TSE:CTC.A

Canadian Tire Corporation Ltd. (A) (CTC.A.TO)

198.86
+4.85 (2.50%)
as of Jul 24, 2026, 8:00:01 pm Market Open.
342 watching
0
Investor Insights
star iconJul 24, 2026, 12:00 am

This summary was created by AI, based on 7 opinions in the last 12 months.

Canadian Tire Corporation Ltd. (CTC.A) has garnered mixed reviews from experts over the past several years. While the company is deemed solid and has shown an improved performance with a reported 38% increase in EPS year-over-year, some analysts express cautiousness regarding its valuation, particularly in light of broader economic concerns affecting consumer spending. Several experts favor retailers with more defensive profiles, such as Dollarama (DOL) and North West Company (NWC), citing Canadian Tire's substantial reliance on discretionary spending, which may diminish in a weakening economy. Additionally, the stock appears to be undergoing a transformation, with momentum showing in recent quarterly results, yet analysts advise taking profits and maintaining a wait-and-see approach. Overall, the stock presents a mixed outlook, influenced by its transformation efforts and the cautious sentiment around the Canadian consumer market.

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Consensus
Cautious
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Valuation
Fair Value
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Similar
DOL
TOP PICK
Gone sideways for the last while. Likes it in the retail space because longer-term target is to increase earnings 10% annually. Free cash flow will be growing very nicely because have been refurbishing stores for 15 years and CapX will be half that annual rate. 1.4% yield.
COMMENT
One of his worries in retailing is that everyone is getting into everyone else's business. A couple of reorganizations over the last 6 months also concern him. Why wasn’t one enough.
WAIT
Has been fluctuating between $50-$60 for 1.5 years. Don't be brave. Wait for either the break down or if the break out. If it can break above $60 you want to be there as they could go to $70-$75.
BUY
Bonds: Business is almost recession proof.
COMMENT
Would be a little bit reticent about their space going into what may turn into a housing slowdown. Fantastic operator and have done a wonderful job of hammering out a niche for themselves.
TOP PICK
10% annual earnings growth in the next 5 years is very achievable. Free cash flow will be fairly significant because of upgrading of stores in the last 10 years so he’s looking for dividend increases. Expecting 10%-12% returns.
DON'T BUY
It is undervalued. They had a miss last year. You are pretty well saturated in Canada. It is safe and you get a great dividend.
COMMENT
Good company. One of Canada's premier retailers. Always rumoured that they will do something with their real estate, which would free up a lot of value but not sure he believes this. Prefers Shoppers (SC-T). Doesn't expect a huge amount of growth in 2010.
BUY ON WEAKNESS
One of the better managed Canadian retail stores. Has a very strong and loyal clientele. Questions how much of their sales will be affected by consumers pulling back. Prices have gone up recently and on a valuation basis he wouldn't buy at this time but would consider on a 10%-15% pullback.
BUY
Thinks recovery is going to be focused on Asian output, demand and consumption, not the consumer in North America. This is an excellent company and at these prices you could add some.
HOLD
Consumer discretionary play. Retail sales in the US in April were disappointing. Same-store sales on this were up 2.5%, which doesn't get him excited. He senses that traffic is down. 1.7% yield is rock solid.
WEAK BUY
(Market Call Minute.) Would call this one a soft buy.
COMMENT
Used to be defensive but is now a mix between discretionary and staples. $52 will act as a little bit of resistance so you have to be careful. If it goes through this, you may be able to wait and let it run but use a stoploss of $52. If it doesn't go through, consider selling.
COMMENT
Very well managed. However they do have a fairly big financial growth engine in financial services, which could pose some challenges in the next little while. Beyond 12, 24 months it should do quite well.
DON'T BUY
Long-term Bonds. As a general rule, you don't want to lend to a corporation more than a business cycle, which is generally 3 or 5 years. Also, you don't want to lend to this type of business that long because it is such a cyclical industry.
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