CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada - TSX:CTC - CA1366811034 - Common Stock
240 CAD
-4 (-1.64%)
We assign a fundamental rating of 4 out of 10 to CTC. 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 not valued too expensively and it also shows a decent growth rate. Finally CTC also has an excellent dividend rating.
1. Profitability
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.
In the past 5 years CTC always reported a positive cash flow from operatings.
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 Return On Equity of 12.37%. This is in the lower half of the industry: CTC underperforms 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.
Measured over the past 3 years, the Average Return On Invested Capital for CTC is below the industry average of 10.70%.
| 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's Profit Margin of 4.49% is on the low side compared to the rest of the industry. CTC is outperformed by 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.
CTC has a Operating Margin of 8.54%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
CTC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 34.22%, 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTC is destroying value.
The number of shares outstanding for CTC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, CTC has less shares outstanding
CTC has a better debt/assets ratio than last year.
2.2 Solvency
CTC has an Altman-Z score of 2.05. 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's Altman-Z score of 2.05 is fine compared to the rest of the industry. CTC outperforms 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.
CTC's Debt to FCF ratio of 17.07 is on the low side compared to the rest of the industry. CTC is outperformed by 66.67% of its industry peers.
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 | 2.05 |
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's Current ratio of 1.80 is fine compared to the rest of the industry. CTC outperforms 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 20.92%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.74% on average over the past years.
The Revenue has decreased by -0.13% in the past year.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)20.92%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%-12.73%
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-2.08%
3.2 Future
CTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.59% yearly.
CTC 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
Based on the Price/Earnings ratio of 19.05, the valuation of CTC can be described as rather expensive.
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 25.07. CTC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.47, which indicates a rather expensive current valuation of CTC.
66.67% of the companies in the same industry are more expensive than CTC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.08. CTC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.05 | ||
| Fwd PE | 17.47 |
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.
Based on the Price/Free Cash Flow ratio, CTC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.02 | ||
| EV/EBITDA | 8.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.41%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
CTC has a Yearly Dividend Yield of 4.19%, which is a nice return.
Compared to an average industry Dividend Yield of 2.86, 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 2.44, CTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
The dividend of CTC is nicely growing with an annual growth rate of 20.98%!
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
CTC pays out 49.67% of its income as dividend. 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 2Y4.41%
EPS Next 3Y5.59%
TSX:CTC (11/14/2025, 7:00:00 PM)
240
-4 (-1.64%)
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 Cap12.86B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target258.94 (7.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP49.67%
Div Incr Years14
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)-11.09%
PT rev (3m)3.42%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)5.81%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.05 | ||
| Fwd PE | 17.47 | ||
| P/S | 0.79 | ||
| P/FCF | 28.02 | ||
| P/OCF | 12.51 | ||
| P/B | 2.18 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 8.93 |
EPS(TTM)12.6
EY5.25%
EPS(NY)13.74
Fwd EY5.72%
FCF(TTM)8.57
FCFY3.57%
OCF(TTM)19.19
OCFY7.99%
SpS303.63
BVpS110.14
TBVpS84.68
PEG (NY)N/A
PEG (5Y)N/A
Graham Number176.7
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 | 2.05 |
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)20.92%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%-12.73%
EPS Next Y-0.38%
EPS Next 2Y4.41%
EPS Next 3Y5.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-2.08%
Revenue Next Year-1.17%
Revenue Next 2Y0.04%
Revenue Next 3Y0.61%
Revenue Next 5YN/A
EBIT growth 1Y1.6%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year46.76%
EBIT Next 3Y15.76%
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.
What is the valuation status for CTC stock?
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.
What is the expected EPS growth for CANADIAN TIRE CORP (CTC.CA) stock?
The Earnings per Share (EPS) of CANADIAN TIRE CORP (CTC.CA) is expected to decline by -0.38% in the next year.
How sustainable is the dividend of CANADIAN TIRE CORP (CTC.CA) stock?
The dividend rating of CANADIAN TIRE CORP (CTC.CA) is 8 / 10 and the dividend payout ratio is 49.67%.