CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
TSX:CTC • CA1366811034
216 CAD
0 (0%)
Last: Feb 20, 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. The financial health of CTC is average, but 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
- In the past year CTC was profitable.
- CTC had a positive operating cash flow in the past year.
- CTC had positive earnings in 4 of the past 5 years.
- Of the past 5 years CTC 4 years had a positive operating cash flow.
1.2 Ratios
- CTC has a worse Return On Assets (3.33%) than 66.67% of its industry peers.
- CTC has a worse Return On Equity (12.37%) than 66.67% of its industry peers.
- CTC has a worse Return On Invested Capital (5.83%) than 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.
- In the last couple of years the Profit Margin of CTC has remained more or less at the same level.
- The Operating Margin of CTC (8.54%) is worse than 66.67% of its industry peers.
- CTC's Operating Margin has improved in the last couple of years.
- The Gross Margin of CTC (34.22%) is worse than 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.
- There is no outstanding debt for CTC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- CTC has an Altman-Z score of 2.00. 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.
- CTC's Altman-Z score of 2.00 is fine compared to the rest of the industry. CTC outperforms 66.67% of its industry peers.
- 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's Debt to FCF ratio of 17.07 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 1.13 is on the high side and indicates that CTC has dependencies on debt financing.
- CTC has a Debt to Equity ratio of 1.13. This is in the better half of the industry: CTC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 2 |
ROIC/WACC0.76
WACC7.7%
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.
- A Quick Ratio of 1.36 indicates that CTC should not have too much problems paying its short term obligations.
- CTC has a Quick ratio of 1.36. This is in the better half of the industry: CTC outperforms 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 9.08% over the past year.
- Measured over the past 5 years, CTC shows a small growth in Earnings Per Share. The EPS has been growing by 1.20% on average per year.
EPS 1Y (TTM)9.08%
EPS 3Y-10%
EPS 5Y1.2%
EPS Q2Q%7.96%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.9%
3.2 Future
- CTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.56% yearly.
- CTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.48% yearly.
EPS Next Y2.87%
EPS Next 2Y5.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y1.48%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.72, which 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 (26.99), we can say CTC is valued slightly cheaper.
- The Price/Forward Earnings ratio is 15.28, which indicates a correct valuation of CTC.
- Based on the Price/Forward Earnings ratio, CTC is valued a bit 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 28.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 15.28 |
4.2 Price Multiples
- CTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CTC is cheaper than 66.67% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTC indicates a somewhat cheap valuation: CTC is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.92 | ||
| EV/EBITDA | 8.27 |
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)5.48
PEG (5Y)13.13
EPS Next 2Y5.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- CTC has a Yearly Dividend Yield of 3.94%. Purely for dividend investing, there may be better candidates out there.
- CTC's Dividend Yield is rather good when compared to the industry average which is at 2.70. CTC pays more dividend than 100.00% of the companies in the same industry.
- CTC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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
- 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 2Y5.56%
EPS Next 3YN/A
TSX:CTC (2/20/2026, 7:00:00 PM)
216
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners35.33%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap11.44B
Revenue(TTM)N/A
Net Income(TTM)730.40M
Analysts50.59
Price Target245.82 (13.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP49.67%
Div Incr Years14
Div Non Decr Years22
Ex-Date01-30 2026-01-30 (1.8)
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)0%
PT rev (3m)-4.58%
EPS NQ rev (1m)-1.78%
EPS NQ rev (3m)-2.09%
EPS NY rev (1m)0%
EPS NY rev (3m)5.63%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 15.28 | ||
| P/S | 0.7 | ||
| P/FCF | 24.92 | ||
| P/OCF | 11.13 | ||
| P/B | 1.94 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)13.74
EY6.36%
EPS(NY)14.14
Fwd EY6.55%
FCF(TTM)8.67
FCFY4.01%
OCF(TTM)19.41
OCFY8.99%
SpS307.25
BVpS111.45
TBVpS85.69
PEG (NY)5.48
PEG (5Y)13.13
Graham Number185.62
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 |
F-Score7
WACC7.7%
ROIC/WACC0.76
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)9.08%
EPS 3Y-10%
EPS 5Y1.2%
EPS Q2Q%7.96%
EPS Next Y2.87%
EPS Next 2Y5.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.9%
Revenue Next Year1.2%
Revenue Next 2Y1.48%
Revenue Next 3YN/A
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 7 / 10 and the dividend payout ratio is 49.67%.