CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CTC-A • CA1366812024
173.56 CAD
+2.89 (+1.69%)
Last: Feb 3, 2026, 07:00 PM
Taking everything into account, CTC-A scores 5 out of 10 in our fundamental rating. CTC-A was compared to 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 bad growth rate and is valued cheaply. Finally CTC-A also has an excellent dividend rating. These ratings would make CTC-A suitable 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.
- CTC-A had positive earnings in each of the past 5 years.
- CTC-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.33%, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- CTC-A's Return On Equity of 12.37% is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
- CTC-A has a Return On Invested Capital of 5.83%. This is in the better half of the industry: CTC-A outperforms 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 has a Profit Margin of 4.49%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
- CTC-A's Profit Margin has been stable in the last couple of years.
- 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.
- With a decent Gross Margin value of 34.22%, 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 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.
- 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 1.92. 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.
- The Altman-Z score of CTC-A (1.92) is worse than 66.67% of its industry peers.
- 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.
- CTC-A's Debt to FCF ratio of 17.07 is fine compared to the rest 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.
- CTC-A has a better Debt to Equity ratio (1.13) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.79
WACC7.34%
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 has a Current ratio of 1.80. This is amongst the best in 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's Quick ratio of 1.36 is amongst the best of 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
- 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.
- 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 -0.13% 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)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 6.72% 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 Y5.23%
EPS Next 2Y5.93%
EPS Next 3Y6.72%
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
- 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
- A Price/Earnings ratio of 12.93 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.
- CTC-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
- A Price/Forward Earnings ratio of 12.28 indicates a correct valuation of CTC-A.
- Based on the Price/Forward Earnings ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.51. CTC-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 12.28 |
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 | 20.12 | ||
| EV/EBITDA | 7.24 |
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)2.47
PEG (5Y)N/A
EPS Next 2Y5.93%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.21%, CTC-A is a good candidate for dividend investing.
- CTC-A's Dividend Yield is a higher than the industry average which is at 2.88.
- Compared to an average S&P500 Dividend Yield of 1.83, CTC-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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 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 2Y5.93%
EPS Next 3Y6.72%
TSX:CTC-A (2/3/2026, 7:00:00 PM)
173.56
+2.89 (+1.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-12 2026-02-12
Inst Owners35.33%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap9.23B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target185.03 (6.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP49.67%
Div Incr Years14
Div Non Decr Years34
Ex-Date01-30 2026-01-30 (1.8)
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%
PT rev (3m)3.3%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)0.11%
EPS NY rev (3m)5.24%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 12.28 | ||
| P/S | 0.57 | ||
| P/FCF | 20.12 | ||
| P/OCF | 8.98 | ||
| P/B | 1.56 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 7.24 |
EPS(TTM)13.42
EY7.73%
EPS(NY)14.14
Fwd EY8.15%
FCF(TTM)8.63
FCFY4.97%
OCF(TTM)19.33
OCFY11.14%
SpS305.86
BVpS110.95
TBVpS85.3
PEG (NY)2.47
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
WACC7.34%
ROIC/WACC0.79
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 Y5.23%
EPS Next 2Y5.93%
EPS Next 3Y6.72%
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 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.
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 12.93 and the Price/Book (PB) ratio is 1.56.
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.