CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
TSX:CTC-A - Toronto Stock Exchange - CA1366812024 - Common Stock - Currency: CAD
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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CTC-A. CTC-A also has an excellent dividend rating.
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.
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's Return On Assets of 2.84% is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
CTC-A has a Return On Equity of 11.34%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
CTC-A's Return On Invested Capital of 5.62% is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 11.34% | ||
| ROIC | 5.62% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.98%, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CTC-A's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 8.33%, CTC-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CTC-A's Operating Margin has been stable in the last couple of years.
The Gross Margin of CTC-A (34.53%) is better than 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 | 8.33% | ||
| PM (TTM) | 3.98% | ||
| GM | 34.53% |
OM growth 3Y-6.25%
OM growth 5Y-0.51%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CTC-A has an Altman-Z score of 1.76. This is a bad value and indicates that CTC-A is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.76, CTC-A is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of CTC-A is 6.65, which is on the high side as it means it would take CTC-A, 6.65 years of fcf income to pay off all of its debts.
CTC-A's Debt to FCF ratio of 6.65 is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that CTC-A has dependencies on debt financing.
CTC-A has a better Debt to Equity ratio (1.25) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.56
WACC9.98%
2.3 Liquidity
A Current Ratio of 1.60 indicates that CTC-A should not have too much problems paying its short term obligations.
The Current ratio of CTC-A (1.60) is better than 100.00% of its industry peers.
CTC-A has a Quick Ratio of 1.19. 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 (1.19) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 319.21% over the past year.
CTC-A shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.89% yearly.
The Revenue has decreased by -1.79% in the past year.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)319.21%
EPS 3Y-4.68%
EPS 5Y4.89%
EPS Q2Q%138.4%
Revenue 1Y (TTM)-1.79%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.45%
3.2 Future
The Earnings Per Share is expected to grow by 7.45% on average over the next years.
The Revenue is expected to grow by 2.02% on average over the next years.
EPS Next Y2.73%
EPS Next 2Y5.81%
EPS Next 3Y7.45%
EPS Next 5YN/A
Revenue Next Year1.48%
Revenue Next 2Y1.78%
Revenue Next 3Y2.02%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.19, which indicates a very decent valuation of CTC-A.
CTC-A's Price/Earnings ratio is rather cheap when compared to the industry. CTC-A is cheaper than 100.00% of the companies in the same industry.
CTC-A is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.81, which indicates a very decent 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.
When comparing the Price/Forward Earnings ratio of CTC-A to the average of the S&P500 Index (22.10), we can say CTC-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.27 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CTC-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.36
PEG (5Y)1.88
EPS Next 2Y5.81%
EPS Next 3Y7.45%
5. Dividend
5.1 Amount
CTC-A has a Yearly Dividend Yield of 4.92%, which is a nice return.
CTC-A's Dividend Yield is a higher than the industry average which is at 3.36.
Compared to an average S&P500 Dividend Yield of 2.33, CTC-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
5.2 History
On average, the dividend of CTC-A grows each year by 25.86%, 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)25.86%
Div Incr Years14
Div Non Decr Years34
5.3 Sustainability
55.13% 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.
DP55.13%
EPS Next 2Y5.81%
EPS Next 3Y7.45%
TSX:CTC-A (3/7/2025, 7:00:00 PM)
146.2
+1.89 (+1.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.37%
Inst Owner ChangeN/A
Ins Owners1.49%
Ins Owner ChangeN/A
Market Cap8.13B
Analysts71
Price Target163.57 (11.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
Yearly Dividend6.37
Dividend Growth(5Y)25.86%
DP55.13%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.14%
Min EPS beat(2)15.47%
Max EPS beat(2)42.82%
EPS beat(4)3
Avg EPS beat(4)31.77%
Min EPS beat(4)-32.48%
Max EPS beat(4)101.26%
EPS beat(8)4
Avg EPS beat(8)13.39%
EPS beat(12)6
Avg EPS beat(12)13.84%
EPS beat(16)9
Avg EPS beat(16)31.82%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-13.54%
Max Revenue beat(4)-1.65%
Revenue beat(8)1
Avg Revenue beat(8)-3.1%
Revenue beat(12)3
Avg Revenue beat(12)-1.26%
Revenue beat(16)4
Avg Revenue beat(16)-0.78%
PT rev (1m)-3.4%
PT rev (3m)0.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)-2.98%
EPS NY rev (3m)-2.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)-2.02%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 10.81 | ||
| P/S | 0.5 | ||
| P/FCF | 6.27 | ||
| P/OCF | 3.95 | ||
| P/B | 1.42 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 6.93 |
EPS(TTM)15.91
EY10.88%
EPS(NY)13.52
Fwd EY9.25%
FCF(TTM)23.3
FCFY15.94%
OCF(TTM)37.01
OCFY25.31%
SpS292.94
BVpS102.84
TBVpS63.28
PEG (NY)3.36
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 11.34% | ||
| ROCE | 8.83% | ||
| ROIC | 5.62% | ||
| ROICexc | 5.8% | ||
| ROICexgc | 6.72% | ||
| OM | 8.33% | ||
| PM (TTM) | 3.98% | ||
| GM | 34.53% | ||
| FCFM | 7.96% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-6.25%
OM growth 5Y-0.51%
PM growth 3Y-7.79%
PM growth 5Y0.27%
GM growth 3Y-1.38%
GM growth 5Y0.48%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.65 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 96.36% | ||
| Cap/Sales | 4.68% | ||
| Interest Coverage | 3.43 | ||
| Cash Conversion | 95.8% | ||
| Profit Quality | 199.82% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 1.76 |
F-Score6
WACC9.98%
ROIC/WACC0.56
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)319.21%
EPS 3Y-4.68%
EPS 5Y4.89%
EPS Q2Q%138.4%
EPS Next Y2.73%
EPS Next 2Y5.81%
EPS Next 3Y7.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.79%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.45%
Revenue Next Year1.48%
Revenue Next 2Y1.78%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
EBIT growth 1Y-16.72%
EBIT growth 3Y-6.12%
EBIT growth 5Y1.87%
EBIT Next Year64.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y56.7%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y35.5%
OCF growth 3Y4.39%
OCF growth 5Y13.67%