CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada - TSX:CTC-A - CA1366812024 - Common Stock
170 CAD
-4.29 (-2.46%)
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. Both the profitability and the financial health of CTC-A get a neutral evaluation. Nothing too spectacular is happening here. CTC-A is not valued too expensively and it also shows a decent growth rate. Finally 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
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.
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.
With a decent Return On Equity value of 12.37%, CTC-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Invested Capital of CTC-A (5.83%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTC-A is below the industry average of 10.70%.
| 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.
In the last couple of years the Profit Margin of CTC-A has remained more or less at the same level.
CTC-A's Operating Margin of 8.54% is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
CTC-A's Operating Margin has improved in the last couple of years.
CTC-A has a better Gross Margin (34.22%) than 66.67% 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
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.
The number of shares outstanding for CTC-A has been reduced compared to 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 1.91. 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.
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.
CTC-A has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
CTC-A's Debt to Equity ratio of 1.13 is amongst the best of the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.82
WACC7.07%
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.
Looking at the Current ratio, with a value of 1.80, CTC-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 20.92%, which is quite impressive.
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.
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)20.92%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%-12.73%
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 5.59% on average over the next years.
CTC-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.61% yearly.
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
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
Based on the Price/Earnings ratio of 13.49, the valuation of CTC-A can be described as correct.
Based on the Price/Earnings ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, CTC-A is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.38, the valuation of CTC-A can be described as correct.
Based on the Price/Forward Earnings ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, CTC-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 12.38 |
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.
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 | 19.85 | ||
| EV/EBITDA | 7.18 |
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 2Y4.41%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, CTC-A is a good candidate for dividend investing.
CTC-A's Dividend Yield is a higher than the industry average which is at 2.86.
Compared to an average S&P500 Dividend Yield of 2.44, CTC-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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
49.67% of the earnings are spent on dividend by CTC-A. 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 (11/18/2025, 7:00:00 PM)
170
-4.29 (-2.46%)
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 Cap9.11B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target179.11 (5.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP49.67%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)-0.34%
PT rev (3m)-2.66%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)5.81%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 12.38 | ||
| P/S | 0.56 | ||
| P/FCF | 19.85 | ||
| P/OCF | 8.86 | ||
| P/B | 1.54 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 7.18 |
EPS(TTM)12.6
EY7.41%
EPS(NY)13.74
Fwd EY8.08%
FCF(TTM)8.57
FCFY5.04%
OCF(TTM)19.19
OCFY11.29%
SpS303.63
BVpS110.14
TBVpS84.68
PEG (NY)N/A
PEG (5Y)N/A
Graham Number176.7
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 | 1.91 |
F-Score7
WACC7.07%
ROIC/WACC0.82
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)20.92%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%-12.73%
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 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 13.49 and the Price/Book (PB) ratio is 1.54.
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.