CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada - TSX:CTC-A - CA1366812024 - Common Stock
173.14 CAD
+2.54 (+1.49%)
Taking everything into account, CTC-A scores 5 out of 10 in our fundamental rating. CTC-A was compared to 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 decent growth rate and is not valued too expensively. Finally CTC-A also has an excellent dividend rating. This makes CTC-A very considerable 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.
CTC-A had positive earnings in each of the past 5 years.
CTC-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTC-A's Return On Assets of 3.55% is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
The Return On Equity of CTC-A (13.06%) is better than 66.67% of its industry peers.
The Return On Invested Capital of CTC-A (6.20%) is better than 66.67% of its industry peers.
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
CTC-A has a better Profit Margin (4.65%) than 66.67% of its industry peers.
CTC-A's Profit Margin has been stable in the last couple of years.
The Operating Margin of CTC-A (8.87%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CTC-A has grown nicely.
With a decent Gross Margin value of 34.06%, CTC-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CTC-A's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 5 years ago, CTC-A has less shares outstanding
CTC-A has a better debt/assets ratio than last year.
2.2 Solvency
CTC-A has an Altman-Z score of 1.97. 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.
CTC-A's Altman-Z score of 1.97 is on the low side compared to the rest of the industry. CTC-A is outperformed by 66.67% of its industry peers.
The Debt to FCF ratio of CTC-A is 7.43, which is on the high side as it means it would take CTC-A, 7.43 years of fcf income to pay off all of its debts.
CTC-A has a better Debt to FCF ratio (7.43) than 66.67% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that CTC-A has dependencies on debt financing.
CTC-A has a Debt to Equity ratio of 1.12. This is amongst the best in the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.86
WACC7.21%
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.
CTC-A's Current ratio of 1.83 is amongst the best of the industry. CTC-A outperforms 100.00% of its industry peers.
A Quick Ratio of 1.42 indicates that CTC-A should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.42, CTC-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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.
CTC-A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
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
The Earnings Per Share is expected to grow by 4.95% 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 0.67% yearly.
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
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
The Price/Earnings ratio is 13.09, which indicates a correct valuation of CTC-A.
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 27.40.
With a Price/Forward Earnings ratio of 12.46, CTC-A is valued correctly.
CTC-A's Price/Forward 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 rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 12.46 |
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.
Based on the Price/Free Cash Flow ratio, CTC-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.1 | ||
| EV/EBITDA | 6.61 |
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 4.16%, CTC-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.89, CTC-A pays a bit more dividend than its industry peers.
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 | 4.16% |
5.2 History
The dividend of CTC-A is nicely growing with an annual growth rate of 20.98%!
CTC-A has been paying a dividend for at least 10 years, so it has 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
47.47% 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.
DP47.47%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
TSX:CTC-A (10/17/2025, 7:00:00 PM)
173.14
+2.54 (+1.49%)
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 Cap9.28B
Analysts50.59
Price Target179.72 (3.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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%
PT rev (3m)3.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.24%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 12.46 | ||
| P/S | 0.57 | ||
| P/FCF | 9.1 | ||
| P/OCF | 5.74 | ||
| P/B | 1.6 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 6.61 |
EPS(TTM)13.23
EY7.64%
EPS(NY)13.9
Fwd EY8.03%
FCF(TTM)19.03
FCFY10.99%
OCF(TTM)30.17
OCFY17.42%
SpS303.39
BVpS108.11
TBVpS82.59
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y-9.58%
ROICexcg 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 | 1.97 |
F-Score8
WACC7.21%
ROIC/WACC0.86
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%