CANADIAN TIRE CORP (CTC.CA) Fundamental Analysis & Valuation
TSX:CTC • CA1366811034
Current stock price
208.88 CAD
-5.05 (-2.36%)
Last:
This CTC.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CTC.CA Profitability Analysis
1.1 Basic Checks
- CTC had positive earnings in the past year.
- CTC had a positive operating cash flow in the past year.
- In the past 5 years CTC has always been profitable.
- In the past 5 years CTC always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 2.44%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 8.99%, CTC is doing worse than 66.67% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 5.54%, CTC is doing worse than 66.67% of the companies in the same industry.
- CTC 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 Rank | Sector 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%
1.3 Margins
- CTC has a Profit Margin of 3.23%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
- CTC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 7.20%, CTC is doing worse than 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of CTC has declined.
- With a Gross Margin value of 34.42%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of CTC has remained more or less at the same level.
| Industry Rank | Sector 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%
2. CTC.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTC is destroying value.
- Compared to 1 year ago, CTC has less shares outstanding
- CTC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CTC has about the same debt to assets ratio.
2.2 Solvency
- CTC has an Altman-Z score of 1.98. This is not the best score and indicates that CTC is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 1.98, CTC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- CTC has a debt to FCF ratio of 26.59. This is a negative value and a sign of low solvency as CTC would need 26.59 years to pay back of all of its debts.
- CTC has a Debt to FCF ratio of 26.59. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
- A Debt/Equity ratio of 1.12 is on the high side and indicates that CTC has dependencies on debt financing.
- The Debt to Equity ratio of CTC (1.12) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 26.59 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.72
WACC7.7%
2.3 Liquidity
- CTC has a Current Ratio of 1.83. This is a normal value and indicates that CTC is financially healthy and should not expect problems in meeting its short term obligations.
- CTC's Current ratio of 1.83 is fine compared to the rest of the industry. CTC outperforms 66.67% of its industry peers.
- CTC has a Quick Ratio of 1.44. This is a normal value and indicates that CTC is financially healthy and should not expect problems in meeting its short term obligations.
- CTC has a Quick ratio of 1.44. This is in the better half of the industry: CTC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.44 |
3. CTC.CA Growth Analysis
3.1 Past
- CTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.68%, which is quite good.
- Measured over the past 5 years, CTC shows a small growth in Earnings Per Share. The EPS has been growing by 1.31% on average per year.
- The Revenue has decreased by -0.26% in the past year.
- CTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.87% yearly.
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
- The Earnings Per Share is expected to grow by 8.61% on average over the next years. This is quite good.
- CTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.22% yearly.
EPS Next Y6.46%
EPS Next 2Y7.83%
EPS Next 3Y8.61%
EPS Next 5YN/A
Revenue Next Year1.46%
Revenue Next 2Y1.96%
Revenue Next 3Y2.22%
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 stable: in the next years the growth will be about the same than in the last years.
4. CTC.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.11, which indicates a correct valuation of CTC.
- Compared to the rest of the industry, the Price/Earnings ratio of CTC indicates a somewhat cheap valuation: CTC is cheaper than 66.67% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 25.60. CTC is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 14.20, CTC is valued correctly.
- 66.67% of the companies in the same industry are more expensive than CTC, based on the Price/Forward Earnings ratio.
- CTC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 14.2 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CTC is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.18 | ||
| EV/EBITDA | 8.78 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.34
PEG (5Y)11.55
EPS Next 2Y7.83%
EPS Next 3Y8.61%
5. CTC.CA Dividend Analysis
5.1 Amount
- CTC has a Yearly Dividend Yield of 3.90%.
- CTC's Dividend Yield is rather good when compared to the industry average which is at 2.70. CTC pays more dividend than 100.00% of the companies in the same industry.
- CTC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
- On average, the dividend of CTC grows each year by 20.98%, which is quite nice.
- CTC has been paying a dividend for at least 10 years, so it has a reliable track record.
- CTC 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 Years22
5.3 Sustainability
- CTC pays out 68.73% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of CTC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP68.73%
EPS Next 2Y7.83%
EPS Next 3Y8.61%
CTC.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:CTC (3/30/2026, 7:00:00 PM)
208.88
-5.05 (-2.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners35.93%
Inst Owner ChangeN/A
Ins Owners1.58%
Ins Owner ChangeN/A
Market Cap11.01B
Revenue(TTM)16.32B
Net Income(TTM)526.30M
Analysts51.76
Price Target245.82 (17.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP68.73%
Div Incr Years14
Div Non Decr Years22
Ex-Date04-30 2026-04-30 (1.8)
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-3.56%
EPS NQ rev (3m)-1.44%
EPS NY rev (1m)4.06%
EPS NY rev (3m)4.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 14.2 | ||
| P/S | 0.67 | ||
| P/FCF | 38.18 | ||
| P/OCF | 11.56 | ||
| P/B | 1.88 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 8.78 |
EPS(TTM)13.82
EY6.62%
EPS(NY)14.71
Fwd EY7.04%
FCF(TTM)5.47
FCFY2.62%
OCF(TTM)18.06
OCFY8.65%
SpS309.53
BVpS111.09
TBVpS85.27
PEG (NY)2.34
PEG (5Y)11.55
Graham Number185.86
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.98 |
F-Score8
WACC7.7%
ROIC/WACC0.72
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 Y6.46%
EPS Next 2Y7.83%
EPS Next 3Y8.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y-2.88%
Revenue growth 5Y1.87%
Sales Q2Q%0.97%
Revenue Next Year1.46%
Revenue Next 2Y1.96%
Revenue Next 3Y2.22%
Revenue Next 5YN/A
EBIT growth 1Y-26.87%
EBIT growth 3Y-8.94%
EBIT growth 5Y0.02%
EBIT Next Year69.92%
EBIT Next 3Y22.3%
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 / CTC.CA Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for CANADIAN TIRE CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CTC.CA.
What is the valuation status of CANADIAN TIRE CORP (CTC.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to CANADIAN TIRE CORP (CTC.CA). This can be considered as Overvalued.
Can you provide the profitability details for CANADIAN TIRE CORP?
CANADIAN TIRE CORP (CTC.CA) has a profitability rating of 2 / 10.
What is the financial health of CANADIAN TIRE CORP (CTC.CA) stock?
The financial health rating of CANADIAN TIRE CORP (CTC.CA) is 4 / 10.
Can you provide the expected EPS growth for CTC stock?
The Earnings per Share (EPS) of CANADIAN TIRE CORP (CTC.CA) is expected to grow by 6.46% in the next year.