Canadian Tire Corporation, Limited: Company Profile and SWOT Analysis by ICDResearch

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									Canadian Tire Corporation, Limited

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Canadian Tire Corporation, Limited                                     Financial Snapshot

                                                                       Operating Performance
Fast Facts
                                   2180 Yonge Street, Toronto, M4P     The company reported revenues of US$8,944.76
Headquarters Address
                                   2V8,Canada                          million during 2010, with a CAGR of 5.15% during
                                                                       2006–2010. Its revenue grew at an annual rate of
Telephone                          + 1 416 4803000
                                                                       17.39% over the previous fiscal year. In 2010, the
                                                                       company recorded an operating margin of 7.84%, as
Fax                                + 1 416 5447715                     against 5.52% in 2009.

Website                            www.canadiantire.ca
                                                                       Revenue and Margins
                                   CTC, Toronto Stock ExchangeCTC.A,
Ticker Symbol, Stock Exchange
                                   Toronto Stock Exchange

Number of Employees                58,000

Fiscal Year End                    December

Revenue (in US$ million)           8,944.76

Revenue (in CAD million)           9,213.10




SWOT Analysis                                                          Return on Equity

Strengths                          Weaknesses                          The company recorded a return on equity (ROE) of
                                                                       11.09% for 2010, as compared to its peers,
Efficient Supply Chain             Seasonal Nature of the Business     Alimentation Couche-Tard Inc. (Ticker: ATD.B),
                                                                       Loblaw Companies Limited (Ticker: L) and Empire
                                                                       Company Limited (Ticker: EMP.A), which recorded
Strong Brand Recognition           Weak Financial Performance          ROEs of 18.76%, 12.05% and 10.23% respectively.
                                                                       The company reported a net profit margin of 7.84% in
Varied Operations                                                      2010.


Opportunities                      Threats                             Return on Equity

Expansion and Enhancement Plans    Increase in Labor Cost

Growth of E-Retail Industry        Rising Competition in Canada

Rising Demand for Private Labels   Slow Economic Recovery in Canada




                                                                       Liquidity Position

                                                                       The company reported a current ratio of 2.01 in 2010,
                                                                       as compared to its peers, Alimentation Couche-Tard
                                                                       Inc., Loblaw Companies Limited and Empire
                                                                       Company Limited, which recorded current ratios of
                                                                       1.17, 1.21 and 0.86 respectively. As of December
                                                                       2010, the company recorded cash and short-term
                                                                       investments of worth US$728.54 million, against
                                                                       US$343.88 million current debt. The company
                                                                       reported a debt to equity ratio of 0.91 in 2010 as
                                                                       compared to its peers, Alimentation Couche-Tard Inc.,
                                                                       Loblaw Companies Limited and Empire Company
                                                                       Limited, which recorded debt to equity ratios of 0.46,
                                                                       1.23 and 0.42 respectively.




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Canadian Tire Corporation, Limited - SWOT Profile                                                              Page 1
Canadian Tire Corporation, Limited

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................17
      2.3.2       Efficiency ..........................................................................................................................................................18
      2.3.3       Capital Expenditure ..........................................................................................................................................19
      2.3.4       Valuation ..........................................................................................................................................................20
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................21
      2.3.6       Liquidity ............................................................................................................................................................22
3     Mergers & Acquisitions and Partnerships ........................................................................................... 23
    3.1       M&A and Partnerships Strategy ...........................................................................................................................23
4     Recent Developments ........................................................................................................................... 25
5     SWOT Analysis ...................................................................................................................................... 27
    5.1       SWOT Analysis - Ove
								
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