CANADIAN TIRE CORP (CTC.CA) Fundamental Analysis & Valuation
TSX:CTC • CA1366811034
217.5 CAD
-10.5 (-4.61%)
Last: Mar 3, 2026, 07:00 PM
This CTC.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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 quite expensive at the moment. It does show a decent growth rate. Finally CTC also has an excellent dividend rating.
1. CTC.CA Profitability Analysis
1.1 Basic Checks
- In the past year CTC was profitable.
- CTC had a positive operating cash flow in the past year.
- Each year in the past 5 years CTC has been profitable.
- Each year in the past 5 years CTC had a positive operating cash flow.
1.2 Ratios
- CTC has a worse Return On Assets (2.44%) than 66.67% of its industry peers.
- CTC has a worse Return On Equity (8.99%) than 66.67% of its industry peers.
- 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.
- The Average Return On Invested Capital over the past 3 years for CTC is below the industry average of 10.88%.
| 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's Profit Margin of 3.23% is on the low side compared to the rest of the industry. CTC is outperformed by 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.
- CTC's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 34.42%, CTC is doing worse than 66.67% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 2.00. 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.
- The Altman-Z score of CTC (2.00) is better than 66.67% of its industry peers.
- 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 worse Debt to FCF ratio (26.59) than 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.
- CTC has a Debt to Equity ratio of 1.12. This is in the better half of the industry: CTC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 26.59 | ||
| Altman-Z | 2 |
ROIC/WACC0.69
WACC8.01%
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.
- With a decent Current ratio value of 1.83, CTC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- A Quick Ratio of 1.44 indicates that CTC should not have too much problems paying its short term obligations.
- CTC has a better Quick ratio (1.44) than 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
- The Earnings Per Share has grown by an nice 9.68% over the past year.
- CTC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.31% yearly.
- The Revenue has decreased by -0.26% in the past year.
- Measured over the past years, CTC shows a small growth in Revenue. The Revenue has been growing by 1.87% on average per year.
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
- Based on estimates for the next years, CTC will show a small growth in Earnings Per Share. The EPS will grow by 5.27% on average per year.
- CTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.48% yearly.
EPS Next Y2.3%
EPS Next 2Y5.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y1.48%
Revenue Next 3YN/A
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. CTC.CA Valuation Analysis
4.1 Price/Earnings Ratio
- CTC is valuated correctly with a Price/Earnings ratio of 15.74.
- 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 27.03.
- Based on the Price/Forward Earnings ratio of 15.38, the valuation of CTC can be described as correct.
- Based on the Price/Forward Earnings ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
- CTC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 15.38 |
4.2 Price Multiples
- CTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CTC is cheaper than 66.67% of the companies in the same industry.
- CTC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CTC is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.94 | ||
| EV/EBITDA | 9.04 |
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)6.83
PEG (5Y)12.02
EPS Next 2Y5.27%
EPS Next 3YN/A
5. CTC.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.78%, CTC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.59, CTC pays a better dividend. On top of this CTC pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, CTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
- The dividend of CTC is nicely growing with an annual growth rate of 20.98%!
- CTC has been paying a dividend for at least 10 years, so it has a reliable track record.
- CTC 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 Years22
5.3 Sustainability
- 68.73% of the earnings are spent on dividend by CTC. This is not a sustainable payout ratio.
- CTC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP68.73%
EPS Next 2Y5.27%
EPS Next 3YN/A
CTC.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:CTC (3/3/2026, 7:00:00 PM)
217.5
-10.5 (-4.61%)
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 Owners35.33%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap11.52B
Revenue(TTM)16.32B
Net Income(TTM)526.30M
Analysts50.59
Price Target245.82 (13.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP68.73%
Div Incr Years14
Div Non Decr Years22
Ex-Date01-30 2026-01-30 (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)-4.58%
EPS NQ rev (1m)1.73%
EPS NQ rev (3m)2.95%
EPS NY rev (1m)0%
EPS NY rev (3m)2.93%
Revenue NQ rev (1m)1.5%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 15.38 | ||
| P/S | 0.71 | ||
| P/FCF | 39.94 | ||
| P/OCF | 12.1 | ||
| P/B | 1.97 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 9.04 |
EPS(TTM)13.82
EY6.35%
EPS(NY)14.14
Fwd EY6.5%
FCF(TTM)5.45
FCFY2.5%
OCF(TTM)17.98
OCFY8.27%
SpS308.07
BVpS110.57
TBVpS84.87
PEG (NY)6.83
PEG (5Y)12.02
Graham Number185.42
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 | 2 |
F-Score8
WACC8.01%
ROIC/WACC0.69
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 Y2.3%
EPS Next 2Y5.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y-2.88%
Revenue growth 5Y1.87%
Sales Q2Q%0.97%
Revenue Next Year1.2%
Revenue Next 2Y1.48%
Revenue Next 3YN/A
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 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 3 / 10 to CANADIAN TIRE CORP (CTC.CA). This can be considered as Overvalued.
How profitable is CANADIAN TIRE CORP (CTC.CA) stock?
CANADIAN TIRE CORP (CTC.CA) has a profitability rating of 2 / 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 7 / 10 and the dividend payout ratio is 68.73%.