CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
TSX:CTC-A - CA1366812024 - Common Stock
168.45 CAD
+1.47 (+0.88%)
Overall CTC-A gets a fundamental rating of 6 out of 10. We evaluated CTC-A against 3 industry peers in the Broadline Retail industry. CTC-A has only an average score on both its financial health and profitability. CTC-A is valued quite cheap, while showing a decent growth score. This is a good combination! CTC-A also has an excellent dividend rating. These ratings could make CTC-A a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
CTC-A had positive earnings in the past year.
CTC-A had a positive operating cash flow in the past year.
Each year in the past 5 years CTC-A has been profitable.
CTC-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTC-A has a better Return On Assets (3.55%) than 66.67% of its industry peers.
The Return On Equity of CTC-A (13.06%) is better than 66.67% of its industry peers.
CTC-A has a Return On Invested Capital of 6.20%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTC-A is below the industry average of 11.40%.
| 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-A's Profit Margin of 4.65% is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of CTC-A has remained more or less at the same level.
The Operating Margin of CTC-A (8.87%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CTC-A has grown nicely.
The Gross Margin of CTC-A (34.06%) is better than 66.67% of its industry peers.
In the last couple of years the Gross Margin of CTC-A 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-A is destroying value.
The number of shares outstanding for CTC-A remains at a similar level compared to 1 year ago.
The number of shares outstanding for CTC-A has been reduced compared to 5 years ago.
The debt/assets ratio for CTC-A has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.96 indicates that CTC-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTC-A has a Altman-Z score of 1.96. This is in the lower half of the industry: CTC-A underperforms 66.67% of its industry peers.
CTC-A has a debt to FCF ratio of 7.43. This is a slightly negative value and a sign of low solvency as CTC-A would need 7.43 years to pay back of all of its debts.
CTC-A's Debt to FCF ratio of 7.43 is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
CTC-A has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CTC-A (1.12) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.83
WACC7.47%
2.3 Liquidity
A Current Ratio of 1.83 indicates that CTC-A should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.83, CTC-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CTC-A has a Quick Ratio of 1.42. This is a normal value and indicates that CTC-A is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.42, CTC-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.29% over the past year.
CTC-A shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
CTC-A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
Measured over the past years, CTC-A 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
CTC-A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.39% yearly.
Based on estimates for the next years, CTC-A will show a small growth in Revenue. The Revenue will grow by 0.84% on average per year.
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
The Price/Earnings ratio is 12.73, which indicates a correct valuation of CTC-A.
CTC-A's Price/Earnings ratio is rather cheap when compared to the industry. CTC-A is cheaper than 100.00% of the companies in the same industry.
CTC-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.84.
With a Price/Forward Earnings ratio of 11.99, the valuation of CTC-A can be described as very reasonable.
CTC-A's Price/Forward Earnings ratio is rather cheap when compared to the industry. CTC-A is cheaper than 100.00% of the companies in the same industry.
CTC-A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 11.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
CTC-A's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CTC-A is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.87 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CTC-A may justify a higher PE ratio.
PEG (NY)49.56
PEG (5Y)N/A
EPS Next 2Y5.57%
EPS Next 3Y5.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.16%, CTC-A is a good candidate for dividend investing.
CTC-A's Dividend Yield is a higher than the industry average which is at 2.85.
Compared to an average S&P500 Dividend Yield of 2.32, CTC-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
The dividend of CTC-A is nicely growing with an annual growth rate of 20.98%!
CTC-A has been paying a dividend for at least 10 years, so it has a reliable track record.
CTC-A 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 Years34
5.3 Sustainability
CTC-A pays out 47.47% of its income as dividend. This is a bit on the high side, but may be sustainable.
CTC-A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.47%
EPS Next 2Y5.57%
EPS Next 3Y5.39%
TSX:CTC-A (9/3/2025, 7:00:00 PM)
168.45
+1.47 (+0.88%)
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 Cap9.11B
Analysts72.63
Price Target179.72 (6.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP47.47%
Div Incr Years14
Div Non Decr Years34
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)0.8%
PT rev (3m)10.56%
EPS NQ rev (1m)-11.55%
EPS NQ rev (3m)-21.03%
EPS NY rev (1m)-4.21%
EPS NY rev (3m)-4.21%
Revenue NQ rev (1m)1.17%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)1.8%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 11.99 | ||
| P/S | 0.56 | ||
| P/FCF | 8.87 | ||
| P/OCF | 5.6 | ||
| P/B | 1.56 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 6.57 |
EPS(TTM)13.23
EY7.85%
EPS(NY)14.04
Fwd EY8.34%
FCF(TTM)18.98
FCFY11.27%
OCF(TTM)30.08
OCFY17.86%
SpS302.55
BVpS107.81
TBVpS82.36
PEG (NY)49.56
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 | 1.96 |
F-Score8
WACC7.47%
ROIC/WACC0.83
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%