Retail has been under quite a bit of pressure during this recent market drawdown, primarily because of fears of a recession.
Over the long term though, Canadian Tire is a strong option for those looking at a retail option that pays a strong dividend. There aren't too many in Canada to be honest. Debt levels are a little high but this is primarily due to the company's financing arm. Interest coverage ratios have improved significantly since the pandemic and the balance sheet is pretty healthy.
My only fear here over the short term would be an economic slowdown. If we entered a recession it is highly likely Canadian Tire would see its earnings take a hit. This seems to be somewhat priced in though as the company is trading nearly 20% below its historical averages.
It provides great value right now and is fundamentally sound. Would I be buying at this moment? Likely not. I'd like to see where we are through the first 6 months of the year.