CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CTC - CA1366811034 - Common Stock
220 CAD
-4.17 (-1.86%)
CTC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a valuation in line with the averages, but it does not seem to be growing. Finally CTC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CTC had positive earnings in the past year.
In the past year CTC had a positive cash flow from operations.
In the past 5 years CTC has always been profitable.
In the past 5 years CTC always reported a positive cash flow from operatings.
1.2 Ratios
CTC has a Return On Assets of 3.33%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
CTC has a worse Return On Equity (12.37%) than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.83%, CTC is doing worse than 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTC 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.
In the last couple of years the Profit Margin of CTC has remained more or less at the same level.
With a Operating Margin value of 8.54%, 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 improved in the last couple of years.
CTC has a Gross Margin of 34.22%. This is in the lower half of the industry: CTC underperforms 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 | 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.
CTC has less shares outstanding than it did 5 years ago.
CTC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.01 indicates that CTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.01, CTC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of CTC is 17.07, which is on the high side as it means it would take CTC, 17.07 years of fcf income to pay off all of its debts.
CTC has a worse Debt to FCF ratio (17.07) 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.
CTC has a better Debt to Equity ratio (1.13) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.8
WACC7.32%
2.3 Liquidity
A Current Ratio of 1.80 indicates that CTC should not have too much problems paying its short term obligations.
CTC has a better Current ratio (1.80) than 66.67% of its industry peers.
CTC has a Quick Ratio of 1.36. 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 Quick ratio, with a value of 1.36, CTC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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.
CTC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
Looking at the last year, CTC shows a decrease in Revenue. The Revenue has decreased by -0.13% in the last year.
CTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.39% yearly.
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.
CTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.54% yearly.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.39, CTC is valued correctly.
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.
CTC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
CTC is valuated correctly with a Price/Forward Earnings ratio of 15.59.
66.67% of the companies in the same industry are more expensive than CTC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, CTC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 15.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
66.67% of the companies in the same industry are more expensive than CTC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.5 | ||
| EV/EBITDA | 8.39 |
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)3.2
PEG (5Y)N/A
EPS Next 2Y5.83%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
CTC has a Yearly Dividend Yield of 4.18%, which is a nice return.
CTC's Dividend Yield is rather good when compared to the industry average which is at 2.85. CTC pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, CTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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
49.67% of the earnings are spent on dividend by CTC. 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 2Y5.83%
EPS Next 3Y6.55%
TSX:CTC (12/29/2025, 7:00:00 PM)
220
-4.17 (-1.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.79%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap11.70B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target245.82 (11.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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)-3.84%
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 | 16.39 | ||
| Fwd PE | 15.59 | ||
| P/S | 0.72 | ||
| P/FCF | 25.5 | ||
| P/OCF | 11.38 | ||
| P/B | 1.98 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 8.39 |
EPS(TTM)13.42
EY6.1%
EPS(NY)14.11
Fwd EY6.41%
FCF(TTM)8.63
FCFY3.92%
OCF(TTM)19.33
OCFY8.79%
SpS305.86
BVpS110.95
TBVpS85.3
PEG (NY)3.2
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 | 2.01 |
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%.