Canadian Tire Updated February 25, 2018

Canadian Tire is updated and rated Buy at $176.15.

This company has been extremely well managed and has set ambitious goals to keep improving and growing and has met those goals.

In the very long term it has created billion in value for shareholders.  $619 million of invested equity has a book value of $4750 million through the retention of earnings and this is net of substantial dividends paid out. The market values the equity at $11,835 million. The ROE at 11 to 13% in recent years and 15% in 2017 drove the value creation from a book value perspective and also drives the substantial market premium to book value.

The stock has risen very substantially in recent years due to earnings growth. It is rated Buy at this time and perhaps could still even be considered a (higher) Buy. I sold my own shares too early on the way up. I am interested in buying back in but will wait and see if there is a better opportunity.