CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CTC - CA1366811034 - Common Stock
209 CAD
0 (0%)
Taking everything into account, CTC scores 4 out of 10 in our fundamental rating. CTC was compared to 3 industry peers in the Broadline Retail industry. CTC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CTC is valued correctly, but it does not seem to be growing. CTC also has an excellent dividend rating.
1. Profitability
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.
CTC 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 is doing worse than 66.67% of the companies in the same industry.
CTC has a worse Return On Equity (12.37%) than 66.67% of its industry peers.
With a Return On Invested Capital value of 5.83%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for CTC is below the industry average of 11.07%.
| 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 has a worse Profit Margin (4.49%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of CTC has remained more or less at the same level.
With a Operating Margin value of 8.54%, 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 Operating Margin of CTC has grown nicely.
CTC has a Gross Margin of 34.22%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
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 | 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
CTC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CTC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTC has less shares outstanding
The debt/assets ratio for CTC has been reduced compared to a year ago.
2.2 Solvency
CTC has an Altman-Z score of 1.99. 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.
CTC has a better Altman-Z score (1.99) than 66.67% of its industry peers.
CTC has a debt to FCF ratio of 17.07. This is a negative value and a sign of low solvency as CTC would need 17.07 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.07, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
CTC has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
CTC's Debt to Equity ratio of 1.13 is fine compared to the rest of the industry. CTC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.79
WACC7.34%
2.3 Liquidity
CTC has a Current Ratio of 1.80. 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 better Current ratio (1.80) than 66.67% of its industry peers.
A Quick Ratio of 1.36 indicates that CTC should not have too much problems paying its short term obligations.
CTC has a better Quick ratio (1.36) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
CTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.68%, which is quite good.
Measured over the past years, CTC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.74% on average per year.
CTC shows a decrease in Revenue. In the last year, the revenue decreased by -0.13%.
CTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.39% yearly.
EPS 1Y (TTM)12.68%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%5.29%
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 6.55% on average over the next years.
Based on estimates for the next years, CTC will show a small growth in Revenue. The Revenue will grow by 0.54% on average per year.
EPS Next Y5.12%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue Next Year-1.34%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.54%
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
A Price/Earnings ratio of 15.57 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.
CTC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
CTC is valuated correctly with a Price/Forward Earnings ratio of 14.81.
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 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 14.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.22 | ||
| EV/EBITDA | 8.12 |
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)3.04
PEG (5Y)N/A
EPS Next 2Y5.83%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.11%, CTC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.81, CTC pays a better dividend. On top of this CTC pays more dividend than 100.00% of the companies listed in the same industry.
CTC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
5.2 History
On average, the dividend of CTC grows each year by 20.98%, which is quite nice.
CTC has paid a dividend for at least 10 years, which is 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
49.67% of the earnings are spent on dividend by CTC. This is a bit on the high side, but may be sustainable.
CTC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.67%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
TSX:CTC (1/9/2026, 7:00:00 PM)
209
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners35.33%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap11.12B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target245.82 (17.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP49.67%
Div Incr Years14
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.62%
Min EPS beat(2)-10.03%
Max EPS beat(2)29.28%
EPS beat(4)2
Avg EPS beat(4)16.39%
Min EPS beat(4)-10.03%
Max EPS beat(4)53.7%
EPS beat(8)5
Avg EPS beat(8)24.08%
EPS beat(12)6
Avg EPS beat(12)14.39%
EPS beat(16)8
Avg EPS beat(16)14.48%
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)-4.58%
PT rev (3m)-15.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)0%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 14.81 | ||
| P/S | 0.68 | ||
| P/FCF | 24.22 | ||
| P/OCF | 10.81 | ||
| P/B | 1.88 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 8.12 |
EPS(TTM)13.42
EY6.42%
EPS(NY)14.11
Fwd EY6.75%
FCF(TTM)8.63
FCFY4.13%
OCF(TTM)19.33
OCFY9.25%
SpS305.86
BVpS110.95
TBVpS85.3
PEG (NY)3.04
PEG (5Y)N/A
Graham Number183.03
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 | 1.99 |
F-Score7
WACC7.34%
ROIC/WACC0.79
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)12.68%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%5.29%
EPS Next Y5.12%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-2.08%
Revenue Next Year-1.34%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.54%
Revenue Next 5YN/A
EBIT growth 1Y1.6%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year50.73%
EBIT Next 3Y16.55%
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 / CTC.CA FAQ
Can you provide the ChartMill fundamental rating for CANADIAN TIRE CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CTC.CA.
Can you provide the valuation status for CANADIAN TIRE CORP?
ChartMill assigns a valuation rating of 4 / 10 to CANADIAN TIRE CORP (CTC.CA). This can be considered as Fairly Valued.
How profitable is CANADIAN TIRE CORP (CTC.CA) stock?
CANADIAN TIRE CORP (CTC.CA) has a profitability rating of 3 / 10.
How financially healthy is CANADIAN TIRE CORP?
The financial health rating of CANADIAN TIRE CORP (CTC.CA) is 4 / 10.
Is the dividend of CANADIAN TIRE CORP sustainable?
The dividend rating of CANADIAN TIRE CORP (CTC.CA) is 8 / 10 and the dividend payout ratio is 49.67%.