CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CTC-A - CA1366812024 - Common Stock
168.53 CAD
-2.23 (-1.31%)
Overall CTC-A gets a fundamental rating of 5 out of 10. We evaluated CTC-A against 3 industry peers in the Broadline Retail industry. Both the profitability and the financial health of CTC-A get a neutral evaluation. Nothing too spectacular is happening here. CTC-A is cheap, but on the other hand it scores bad on growth. Finally CTC-A also has an excellent dividend rating. These ratings could make CTC-A a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year CTC-A was profitable.
In the past year CTC-A had a positive cash flow from operations.
Each year in the past 5 years CTC-A has been profitable.
In the past 5 years CTC-A always reported a positive cash flow from operatings.
1.2 Ratios
CTC-A has a better Return On Assets (3.33%) than 66.67% of its industry peers.
CTC-A has a better Return On Equity (12.37%) than 66.67% of its industry peers.
CTC-A's Return On Invested Capital of 5.83% is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
CTC-A had an Average Return On Invested Capital over the past 3 years of 6.91%. This is below the industry average of 10.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 12.37% | ||
| ROIC | 5.83% |
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
The Profit Margin of CTC-A (4.49%) is better than 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 8.54%. 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 Gross Margin of 34.22%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
CTC-A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.54% | ||
| PM (TTM) | 4.49% | ||
| GM | 34.22% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTC-A is destroying value.
CTC-A has about the same amout of shares outstanding than it did 1 year ago.
CTC-A has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CTC-A has been reduced compared to a year ago.
2.2 Solvency
CTC-A has an Altman-Z score of 1.91. This is not the best score and indicates that CTC-A is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.91, CTC-A is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of CTC-A is 17.07, which is on the high side as it means it would take CTC-A, 17.07 years of fcf income to pay off all of its debts.
CTC-A has a Debt to FCF ratio of 17.07. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
CTC-A has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CTC-A (1.13) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.84
WACC6.98%
2.3 Liquidity
A Current Ratio of 1.80 indicates that CTC-A should not have too much problems paying its short term obligations.
The Current ratio of CTC-A (1.80) is better than 100.00% of its industry peers.
A Quick Ratio of 1.36 indicates that CTC-A should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, CTC-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.36 |
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 12.68%, which is quite good.
CTC-A shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
CTC-A shows a decrease in Revenue. In the last year, the revenue decreased by -0.13%.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)12.68%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%5.29%
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-2.08%
3.2 Future
CTC-A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.55% yearly.
CTC-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.54% yearly.
EPS Next Y5.12%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue Next Year-1.34%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.54%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 12.56, which indicates a correct valuation of CTC-A.
Based on the Price/Earnings ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. CTC-A is valued rather cheaply when compared to this.
CTC-A is valuated reasonably with a Price/Forward Earnings ratio of 11.94.
Based on the Price/Forward Earnings ratio, CTC-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
CTC-A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than CTC-A, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.53 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CTC-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.46
PEG (5Y)N/A
EPS Next 2Y5.83%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.20%, CTC-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.90, CTC-A pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, CTC-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)20.98%
Div Incr Years14
Div Non Decr Years34
5.3 Sustainability
49.67% of the earnings are spent on dividend by CTC-A. This is a bit on the high side, but may be sustainable.
CTC-A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.67%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
TSX:CTC-A (12/9/2025, 7:00:00 PM)
168.53
-2.23 (-1.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.79%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap8.97B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target185.03 (9.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP49.67%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.62%
Min EPS beat(2)-10.03%
Max EPS beat(2)29.28%
EPS beat(4)2
Avg EPS beat(4)16.39%
Min EPS beat(4)-10.03%
Max EPS beat(4)53.7%
EPS beat(8)5
Avg EPS beat(8)24.08%
EPS beat(12)6
Avg EPS beat(12)14.39%
EPS beat(16)8
Avg EPS beat(16)14.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.34%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-4.12%
Revenue beat(12)1
Avg Revenue beat(12)-3.18%
Revenue beat(16)3
Avg Revenue beat(16)-1.78%
PT rev (1m)3.3%
PT rev (3m)2.95%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)5.52%
EPS NY rev (3m)4.85%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 11.94 | ||
| P/S | 0.55 | ||
| P/FCF | 19.53 | ||
| P/OCF | 8.72 | ||
| P/B | 1.52 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 7.11 |
EPS(TTM)13.42
EY7.96%
EPS(NY)14.11
Fwd EY8.37%
FCF(TTM)8.63
FCFY5.12%
OCF(TTM)19.33
OCFY11.47%
SpS305.86
BVpS110.95
TBVpS85.3
PEG (NY)2.46
PEG (5Y)N/A
Graham Number183.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 12.37% | ||
| ROCE | 9% | ||
| ROIC | 5.83% | ||
| ROICexc | 6% | ||
| ROICexgc | 6.56% | ||
| OM | 8.54% | ||
| PM (TTM) | 4.49% | ||
| GM | 34.22% | ||
| FCFM | 2.82% |
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-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 74.9% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 47.83% | ||
| Profit Quality | 62.84% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 1.91 |
F-Score7
WACC6.98%
ROIC/WACC0.84
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)12.68%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%5.29%
EPS Next Y5.12%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-2.08%
Revenue Next Year-1.34%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.54%
Revenue Next 5YN/A
EBIT growth 1Y1.6%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year50.73%
EBIT Next 3Y16.55%
EBIT Next 5YN/A
FCF growth 1Y-44.51%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y-32.32%
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 5 / 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 12.56 and the Price/Book (PB) ratio is 1.52.
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 grow by 5.12% in the next year.