CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada - TSX:CTC-A - CA1366812024 - Common Stock
161.24 CAD
-0.6 (-0.37%)
CTC-A gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 may be a bit undervalued, certainly considering the very reasonable score on growth CTC-A also has an excellent dividend rating. With these ratings, CTC-A could be worth investigating further for value and 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.
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
With a decent Return On Assets value of 3.55%, CTC-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CTC-A has a Return On Equity of 13.06%. 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 6.20%, 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 10.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 13.06% | ||
| ROIC | 6.2% |
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
With a decent Profit Margin value of 4.65%, 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 Profit Margin of CTC-A has remained more or less at the same level.
Looking at the Operating Margin, with a value of 8.87%, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CTC-A's Operating Margin has improved in the last couple of years.
CTC-A's Gross Margin of 34.06% is fine compared to the rest 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 | 8.87% | ||
| PM (TTM) | 4.65% | ||
| GM | 34.06% |
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.
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.
Compared to 1 year ago, CTC-A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.95 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 1.95, CTC-A is doing worse than 66.67% of the companies in the same industry.
CTC-A has a debt to FCF ratio of 7.43. This is a slightly negative value and a sign of low solvency as CTC-A would need 7.43 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.43, CTC-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.12 is on the high side and indicates that CTC-A has dependencies on debt financing.
With an excellent Debt to Equity ratio value of 1.12, CTC-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.87
WACC7.15%
2.3 Liquidity
CTC-A has a Current Ratio of 1.83. This is a normal value and indicates that CTC-A is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.83, CTC-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that CTC-A should not have too much problems paying its short term obligations.
CTC-A's Quick ratio of 1.42 is amongst the best of the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.29% over the past year.
CTC-A shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
The Revenue has been growing slightly by 0.05% in the past year.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)17.29%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%0.28%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
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 4.95% on average per year.
The Revenue is expected to grow by 0.67% on average over the next years.
EPS Next Y-0.01%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
EPS Next 5YN/A
Revenue Next Year-1.1%
Revenue Next 2Y0.12%
Revenue Next 3Y0.67%
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
The Price/Earnings ratio is 12.19, which indicates a correct valuation of CTC-A.
Based on the Price/Earnings ratio, CTC-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.03. CTC-A is valued rather cheaply when compared to this.
CTC-A is valuated reasonably with a Price/Forward Earnings ratio of 11.60.
100.00% of the companies in the same industry are more expensive than CTC-A, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CTC-A to the average of the S&P500 Index (22.27), we can say CTC-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.19 | ||
| Fwd PE | 11.6 |
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.
100.00% of the companies in the same industry are more expensive than CTC-A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 6.36 |
4.3 Compensation for Growth
The decent profitability rating of CTC-A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.03%
EPS Next 3Y4.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.33%, CTC-A is a good candidate for dividend investing.
CTC-A's Dividend Yield is a higher than the industry average which is at 2.96.
CTC-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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 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 47.47% 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.
DP47.47%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
TSX:CTC-A (11/4/2025, 7:00:00 PM)
161.24
-0.6 (-0.37%)
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 Cap8.64B
Revenue(TTM)16.36B
Net Income(TTM)761.40M
Analysts50.59
Price Target179.11 (11.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP47.47%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.83%
Min EPS beat(2)-10.03%
Max EPS beat(2)53.7%
EPS beat(4)2
Avg EPS beat(4)12.94%
Min EPS beat(4)-10.03%
Max EPS beat(4)53.7%
EPS beat(8)4
Avg EPS beat(8)18.82%
EPS beat(12)5
Avg EPS beat(12)10.51%
EPS beat(16)7
Avg EPS beat(16)12.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-5.76%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-3.96%
Revenue beat(12)1
Avg Revenue beat(12)-3.22%
Revenue beat(16)3
Avg Revenue beat(16)-1.89%
PT rev (1m)-0.34%
PT rev (3m)0.46%
EPS NQ rev (1m)-2.67%
EPS NQ rev (3m)-13.91%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.19 | ||
| Fwd PE | 11.6 | ||
| P/S | 0.53 | ||
| P/FCF | 8.42 | ||
| P/OCF | 5.31 | ||
| P/B | 1.48 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 6.36 |
EPS(TTM)13.23
EY8.21%
EPS(NY)13.9
Fwd EY8.62%
FCF(TTM)19.15
FCFY11.88%
OCF(TTM)30.35
OCFY18.82%
SpS305.26
BVpS108.78
TBVpS83.1
PEG (NY)N/A
PEG (5Y)N/A
Graham Number179.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 13.06% | ||
| ROCE | 9.53% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 7.37% | ||
| OM | 8.87% | ||
| PM (TTM) | 4.65% | ||
| GM | 34.06% | ||
| FCFM | 6.27% |
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-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 78.82% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 73.51% | ||
| Profit Quality | 134.79% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.95 |
F-Score8
WACC7.15%
ROIC/WACC0.87
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)17.29%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%0.28%
EPS Next Y-0.01%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
Revenue Next Year-1.1%
Revenue Next 2Y0.12%
Revenue Next 3Y0.67%
Revenue Next 5YN/A
EBIT growth 1Y9.96%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year46.76%
EBIT Next 3Y15.76%
EBIT Next 5YN/A
FCF growth 1Y125.07%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y33.55%
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 6 / 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 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.
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 12.19 and the Price/Book (PB) ratio is 1.48.
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 -0.01% in the next year.