CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada - TSX:CTC - CA1366811034 - Common Stock
246.46 CAD
-8.98 (-3.52%)
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 decent growth rate and is not valued too expensively. CTC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CTC was profitable.
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
With a Return On Assets value of 3.55%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Return On Equity of CTC (13.06%) is worse than 66.67% of its industry peers.
CTC has a Return On Invested Capital of 6.20%. 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 10.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 13.06% | ||
| ROIC | 6.2% |
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 4.65% 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.
The Operating Margin of CTC (8.87%) is worse than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CTC has grown nicely.
With a Gross Margin value of 34.06%, 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 | 8.87% | ||
| PM (TTM) | 4.65% | ||
| GM | 34.06% |
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.
Compared to 1 year ago, CTC has about the same amount of shares outstanding.
CTC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CTC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.12 indicates that CTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CTC (2.12) is better than 66.67% of its industry peers.
CTC has a debt to FCF ratio of 7.43. This is a slightly negative value and a sign of low solvency as CTC would need 7.43 years to pay back of all of its debts.
The Debt to FCF ratio of CTC (7.43) is worse than 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 | 7.43 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.85
WACC7.29%
2.3 Liquidity
A Current Ratio of 1.83 indicates that CTC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.83, CTC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that CTC should not have too much problems paying its short term obligations.
CTC has a better Quick ratio (1.42) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.29% over the past year.
Measured over the past years, CTC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.74% on average per year.
CTC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
CTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.39% yearly.
EPS 1Y (TTM)17.29%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%0.28%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
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 4.95% on average per year.
The Revenue is expected to grow by 0.67% on average over the next years.
EPS Next Y-0.01%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
EPS Next 5YN/A
Revenue Next Year-1.1%
Revenue Next 2Y0.12%
Revenue Next 3Y0.67%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.63, CTC is valued on the expensive side.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.76, CTC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.73, CTC is valued on the expensive side.
CTC's Price/Forward 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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 17.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTC is valued a bit cheaper than 66.67% of the companies 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 | 12.87 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.03%
EPS Next 3Y4.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.07%, CTC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.79, CTC pays a better dividend. On top of this CTC pays more dividend than 100.00% of the companies listed in the same industry.
CTC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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 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
47.47% of the earnings are spent on dividend by CTC. 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.
DP47.47%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
TSX:CTC (10/28/2025, 7:00:00 PM)
246.46
-8.98 (-3.52%)
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 Cap13.21B
Revenue(TTM)16.36B
Net Income(TTM)761.40M
Analysts50.59
Price Target291.25 (18.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP47.47%
Div Incr Years14
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.83%
Min EPS beat(2)-10.03%
Max EPS beat(2)53.7%
EPS beat(4)2
Avg EPS beat(4)12.94%
Min EPS beat(4)-10.03%
Max EPS beat(4)53.7%
EPS beat(8)4
Avg EPS beat(8)18.82%
EPS beat(12)5
Avg EPS beat(12)10.51%
EPS beat(16)7
Avg EPS beat(16)12.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-5.76%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-3.96%
Revenue beat(12)1
Avg Revenue beat(12)-3.22%
Revenue beat(16)3
Avg Revenue beat(16)-1.89%
PT rev (1m)13.92%
PT rev (3m)16.33%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-12.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 17.73 | ||
| P/S | 0.81 | ||
| P/FCF | 12.87 | ||
| P/OCF | 8.12 | ||
| P/B | 2.27 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)13.23
EY5.37%
EPS(NY)13.9
Fwd EY5.64%
FCF(TTM)19.15
FCFY7.77%
OCF(TTM)30.35
OCFY12.32%
SpS305.26
BVpS108.78
TBVpS83.1
PEG (NY)N/A
PEG (5Y)N/A
Graham Number179.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 13.06% | ||
| ROCE | 9.53% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 7.37% | ||
| OM | 8.87% | ||
| PM (TTM) | 4.65% | ||
| GM | 34.06% | ||
| FCFM | 6.27% |
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-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 78.82% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 73.51% | ||
| Profit Quality | 134.79% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 2.12 |
F-Score8
WACC7.29%
ROIC/WACC0.85
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)17.29%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%0.28%
EPS Next Y-0.01%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
Revenue Next Year-1.1%
Revenue Next 2Y0.12%
Revenue Next 3Y0.67%
Revenue Next 5YN/A
EBIT growth 1Y9.96%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year46.76%
EBIT Next 3Y15.76%
EBIT Next 5YN/A
FCF growth 1Y125.07%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y33.55%
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 -0.01% 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 47.47%.