CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
TSX:CTC - Toronto Stock Exchange - CA1366811034 - Common Stock - Currency: CAD
Taking everything into account, CTC scores 4 out of 10 in our fundamental rating. 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 not valued too expensively and it also shows a decent growth rate. 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.
Each year in the past 5 years CTC has been profitable.
CTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.84%, CTC is doing worse than 66.67% of the companies in the same industry.
The Return On Equity of CTC (11.34%) is worse than 66.67% of its industry peers.
CTC has a worse Return On Invested Capital (5.62%) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 11.34% | ||
| ROIC | 5.62% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 3.98%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
CTC's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 8.33%, 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 Operating Margin of CTC has remained more or less at the same level.
With a Gross Margin value of 34.53%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
CTC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.33% | ||
| PM (TTM) | 3.98% | ||
| GM | 34.53% |
OM growth 3Y-6.25%
OM growth 5Y-0.51%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 1.93 indicates that CTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTC's Altman-Z score of 1.93 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 6.65, which is on the high side as it means it would take CTC, 6.65 years of fcf income to pay off all of its debts.
CTC's Debt to FCF ratio of 6.65 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 Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
CTC's Debt to Equity ratio of 1.25 is fine compared to the rest of the industry. CTC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.57
WACC9.86%
2.3 Liquidity
CTC has a Current Ratio of 1.60. 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 Current ratio of 1.60 is fine compared to the rest of the industry. CTC outperforms 66.67% of its industry peers.
CTC has a Quick Ratio of 1.19. This is a normal value and indicates that CTC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CTC (1.19) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
CTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 319.21%, which is quite impressive.
CTC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.89% yearly.
CTC shows a decrease in Revenue. In the last year, the revenue decreased by -1.79%.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)319.21%
EPS 3Y-4.68%
EPS 5Y4.89%
EPS Q2Q%138.4%
Revenue 1Y (TTM)-1.79%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.45%
3.2 Future
The Earnings Per Share is expected to grow by 7.45% on average over the next years.
The Revenue is expected to grow by 2.02% on average over the next years.
EPS Next Y2.73%
EPS Next 2Y5.81%
EPS Next 3Y7.45%
EPS Next 5YN/A
Revenue Next Year1.48%
Revenue Next 2Y1.78%
Revenue Next 3Y2.02%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
CTC is valuated correctly with a Price/Earnings ratio of 14.77.
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 29.35, CTC is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.38, which indicates a rather expensive current valuation of CTC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTC indicates a somewhat cheap valuation: CTC is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CTC to the average of the S&P500 Index (22.10), we can say CTC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 17.38 |
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.
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 | 10.08 | ||
| EV/EBITDA | 9.23 |
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)5.41
PEG (5Y)3.02
EPS Next 2Y5.81%
EPS Next 3Y7.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.92%, CTC is a good candidate for dividend investing.
CTC's Dividend Yield is rather good when compared to the industry average which is at 3.36. 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
5.2 History
On average, the dividend of CTC grows each year by 25.86%, which is quite nice.
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)25.86%
Div Incr Years14
Div Non Decr Years22
5.3 Sustainability
55.13% 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.
DP55.13%
EPS Next 2Y5.81%
EPS Next 3Y7.45%
TSX:CTC (3/7/2025, 7:00:00 PM)
235
+3 (+1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.37%
Inst Owner ChangeN/A
Ins Owners1.49%
Ins Owner ChangeN/A
Market Cap13.07B
Analysts71
Price Target234.94 (-0.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
Yearly Dividend6.37
Dividend Growth(5Y)25.86%
DP55.13%
Div Incr Years14
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.14%
Min EPS beat(2)15.47%
Max EPS beat(2)42.82%
EPS beat(4)3
Avg EPS beat(4)31.77%
Min EPS beat(4)-32.48%
Max EPS beat(4)101.26%
EPS beat(8)4
Avg EPS beat(8)13.39%
EPS beat(12)6
Avg EPS beat(12)13.84%
EPS beat(16)9
Avg EPS beat(16)31.82%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-13.54%
Max Revenue beat(4)-1.65%
Revenue beat(8)1
Avg Revenue beat(8)-3.1%
Revenue beat(12)3
Avg Revenue beat(12)-1.26%
Revenue beat(16)4
Avg Revenue beat(16)-0.78%
PT rev (1m)0%
PT rev (3m)-0.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)-2.98%
EPS NY rev (3m)-2.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)-2.02%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 17.38 | ||
| P/S | 0.8 | ||
| P/FCF | 10.08 | ||
| P/OCF | 6.35 | ||
| P/B | 2.29 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 9.23 |
EPS(TTM)15.91
EY6.77%
EPS(NY)13.52
Fwd EY5.75%
FCF(TTM)23.3
FCFY9.92%
OCF(TTM)37.01
OCFY15.75%
SpS292.94
BVpS102.84
TBVpS63.28
PEG (NY)5.41
PEG (5Y)3.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 11.34% | ||
| ROCE | 8.83% | ||
| ROIC | 5.62% | ||
| ROICexc | 5.8% | ||
| ROICexgc | 6.72% | ||
| OM | 8.33% | ||
| PM (TTM) | 3.98% | ||
| GM | 34.53% | ||
| FCFM | 7.96% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-6.25%
OM growth 5Y-0.51%
PM growth 3Y-7.79%
PM growth 5Y0.27%
GM growth 3Y-1.38%
GM growth 5Y0.48%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.65 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 96.36% | ||
| Cap/Sales | 4.68% | ||
| Interest Coverage | 3.43 | ||
| Cash Conversion | 95.8% | ||
| Profit Quality | 199.82% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 1.93 |
F-Score6
WACC9.86%
ROIC/WACC0.57
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)319.21%
EPS 3Y-4.68%
EPS 5Y4.89%
EPS Q2Q%138.4%
EPS Next Y2.73%
EPS Next 2Y5.81%
EPS Next 3Y7.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.79%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.45%
Revenue Next Year1.48%
Revenue Next 2Y1.78%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
EBIT growth 1Y-16.72%
EBIT growth 3Y-6.12%
EBIT growth 5Y1.87%
EBIT Next Year64.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y56.7%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y35.5%
OCF growth 3Y4.39%
OCF growth 5Y13.67%