CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada - TSX:CTC - CA1366811034 - Common Stock
259.99 CAD
-1 (-0.38%)
Overall CTC gets a fundamental rating of 4 out of 10. We evaluated CTC against 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 not valued too expensively and it also shows a decent growth rate. Finally CTC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CTC had positive earnings in the past year.
CTC had a positive operating cash flow in the past year.
CTC had positive earnings in each of the past 5 years.
Each year in the past 5 years CTC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.55%, CTC is doing worse than 66.67% of the companies in the same industry.
CTC has a worse Return On Equity (13.06%) than 66.67% of its industry peers.
CTC has a worse Return On Invested Capital (6.20%) 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 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 has a Profit Margin of 4.65%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
CTC's Profit Margin has been stable in the last couple of years.
CTC has a worse Operating Margin (8.87%) than 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 34.06%, CTC is doing worse than 66.67% of the companies in the same industry.
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.
The number of shares outstanding for CTC remains at a similar level compared to 1 year ago.
The number of shares outstanding for CTC has been reduced compared to 5 years ago.
The debt/assets ratio for CTC has been reduced compared to a year ago.
2.2 Solvency
CTC has an Altman-Z score of 2.15. 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 2.15 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 7.43, which is on the high side as it means it would take CTC, 7.43 years of fcf income to pay off all of its debts.
CTC's Debt to FCF ratio of 7.43 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 1.12 is on the high side and indicates that CTC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.12, CTC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.79
WACC7.82%
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.
CTC has a Quick Ratio of 1.42. This is a normal value and indicates that CTC is financially healthy and should not expect problems in meeting its short term obligations.
CTC's Quick ratio of 1.42 is fine compared to the rest of the industry. CTC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
CTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.29%, 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 been growing slightly by 0.05% 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)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
The Earnings Per Share is expected to grow by 5.39% on average over the next years.
The Revenue is expected to grow by 0.84% on average over the next years.
EPS Next Y0.26%
EPS Next 2Y5.57%
EPS Next 3Y5.39%
EPS Next 5YN/A
Revenue Next Year-1.14%
Revenue Next 2Y0.24%
Revenue Next 3Y0.84%
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
CTC is valuated rather expensively with a Price/Earnings ratio of 19.65.
Based on the Price/Earnings ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, CTC is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.51 indicates a rather expensive valuation of CTC.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.88. CTC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.65 | ||
| Fwd PE | 18.51 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.7 | ||
| EV/EBITDA | 8.81 |
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)76.49
PEG (5Y)N/A
EPS Next 2Y5.57%
EPS Next 3Y5.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.20%, CTC is a good candidate for dividend investing.
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.
CTC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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 2Y5.57%
EPS Next 3Y5.39%
TSX:CTC (9/18/2025, 7:00:00 PM)
259.99
-1 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners32.57%
Inst Owner ChangeN/A
Ins Owners1.52%
Ins Owner ChangeN/A
Market Cap14.06B
Analysts50.59
Price Target270.33 (3.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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)7.97%
PT rev (3m)10.91%
EPS NQ rev (1m)-10.77%
EPS NQ rev (3m)-21.03%
EPS NY rev (1m)-4.21%
EPS NY rev (3m)-4.21%
Revenue NQ rev (1m)1.2%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)1.8%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.65 | ||
| Fwd PE | 18.51 | ||
| P/S | 0.86 | ||
| P/FCF | 13.7 | ||
| P/OCF | 8.64 | ||
| P/B | 2.41 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | 8.81 |
EPS(TTM)13.23
EY5.09%
EPS(NY)14.04
Fwd EY5.4%
FCF(TTM)18.98
FCFY7.3%
OCF(TTM)30.08
OCFY11.57%
SpS302.55
BVpS107.81
TBVpS82.36
PEG (NY)76.49
PEG (5Y)N/A
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%
ROICexcg growth 3Y-9.58%
ROICexcg 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 | 2.15 |
F-Score8
WACC7.82%
ROIC/WACC0.79
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 Y0.26%
EPS Next 2Y5.57%
EPS Next 3Y5.39%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
Revenue Next Year-1.14%
Revenue Next 2Y0.24%
Revenue Next 3Y0.84%
Revenue Next 5YN/A
EBIT growth 1Y9.96%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year47.81%
EBIT Next 3Y18.36%
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%