Canadian TireCDNAF +1.58%75 Operating Margin % is 7.12% as of Mar. 2026, which is 21% below its 10-year median of 9.04. 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 1,128 Retail - Cyclical companies, Canadian Tire ranks better than 73.94% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Canadian Tire's Operating Income for the
three
months ended in Mar. 2026 was $185 Mil. Canadian Tire's Revenue for the
three
months ended in Mar. 2026 was $2,603 Mil. Therefore, Canadian Tire's Operating Margin % for the quarter that ended in Mar. 2026 was 7.12%.
Warning Sign:
Canadian Tire Corp Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6.1%.
The historical rank and industry rank for Canadian Tire's Operating Margin % or its related term are showing as below:
CDNAF'
s Operating Margin % Range Over the Past 10 Years
Min: 7.54 Med: 9.04 Max: 11.67
Current: 8.67
CDNAF's Operating Margin % is ranked better than 73.94% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs CDNAF: 8.67
Canadian Tire's 5-Year Average Operating Margin % Growth Rate was -6.10% per year.
Canadian Tire (OTCPK:CDNAF) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Canadian Tire Operating Margin % Related Terms
Canadian Tire Operating Margin % Historical Data
* Premium members only.
The historical data trend for Canadian Tire's Operating 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: Operating Margin % Comparison
For the Specialty Retail subindustry, Canadian Tire's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Canadian Tire's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Canadian Tire's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Canadian Tire's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 7.12% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Canadian Tire and its competitors. This is 21% below median its historical median of 9.04. Over the past decade, Canadian Tire's Operating Margin % has ranged from 7.54 to 11.67. According to the industry distribution chart, Canadian Tire ranks #294 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 26.1%.
Is Canadian Tire's Operating Margin % too high?
Canadian Tire's current Operating Margin % of 7.12% is 21% below median its 10-year median of 9.04. Over the past 10 years, this metric has ranged from a low of 7.54 to a high of 11.67. The Retail - Cyclical industry median Operating Margin % is 3.91. Canadian Tire's value of 7.12% is 82.3% above this industry median. Based on the distribution chart, Canadian Tire ranks #294 out of 1128 companies in the Retail - Cyclical industry, which is above 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 Operating Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Canadian Tire ranks #294 out of 1128 companies for Operating Margin %. This puts Canadian Tire in the upper half of its industry. The industry median Operating Margin % is 3.91. Canadian Tire's value of 7.12% is 82.3% above this benchmark. Historically, Canadian Tire's own Operating Margin % has ranged from 7.54 to 11.67 over the past decade. While the company's 10-year median is 9.04 vs. the industry median of 3.91, Canadian Tire has consistently been above 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 Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian Tire's current Operating Margin % of 7.12% is 82.3% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Canadian Tire and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Tire's current Operating Margin % is 7.12%, which is 21% below median its own 10-year median of 9.04. 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 Operating Margin % is 7.12%, which is 21% below median its 10-year median of 9.04 and 82.3% above the Retail - Cyclical industry median of 3.91. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Canadian Tire (CDNAF), the current Operating Margin % is 7.12% 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:
Operating Margin %: 7.12% (21% below median its 10-year median of 9.04)
GF Value™: $120.18 vs. price of $133.92 (11.4% above fair value)
Industry Position: 82.3% above the Retail - Cyclical median (#294 of 1128)
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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