CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CTC-A - CA1366812024 - Common Stock
171.36 CAD
+0.07 (+0.04%)
Overall CTC-A gets a fundamental rating of 5 out of 10. We evaluated CTC-A against 2 industry peers in the Broadline Retail industry. CTC-A has only an average score on both its financial health and profitability. CTC-A is valued correctly, but it does not seem to be growing. Finally CTC-A also has an excellent dividend rating. These ratings would make CTC-A suitable for 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.
CTC-A had positive earnings in each of the past 5 years.
In the past 5 years CTC-A always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.33%, CTC-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
CTC-A has a Return On Equity (12.37%) which is comparable to the rest of the industry.
CTC-A has a Return On Invested Capital (5.83%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTC-A is significantly below the industry average of 13.14%.
| 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
Looking at the Profit Margin, with a value of 4.49%, CTC-A is in line with its industry, outperforming 50.00% 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.
The Operating Margin of CTC-A (8.54%) is comparable to the rest of the industry.
CTC-A's Operating Margin has improved in the last couple of years.
The Gross Margin of CTC-A (34.22%) is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTC-A is destroying value.
Compared to 1 year ago, CTC-A has about the same amount of shares outstanding.
The number of shares outstanding for CTC-A has been reduced compared to 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 1.91 indicates that CTC-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTC-A has a Altman-Z score (1.91) which is comparable to the rest of the industry.
CTC-A has a debt to FCF ratio of 17.07. This is a negative value and a sign of low solvency as CTC-A would need 17.07 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.07, CTC-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that CTC-A has dependencies on debt financing.
CTC-A has a Debt to Equity ratio of 1.13. This is amongst the best in the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.81
WACC7.16%
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.
CTC-A's Current ratio of 1.80 is amongst the best of the industry. CTC-A outperforms 100.00% of its industry peers.
CTC-A has a Quick Ratio of 1.36. 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 Quick ratio (1.36) than 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.
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
The Earnings Per Share is expected to grow by 5.59% on average over the next years.
The Revenue is expected to grow by 0.61% on average over the next years.
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
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
A Price/Earnings ratio of 12.77 indicates a correct valuation of CTC-A.
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 (26.46), we can say CTC-A is valued rather cheaply.
A Price/Forward Earnings ratio of 12.48 indicates a correct valuation of CTC-A.
100.00% of the companies in the same industry are more expensive than CTC-A, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, CTC-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 12.48 |
4.2 Price Multiples
CTC-A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CTC-A is 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 | 19.94 | ||
| EV/EBITDA | 7.2 |
4.3 Compensation for Growth
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 4.20%, CTC-A is a good candidate for dividend investing.
CTC-A's Dividend Yield is rather good when compared to the industry average which is at 2.21. CTC-A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, 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 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
49.67% of the earnings are spent on dividend by CTC-A. 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.
DP49.67%
EPS Next 2Y4.41%
EPS Next 3Y5.59%
TSX:CTC-A (12/5/2025, 7:00:00 PM)
171.36
+0.07 (+0.04%)
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 Cap9.12B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target185.03 (7.98%)
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)2.61%
PT rev (3m)2.61%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 12.48 | ||
| P/S | 0.56 | ||
| P/FCF | 19.94 | ||
| P/OCF | 8.9 | ||
| P/B | 1.55 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 7.2 |
EPS(TTM)13.42
EY7.83%
EPS(NY)13.74
Fwd EY8.02%
FCF(TTM)8.59
FCFY5.01%
OCF(TTM)19.25
OCFY11.23%
SpS304.6
BVpS110.49
TBVpS84.95
PEG (NY)N/A
PEG (5Y)N/A
Graham Number182.65
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
WACC7.16%
ROIC/WACC0.81
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 Y-0.38%
EPS Next 2Y4.41%
EPS Next 3Y5.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-2.08%
Revenue Next Year-1.17%
Revenue Next 2Y0.04%
Revenue Next 3Y0.61%
Revenue Next 5YN/A
EBIT growth 1Y1.6%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year46.76%
EBIT Next 3Y15.76%
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 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 5 / 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 12.77 and the Price/Book (PB) ratio is 1.55.
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.