CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CTC - CA1366811034 - Common Stock
209 CAD
0 (0%)
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 has a valuation in line with the averages, 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.
In the past 5 years CTC has always 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.
With a Return On Equity value of 12.37%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Return On Invested Capital of CTC (5.83%) is worse 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
With a Profit Margin value of 4.49%, 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 Profit Margin of CTC has remained more or less at the same level.
With a Operating Margin value of 8.54%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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
CTC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CTC has about the same amount of shares outstanding.
CTC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CTC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.99 indicates that CTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTC has a better Altman-Z score (1.99) 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.
Looking at the Debt to FCF ratio, with a value of 17.07, CTC is doing worse than 66.67% of the companies in the same industry.
CTC has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.13, 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 | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.79
WACC7.34%
2.3 Liquidity
A Current Ratio of 1.80 indicates that CTC should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.80, CTC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 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 6.55% on average over the next years.
Based on estimates for the next years, CTC will show a small growth in Revenue. The Revenue will grow by 0.54% on average per year.
EPS Next Y5.12%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
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 15.57, which indicates a correct valuation of CTC.
66.67% of the companies in the same industry are more expensive than CTC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, CTC is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.81 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 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 14.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
CTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CTC is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.22 | ||
| EV/EBITDA | 8.12 |
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)3.04
PEG (5Y)N/A
EPS Next 2Y5.83%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
CTC has a Yearly Dividend Yield of 4.11%, which is a nice return.
Compared to an average industry Dividend Yield of 2.81, 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
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 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
CTC pays out 49.67% of its income as dividend. 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.
DP49.67%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
TSX:CTC (1/9/2026, 7:00:00 PM)
209
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners35.33%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap11.12B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target245.82 (17.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP49.67%
Div Incr Years14
Div Non Decr Years22
Ex-Date
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)-4.58%
PT rev (3m)-15.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)0%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 14.81 | ||
| P/S | 0.68 | ||
| P/FCF | 24.22 | ||
| P/OCF | 10.81 | ||
| P/B | 1.88 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 8.12 |
EPS(TTM)13.42
EY6.42%
EPS(NY)14.11
Fwd EY6.75%
FCF(TTM)8.63
FCFY4.13%
OCF(TTM)19.33
OCFY9.25%
SpS305.86
BVpS110.95
TBVpS85.3
PEG (NY)3.04
PEG (5Y)N/A
Graham Number183.03
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 | 1.99 |
F-Score7
WACC7.34%
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)12.68%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%5.29%
EPS Next Y5.12%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-2.08%
Revenue Next Year-1.34%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.54%
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 8 / 10 and the dividend payout ratio is 49.67%.