CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CTC - CA1366811034 - Common Stock
209 CAD
-8.17 (-3.76%)
We assign a fundamental rating of 4 out of 10 to CTC. CTC was compared to 3 industry peers in the Broadline Retail industry. The financial health of CTC is average, but there are quite some concerns on its profitability. CTC has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
The Return On Equity of CTC (12.37%) is worse than 66.67% of its industry peers.
CTC has a Return On Invested Capital of 5.83%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
CTC had an Average Return On Invested Capital over the past 3 years of 6.91%. This 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'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.
CTC's Profit Margin has been stable in the last couple of years.
CTC's Operating Margin of 8.54% 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 Operating Margin of CTC has grown nicely.
Looking at the Gross Margin, with a value of 34.22%, CTC is doing worse than 66.67% of the companies in the same industry.
CTC's Gross Margin has been stable in the last couple of years.
| 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
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 about the same amount of shares outstanding.
The number of shares outstanding for CTC has been reduced compared to 5 years ago.
CTC has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 1.99, 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 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.
The Debt to FCF ratio of CTC (17.07) is worse than 66.67% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that CTC has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.13, CTC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.8
WACC7.32%
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.
Looking at the Current ratio, with a value of 1.80, CTC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that CTC should not have too much problems paying its short term obligations.
The Quick ratio of CTC (1.36) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.68% over the past year.
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.
Measured over the past years, CTC shows a small growth in Revenue. The Revenue has been growing by 2.39% on average per year.
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
Based on estimates for the next years, CTC will show a small growth in Earnings Per Share. The EPS will grow by 6.55% on average per year.
The Revenue is expected to grow by 0.54% on average over the next years.
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.
Based on the Price/Earnings ratio, CTC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CTC to the average of the S&P500 Index (27.00), we can say CTC is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.81 indicates a correct valuation of CTC.
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 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 14.81 |
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 cheaper when compared to the industry. CTC is 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 4.14%, CTC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.83, 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 1.94, CTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
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 49.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CTC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.67%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
TSX:CTC (1/8/2026, 7:00:00 PM)
209
-8.17 (-3.76%)
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 | 4.14% |
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)-0.68%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)5.52%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.17%
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
WACC7.32%
ROIC/WACC0.8
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%.