CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CTC-A - CA1366812024 - Common Stock
171.76 CAD
-0.6 (-0.35%)
Taking everything into account, CTC-A scores 5 out of 10 in our fundamental rating. CTC-A was compared to 2 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 valuation in line with the averages, but on the other hand it scores bad on growth. CTC-A also has an excellent dividend rating. With these ratings, CTC-A could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year CTC-A was profitable.
CTC-A had a positive operating cash flow in the past year.
In the past 5 years CTC-A has always been profitable.
CTC-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTC-A has a Return On Assets (3.33%) which is in line with its industry peers.
CTC-A's Return On Equity of 12.37% is in line compared to the rest of the industry. CTC-A outperforms 50.00% of its industry peers.
With a Return On Invested Capital value of 5.83%, CTC-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
CTC-A had an Average Return On Invested Capital over the past 3 years of 6.91%. This 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
CTC-A has a Profit Margin (4.49%) which is comparable to the rest of the industry.
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 (8.54%) which is in line with its industry peers.
CTC-A's Operating Margin has improved in the last couple of years.
CTC-A has a Gross Margin of 34.22%. This is comparable to the rest of the industry: CTC-A outperforms 50.00% 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
CTC-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.92 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 (1.92) 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.
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 | 1.92 |
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 has a better Current ratio (1.80) 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.
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.
The Earnings Per Share has been decreasing by -0.74% on average over the past years.
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 5.59% on average per year.
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
Based on the Price/Earnings ratio of 12.80, the valuation of CTC-A can be described as correct.
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 26.37.
A Price/Forward Earnings ratio of 12.50 indicates a correct valuation of CTC-A.
Compared to the rest of the industry, the Price/Forward 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.20, CTC-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTC-A indicates a rather cheap valuation: CTC-A is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTC-A indicates a rather cheap valuation: CTC-A is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.99 | ||
| EV/EBITDA | 7.21 |
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
CTC-A has a Yearly Dividend Yield of 4.24%, which is a nice return.
Compared to an average industry Dividend Yield of 2.23, CTC-A pays a better dividend. On top of this CTC-A pays more dividend than 100.00% of the companies listed in the same industry.
CTC-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
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 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
CTC-A pays out 49.67% of its income as dividend. 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 (12/3/2025, 7:00:00 PM)
171.76
-0.6 (-0.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.2%
Inst Owner ChangeN/A
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap9.18B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target184.42 (7.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
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 | 12.8 | ||
| Fwd PE | 12.5 | ||
| P/S | 0.56 | ||
| P/FCF | 19.99 | ||
| P/OCF | 8.92 | ||
| P/B | 1.55 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)13.42
EY7.81%
EPS(NY)13.74
Fwd EY8%
FCF(TTM)8.59
FCFY5%
OCF(TTM)19.25
OCFY11.21%
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 | 1.92 |
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 12.8 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.