Canadian TireCDNAF 74 Interest Coverage is 3.11 as of Mar. 2026, which is 52% below its 10-year median of 6.44. GuruFocus rates CDNAF with a GF Score™ of 74/100 and a GF Value™ of $120.18 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 827 Retail - Cyclical companies, Canadian Tire ranks worse than 66.26% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Canadian Tire's
Operating Income
for the
three
months ended in Mar. 2026 was $185 Mil. Canadian Tire's Interest Expense for the
three
months ended in Mar. 2026 was $-60 Mil.
Canadian Tire's interest coverage for the quarter that ended in Mar. 2026 was 3.11.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Canadian Tire's Interest Coverage or its related term are showing as below:
CDNAF'
s Interest Coverage Range Over the Past 10 Years
Min: 3.2 Med: 6.44 Max: 11.45
Current: 4.31
CDNAF's Interest Coverage is ranked worse than 66.26% of 827
companies
in the Retail - Cyclical industry
Industry Median: 7.91
vs CDNAF: 4.31
Canadian Tire (OTCPK:CDNAF) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Canadian Tire Interest Coverage Related Terms
Canadian Tire Interest Coverage Historical Data
* Premium members only.
The historical data trend for Canadian Tire's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
CDNAF vs CASY, WSM, ULTA: Interest Coverage Comparison
For the Specialty Retail subindustry, Canadian Tire's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Canadian Tire's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Canadian Tire's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Canadian Tire (CDNAF) has a Interest Coverage of 3.11 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Canadian Tire and its competitors. This is 52% below median its historical median of 6.44. Over the past decade, Canadian Tire's Interest Coverage has ranged from 3.20 to 11.45. According to the industry distribution chart, Canadian Tire ranks #548 out of 827 companies in the Retail - Cyclical industry, placing it in the top 66.3%.
Is Canadian Tire's Interest Coverage too high?
Canadian Tire's current Interest Coverage of 3.11 is 52% below median its 10-year median of 6.44. Over the past 10 years, this metric has ranged from a low of 3.20 to a high of 11.45. The Retail - Cyclical industry median Interest Coverage is 7.91. Canadian Tire's value of 3.11 is 60.7% below this industry median. Based on the distribution chart, Canadian Tire ranks #548 out of 827 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Canadian Tire has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Canadian Tire's Interest Coverage compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Canadian Tire ranks #548 out of 827 companies for Interest Coverage. This places Canadian Tire in the lower half of its industry. The industry median Interest Coverage is 7.91. Canadian Tire's value of 3.11 is 60.7% below this benchmark. Historically, Canadian Tire's own Interest Coverage has ranged from 3.20 to 11.45 over the past decade. While the company's 10-year median is 6.44 vs. the industry median of 7.91, 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 Interest Coverage for a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.91, based on 827 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian Tire's current Interest Coverage of 3.11 is 60.7% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Canadian Tire and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Tire's current Interest Coverage is 3.11, which is 52% below median its own 10-year median of 6.44. 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 Interest Coverage is 3.11, which is 52% below median its 10-year median of 6.44 and 60.7% below the Retail - Cyclical industry median of 7.91. Canadian Tire's overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Canadian Tire (CDNAF), the current Interest Coverage is 3.11 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:
Interest Coverage: 3.11 (52% below median its 10-year median of 6.44)
GF Value™: $120.18 vs. price of $133.92 (11.4% above fair value)
Industry Position: 60.7% below the Retail - Cyclical median (#548 of 827)
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.
74GF Score
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