Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Canadian Tire Corporation, Limited (CTC-A.TO)

Company Dividend Discount ModelIndustry: Specialty RetailSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$122.44 - $187.36$152.77
Multi-Stage$166.38 - $182.02$174.05
Blended Fair Value$163.41
Current Price$165.67
Upside-1.36%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.21%9.79%6.536.555.914.924.774.404.033.082.862.76
YoY Growth---0.28%10.74%20.18%3.12%8.41%9.09%31.00%7.75%3.48%7.64%
Dividend Yield--4.37%4.86%3.35%2.61%2.68%5.18%2.77%1.85%1.81%2.04%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)729.90
(-) Cash Dividends Paid (M)362.70
(=) Cash Retained (M)367.20
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)145.9891.2454.74
Cash Retained (M)367.20367.20367.20
(-) Cash Required (M)-145.98-91.24-54.74
(=) Excess Retained (M)221.22275.96312.46
(/) Shares Outstanding (M)55.1055.1055.10
(=) Excess Retained per Share4.015.015.67
LTM Dividend per Share6.586.586.58
(+) Excess Retained per Share4.015.015.67
(=) Adjusted Dividend10.6011.5912.25
WACC / Discount Rate9.48%9.48%9.48%
Growth Rate0.76%1.76%2.76%
Fair Value$122.44$152.77$187.36
Upside / Downside-26.09%-7.79%13.09%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)729.90742.72755.77769.05782.56796.31820.20
Payout Ratio49.69%57.75%65.82%73.88%81.94%90.00%92.50%
Projected Dividends (M)362.70428.95497.41568.15641.22716.68758.68

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.48%9.48%9.48%
Growth Rate0.76%1.76%2.76%
Year 1 PV (M)387.97391.82395.67
Year 2 PV (M)406.90415.02423.22
Year 3 PV (M)420.37433.01445.90
Year 4 PV (M)429.10446.39464.20
Year 5 PV (M)433.78455.73478.57
PV of Terminal Value (M)7,089.887,448.767,822.03
Equity Value (M)9,167.999,590.7310,029.59
Shares Outstanding (M)55.1055.1055.10
Fair Value$166.38$174.05$182.02
Upside / Downside0.43%5.06%9.87%

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