, you may evaluate how the addition of Canadian Tire to your portfolios can decrease your overall portfolio volatility.