CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CTC-A - CA1366812024 - Common Stock
173.94 CAD
+0.59 (+0.34%)
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 has a valuation in line with the averages, but it does not seem to be growing. CTC-A also has an excellent dividend rating. This makes CTC-A very considerable for 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.
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 Return On Assets of 3.33%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
CTC-A has a better Return On Equity (12.37%) than 66.67% of its industry peers.
The Return On Invested Capital of CTC-A (5.83%) is better than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTC-A is below the industry average of 11.07%.
| 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
CTC-A's Profit Margin of 4.49% 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 Profit Margin of CTC-A has remained more or less at the same level.
With a decent Operating Margin value of 8.54%, 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 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.
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 | 8.54% | ||
| 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.
Compared to 1 year ago, CTC-A has about the same amount of shares outstanding.
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 1.92 indicates that CTC-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTC-A's Altman-Z score of 1.92 is on the low side compared to the rest of the industry. CTC-A is outperformed by 66.67% of its industry peers.
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.
The Debt to FCF ratio of CTC-A (17.07) is better than 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.
Looking at the Debt to Equity ratio, with a value of 1.13, CTC-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.8
WACC7.25%
2.3 Liquidity
CTC-A has a Current Ratio of 1.80. This is a normal value and indicates that CTC-A is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.80, CTC-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that CTC-A should not have too much problems paying its short term obligations.
CTC-A has a Quick ratio of 1.36. This is amongst the best in the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.68% over the past year.
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.
Looking at the last year, CTC-A shows a decrease in Revenue. The Revenue has decreased by -0.13% in the last 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)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
Based on estimates for the next years, CTC-A will show a small growth in Earnings Per Share. The EPS will grow by 6.55% on average per year.
CTC-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.54% 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
With a Price/Earnings ratio of 12.96, CTC-A is valued correctly.
Based on the Price/Earnings ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, CTC-A is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.33, the valuation of CTC-A can be described as correct.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, CTC-A is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTC-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
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 | 20.16 | ||
| 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.
The decent profitability rating of CTC-A may justify a higher PE ratio.
PEG (NY)2.53
PEG (5Y)N/A
EPS Next 2Y5.83%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.18%, CTC-A is a good candidate for dividend investing.
CTC-A's Dividend Yield is a higher than the industry average which is at 2.85.
CTC-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
The dividend of CTC-A is nicely growing with an annual growth rate of 20.98%!
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 49.67% of its income as dividend. 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 (12/31/2025, 7:00:00 PM)
173.94
+0.59 (+0.34%)
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 Cap9.25B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target185.03 (6.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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)0.33%
PT rev (3m)2.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)5.52%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 12.33 | ||
| P/S | 0.57 | ||
| P/FCF | 20.16 | ||
| P/OCF | 9 | ||
| P/B | 1.57 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 7.25 |
EPS(TTM)13.42
EY7.72%
EPS(NY)14.11
Fwd EY8.11%
FCF(TTM)8.63
FCFY4.96%
OCF(TTM)19.33
OCFY11.11%
SpS305.86
BVpS110.95
TBVpS85.3
PEG (NY)2.53
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 | 1.92 |
F-Score7
WACC7.25%
ROIC/WACC0.8
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 for CTC-A stock?
ChartMill assigns a valuation rating of 6 / 10 to CANADIAN TIRE CORP-CLASS A (CTC-A.CA). This can be considered as Fairly Valued.
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.
Can you provide the PE and PB ratios for CTC-A stock?
The Price/Earnings (PE) ratio for CANADIAN TIRE CORP-CLASS A (CTC-A.CA) is 12.96 and the Price/Book (PB) ratio is 1.57.
Can you provide the financial health for CTC-A stock?
The financial health rating of CANADIAN TIRE CORP-CLASS A (CTC-A.CA) is 5 / 10.