CANADIAN TIRE CORP (CTC.CA) Fundamental Analysis & Valuation

TSX:CTC • CA1366811034

Current stock price

219 CAD
-20.98 (-8.74%)
Last:

This CTC.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

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.
  • CTC had a positive operating cash flow in each of the past 5 years.
CTC.CA Yearly Net Income VS EBIT VS OCF VS FCFCTC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

1.2 Ratios

  • CTC has a worse Return On Assets (2.44%) than 66.67% of its industry peers.
  • With a Return On Equity value of 8.99%, 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 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 10.71%.
Industry RankSector 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%
CTC.CA Yearly ROA, ROE, ROICCTC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • CTC has a worse Profit Margin (3.23%) than 66.67% of its industry peers.
  • In the last couple of years the Profit Margin of CTC has declined.
  • CTC's Operating Margin of 7.20% is on the low side compared to the rest of the industry. CTC is outperformed by 66.67% of its industry peers.
  • CTC's Operating Margin has declined in the last couple of years.
  • CTC has a Gross Margin of 34.42%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
  • CTC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
CTC.CA Yearly Profit, Operating, Gross MarginsCTC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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4

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
  • The number of shares outstanding for CTC has been reduced compared to 5 years ago.
  • Compared to 1 year ago, CTC has about the same debt to assets ratio.
CTC.CA Yearly Shares OutstandingCTC.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
CTC.CA Yearly Total Debt VS Total AssetsCTC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • An Altman-Z score of 2.04 indicates that CTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.04, CTC is in the better half of 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's Debt to FCF ratio of 26.59 is on the low side compared to the rest of the industry. CTC is outperformed by 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.
  • With a decent Debt to Equity ratio value of 1.12, CTC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF 26.59
Altman-Z 2.04
ROIC/WACC0.7
WACC7.92%
CTC.CA Yearly LT Debt VS Equity VS FCFCTC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

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.
  • The Current ratio of CTC (1.83) is better than 66.67% of its industry peers.
  • A Quick Ratio of 1.44 indicates that CTC should not have too much problems paying its short term obligations.
  • The Quick ratio of CTC (1.44) is better than 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.83
Quick Ratio 1.44
CTC.CA Yearly Current Assets VS Current LiabilitesCTC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • 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 12.98% yearly.
  • CTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.75% yearly.
EPS Next Y7.6%
EPS Next 2Y8.78%
EPS Next 3Y12.98%
EPS Next 5YN/A
Revenue Next Year1.95%
Revenue Next 2Y2.37%
Revenue Next 3Y2.75%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CTC.CA Yearly Revenue VS EstimatesCTC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
CTC.CA Yearly EPS VS EstimatesCTC.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15

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4

4. CTC.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • CTC is valuated correctly with a Price/Earnings ratio of 15.85.
  • Based on the Price/Earnings ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
  • CTC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 14.73, CTC is valued correctly.
  • Based on the Price/Forward Earnings ratio, CTC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • CTC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.36, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.85
Fwd PE 14.73
CTC.CA Price Earnings VS Forward Price EarningsCTC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA 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/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 RankSector Rank
P/FCF 40.03
EV/EBITDA 9.56
CTC.CA Per share dataCTC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

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.
  • A more expensive valuation may be justified as CTC's earnings are expected to grow with 12.98% in the coming years.
PEG (NY)2.08
PEG (5Y)12.11
EPS Next 2Y8.78%
EPS Next 3Y12.98%

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7

5. CTC.CA Dividend Analysis

5.1 Amount

  • CTC has a Yearly Dividend Yield of 3.80%.
  • Compared to an average industry Dividend Yield of 2.62, 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 RankSector Rank
Dividend Yield 3.8%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.98%
Div Incr Years15
Div Non Decr Years23
CTC.CA Yearly Dividends per shareCTC.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

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 2Y8.78%
EPS Next 3Y12.98%
CTC.CA Yearly Income VS Free CF VS DividendCTC.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B
CTC.CA Dividend Payout.CTC.CA Dividend Payout, showing the Payout Ratio.CTC.CA Dividend Payout.PayoutRetained Earnings

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CTC.CA Fundamentals: All Metrics, Ratios and Statistics

CANADIAN TIRE CORP

TSX:CTC (5/1/2026, 7:00:00 PM)

219

-20.98 (-8.74%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Industry Strength40.94
Industry Growth64.18
Earnings (Last)02-19
Earnings (Next)05-14
Inst Owners36.08%
Inst Owner ChangeN/A
Ins Owners1.59%
Ins Owner ChangeN/A
Market Cap11.54B
Revenue(TTM)16.32B
Net Income(TTM)526.30M
Analysts51.76
Price Target217.98 (-0.47%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.8%
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP68.73%
Div Incr Years15
Div Non Decr Years23
Ex-Date04-30
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)-11.33%
PT rev (3m)-11.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.89%
EPS NY rev (1m)1.07%
EPS NY rev (3m)5.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.61%
Valuation
Industry RankSector Rank
PE 15.85
Fwd PE 14.73
P/S 0.71
P/FCF 40.03
P/OCF 12.12
P/B 1.97
P/tB 2.57
EV/EBITDA 9.56
EPS(TTM)13.82
EY6.31%
EPS(NY)14.87
Fwd EY6.79%
FCF(TTM)5.47
FCFY2.5%
OCF(TTM)18.06
OCFY8.25%
SpS309.53
BVpS111.09
TBVpS85.27
PEG (NY)2.08
PEG (5Y)12.11
Graham Number185.859 (-15.13%)
Profitability
Industry RankSector 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 RankSector 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 2.04
F-Score8
WACC7.92%
ROIC/WACC0.7
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 Y7.6%
EPS Next 2Y8.78%
EPS Next 3Y12.98%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y-2.88%
Revenue growth 5Y1.87%
Sales Q2Q%0.97%
Revenue Next Year1.95%
Revenue Next 2Y2.37%
Revenue Next 3Y2.75%
Revenue Next 5YN/A
EBIT growth 1Y-26.87%
EBIT growth 3Y-8.94%
EBIT growth 5Y0.02%
EBIT Next Year70.83%
EBIT Next 3Y24%
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 7.6% in the next year.