| CTC Stock | | | CAD 226.37 10.63 4.49% |
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 very stable compared to the past year. As of the 1st of March 2025,
Days Sales Outstanding is likely to grow to 182.19, while
EV To Sales is likely to drop 0.69. At this time, Canadian TireLimited's
Total Other Income Expense Net is very stable compared to the past year. As of the 1st of March 2025,
Net Income Per Share is likely to grow to 16.76, though
Accumulated Other Comprehensive Income is likely to grow to (155.4
M).
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 Price To Sales vs. Price To Book 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 rated
second in price to book category among its peers. It also is rated
second in price to sales category among its peers fabricating about
0.25 of Price To Sales per Price To Book. The ratio of Price To Book to Price To Sales for Canadian Tire is roughly
4.05 . At this time, Canadian TireLimited's
Price To Sales Ratio is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Canadian TireLimited by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Canadian TireLimited's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.
Canadian Price To Sales vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Canadian TireLimited | P/B | = | MV Per ShareBV Per Share |
| = | 2.05 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Canadian TireLimited | P/S | = | MV Per ShareRevenue Per Share |
| = | 0.51 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Canadian Price To Sales Comparison
Canadian Tire is currently under evaluation in price to sales 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
In addition to having Canadian TireLimited 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.
Apparel
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Apparel theme has 50 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
Apparel Theme or any other
thematic opportunities.
Other Information on Investing in Canadian Stock
To fully project Canadian TireLimited's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Canadian TireLimited at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Canadian TireLimited's income statement, its balance sheet, and the statement of cash flows.
Potential Canadian TireLimited investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Canadian TireLimited investors may work on each financial statement separately, they are all related. The changes in Canadian TireLimited's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Canadian TireLimited's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
