Canadian Tire (TSE:CTC) Hits New 12-Month Low - Here's What Happened

Canadian Tire Co., Limited (TSE:CTC) experienced a significant downturn on Tuesday, reaching a new 52-week low price during the mid-day trading session. The stock dropped to C$201.75, where it last traded after a session that saw a modest volume of only 505 shares exchanged. This represents a decline from its previous closing price of C$202.05.

Analyst Insights

In recent news, the Royal Bank of Canada has adjusted its position on Canadian Tire, downgrading the company from a "moderate buy" to a "hold" rating, as indicated in a research note issued on November 8.

What the Numbers Say

Canadian Tire’s stock is currently valued with a market capitalization of C$680.58 million. The company's price-to-earnings (PE) ratio stands at 29.05, with a price-to-earnings growth (PEG) ratio of 0.49 and a beta value of 1.33, indicating its volatility in comparison to the overall market. Financial metrics also reveal a quick ratio of 1.15 and a current ratio of 1.79, suggesting decent liquidity. Furthermore, the debt-to-equity ratio of 173.58 raises concerns about its leverage. The stock's fifty-day moving average price is C$224.21, and the 200-day moving average is C$223.31, highlighting a downward trend.

Dividend Announcement

In a notable development, Canadian Tire has also announced an increase in its quarterly dividend, which is set to be distributed on March 1. Shareholders on record as of January 31 will receive a dividend payment of $1.775 per share. This marks an increase from the previous quarterly dividend of $1.75. With an annualized dividend totaling $7.10, the dividend yield now stands at 3.57%, despite the company currently having a dividend payout ratio (DPR) of 102.19%, suggesting that the company is paying out more than it earns.

About Canadian Tire

Canadian Tire Corporation, Limited is a diverse retail company providing a variety of goods and services throughout Canada. The company operates across three main segments: Retail, CT REIT (Real Estate Investment Trust), and Financial Services. Its Retail segment includes products related to automotive maintenance and accessories, home goods, outdoor equipment, and various seasonal items, among others.

Market Outlook

As investors evaluate their options, it is essential to consider various opinions in the market. Currently, Canadian Tire holds a "Buy" rating from numerous analysts; however, there are other stocks being highlighted by leading analysts that may present alternative investment opportunities.

Conclusion

With the recent performance of Canadian Tire, including its drop to a new 52-week low and the analyst downgrade, investors may find themselves questioning whether it's time to sell or hold on to their investments. Analysis and insights should help guide potential decisions in the days to come.

Canadian, Tire, Stocks