| CTC-A Stock | | | CAD 143.43 2.65 1.81% |
Based on the measurements of profitability obtained from Canadian TireLimited's financial statements, Canadian TireLimited's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Canadian TireLimited's ability to earn profits and add value for shareholders. At this time, Canadian TireLimited's
Price To Sales Ratio is comparatively stable compared to the past year.
Days Sales Outstanding is likely to gain to 182.19 in 2025, whereas
EV To Sales is likely to drop 0.69 in 2025. At this time, Canadian TireLimited's
Total Other Income Expense Net is comparatively stable compared to the past year.
Interest Income is likely to gain to about 8.2
M in 2025, whereas
Income Before Tax is likely to drop slightly above 743.4
M in 2025.
For Canadian TireLimited profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canadian TireLimited 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 TireLimited'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 TireLimited's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canadian TireLimited is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canadian TireLimited'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 TireLimited Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Canadian TireLimited's current stock value. Our valuation model uses many indicators to compare Canadian TireLimited value to that of its competitors to determine the firm's financial worth.
Canadian Tire is number one stock in price to earning category among its peers. It also is number one stock in return on equity category among its peers reporting about
0.01 of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for Canadian Tire is roughly
118.04 . At this time, Canadian TireLimited'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 TireLimited's earnings, one of the primary drivers of an investment's value.
Canadian Return On Equity vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Canadian TireLimited | P/E | = | Market Value Per ShareEarnings Per Share |
| = | 16.95 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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 TireLimited | Return On Equity | = | Net IncomeTotal Equity |
| = | 0.14 |
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 TireLimited Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Canadian TireLimited, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Canadian TireLimited will eventually generate negative long term returns. The profitability progress is the general direction of Canadian TireLimited's change in net profit over the period of time. It can combine
multiple indicators of Canadian TireLimited, 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.
Canadian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Canadian TireLimited. 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 TireLimited 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 TireLimited's important profitability drivers and their relationship over time.
Use Canadian TireLimited 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 TireLimited 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 TireLimited will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Canadian TireLimited 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 TireLimited 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 TireLimited - 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 TireLimited 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 TireLimited moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian TireLimited 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 TireLimited 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.
Use Investing Themes to Complement your Canadian TireLimited position
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Additional Tools for Canadian Stock Analysis
When running Canadian TireLimited's price analysis, check to
measure Canadian TireLimited'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 TireLimited is operating at the current time. Most of Canadian TireLimited's value examination focuses on studying past and present price action to
predict the probability of Canadian TireLimited'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 TireLimited's price. Additionally, you may evaluate how the addition of Canadian TireLimited to your portfolios can decrease your overall portfolio volatility.
