Canadian Tire CTC-A.TO
Canada
206.60 CAD (+7.4%)
10 analysts
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Canadian Tire Corporation is a Canadian retailer of home, automotive, sports, and leisure products, operating through retail stores, gas stations, and financial services.
Listed on Bolsa de Toronto · Symbol CTC-A.TO · TSE: CTC-A · Currency CAD
Key points
from its scores- ✓Attractive dividend7.9
- ✓Strong growth7.0
- ✕Fragile balance sheet3.4
- ✕Little competitive advantage3.7
AI analysis
bottom line, main risk, context and newsValuation is reasonable and growth is strong, but high leverage and weak free cash flow generation warrant caution amid rising rates.
Canadian Tire shows exceptional earnings growth (78.30%) and an attractive valuation (P/E 15.12, PEG 0.32), but its high debt (Net Debt/EBITDA 6.08) and very low cash conversion (2.26) are significant drags in a rising interest rate environment.
The main risk is its high leverage (Net Debt/EBITDA of 6.08), which in a rising interest rate environment could increase its debt costs and limit financial flexibility.
Context and risks
Canadian Tire operates in a Canadian retail sector with moderate regulatory governance. Its high leverage (Net Debt/EBITDA of 6.08) exposes it to a higher-for-longer interest rate environment, increasing its debt costs and pressuring its discretionary consumer spending.
Is Canadian Tire stock cheap or expensive?
at the latest priceOn P/E and EV / EBITDA, it trades in line with the Consumer Cyclical median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 15.1 | 17.9 | −16% |
| EV / EBITDA | 12.3 | 11.5 | +7% |
| Price / book | 1.7 | 2.9 | −42% |
| Price / sales | 0.6 | 1.3 | −53% |
Sector: median of the 228 Consumer Cyclical companies analyzed. In bold, the multiples used for the comparison.
Valuation score: 6.5 out of 10 (median for Consumer Cyclical: 6.5).
Average analyst target: 206.60 CAD, +7.4% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the latest price · compared with the Consumer Cyclical medianValuation
- P/E
- 15.1
- Forward P/E
- 12.4
- EV / EBITDA
- 12.3
- Price / book
- 1.7
- Price / sales
- 0.6
- PEG
- 0.32
- Market cap
- 10.0B CAD
- Enterprise value
- 21.8B CAD
Profitability
- ROE
- 11.2%
- ROA
- 4.1%
- ROIC (approx.)
- 8.4%
- Gross margin
- 31.8%
- Operating margin
- 8.8%
- Net margin
- 4.1%
- Free cash flow
- 40.3M CAD
- FCF yield
- 0.4%
- Cash conversion
- 2%
Solvency
- Total debt
- 11.5B CAD
- Net debt
- 10.8B CAD
- Cash
- 674.8M CAD
- EBITDA
- 1.8B CAD
- Net debt / EBITDA
- 6.08
- Debt / equity
- 165.4%
- Current ratio
- 1.88
- Quick ratio
- 1.42
Growth
- Revenue growth
- +2.4%
- Earnings growth
- +78.3%
- EPS (TTM)
- 12.73 CAD
- EPS (forward)
- 15.56 CAD
Dividend
- Dividend yield
- 3.7%
- Payout
- 56.2%
Risk and market
- Beta
- 0.90
- Analyst consensus
- none (10)
- Target price
- 206.60 CAD
- 52-week range
- 159.20 – 208.08
Recent news
All CTC-A.TO news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Canadian Tire
Is Canadian Tire stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Consumer Cyclical median (within 15%). Valuation score: 6.5 out of 10 (median for Consumer Cyclical: 6.5). Average analyst target: 206.60 CAD, +7.4% versus the price. This is not investment advice.
What score does Canadian Tire get on MeridIAn Screener?
It scores 5.6 out of 10, rank 1,303 of 2,122 (ahead of 39% of the companies analyzed). Its strongest category is Dividend (7.9) and its weakest, Financial health (3.4). Analysis of Oct 12, 2026.
What is the P/E ratio of Canadian Tire?
Its P/E is 15.1: the share price equals 15.1 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.9. Based on the earnings analysts expect, the forward P/E is 12.4.
How much is Canadian Tire worth on the stock market?
Its market capitalization is 10.0B CAD and its enterprise value, debt included, is 21.8B CAD.
How much debt does Canadian Tire have?
Its net debt (debt minus cash) is 10.8B CAD. That is 6.08 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Canadian Tire pay a dividend?
Yes: its dividend yield is 3.74% and it pays out 56% of its earnings.
How has Canadian Tire stock performed over the last year?
It has risen 19.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 159.20 CAD and 208.08 CAD. Past performance does not guarantee future results.
What do analysts think of Canadian Tire?
10 analysts cover it; their average recommendation is “none” and their average target is 206.60 CAD (+7.4% versus the price). It is an estimate, not market data.