Canadian Tire report updated October 11, 2023

Yesterday, I posted an updated report on Canadian Tire. This is a well-managed company. It has really been firing on all cylinders since about 2011 with an average ROE of 16% and got over 20% with the pandemic sales in 2020 and 2021. Everyone was buying bikes and various sporting equipment.

Management has impressed me for a long time adn they seem always focused on growing earnings. But they move cautiously and deliberately. They have made online sales and their Triangle rewards program a huge focus.

But now their sales and earnings are sliding somewhat as consumers are getting tapped out. And they likely face higher credit card delinquencies. And that may continue over the next year.

The stock price has declined and arguably already reflects the softness but certainly could slide further.

But I think the stock is a keeper and a long-term buy.

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