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Canadian Tire
(TSX:CTC.A)
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Rating:67Neutral
Price Target:
C$216.00
▲(15.69% Upside)
Action:Reiterated
Date:08/17/26
Overall score reflects solid but not elite fundamentals: improved leverage and recovering profitability support the rating, while uneven cash-flow conversion and near-term operational headwinds from the earnings call (inventory/margin/credit and CTR softness) temper upside. Technicals and valuation are supportive but not strong enough to outweigh the cash-flow and near-term risk factors.
Positive Factors
E-commerce and omnichannel growth
Digital sales are growing substantially faster than store-based activity, while the expanded online assortment and ship-to-home benefits can deepen customer reach, improve convenience and support a more durable omnichannel retail model.
Negative Factors
Uneven cash-flow conversion
Although cash generation remains positive, its decline and historical volatility show that earnings do not consistently convert into cash. Uneven conversion can constrain reinvestment, debt reduction and shareholder distributions during weaker retail cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
E-commerce and omnichannel growth
Digital sales are growing substantially faster than store-based activity, while the expanded online assortment and ship-to-home benefits can deepen customer reach, improve convenience and support a more durable omnichannel retail model.
Read all positive factors
Canadian Tire (CTC.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$10.07B
Dividend Yield3.74%
Average Volume (3M)221.18K
Price to Earnings (P/E)15.0
Beta (1Y)0.57
Revenue Growth1.05%
EPS Growth-6.66%
CountryCA
Employees13,973
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)12.80
Shares Outstanding48,729,530
10 Day Avg. Volume250,479
30 Day Avg. Volume221,176
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)1.61
Price to Sales (P/S)0.58
P/FCF Ratio25.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$216.00Price Target Upside15.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)14.52
Revenue Forecast (FY)C$16.60B
Canadian Tire Business Overview & Revenue Model
Company Description
Canadian Tire Corporation, Limited is a Canadian enterprise that delivers a wide spectrum of retail products and related services. Its operations are structured into three distinct divisions: Retail, CT REIT, and Financial Services. The Retail arm...
How the Company Makes Money
Canadian Tire makes money primarily through (1) retail sales, (2) retail-linked services and other revenues, and (3) financial services income from its banking/credit operations.
1) Retail merchandise sales (core revenue driver)
- The largest por...
Canadian Tire Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call shows a company delivering solid financial results and tangible strategic progress (EPS +10%, eCommerce +14%, SportChek and Mark's momentum, margin and ROIC improvement, loyalty gains and AI-enabled initiatives) while managing clear near-term headwinds centered on weather-driven CTR softness, inventory phasing, increased bank SG&A and some expected Q3 margin pressures. Management emphasizes discipline, digital harmonization, loyalty expansion and AI tools to drive sustainable growth, suggesting confidence in navigating the challenges.Positive Updates
Earnings Per Share Growth
Diluted normalized EPS of $3.94, up 10% year-over-year, driven by higher Retail IBT, a lower share count and a favorable blended tax rate.
Negative Updates
CTR Weather-Driven Sales Pressure
CTR comparable sales declined -0.8% versus 2025, with declines in major outdoor and seasonal categories accounting for more than 100% of the sales shortfall; softer gardening and summer climate control, notably in Alberta and Ontario.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings Per Share Growth
Diluted normalized EPS of $3.94, up 10% year-over-year, driven by higher Retail IBT, a lower share count and a favorable blended tax rate.
Read all positive updates
Company Guidance
The company reiterated several forward-looking targets and near-term expectations: 2026 CapEx is now guided to $450–$500 million with 30 store refresh projects completed in H1 and the number expected to more than double by year‑end (modestly below the original 70‑project plan); management expects to stay on its full‑year gross margin “North Star” of 35%+ (Q2 retail gross margin ex‑Petroleum was 35.1%) despite anticipated Q3 headwinds from higher transportation fuel surcharges and targeted investments; Retail SG&A ex‑Petroleum was stable at 23.3% (retail SG&A was $10 million lower Y/Y) while some SG&A dollars will grow in Q3 due to timing (CTFS SG&A is trending at ~28% through H2); eCommerce growth continues to outpace bricks‑and‑mortar (comp eCom +12% YTD, CTR eCom +14%) and the company has launched free ship‑to‑home for Triangle members at a $99 threshold; other metrics cited in planning and risk management include dealer inventory +1%, corporate inventory +7%, CTFS allowance $935 million (11.8% of receivables), aging 3.3% and net write‑offs ~7.2%, and the ongoing buyback program (an additional $85 million repurchased in Q2).Canadian Tire Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.53B | 16.32B | 16.36B | 16.66B | 17.81B | 16.29B |
| Gross Profit | 5.42B | 5.39B | 5.63B | 5.70B | 5.74B | 5.48B |
| EBITDA | 2.06B | 1.97B | 1.65B | 1.64B | 2.22B | 2.23B |
| Net Income | 679.20M | 578.50M | 887.70M | 213.30M | 1.04B | 1.13B |
Balance Sheet | ||||||
| Total Assets | 22.63B | 21.54B | 22.24B | 21.98B | 22.10B | 21.80B |
| Cash, Cash Equivalents and Short-Term Investments | 1.54B | 702.00M | 575.90M | 488.40M | 490.10M | 2.34B |
| Total Debt | 8.47B | 9.76B | 7.91B | 8.81B | 7.72B | 7.09B |
| Total Liabilities | 15.68B | 14.73B | 15.15B | 15.53B | 15.06B | 15.29B |
| Stockholders Equity | 5.98B | 5.86B | 6.16B | 5.55B | 5.62B | 5.12B |
Cash Flow | ||||||
| Free Cash Flow | 602.70M | 370.10M | 1.49B | 772.80M | -146.00M | 1.11B |
| Operating Cash Flow | 1.20B | 952.10M | 2.06B | 1.35B | 466.50M | 1.74B |
| Investing Cash Flow | -574.40M | 638.80M | -264.10M | -747.80M | -230.40M | -658.00M |
| Financing Cash Flow | -205.80M | -1.51B | -1.64B | -621.00M | -1.66B | -653.40M |
Canadian Tire Technical Analysis
Positive
186.70
Price Trends
196.07
Negative
189.21
Positive
182.15
Positive
Market Momentum
-2.29
Positive
45.79
Neutral
47.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CTC.A, the sentiment is Positive. The current price of 186.7 is below the 20-day moving average (MA) of 195.19, below the 50-day MA of 196.07, and above the 200-day MA of 182.15, indicating a neutral trend. The MACD of -2.29 indicates Positive momentum. The RSI at 45.79 is Neutral, neither overbought nor oversold. The STOCH value of 47.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CTC.A.
Canadian Tire Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$75.29B | 17.29 | 19.91% | 1.02% | 11.59% | 26.58% | |
67 Neutral | C$10.07B | 15.00 | 11.53% | 3.74% | 1.05% | -6.66% | |
67 Neutral | C$1.71B | 10.79 | 12.76% | 5.88% | -0.15% | -2.29% | |
63 Neutral | C$517.23M | 89.63 | 8.44% | ― | 21.49% | 42.38% | |
63 Neutral | C$1.26B | 12.96 | 110.16% | 2.71% | 5.62% | 7.18% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
44 Neutral | C$14.35M | -44.44 | 3.76% | ― | 22.89% | 25.00% |
* Consumer Cyclical Sector Average
TSE:CTC.A
Canadian Tire
191.99
26.97
16.34%
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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.