Canadian Tire Corp. Ltd.

Overview Key strengths Key risks Canada's largest general merchandise retailer, with a strong consumer franchise and diverse product offering through various retail banners Ongoing competition from large broadline retailers Dense store network provides significant competitive advantage, in conjunction with buy online, pickup in store (BOPIS) and ship to home options Weakness in economy or significant seasonality could lead to volatile sales Strategic focus on e-commerce platform and loyalty program has supported Canadian Tire Corp. Ltd.?s performance through the COVID-19 pandemic Inflationary headwinds and supply chain challenges could limit meaningful margin expansion High penetration of proprietary brands, bolstered by positive consumer recognition Canadian Tire Corp. Ltd.?s (CTC) 2021 EBITDA (S&P Global Ratings? adjusted) was significantly better than expected at approximately C$2.20

...Strong 2021 performance has improved the company's credit metrics quicker than expected. Canadian Tire Corp. Ltd.'s (CTC) 2021 EBITDA (S&P Global Ratings' adjusted) was significantly better than expected at approximately C$2.20 billion and a 14.7% EBITDA margin compared with C$1.65 billion and about 12.5%, respectively, in 2019, at pre-pandemic levels. Consumers' elevated...

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