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
CTC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 3 industry peers in the Broadline Retail industry. CTC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CTC is valued correctly, but it does not seem to be growing. Finally 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.
- 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
- 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 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.
- 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
- CTC has a worse Profit Margin (4.49%) than 66.67% of its industry peers.
- CTC's Profit Margin has been stable in the last couple of years.
- CTC has a Operating Margin of 8.54%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
- CTC's Operating Margin has improved in the last couple of years.
- CTC has a Gross Margin of 34.22%. This is in the lower half of the industry: CTC underperforms 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
- 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.
- Compared to 5 years ago, CTC has less shares outstanding
- Compared to 1 year ago, CTC has an improved debt to assets ratio.
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.
- Looking at the Altman-Z score, with a value of 2.02, CTC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- 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.
- A Quick Ratio of 1.36 indicates that CTC should not have too much problems paying its short term obligations.
- CTC has a better Quick ratio (1.36) than 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 12.68% over the past year.
- The Earnings Per Share has been decreasing by -0.74% on average over the past years.
- The Revenue has decreased by -0.13% in the past year.
- The Revenue has been growing slightly by 2.39% on average over the past years.
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.
- The Revenue is expected to grow by 0.54% on average over the next years.
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.
- 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
- The Price/Earnings ratio is 16.69, which indicates a correct valuation of CTC.
- Compared to the rest of the industry, the Price/Earnings ratio of CTC indicates a somewhat cheap valuation: CTC is cheaper than 66.67% of the companies listed in the same industry.
- CTC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- CTC is valuated correctly with a Price/Forward Earnings ratio of 15.84.
- Based on the Price/Forward 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/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 66.67% of the companies in the same industry.
| 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 CTC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.19
PEG (5Y)N/A
EPS Next 2Y5.93%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
- CTC has a Yearly Dividend Yield of 4.21%, which is a nice return.
- CTC's Dividend Yield is rather good when compared to the industry average which is at 2.88. 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 1.83.
| 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
- CTC pays out 49.67% of its income as dividend. 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%.