CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada - TSX:CTC-A - CA1366812024 - Common Stock
171.8 CAD
+2.27 (+1.34%)
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 an average financial health and profitability rating. CTC-A is not valued too expensively and it also shows a decent growth rate. CTC-A also has an excellent dividend rating. These ratings could make CTC-A a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
CTC-A had positive earnings in the past year.
CTC-A had a positive operating cash flow in the past year.
In the past 5 years CTC-A has always been profitable.
CTC-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CTC-A (3.55%) is better than 66.67% of its industry peers.
With a decent Return On Equity value of 13.06%, 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 (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
Looking at the Profit Margin, with a value of 4.65%, CTC-A is in the better half of 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.
CTC-A has a Operating Margin of 8.87%. 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 Operating Margin of CTC-A has grown nicely.
CTC-A has a better Gross Margin (34.06%) 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 | 8.87% | ||
| 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.
Compared to 1 year ago, CTC-A has about the same amount of shares outstanding.
CTC-A has less shares outstanding than it did 5 years ago.
CTC-A has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.96 indicates that CTC-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTC-A has a Altman-Z score of 1.96. This is in the lower half of the industry: CTC-A underperforms 66.67% of its industry peers.
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.
CTC-A has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CTC-A (1.12) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.86
WACC7.2%
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.
CTC-A has a Quick Ratio of 1.42. 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 1.42 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
CTC-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.29%, which is quite good.
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.
Measured over the past years, CTC-A shows a small growth in Revenue. The Revenue has been growing by 2.39% on average per year.
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 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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.99, CTC-A is valued correctly.
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.
When comparing the Price/Earnings ratio of CTC-A to the average of the S&P500 Index (25.89), we can say CTC-A is valued slightly cheaper.
CTC-A is valuated correctly with a Price/Forward Earnings ratio of 12.51.
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 34.59, CTC-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 12.51 |
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 | 8.97 | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
CTC-A has a very decent profitability rating, which 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 4.17%, CTC-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.86, CTC-A pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, CTC-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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
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 2Y4.41%
EPS Next 3Y5.59%
TSX:CTC-A (11/14/2025, 7:00:00 PM)
171.8
+2.27 (+1.34%)
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 Cap9.21B
Revenue(TTM)16.36B
Net Income(TTM)761.40M
Analysts50.59
Price Target179.11 (4.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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)-2.66%
EPS NQ rev (1m)-2.75%
EPS NQ rev (3m)-13.23%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 12.51 | ||
| P/S | 0.56 | ||
| P/FCF | 8.97 | ||
| P/OCF | 5.66 | ||
| P/B | 1.58 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)13.23
EY7.7%
EPS(NY)13.74
Fwd EY8%
FCF(TTM)19.15
FCFY11.15%
OCF(TTM)30.35
OCFY17.67%
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 | 1.96 |
F-Score8
WACC7.2%
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-0.38%
EPS Next 2Y4.41%
EPS Next 3Y5.59%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
Revenue Next Year-1.17%
Revenue Next 2Y0.04%
Revenue Next 3Y0.61%
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 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 12.99 and the Price/Book (PB) ratio is 1.58.
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.