| CTC-A Stock | | | CAD 156.42 0.86 0.55% |
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).
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 Cash And Equivalents vs. Shares Owned By Institutions 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 shares owned by institutions category among its peers. It also is number one stock in cash and equivalents category among its peers creating about
52,844,265 of Cash And Equivalents per Shares Owned By Institutions. 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 Cash And Equivalents vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Canadian Tire | Shares Held by Institutions | = | Funds and Banks | + | Firms |
| = | 32.17 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Canadian Tire | Cash | = | Bank Deposits | + | Liquidities |
| = | 1.7 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Canadian Cash And Equivalents Comparison
Canadian Tire is currently under evaluation in cash and equivalents 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.
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.
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.
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.
ESG Investing
Sustainable investments that promote the conservation of the natural world, social resposibility, freindly employees policies and strong governance. The ESG Investing theme has 51 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
ESG Investing Theme or any other
thematic opportunities.
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.
