CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Fundamental Analysis & Valuation

TSX:CTC-A • CA1366812024

Current stock price

189.71 CAD
+1.75 (+0.93%)
Last:

This CTC-A.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. CTC-A.CA Profitability Analysis

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.
  • Each year in the past 5 years CTC-A had a positive operating cash flow.
CTC-A.CA Yearly Net Income VS EBIT VS OCF VS FCFCTC-A.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

1.2 Ratios

  • CTC-A has a better Return On Assets (2.44%) than 66.67% of its industry peers.
  • CTC-A has a better Return On Equity (8.99%) than 66.67% of its industry peers.
  • CTC-A has a better Return On Invested Capital (5.54%) than 66.67% of its industry peers.
  • CTC-A had an Average Return On Invested Capital over the past 3 years of 6.14%. This is below the industry average of 10.71%.
Industry RankSector Rank
ROA 2.44%
ROE 8.99%
ROIC 5.54%
ROA(3y)2.47%
ROA(5y)3.46%
ROE(3y)9.09%
ROE(5y)13.57%
ROIC(3y)6.14%
ROIC(5y)7.39%
CTC-A.CA Yearly ROA, ROE, ROICCTC-A.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • CTC-A has a Profit Margin of 3.23%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
  • CTC-A's Profit Margin has declined in the last couple of years.
  • CTC-A has a Operating Margin of 7.20%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
  • CTC-A's Operating Margin has declined in the last couple of years.
  • CTC-A has a better Gross Margin (34.42%) than 66.67% of its industry peers.
  • CTC-A's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.2%
PM (TTM) 3.23%
GM 34.42%
OM growth 3Y-6.24%
OM growth 5Y-1.82%
PM growth 3Y-18.05%
PM growth 5Y-8.6%
GM growth 3Y0.17%
GM growth 5Y0.16%
CTC-A.CA Yearly Profit, Operating, Gross MarginsCTC-A.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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5

2. CTC-A.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTC-A is destroying value.
  • Compared to 1 year ago, CTC-A has less shares outstanding
  • Compared to 5 years ago, CTC-A has less shares outstanding
  • Compared to 1 year ago, CTC-A has about the same debt to assets ratio.
CTC-A.CA Yearly Shares OutstandingCTC-A.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
CTC-A.CA Yearly Total Debt VS Total AssetsCTC-A.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • CTC-A has an Altman-Z score of 1.95. 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 has a worse Altman-Z score (1.95) than 66.67% of its industry peers.
  • The Debt to FCF ratio of CTC-A is 26.59, which is on the high side as it means it would take CTC-A, 26.59 years of fcf income to pay off all of its debts.
  • CTC-A's Debt to FCF ratio of 26.59 is fine compared to the rest of the industry. CTC-A outperforms 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 RankSector Rank
Debt/Equity 1.12
Debt/FCF 26.59
Altman-Z 1.95
ROIC/WACC0.7
WACC7.97%
CTC-A.CA Yearly LT Debt VS Equity VS FCFCTC-A.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

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.
  • The Current ratio of CTC-A (1.83) is better than 100.00% of its industry peers.
  • A Quick Ratio of 1.44 indicates that CTC-A should not have too much problems paying its short term obligations.
  • CTC-A has a better Quick ratio (1.44) than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.83
Quick Ratio 1.44
CTC-A.CA Yearly Current Assets VS Current LiabilitesCTC-A.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. CTC-A.CA Growth Analysis

3.1 Past

  • CTC-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.68%, which is quite good.
  • CTC-A shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.31% yearly.
  • CTC-A shows a decrease in Revenue. In the last year, the revenue decreased by -0.26%.
  • The Revenue has been growing slightly by 1.87% on average over the past years.
EPS 1Y (TTM)9.68%
EPS 3Y-9.83%
EPS 5Y1.31%
EPS Q2Q%9.83%
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y-2.88%
Revenue growth 5Y1.87%
Sales Q2Q%0.97%

3.2 Future

  • CTC-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.98% yearly.
  • The Revenue is expected to grow by 2.75% on average over the next years.
EPS Next Y7.6%
EPS Next 2Y8.78%
EPS Next 3Y12.98%
EPS Next 5YN/A
Revenue Next Year1.95%
Revenue Next 2Y2.37%
Revenue Next 3Y2.75%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CTC-A.CA Yearly Revenue VS EstimatesCTC-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
CTC-A.CA Yearly EPS VS EstimatesCTC-A.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15

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6

4. CTC-A.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 13.73, which indicates a correct valuation of CTC-A.
  • Compared to the rest of the industry, the Price/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.
  • CTC-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.47.
  • With a Price/Forward Earnings ratio of 12.76, CTC-A is valued correctly.
  • 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.
  • CTC-A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.62.
Industry RankSector Rank
PE 13.73
Fwd PE 12.76
CTC-A.CA Price Earnings VS Forward Price EarningsCTC-A.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 a bit cheaper than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 34.67
EV/EBITDA 8.25
CTC-A.CA Per share dataCTC-A.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTC-A does not grow enough to justify the current Price/Earnings ratio.
  • CTC-A has a very decent profitability rating, which may justify a higher PE ratio.
  • CTC-A's earnings are expected to grow with 12.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.81
PEG (5Y)10.49
EPS Next 2Y8.78%
EPS Next 3Y12.98%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. CTC-A.CA Dividend Analysis

5.1 Amount

  • CTC-A has a Yearly Dividend Yield of 3.59%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.48, 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 1.81.
Industry RankSector Rank
Dividend Yield 3.59%

5.2 History

  • On average, the dividend of CTC-A grows each year by 20.98%, which is quite nice.
  • CTC-A has been paying a dividend for at least 10 years, so it has 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 Years15
Div Non Decr Years34
CTC-A.CA Yearly Dividends per shareCTC-A.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • CTC-A pays out 68.73% of its income as dividend. This is not a sustainable payout ratio.
  • CTC-A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP68.73%
EPS Next 2Y8.78%
EPS Next 3Y12.98%
CTC-A.CA Yearly Income VS Free CF VS DividendCTC-A.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B
CTC-A.CA Dividend Payout.CTC-A.CA Dividend Payout, showing the Payout Ratio.CTC-A.CA Dividend Payout.PayoutRetained Earnings

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CTC-A.CA Fundamentals: All Metrics, Ratios and Statistics

CANADIAN TIRE CORP-CLASS A

TSX:CTC-A (4/23/2026, 7:00:00 PM)

189.71

+1.75 (+0.93%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-19
Earnings (Next)05-14
Inst Owners36.08%
Inst Owner ChangeN/A
Ins Owners1.59%
Ins Owner ChangeN/A
Market Cap10.00B
Revenue(TTM)16.32B
Net Income(TTM)526.30M
Analysts51.76
Price Target197.27 (3.99%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.59%
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP68.73%
Div Incr Years15
Div Non Decr Years34
Ex-Date04-30
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.69%
Min EPS beat(2)14.09%
Max EPS beat(2)29.28%
EPS beat(4)3
Avg EPS beat(4)21.76%
Min EPS beat(4)-10.03%
Max EPS beat(4)53.7%
EPS beat(8)6
Avg EPS beat(8)29.9%
EPS beat(12)6
Avg EPS beat(12)13.75%
EPS beat(16)8
Avg EPS beat(16)13.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.78%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.41%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-2.56%
Revenue beat(12)0
Avg Revenue beat(12)-3.27%
Revenue beat(16)2
Avg Revenue beat(16)-2.15%
PT rev (1m)1.79%
PT rev (3m)6.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.44%
EPS NY rev (1m)1.07%
EPS NY rev (3m)5.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.61%
Valuation
Industry RankSector Rank
PE 13.73
Fwd PE 12.76
P/S 0.61
P/FCF 34.67
P/OCF 10.5
P/B 1.71
P/tB 2.22
EV/EBITDA 8.25
EPS(TTM)13.82
EY7.28%
EPS(NY)14.87
Fwd EY7.84%
FCF(TTM)5.47
FCFY2.88%
OCF(TTM)18.06
OCFY9.52%
SpS309.53
BVpS111.09
TBVpS85.27
PEG (NY)1.81
PEG (5Y)10.49
Graham Number185.859 (-2.03%)
Profitability
Industry RankSector Rank
ROA 2.44%
ROE 8.99%
ROCE 7.65%
ROIC 5.54%
ROICexc 5.78%
ROICexgc 6.34%
OM 7.2%
PM (TTM) 3.23%
GM 34.42%
FCFM 1.77%
ROA(3y)2.47%
ROA(5y)3.46%
ROE(3y)9.09%
ROE(5y)13.57%
ROIC(3y)6.14%
ROIC(5y)7.39%
ROICexc(3y)6.37%
ROICexc(5y)7.92%
ROICexgc(3y)7.22%
ROICexgc(5y)9.25%
ROCE(3y)8.58%
ROCE(5y)10.25%
ROICexgc growth 3Y-11.1%
ROICexgc growth 5Y-4%
ROICexc growth 3Y-8.95%
ROICexc growth 5Y-2.15%
OM growth 3Y-6.24%
OM growth 5Y-1.82%
PM growth 3Y-18.05%
PM growth 5Y-8.6%
GM growth 3Y0.17%
GM growth 5Y0.16%
F-Score8
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF 26.59
Debt/EBITDA 3.38
Cap/Depr 86.87%
Cap/Sales 4.07%
Interest Coverage 3.19
Cash Conversion 49.13%
Profit Quality 54.8%
Current Ratio 1.83
Quick Ratio 1.44
Altman-Z 1.95
F-Score8
WACC7.97%
ROIC/WACC0.7
Cap/Depr(3y)83.78%
Cap/Depr(5y)94.92%
Cap/Sales(3y)4.06%
Cap/Sales(5y)4.33%
Profit Quality(3y)178.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.68%
EPS 3Y-9.83%
EPS 5Y1.31%
EPS Q2Q%9.83%
EPS Next Y7.6%
EPS Next 2Y8.78%
EPS Next 3Y12.98%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y-2.88%
Revenue growth 5Y1.87%
Sales Q2Q%0.97%
Revenue Next Year1.95%
Revenue Next 2Y2.37%
Revenue Next 3Y2.75%
Revenue Next 5YN/A
EBIT growth 1Y-26.87%
EBIT growth 3Y-8.94%
EBIT growth 5Y0.02%
EBIT Next Year70.83%
EBIT Next 3Y24%
EBIT Next 5YN/A
FCF growth 1Y-79.79%
FCF growth 3YN/A
FCF growth 5Y-32.15%
OCF growth 1Y-53.87%
OCF growth 3Y18.93%
OCF growth 5Y-17.18%

CANADIAN TIRE CORP-CLASS A / CTC-A.CA Fundamental Analysis 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.


Can you provide the valuation status for CANADIAN TIRE CORP-CLASS A?

ChartMill assigns a valuation rating of 6 / 10 to CANADIAN TIRE CORP-CLASS A (CTC-A.CA). This can be considered as Fairly Valued.


Can you provide the profitability details for CANADIAN TIRE CORP-CLASS A?

CANADIAN TIRE CORP-CLASS A (CTC-A.CA) has a profitability rating of 6 / 10.


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 grow by 7.6% in the next year.


How sustainable is the dividend of CANADIAN TIRE CORP-CLASS A (CTC-A.CA) stock?

The dividend rating of CANADIAN TIRE CORP-CLASS A (CTC-A.CA) is 6 / 10 and the dividend payout ratio is 68.73%.