A Year Later: 2 Canadian Stocks That Look Even Better Now

A year ago, Canadian Tire (TSX:CTC.A) was trying to prove its transformation wasn’t just a slide deck, and The North West Company (TSX:NWC) was navigating wildfire disruptions and funding headwinds in remote markets. What happened with the companies since then?

CTC

Canadian Tire looks stronger a year later because it kept proving Canadians still shop its banners even when wallets feel tight. It runs Canadian Tire, SportChek, Mark’s, and a financial services arm, and it also benefits from CT real estate investment trust (REIT). Over the last year, the big storyline has been its True North transformation push, which aims to sharpen merchandising, improve inventory flow, and make stores feel more relevant again. It also leaned on its Triangle loyalty ecosystem and owned brands to keep customers coming back.

The numbers show traction. In the fourth quarter, revenue rose 8.3% to $4.55 billion, and normalized diluted earnings per share (EPS) hit $4.47, up 38%. For full-year 2025, consolidated revenue increased 5.2% to $16.32 billion, while normalized diluted EPS climbed 18.6% to $13.77. The headline diluted EPS fell to $10.57 because one-time items moved around, but the underlying trend kept improving.

The Canadian stock also acted like a shareholder-first compounder. The board declared a quarterly dividend of $1.80 per share, and the company repurchased $442.4 million of shares in 2025, cutting the share count by about 5%. The Canadian stock now trades at 13.4 times earnings at writing, with a 3.8% yield, so the setup still looks reasonable for investors looking ahead.

A year later, Canadian Tire answered the transformation skeptics with an 18.6% normalized EPS increase, $442 million in buybacks, and a share count 5% smaller — and it still trades at 13.4 times earnings. The proof is in, and the price hasn’t fully caught up.

NWC

The North West Company looks even better now for a different reason. It wins by serving communities that do not have endless retail options. It sells food and everyday essentials in rural and remote locations in Canada, plus Alaska, the South Pacific, and the Caribbean. Over the last year, investors watched it manage through uneven local conditions, including wildfire-related disruptions and reduced funding impacts in parts of its Canadian markets.

Even with those headwinds, it kept growing profit. In the third quarter of 2025, consolidated sales dipped 0.5% to $634.3 million, but net earnings rose 12.9% to $41.1 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $65.2 million from $63.1 million, and adjusted net earnings rose to $43.3 million. That mix shows pricing and cost control did the job even when sales growth stalled.

It also kept the income story steady. The board declared a quarterly dividend of $0.41 per share, paid in January 2026, which keeps the annual payout around $1.64, or a 2.9% yield at writing. The Canadian stock has recently traded around 19 times earnings, with a payout ratio that looks manageable on earnings. So again, there’s more to come from this top Canadian stock.

A year later, North West grew net earnings 12.9% through wildfires and funding disruptions without missing a dividend payment, which is exactly the definition of a quiet compounder. At 19 times earnings, the market still hasn’t priced in that kind of resilience.

Bottom line

These two stocks look better a year later because they earned it — under conditions that gave them every excuse not to. Canadian Tire showed momentum, backed it with buybacks, and paid you to wait while it improved the business. North West stayed steady through messy local dynamics and still grew earnings, which is exactly what you want from a quiet compounder. And both can provide superior income even with just a $7,000 investment.

COMPANYRECENT PRICENUMBER OF SHARES YOU COULD BUY WITH $7,000ANNUAL DIVIDENDFREQUENCYTOTAL INVESTMENTNWC$56.65123$1.64Quarterly$6,977.95CTC.A$191.1336$7.20Quarterly$6,880.68

If you want “even better now” stocks, look for the ones that kept executing while the market got distracted. Then buy them when the story feels obvious in hindsight. If that sort of investing discipline resonates with you, check out Stock Advisor Canada.

The post A Year Later: 2 Canadian Stocks That Look Even Better Now appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends North West. The Motley Fool has a disclosure policy.