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Canadian Tire Corp (TSE:CTC)
:CTC
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Canadian Tire
(OTC:CTC)
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Rating:69Neutral
Price Target:
C$268.00
▲(10.13% Upside)
Canadian Tire's overall stock score reflects stable financial performance and strong earnings call highlights. The technical analysis indicates a bearish trend, but the valuation is reasonable with a good dividend yield. Strategic advancements and loyalty program growth are positive, though leverage and cash conversion efficiency require attention.
Canadian Tire (CTC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$9.25B
Dividend Yield3.31%
Average Volume (3M)237.00
Price to Earnings (P/E)17.7
Beta (1Y)0.40
Revenue Growth-0.13%
EPS Growth13.73%
CountryCA
Employees13,973
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)3.78
Shares Outstanding3,423,366
10 Day Avg. Volume223
30 Day Avg. Volume237
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.37
Price to Sales (P/S)0.51
P/FCF Ratio5.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$180.00Price Target Upside-26.03% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)12.3
Revenue Forecast (FY)C$16.25B
Canadian Tire Business Overview & Revenue Model
Company DescriptionCanadian Tire Corporation (CTC) is a Canadian retail company that operates in various sectors, primarily automotive, hardware, sports, leisure, and home products. Founded in 1922, CTC is well-known for its extensive network of retail stores, which include Canadian Tire stores, Mark's, and SportChek. The company also offers a range of services such as automotive repair and maintenance, as well as financial services through Canadian Tire Financial Services, which includes credit cards and loyalty programs.
How the Company Makes MoneyCanadian Tire generates revenue through multiple streams, primarily from the sale of retail products in its stores and online. Its key revenue streams include automotive parts and accessories, home improvement products, outdoor and leisure equipment, and sports apparel. Additionally, CTC earns income through its financial services division, which provides credit products and earns interest. The company benefits from a loyal customer base through its Canadian Tire Money loyalty program, which encourages repeat business. Strategic partnerships with suppliers and brands also contribute to its earnings, allowing CTC to offer exclusive products and promotions that drive sales.
Canadian Tire Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Positive
The earnings call reflects strong financial performance and strategic advancements in AI and loyalty programs, though challenges such as the Canada Post strike and financial services pressures present hurdles. The company remains cautiously optimistic amid a dynamic consumer landscape.Q3-2025 Updates
Positive Updates
Strong Revenue and Earnings Growth
Retail revenue excluding Petroleum increased by nearly 6%, and diluted earnings per share grew nearly 7% year-over-year.
Loyalty Program Expansion
Loyalty engagement increased with over 7 million members, and the Triangle Rewards program formed new partnerships with Tim Hortons, RBC, and WestJet, expanding its value proposition.
SportChek Performance
SportChek's comparable sales grew 4.2%, driven by strong performance in back-to-school and back-to-hockey categories.
AI and Technology Advancements
The AI pricing tool, DAVID, is optimizing promotional programs and regular pricing, contributing to improved margins across banners.
Retail Gross Margin Improvement
Retail gross margin dollars were up nearly 8%, with a margin rate improvement of 57 basis points year-over-year.
Negative Updates
Canada Post Strike Impact
The Canada Post labor dispute affected flyer distribution and sales, particularly impacting September performance.
Financial Services Pressure
CTFS IBT declined $26 million year-over-year due to higher SG&A and increased write-offs.
Inventory Concerns
Dealers have slightly elevated inventory levels for spring/summer categories, particularly in climate control products.
Weather-Dependent Sales
Sales growth in Q4 is dependent on weather conditions and the stabilization of Canada Post services.
Company Guidance
During Canadian Tire Corporation's third-quarter 2025 earnings call, management provided guidance emphasizing the company's strong performance and strategic investments under the True North strategy. Key metrics included a nearly 7% growth in diluted earnings per share, a 1.8% increase in consolidated comparable sales, and a 19% year-over-year rise in retail IBT. The company reported over 7 million loyalty members, reflecting a 3% growth, with loyalty penetration up by 117 basis points to 55.2%. Retail revenue, excluding Petroleum, saw a growth of close to 6%. The retail gross margin rate improved by 57 basis points year-over-year, supported by the implementation of the AI pricing tool, DAVID, which contributed to an almost 8% increase in retail gross margin dollars. Management expressed cautious optimism, acknowledging a dynamic consumer demand landscape and macroeconomic uncertainties, while also outlining 2026 capital allocation priorities, including planned share repurchases of up to $400 million and a dividend increase.Canadian Tire Financial Statement Overview
Summary
Canadian Tire shows stable financial performance with consistent revenue and profitability metrics. The company effectively manages its equity to generate returns despite higher leverage. Cash flow generation is improving, though cash conversion efficiency needs enhancement.Income Statement
Canadian Tire's income statement shows a stable revenue base with a slight growth in the TTM period. The gross profit margin is healthy at approximately 33.4%, though it has slightly decreased compared to previous years. The net profit margin has also decreased to 4.65% in the TTM, indicating some pressure on profitability. EBIT and EBITDA margins remain stable, reflecting consistent operational efficiency.75
Positive
Balance Sheet
The balance sheet indicates a relatively high debt-to-equity ratio of 1.31, suggesting significant leverage. However, the return on equity is solid at 12.87%, demonstrating effective use of equity to generate profits. The equity ratio is moderate, indicating a balanced approach to financing with both debt and equity.70
Positive
Cash Flow
Cash flow analysis reveals a positive free cash flow growth rate of 5.07% in the TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is relatively low at 0.26, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is healthy at 0.68, reflecting good cash management.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.36B | 16.36B | 16.66B | 17.81B | 16.29B | 14.87B |
| Gross Profit | 5.46B | 5.63B | 5.70B | 5.74B | 5.48B | 4.77B |
| EBITDA | 1.66B | 1.65B | 1.64B | 2.22B | 2.23B | 1.82B |
| Net Income | 761.40M | 887.70M | 213.30M | 1.04B | 1.13B | 751.80M |
Balance Sheet | ||||||
| Total Assets | 21.47B | 22.24B | 21.98B | 22.10B | 21.80B | 20.38B |
| Cash, Cash Equivalents and Short-Term Investments | 1.19B | 575.90M | 488.40M | 490.10M | 2.34B | 1.93B |
| Total Debt | 7.62B | 7.91B | 8.81B | 7.72B | 7.09B | 7.16B |
| Total Liabilities | 14.70B | 15.15B | 15.53B | 15.06B | 15.29B | 14.54B |
| Stockholders Equity | 5.83B | 6.16B | 5.55B | 5.62B | 5.12B | 4.50B |
Cash Flow | ||||||
| Free Cash Flow | 1.11B | 1.49B | 772.80M | -146.00M | 1.11B | 2.14B |
| Operating Cash Flow | 1.63B | 2.06B | 1.35B | 466.50M | 1.74B | 2.44B |
| Investing Cash Flow | 1.05B | -264.10M | -747.80M | -230.40M | -658.00M | -848.00M |
| Financing Cash Flow | -2.08B | -1.64B | -621.00M | -1.66B | -653.40M | -462.70M |
Canadian Tire Technical Analysis
Negative
243.35
Price Trends
250.90
Negative
250.43
Negative
238.81
Negative
Market Momentum
-3.36
Positive
40.56
Neutral
38.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CTC, the sentiment is Negative. The current price of 243.35 is below the 20-day moving average (MA) of 244.50, below the 50-day MA of 250.90, and above the 200-day MA of 238.81, indicating a bearish trend. The MACD of -3.36 indicates Positive momentum. The RSI at 40.56 is Neutral, neither overbought nor oversold. The STOCH value of 38.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CTC.
Canadian Tire Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$2.02B | 12.56 | 15.07% | 2.97% | 1.99% | 31.36% | |
69 Neutral | C$9.25B | 17.69 | 13.16% | 3.31% | -0.13% | 13.73% | |
63 Neutral | C$420.15M | 15.61 | 5.36% | 2.89% | 7.61% | 1.71% | |
63 Neutral | C$2.04B | 22.16 | 106.59% | 1.66% | 5.09% | 14.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
TSE:CTC
Canadian Tire
234.61
16.88
7.75%
TSE:GBT
BMTC Group Inc.
12.45
-0.38
-2.96%
TSE:LNF
Leon's Furniture
28.32
2.33
8.96%
TSE:PET
Pet Valu Holdings Ltd.
29.05
2.61
9.87%
Canadian Tire Corporate Events
Canadian Tire’s Balanced Earnings Call: Growth Amid Challenges
Aug 13, 2025
The recent earnings call for Canadian Tire Corp presented a balanced sentiment, highlighting both positive developments and financial pressures. While the company reported strong top-line growth, loyalty, and market share gains, it also faced challenges such as decreased EPS, financial services profitability issues, and increased SG&A costs. Despite these pressures, the company remains optimistic due to positive consumer trends and strategic initiatives.
Canadian Tire Reports Strong Q2 2025 Results
Aug 8, 2025
Canadian Tire Corporation, Limited is a Canadian retail company offering a wide range of products across various sectors including automotive, sports, and home goods, with a strong focus on customer loyalty through its Triangle Rewards program.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.