TSE:CTC.A

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

197.97
+1.66 (0.85%)
as of Jul 3, 2026, 8:00:00 pm Market Open.
342 watching
0
Investor Insights
star iconJul 4, 2026, 12:00 am

This summary was created by AI, based on 9 opinions in the last 12 months.

Canadian Tire Corporation Ltd. (CTC.A) has received mixed reviews from various experts, reflecting a range of opinions about its current performance and future potential. Many acknowledge its solid business fundamentals, noting a recent earnings report that demonstrates significant year-over-year growth, with EPS up by 38%. However, concerns about the broader economic environment and consumer sentiment, particularly regarding discretionary spending, have led to warnings about the stock's volatility. While some experts appreciate its turnaround efforts and fair valuation at approximately 15x normalized earnings, others prefer more defensive names in the sector, highlighting the risks inherent in the consumer market. Overall, the consensus leans toward caution, with suggestions to potentially take profits while remaining optimistic about the company's long-term efficacy.

consensus icon
Consensus
Cautious
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Valuation
Fair Value
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DOL,TSE
HOLD

Big line ups at the local stores could be a good sign. Their company is amazingly resilient, especially as people have been predicting their demise with Amazon for so long. You only pay two times earnings and they have good real estate holdings. Continue to hold it.

WATCH
The dividend looks fine & safe. The story looks good. The general franchises do curb side pickup. The valuation looks okay. He does not have any consumer stocks yet but this one he considered.
DON'T BUY

Doesn't follow it. Their high debt concerns him and there's a drop in shopping demand to their stores. Dollarama and ATD'B also carry debt, but are allowed to stay open and enjoy consumer sales. Compare these two to CTC.

WEAK BUY
It's tempting to buy it now when it's down, and its PE has been reasonable for a while. Most stores have been open, which helps them. But they face online competition. Retail is not his favourite sector, but CTC is managed well and should do well. A safe bet. But Mark's Work Warehouse has been affected, though online sales will partially offset that hit. CTC is not on his radar tough.
PAST TOP PICK

(A Top Pick Mar 13/19, Up 5%) OK company, cheap. 11x earnings. Competition from Amazon. But people still go there. Sportcheck is doing well. Stick with it. It will continue to do well despite e-commerce.

BUY
They excel with businesses they own Marks Work Warehouse and Sportcheck. The franchise system is working great; CTC is franchise-driven. A premier retail name in Canada. Strong all around.
DON'T BUY
They have lack of growth in Canada; and they've done a poor job of online selling. Some acquisitions have worked like Marks Work Warehouse, but not others. The valuation is alright, but no growth here. As for the real estate holdings, the stores sit on those properties so what to do with them? Look what happened to the Bay.
DON'T BUY

Retail is very challenging going up against the likes of Amazon. He would not be a buyer, there are others who are more aggressive in the online space to compete and in other sectors.

COMMENT
The company and the stock has suffered because people feel Rona, Lowes and Home Depot will trampled them. One of the things they have is great locations. They are located in places other big-box stores can't get in. They are also very competitive and they have great selections for new Canadians. They are well positioned to compete with others. The stores are individually managed so they have a lot of say what is on their shelves.
DON'T BUY
He likes the brand, but he doesn't own retail REITs now. They are challenged. He prefers an industrial company in REITs.
DON'T BUY
It's struggling, because e-retailing will continue to take a big bite out of traditional retailers. CTC has performed respectably with decent same-store sales, but hasn't been executing well overall.
PARTIAL BUY
He worked there for 6 months at age 18 in plumbing. It has been a very good story recently and a good dividend payer. The growth side of this story is behind us. It has peaked out into strength for three years now. He would prefer to own it close to the lows. No more than half a position.
DON'T BUY
The chart's been suffering, heading sharply down in late-2019 after a short report warning of weak online sales. Seasonally, CTC does poorly in January, its weakest month; retail pulls back in January. Look at CTC if this reaches $160.
DON'T BUY
A short report recently has pressured shares and are now under 10x earnings, cheap. Their problem is that they were slow getting e-commerce. If you don't have good e-commerce, a store is treading water. But the bad news is already priced into the stock price. He prefers Leon's Furniture for buying the Brick and paying off most of that debt. Good return on capital and huge insider ownership.
COMMENT
Voting share divergence? Split share structures can go wrong sometimes. The A shares, gives the founders a larger voting right. This could be an example of an activist voting issue. The CTC shares hardly trade -- only 200 shares a day approximately.
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