Canadian Tire (CTC) AI Stock Analysis

• Market Cap: $8.89B
• Dividend Yield: 3.2%
• Average Volume (3M): 291.00
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.35
• Revenue Growth: 0.05%
• EPS Growth: 99.91%
• Country: CA
• Employees: 13,973
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 3.78
• Shares Outstanding: 3,423,366
• 10 Day Avg. Volume: 199
• 30 Day Avg. Volume: 291
• PEG Ratio: 0.03
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 5.65
• Enterprise Value/Market Cap: 2.48
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: 13.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$268.00 ▲(10.63% 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 Business Overview & Revenue Model

Company Description

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, tires as well as automotive repair and roadside assistance; kitchen, home organization, decor and essentials, home electronics, pet, and cleaning and consumable products; tools, hardware, paint, electrical, plumbing, home environment, and smart home products; and outdoor recreation, exercise, footwear and apparel, hunting, fishing, camping, and sporting goods. It also retails Christmas trees, lights and decor, Halloween décor and costumes, yard care and maintenance, and snow removal equipment; patio furniture, barbeques, pools, trampolines, outdoor power equipment and tools, plants and gardening supplies; backyard amusement, pool fun, and toys and games; gasoline; sporting goods and active wear; casual and industrial apparel and footwear; and outerwear, base-layer, and workwear. This segment offers its products under the Canadian Tire, Canadian Tire Gas, Mark's, PartSource, Helly Hansen, Party City, and SportChek brand names. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of 368 properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, a mixed-use commercial property, and development properties. The Financial Services segment provides financial and other ancillary products and services, including consumer credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.

How the Company Makes Money

Canadian 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 Financial Statement Overview

Summary

Canadian Tire shows stable financial performance with strong ROE and efficient operations. However, challenges such as decreasing revenue growth and higher leverage pose potential risks. The company needs to enhance operational efficiency and strengthen cash flow.

Income Statement

Canadian Tire has demonstrated stable revenue generation, with a slight decrease in total revenue in the recent TTM period compared to the previous year. The Gross Profit Margin is healthy at 33.74% for TTM, showing efficient cost management. The Net Profit Margin is moderate at 5.21%, but there has been a decline in both EBIT and EBITDA margins, indicating some pressure on operational efficiency. The revenue growth rate has shown volatility, which could be a concern.

Balance Sheet

The company's Debt-to-Equity Ratio is 1.42 for TTM, which indicates a higher leverage but manageable given industry standards. Return on Equity is robust at 14.22%, reflecting strong profitability relative to shareholders' equity. The Equity Ratio stands at 26.32%, suggesting a balanced capital structure but with room for improvement in equity strength.

Cash Flow

Operating Cash Flow to Net Income Ratio is 1.90, showing good cash conversion from earnings. However, the Free Cash Flow has decreased compared to the previous year, resulting in a negative Free Cash Flow Growth Rate. The Free Cash Flow to Net Income Ratio is 1.17, indicating a decent level of free cash flow generation relative to net income, but there is potential to improve cash reserves further.

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

• Technical Analysis Sentiment: Negative
• Last Price: 242.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 242.25 is below the 20-day moving average (MA) of 249.08, below the 50-day MA of 251.30, and above the 200-day MA of 237.64, indicating a neutral trend. The MACD of -2.52 indicates Positive momentum. The RSI at 43.95 is Neutral, neither overbought nor oversold. The STOCH value of 11.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CTC.

Canadian Tire Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTC	69 Neutral	$8.89B	17.65	13.84%	3.20%	0.05%	99.91%
LNF	68 Neutral	C$2.02B	12.56	14.38%	2.88%	0.57%	8.54%
GBT	63 Neutral	C$420.15M	15.61	5.36%	2.77%	7.61%	1.71%
PET	63 Neutral	C$2.04B	22.16	106.59%	1.60%	5.09%	14.05%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Canadian Tire Corporate Events

Canadian Tire’s Balanced Earnings Call: Growth Amid Challenges

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

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.