CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CTC-A • CA1366812024
167.52 CAD
-3.43 (-2.01%)
Last: Jan 30, 2026, 07:00 PM
CTC-A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 3 industry peers in the Broadline Retail industry. CTC-A has only an average score on both its financial health and profitability. CTC-A has a bad growth rate and is valued cheaply. CTC-A also has an excellent dividend rating. This makes CTC-A very considerable for value and 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.
- Each year in the past 5 years CTC-A had a positive operating cash flow.
1.2 Ratios
- CTC-A has a better Return On Assets (3.33%) than 66.67% of its industry peers.
- CTC-A has a Return On Equity of 12.37%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.83%, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- Looking at the Operating Margin, with a value of 8.54%, CTC-A is in the better half of 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
- CTC-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- 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.
- Looking at the Altman-Z score, with a value of 1.91, CTC-A is doing worse than 66.67% of the companies in the same 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.
- The Debt to FCF ratio of CTC-A (17.07) is better than 66.67% of its industry peers.
- A Debt/Equity ratio of 1.13 is on the high side and indicates that CTC-A has dependencies on debt 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/WACC0.8
WACC7.33%
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.
- The Current ratio of CTC-A (1.80) is better than 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.
- The Quick ratio of CTC-A (1.36) is better 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.
- The Earnings Per Share has been decreasing by -0.74% on average over the past years.
- CTC-A shows a decrease in Revenue. In the last year, the revenue decreased by -0.13%.
- Measured over the past years, CTC-A shows a small growth in Revenue. The Revenue has been growing by 2.39% on average per year.
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 6.72% on average over the next years.
- Based on estimates for the next years, CTC-A will show a small growth in Revenue. The Revenue will grow by 0.54% on average per year.
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.
- 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 12.48, CTC-A is valued correctly.
- 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.
- CTC-A is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.85, the valuation of CTC-A can be described as reasonable.
- 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 25.57, CTC-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 11.85 |
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.
- CTC-A's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CTC-A is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.42 | ||
| EV/EBITDA | 7.17 |
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)2.39
PEG (5Y)N/A
EPS Next 2Y5.93%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
- CTC-A has a Yearly Dividend Yield of 4.11%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.81, CTC-A pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, CTC-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
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 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 2Y5.93%
EPS Next 3Y6.72%
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 12.48 and the Price/Book (PB) ratio is 1.51.
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.