CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada - TSX:CTC-A - CA1366812024 - Common Stock
172.45 CAD
+2.03 (+1.19%)
Taking everything into account, CTC-A scores 6 out of 10 in our fundamental rating. CTC-A was compared to 3 industry peers in the Broadline Retail industry. CTC-A has only an average score on both its financial health and profitability. CTC-A may be a bit undervalued, certainly considering the very reasonable score on growth CTC-A also has an excellent dividend rating. This makes CTC-A very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
CTC-A had positive earnings in the past year.
In the past year CTC-A had a positive cash flow from operations.
In the past 5 years CTC-A has always been profitable.
Each year in the past 5 years CTC-A had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.55%, CTC-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Equity value of 13.06%, CTC-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.20%, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CTC-A is below the industry average of 10.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 13.06% | ||
| ROIC | 6.2% |
ROA(3y)3.23%
ROA(5y)3.71%
ROE(3y)12.28%
ROE(5y)15.11%
ROIC(3y)6.91%
ROIC(5y)7.09%
1.3 Margins
CTC-A has a Profit Margin of 4.65%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of CTC-A has remained more or less at the same level.
CTC-A has a Operating Margin of 8.87%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of CTC-A has grown nicely.
CTC-A has a better Gross Margin (34.06%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of CTC-A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.87% | ||
| PM (TTM) | 4.65% | ||
| GM | 34.06% |
OM growth 3Y-1.62%
OM growth 5Y2.41%
PM growth 3Y-7.79%
PM growth 5Y0.27%
GM growth 3Y-1.38%
GM growth 5Y0.48%
2. Health
2.1 Basic Checks
CTC-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CTC-A remains at a similar level compared to 1 year ago.
CTC-A has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CTC-A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.97 indicates that CTC-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTC-A has a worse Altman-Z score (1.97) than 66.67% of its industry peers.
The Debt to FCF ratio of CTC-A is 7.43, which is on the high side as it means it would take CTC-A, 7.43 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.43, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CTC-A has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
CTC-A's Debt to Equity ratio of 1.12 is amongst the best of the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.86
WACC7.2%
2.3 Liquidity
A Current Ratio of 1.83 indicates that CTC-A should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.83, CTC-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that CTC-A should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.42, CTC-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.29% over the past year.
CTC-A shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
The Revenue has been growing slightly by 0.05% in the past year.
Measured over the past years, CTC-A shows a small growth in Revenue. The Revenue has been growing by 2.39% on average per year.
EPS 1Y (TTM)17.29%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%0.28%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
3.2 Future
Based on estimates for the next years, CTC-A will show a small growth in Earnings Per Share. The EPS will grow by 5.59% on average per year.
CTC-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.61% yearly.
EPS Next Y-0.38%
EPS Next 2Y4.41%
EPS Next 3Y5.59%
EPS Next 5YN/A
Revenue Next Year-1.17%
Revenue Next 2Y0.04%
Revenue Next 3Y0.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CTC-A is valuated correctly with a Price/Earnings ratio of 13.03.
100.00% of the companies in the same industry are more expensive than CTC-A, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CTC-A to the average of the S&P500 Index (26.35), we can say CTC-A is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.55, the valuation of CTC-A can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTC-A indicates a rather cheap valuation: CTC-A is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.72. CTC-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CTC-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
CTC-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.41%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, CTC-A is a good candidate for dividend investing.
CTC-A's Dividend Yield is a higher than the industry average which is at 2.86.
CTC-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of CTC-A is nicely growing with an annual growth rate of 20.98%!
CTC-A has paid a dividend for at least 10 years, which is a reliable track record.
CTC-A has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.98%
Div Incr Years14
Div Non Decr Years34
5.3 Sustainability
CTC-A pays out 47.47% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CTC-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.47%
EPS Next 2Y4.41%
EPS Next 3Y5.59%
TSX:CTC-A (11/11/2025, 7:00:00 PM)
172.45
+2.03 (+1.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.2%
Inst Owner ChangeN/A
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap9.24B
Revenue(TTM)16.36B
Net Income(TTM)761.40M
Analysts50.59
Price Target179.11 (3.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP47.47%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.83%
Min EPS beat(2)-10.03%
Max EPS beat(2)53.7%
EPS beat(4)2
Avg EPS beat(4)12.94%
Min EPS beat(4)-10.03%
Max EPS beat(4)53.7%
EPS beat(8)4
Avg EPS beat(8)18.82%
EPS beat(12)5
Avg EPS beat(12)10.51%
EPS beat(16)7
Avg EPS beat(16)12.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-5.76%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-3.96%
Revenue beat(12)1
Avg Revenue beat(12)-3.22%
Revenue beat(16)3
Avg Revenue beat(16)-1.89%
PT rev (1m)-0.34%
PT rev (3m)-2.66%
EPS NQ rev (1m)-2.75%
EPS NQ rev (3m)-13.23%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 12.55 | ||
| P/S | 0.56 | ||
| P/FCF | 9 | ||
| P/OCF | 5.68 | ||
| P/B | 1.59 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)13.23
EY7.67%
EPS(NY)13.74
Fwd EY7.97%
FCF(TTM)19.15
FCFY11.11%
OCF(TTM)30.35
OCFY17.6%
SpS305.26
BVpS108.78
TBVpS83.1
PEG (NY)N/A
PEG (5Y)N/A
Graham Number179.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 13.06% | ||
| ROCE | 9.53% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 7.37% | ||
| OM | 8.87% | ||
| PM (TTM) | 4.65% | ||
| GM | 34.06% | ||
| FCFM | 6.27% |
ROA(3y)3.23%
ROA(5y)3.71%
ROE(3y)12.28%
ROE(5y)15.11%
ROIC(3y)6.91%
ROIC(5y)7.09%
ROICexc(3y)7.13%
ROICexc(5y)7.69%
ROICexgc(3y)8.31%
ROICexgc(5y)9.13%
ROCE(3y)10.78%
ROCE(5y)10.92%
ROICexgc growth 3Y-9.58%
ROICexgc growth 5Y1.73%
ROICexc growth 3Y-7.95%
ROICexc growth 5Y2.52%
OM growth 3Y-1.62%
OM growth 5Y2.41%
PM growth 3Y-7.79%
PM growth 5Y0.27%
GM growth 3Y-1.38%
GM growth 5Y0.48%
F-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 78.82% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 73.51% | ||
| Profit Quality | 134.79% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.97 |
F-Score8
WACC7.2%
ROIC/WACC0.86
Cap/Depr(3y)92.24%
Cap/Depr(5y)90.1%
Cap/Sales(3y)4.2%
Cap/Sales(5y)4.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.29%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%0.28%
EPS Next Y-0.38%
EPS Next 2Y4.41%
EPS Next 3Y5.59%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
Revenue Next Year-1.17%
Revenue Next 2Y0.04%
Revenue Next 3Y0.61%
Revenue Next 5YN/A
EBIT growth 1Y9.96%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year46.76%
EBIT Next 3Y15.76%
EBIT Next 5YN/A
FCF growth 1Y125.07%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y33.55%
OCF growth 3Y4.39%
OCF growth 5Y13.67%
CANADIAN TIRE CORP-CLASS A / CTC-A.CA FAQ
Can you provide the ChartMill fundamental rating for CANADIAN TIRE CORP-CLASS A?
ChartMill assigns a fundamental rating of 6 / 10 to CTC-A.CA.
What is the valuation status of CANADIAN TIRE CORP-CLASS A (CTC-A.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to CANADIAN TIRE CORP-CLASS A (CTC-A.CA). This can be considered as Undervalued.
How profitable is CANADIAN TIRE CORP-CLASS A (CTC-A.CA) stock?
CANADIAN TIRE CORP-CLASS A (CTC-A.CA) has a profitability rating of 6 / 10.
What is the valuation of CANADIAN TIRE CORP-CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CANADIAN TIRE CORP-CLASS A (CTC-A.CA) is 13.03 and the Price/Book (PB) ratio is 1.59.
What is the earnings growth outlook for CANADIAN TIRE CORP-CLASS A?
The Earnings per Share (EPS) of CANADIAN TIRE CORP-CLASS A (CTC-A.CA) is expected to decline by -0.38% in the next year.