Why Canadian Tire Represents Great Value Right Now

As far as retail companies go, Canadian Tire Corporation (TSX:CTC.A) has to be one of my top picks right now, for a variety of reasons. Many investors may point to the fact that retail is dying, and an investment in a company like Canadian tire probably won’t be worth as much 20 or 30 years from now, but I beg to differ.

There are a few key drivers for Canadian Tire I’d like to point out here as places to start for investors searching for a reason to even open up the company’s financial statements and have a look.

First, from a location/geography standpoint, Canadian Tire has some of the best prime real estate spots across Canada of any Canadian retailer (location, location, location)! The company’s brand holds a tremendous amount of value, and Canadian Tire has done well to continue to (successfully) roll out its private label products across most areas of the store, increasing profitability.

The brands which do not say “Canadian Tire” such as Mark’s Work Warehouse, Sportchek, and Helly Hensen have also all performed well and continue to contribute to profitable growth.

Canadian Tire has been stuck in a rut (see what I did there) over the past three years, essentially trading where it was around this time in 2017.

I think the stock market is simply not appreciating the growth Canadian Tire has provided investors, and would encourage interested investors to open up the company’s financial statements to see for yourself how good the company’s books are relative to currently market sentiment.

Invest wisely, my friends.