CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CTC • CA1366811034
224 CAD
-0.15 (-0.07%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 4 out of 10 to CTC. CTC was compared to 3 industry peers in the Broadline Retail industry. While CTC seems to be doing ok healthwise, there are quite some concerns on its profitability. CTC is valued correctly, but it does not seem to be growing. 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.
- 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
- CTC's Return On Assets of 3.33% is on the low side compared to the rest of the industry. CTC is outperformed by 66.67% of its industry peers.
- CTC has a Return On Equity of 12.37%. This is in the lower half of the industry: CTC underperforms 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.
- The Average Return On Invested Capital over the past 3 years 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
- Looking at the Profit Margin, with a value of 4.49%, 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 remained more or less at the same level.
- 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.
- CTC's Operating Margin has improved in the last couple of years.
- CTC's Gross Margin of 34.22% is on the low side compared to the rest of the industry. CTC is outperformed by 66.67% of its industry peers.
- 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.
- CTC has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CTC has less shares outstanding
- CTC has a better debt/assets ratio than last year.
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.
- The Altman-Z score of CTC (2.02) is better than 66.67% of its industry peers.
- 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.
- CTC has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of CTC (1.13) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.78
WACC7.44%
2.3 Liquidity
- A Current Ratio of 1.80 indicates that CTC should not have too much problems paying its short term obligations.
- The Current ratio of CTC (1.80) is better 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
- CTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.68%, which is quite good.
- CTC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
- The Revenue has decreased by -0.13% in the past 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
- The Earnings Per Share is expected to grow by 6.72% on average over the next years.
- CTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.54% yearly.
EPS Next Y5.23%
EPS Next 2Y5.93%
EPS Next 3Y6.72%
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.
- 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
- CTC is valuated correctly with a Price/Earnings ratio of 16.69.
- Based on the Price/Earnings ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
- CTC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.30.
- The Price/Forward Earnings ratio is 15.84, which 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, CTC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.69 | ||
| Fwd PE | 15.84 |
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.
- Based on the Price/Free Cash Flow ratio, CTC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.96 | ||
| EV/EBITDA | 8.49 |
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)3.19
PEG (5Y)N/A
EPS Next 2Y5.93%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.21%, CTC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.88, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
- On average, the dividend of CTC grows each year by 20.98%, which is quite nice.
- CTC has paid a dividend for at least 10 years, which is 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
- 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 2Y5.93%
EPS Next 3Y6.72%
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%.