Canadian TireCDNAF +1.58%75 Gross Margin % is 35.39% as of Mar. 2026, which is 4% above its 10-year median of 34.19. GuruFocus rates CDNAF with a GF Score™ of 75/100 and a GF Value™ of $120.18 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Canadian Tire ranks worse than 53% on this metric.
The historical rank and industry rank for Canadian Tire's Gross Margin % or its related term are showing as below:
CDNAF'
s Gross Margin % Range Over the Past 10 Years
Min: 33.51 Med: 34.19 Max: 35.82
Current: 34.62
During the past 13 years, the highestGross Margin % of Canadian Tire was 35.82%. The lowest was 33.51%. And the median was 34.19%.
CDNAF's Gross Margin % is ranked worse than 53% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs CDNAF: 34.62
Canadian Tire had a gross margin of 35.39% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Canadian Tire was -0.50% per year.
Canadian Tire (OTCPK:CDNAF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Canadian Tire had a gross margin of 35.39% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Canadian Tire Gross Margin % Related Terms
Canadian Tire Gross Margin % Historical Data
* Premium members only.
The historical data trend for Canadian Tire's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CDNAF vs CASY, WSM, ULTA: Gross Margin % Comparison
For the Specialty Retail subindustry, Canadian Tire's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Canadian Tire Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Canadian Tire's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Canadian Tire's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Canadian Tire (CDNAF) has a Gross Margin % of 35.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Canadian Tire and its competitors. This is near median its historical median of 34.19. Over the past decade, Canadian Tire's Gross Margin % has ranged from 33.51 to 35.82. According to the industry distribution chart, Canadian Tire ranks #592 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 53%.
Is Canadian Tire's Gross Margin % too high?
Canadian Tire's current Gross Margin % of 35.39% is near median its 10-year median of 34.19. Over the past 10 years, this metric has ranged from a low of 33.51 to a high of 35.82. The Retail - Cyclical industry median Gross Margin % is 36.23. Canadian Tire's value of 35.39% is 2.3% below this industry median. Based on the distribution chart, Canadian Tire ranks #592 out of 1117 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Canadian Tire has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Canadian Tire's Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Canadian Tire ranks #592 out of 1117 companies for Gross Margin %. This places Canadian Tire in the lower half of its industry. The industry median Gross Margin % is 36.23. Canadian Tire's value of 35.39% is 2.3% below this benchmark. Historically, Canadian Tire's own Gross Margin % has ranged from 33.51 to 35.82 over the past decade. While the company's 10-year median is 34.19 vs. the industry median of 36.23, Canadian Tire has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian Tire's current Gross Margin % of 35.39% is 2.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Canadian Tire and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Tire's current Gross Margin % is 35.39%, which is near median its own 10-year median of 34.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canadian Tire stock overvalued right now?
Based on GuruFocus' analysis, Canadian Tire (CDNAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $120.18, compared to a current price of $133.92 — trading 11.4% above its estimated fair value. The current Gross Margin % is 35.39%, which is near median its 10-year median of 34.19 and 2.3% below the Retail - Cyclical industry median of 36.23. Canadian Tire's overall GF Score™ is 75/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Canadian Tire (CDNAF), the current Gross Margin % is 35.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Canadian Tire (CDNAF) Overvalued in 2026?
Based on GuruFocus' analysis, Canadian Tire stock appears to be overvalued.
The current stock price of $133.92 is trading 11.4% above its estimated GF Value™ of $120.18.
GuruFocus considers Canadian Tire to be Modestly Overvalued.
Key valuation signals for CDNAF:
Gross Margin %: 35.39% (near median its 10-year median of 34.19)
GF Value™: $120.18 vs. price of $133.92 (11.4% above fair value)
Industry Position: 2.3% below the Retail - Cyclical median (#592 of 1117)
No single metric tells the full story. See the CDNAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Canadian Tire is a leading general merchandise retailer with over 1,400 affiliated stores across Canada. The company operates about 650 stores, with the remaining operated by franchisees or third-party dealers. The retailer boasts a wide array of owned and affiliated banners that include its iconic namesake brand, Mark's, Sport Chek, Sports Experts, PartSource, and Party City. Its product assortment includes automotive parts, appliances, home improvement items, sporting goods, and apparel. The firm also offers a loyalty program with 12 million members and owns a financial services arm that manages a credit card portfolio for its more than 2 million active users.
75GF Score
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