CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
TSX:CTC-A - Toronto Stock Exchange - CA1366812024 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to CTC-A. CTC-A was compared to 3 industry peers in the Broadline Retail industry. CTC-A has an average financial health and profitability rating. CTC-A has a decent growth rate and is not valued too expensively. CTC-A also has an excellent dividend rating. With these ratings, CTC-A could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
CTC-A had positive earnings in the past year.
CTC-A had a positive operating cash flow in the past year.
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
CTC-A's Return On Assets of 3.74% is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
CTC-A's Return On Equity of 14.22% is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
The Return On Invested Capital of CTC-A (6.07%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTC-A is below the industry average of 11.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 14.22% | ||
| ROIC | 6.07% |
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
With a decent Profit Margin value of 5.21%, CTC-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of CTC-A has remained more or less at the same level.
CTC-A's Operating Margin of 9.23% is fine compared to the rest 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 (34.13%) 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 | 9.23% | ||
| PM (TTM) | 5.21% | ||
| GM | 34.13% |
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.
Compared to 5 years ago, CTC-A has less shares outstanding
The debt/assets ratio for CTC-A has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.94 indicates that CTC-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CTC-A (1.94) is worse than 66.67% of its industry peers.
CTC-A has a debt to FCF ratio of 8.51. This is a slightly negative value and a sign of low solvency as CTC-A would need 8.51 years to pay back of all of its debts.
CTC-A has a better Debt to FCF ratio (8.51) than 66.67% of its industry peers.
A Debt/Equity ratio of 1.24 is on the high side and indicates that CTC-A has dependencies on debt financing.
CTC-A has a better Debt to Equity ratio (1.24) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.82
WACC7.44%
2.3 Liquidity
CTC-A has a Current Ratio of 1.76. This is a normal value and indicates that CTC-A is financially healthy and should not expect problems in meeting its short term obligations.
CTC-A has a better Current ratio (1.76) than 100.00% of its industry peers.
A Quick Ratio of 1.40 indicates that CTC-A should not have too much problems paying its short term obligations.
The Quick ratio of CTC-A (1.40) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
CTC-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.41%, which is quite impressive.
Measured over the past years, CTC-A shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.74% on average per year.
The Revenue has decreased by -1.12% in the past year.
CTC-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.39% yearly.
EPS 1Y (TTM)22.41%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%44.93%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-1.93%
3.2 Future
The Earnings Per Share is expected to grow by 9.02% on average over the next years. This is quite good.
CTC-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.84% yearly.
EPS Next Y4.67%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue Next Year-0.86%
Revenue Next 2Y0.37%
Revenue Next 3Y0.84%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.30, which indicates a correct valuation of CTC-A.
Compared to the rest of the industry, the Price/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.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CTC-A is valued a bit cheaper.
CTC-A is valuated correctly with a Price/Forward Earnings ratio of 12.75.
100.00% of the companies in the same industry are more expensive than CTC-A, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CTC-A to the average of the S&P500 Index (21.76), we can say CTC-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.75 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTC-A indicates a rather cheap valuation: CTC-A is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.49 | ||
| EV/EBITDA | 7.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTC-A does not grow enough to justify the current Price/Earnings ratio.
CTC-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.06
PEG (5Y)N/A
EPS Next 2Y8.5%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
CTC-A has a Yearly Dividend Yield of 3.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.63, CTC-A pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, CTC-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
On average, the dividend of CTC-A grows each year by 20.98%, which is quite nice.
CTC-A has been paying a dividend for at least 10 years, so it has 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 42.68% 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.
DP42.68%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
TSX:CTC-A (7/11/2025, 7:00:00 PM)
189.1
+0.34 (+0.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners32.57%
Inst Owner ChangeN/A
Ins Owners1.52%
Ins Owner ChangeN/A
Market Cap10.42B
Analysts72.63
Price Target173.5 (-8.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP42.68%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.16%
Min EPS beat(2)-7.38%
Max EPS beat(2)53.7%
EPS beat(4)3
Avg EPS beat(4)26.15%
Min EPS beat(4)-7.38%
Max EPS beat(4)53.7%
EPS beat(8)4
Avg EPS beat(8)19.66%
EPS beat(12)5
Avg EPS beat(12)9.98%
EPS beat(16)8
Avg EPS beat(16)14.55%
Revenue beat(2)0
Avg Revenue beat(2)-5.24%
Min Revenue beat(2)-5.76%
Max Revenue beat(2)-4.73%
Revenue beat(4)0
Avg Revenue beat(4)-3.49%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-1.65%
Revenue beat(8)0
Avg Revenue beat(8)-4.29%
Revenue beat(12)1
Avg Revenue beat(12)-3.23%
Revenue beat(16)3
Avg Revenue beat(16)-1.95%
PT rev (1m)6.74%
PT rev (3m)6.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.75 | ||
| P/S | 0.64 | ||
| P/FCF | 10.49 | ||
| P/OCF | 6.47 | ||
| P/B | 1.75 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 7.25 |
EPS(TTM)13.22
EY6.99%
EPS(NY)14.83
Fwd EY7.84%
FCF(TTM)18.03
FCFY9.53%
OCF(TTM)29.2
OCFY15.44%
SpS295.69
BVpS108.23
TBVpS83.4
PEG (NY)3.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 14.22% | ||
| ROCE | 9.74% | ||
| ROIC | 6.07% | ||
| ROICexc | 6.29% | ||
| ROICexgc | 6.86% | ||
| OM | 9.23% | ||
| PM (TTM) | 5.21% | ||
| GM | 34.13% | ||
| FCFM | 6.1% |
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%
ROICexcg growth 3Y-9.58%
ROICexcg 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-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 8.51 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 79.47% | ||
| Cap/Sales | 3.78% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 70.6% | ||
| Profit Quality | 117.1% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 1.94 |
F-Score7
WACC7.44%
ROIC/WACC0.82
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)22.41%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%44.93%
EPS Next Y4.67%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-1.93%
Revenue Next Year-0.86%
Revenue Next 2Y0.37%
Revenue Next 3Y0.84%
Revenue Next 5YN/A
EBIT growth 1Y19.34%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year47.81%
EBIT Next 3Y18.36%
EBIT Next 5YN/A
FCF growth 1Y1718.86%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y87.45%
OCF growth 3Y4.39%
OCF growth 5Y13.67%