CANADIAN TIRE CORP (CTC.CA) Fundamental Analysis & Valuation
TSX:CTC • CA1366811034
Current stock price
225.95 CAD
+8.45 (+3.89%)
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.
- CTC had positive earnings in each of the past 5 years.
- In the past 5 years CTC always reported a positive cash flow from operatings.
1.2 Ratios
- CTC has a Return On Assets of 2.44%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
- 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.
- CTC has a worse Return On Invested Capital (5.54%) than 66.67% of its industry peers.
- CTC had an Average Return On Invested Capital over the past 3 years of 6.14%. This 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
- Looking at the Profit Margin, with a value of 3.23%, CTC is doing worse than 66.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of CTC has declined.
- With a Operating Margin value of 7.20%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- CTC's Operating Margin has declined in the last couple of years.
- The Gross Margin of CTC (34.42%) is worse than 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 | 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
- CTC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- An Altman-Z score of 2.02 indicates that CTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CTC has a Altman-Z score of 2.02. This is in the better half of the industry: CTC outperforms 66.67% of its industry peers.
- The Debt to FCF ratio of CTC is 26.59, which is on the high side as it means it would take CTC, 26.59 years of fcf income to pay off 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.
- CTC has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external 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 | 2.02 |
ROIC/WACC0.71
WACC7.76%
2.3 Liquidity
- A Current Ratio of 1.83 indicates that CTC should not have too much problems paying 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.
- With a decent Quick ratio value of 1.44, CTC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| 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.
- Looking at the last year, CTC shows a decrease in Revenue. The Revenue has decreased by -0.26% in the last 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
- CTC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.61% yearly.
- The Revenue is expected to grow by 2.22% on average over the next years.
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
- 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 stable.
4. CTC.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.35, which indicates a correct valuation of CTC.
- CTC's Price/Earnings ratio is a bit cheaper when compared to the industry. CTC is cheaper than 66.67% of the companies in the same industry.
- CTC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.79, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 15.36, CTC is valued correctly.
- Based on the Price/Forward Earnings ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, CTC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 15.36 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are more expensive than CTC, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, CTC is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.38 | ||
| EV/EBITDA | 9.25 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.53
PEG (5Y)12.49
EPS Next 2Y7.83%
EPS Next 3Y8.61%
5. CTC.CA Dividend Analysis
5.1 Amount
- CTC has a Yearly Dividend Yield of 3.86%. Purely for dividend investing, there may be better candidates out there.
- CTC's Dividend Yield is rather good when compared to the industry average which is at 2.65. CTC pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, CTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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 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.
- CTC's earnings are growing slower than its dividend. 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 (3/12/2026, 7:00:00 PM)
225.95
+8.45 (+3.89%)
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 Cap11.93B
Revenue(TTM)16.32B
Net Income(TTM)526.30M
Analysts51.76
Price Target245.82 (8.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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)-4.58%
EPS NQ rev (1m)-1.89%
EPS NQ rev (3m)-1.44%
EPS NY rev (1m)4.06%
EPS NY rev (3m)4.27%
Revenue NQ rev (1m)1.5%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 15.36 | ||
| P/S | 0.73 | ||
| P/FCF | 41.38 | ||
| P/OCF | 12.54 | ||
| P/B | 2.04 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 9.25 |
EPS(TTM)13.82
EY6.12%
EPS(NY)14.71
Fwd EY6.51%
FCF(TTM)5.46
FCFY2.42%
OCF(TTM)18.03
OCFY7.98%
SpS308.89
BVpS110.86
TBVpS85.09
PEG (NY)2.53
PEG (5Y)12.49
Graham Number185.67
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 | 2.02 |
F-Score8
WACC7.76%
ROIC/WACC0.71
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.
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%.