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CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis

TSX:CTC-A - Toronto Stock Exchange - CA1366812024 - Common Stock - Currency: CAD

143.99  -1.12 (-0.77%)

Fundamental Rating

5

CTC-A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 4 industry peers in the Broadline Retail industry. Both the profitability and the financial health of CTC-A get a neutral evaluation. Nothing too spectacular is happening here. CTC-A is cheap, but on the other hand it scores bad on growth. CTC-A also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

4

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.
CTC-A had positive earnings in each of the past 5 years.
In the past 5 years CTC-A always reported a positive cash flow from operatings.
CTC-A.CA Yearly Net Income VS EBIT VS OCF VS FCFCTC-A.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

1.2 Ratios

CTC-A has a Return On Assets (2.84%) which is in line with its industry peers.
CTC-A has a Return On Equity of 11.34%. This is comparable to the rest of the industry: CTC-A outperforms 50.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.49%, CTC-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
CTC-A had an Average Return On Invested Capital over the past 3 years of 7.06%. This is below the industry average of 10.83%.
Industry RankSector Rank
ROA 2.84%
ROE 11.34%
ROIC 5.49%
ROA(3y)3.62%
ROA(5y)3.71%
ROE(3y)14.81%
ROE(5y)15.94%
ROIC(3y)7.06%
ROIC(5y)6.75%
CTC-A.CA Yearly ROA, ROE, ROICCTC-A.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

CTC-A has a Profit Margin (3.98%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CTC-A has declined.
CTC-A's Operating Margin of 8.33% is in line compared to the rest of the industry. CTC-A outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of CTC-A has declined.
CTC-A has a Gross Margin (34.53%) which is in line with 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 RankSector Rank
OM 8.33%
PM (TTM) 3.98%
GM 34.53%
OM growth 3Y-7.73%
OM growth 5Y-3.5%
PM growth 3Y-36.73%
PM growth 5Y-23.61%
GM growth 3Y0.1%
GM growth 5Y0.43%
CTC-A.CA Yearly Profit, Operating, Gross MarginsCTC-A.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

4

2. Health

2.1 Basic Checks

CTC-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CTC-A has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTC-A has less shares outstanding
The debt/assets ratio for CTC-A is higher compared to a year ago.
CTC-A.CA Yearly Shares OutstandingCTC-A.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
CTC-A.CA Yearly Total Debt VS Total AssetsCTC-A.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

2.2 Solvency

CTC-A has an Altman-Z score of 1.75. This is a bad value and indicates that CTC-A is not financially healthy and even has some risk of bankruptcy.
CTC-A has a Altman-Z score of 1.75. This is in the lower half of the industry: CTC-A underperforms 75.00% of its industry peers.
CTC-A has a debt to FCF ratio of 6.65. This is a slightly negative value and a sign of low solvency as CTC-A would need 6.65 years to pay back of all of its debts.
The Debt to FCF ratio of CTC-A (6.65) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.25 is on the high side and indicates that CTC-A has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.25, CTC-A is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.25
Debt/FCF 6.65
Altman-Z 1.75
ROIC/WACC0.67
WACC8.24%
CTC-A.CA Yearly LT Debt VS Equity VS FCFCTC-A.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

2.3 Liquidity

CTC-A has a Current Ratio of 1.60. This is a normal value and indicates that CTC-A is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.60, CTC-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.19 indicates that CTC-A should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.19, CTC-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.6
Quick Ratio 1.19
CTC-A.CA Yearly Current Assets VS Current LiabilitesCTC-A.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

3

3. Growth

3.1 Past

CTC-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.29%.
Measured over the past years, CTC-A shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.15% on average per year.
Looking at the last year, CTC-A shows a decrease in Revenue. The Revenue has decreased by -7.18% in the last year.
The Revenue has been growing slightly by 3.45% on average over the past years.
EPS 1Y (TTM)-27.29%
EPS 3Y-6.99%
EPS 5Y-3.15%
EPS Q2Q%21.28%
Revenue 1Y (TTM)-7.18%
Revenue growth 3Y3.85%
Revenue growth 5Y3.45%
Sales Q2Q%-1.36%

3.2 Future

Based on estimates for the next years, CTC-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.67% on average per year.
Based on estimates for the next years, CTC-A will show a small growth in Revenue. The Revenue will grow by 0.75% on average per year.
EPS Next Y25.93%
EPS Next 2Y15.65%
EPS Next 3Y13.67%
EPS Next 5YN/A
Revenue Next Year-4.22%
Revenue Next 2Y-0.37%
Revenue Next 3Y0.75%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CTC-A.CA Yearly Revenue VS EstimatesCTC-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B
CTC-A.CA Yearly EPS VS EstimatesCTC-A.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.09, CTC-A is valued correctly.
Based on the Price/Earnings ratio, CTC-A is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CTC-A to the average of the S&P500 Index (30.19), we can say CTC-A is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.33, the valuation of CTC-A can be described as reasonable.
75.00% of the companies in the same industry are more expensive than CTC-A, based on the Price/Forward Earnings ratio.
CTC-A is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.09
Fwd PE 10.33
CTC-A.CA Price Earnings VS Forward Price EarningsCTC-A.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTC-A indicates a somewhat cheap valuation: CTC-A is cheaper than 75.00% of the companies listed 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 RankSector Rank
P/FCF 6.18
EV/EBITDA 6.88
CTC-A.CA Per share dataCTC-A.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200 250

4.3 Compensation for Growth

CTC-A's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CTC-A's earnings are expected to grow with 13.67% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y15.65%
EPS Next 3Y13.67%

8

5. Dividend

5.1 Amount

CTC-A has a Yearly Dividend Yield of 4.89%, which is a nice return.
CTC-A's Dividend Yield is a higher than the industry average which is at 3.35.
CTC-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 4.89%

5.2 History

On average, the dividend of CTC-A grows each year by 25.86%, which is quite nice.
CTC-A has paid a dividend for at least 10 years, which is 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)25.86%
Div Incr Years14
Div Non Decr Years34
CTC-A.CA Yearly Dividends per shareCTC-A.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

CTC-A pays out 55.13% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CTC-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.13%
EPS Next 2Y15.65%
EPS Next 3Y13.67%
CTC-A.CA Yearly Income VS Free CF VS DividendCTC-A.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B
CTC-A.CA Dividend Payout.CTC-A.CA Dividend Payout, showing the Payout Ratio.CTC-A.CA Dividend Payout.PayoutRetained Earnings

CANADIAN TIRE CORP-CLASS A

TSX:CTC-A (2/14/2025, 7:00:00 PM)

143.99

-1.12 (-0.77%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-13 2025-02-13/amc
Earnings (Next)05-07 2025-05-07
Inst Owners31.78%
Inst Owner ChangeN/A
Ins Owners1.49%
Ins Owner ChangeN/A
Market Cap8.01B
Analysts73.68
Price Target169.32 (17.59%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.89%
Yearly Dividend6.37
Dividend Growth(5Y)25.86%
DP55.13%
Div Incr Years14
Div Non Decr Years34
Ex-Date04-30 2025-04-30 (1.775)
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)3.62%
PT rev (3m)4.27%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)-6.96%
EPS NY rev (1m)0.33%
EPS NY rev (3m)4.7%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.03%
Valuation
Industry RankSector Rank
PE 12.09
Fwd PE 10.33
P/S 0.49
P/FCF 6.18
P/OCF 3.89
P/B 1.4
P/tB 2.28
EV/EBITDA 6.88
EPS(TTM)11.91
EY8.27%
EPS(NY)13.94
Fwd EY9.68%
FCF(TTM)23.3
FCFY16.18%
OCF(TTM)37.01
OCFY25.7%
SpS292.94
BVpS102.84
TBVpS63.28
PEG (NY)0.47
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.84%
ROE 11.34%
ROCE 8.83%
ROIC 5.49%
ROICexc 5.66%
ROICexgc 6.56%
OM 8.33%
PM (TTM) 3.98%
GM 34.53%
FCFM 7.96%
ROA(3y)3.62%
ROA(5y)3.71%
ROE(3y)14.81%
ROE(5y)15.94%
ROIC(3y)7.06%
ROIC(5y)6.75%
ROICexc(3y)7.68%
ROICexc(5y)7.33%
ROICexgc(3y)9.14%
ROICexgc(5y)8.76%
ROCE(3y)11.2%
ROCE(5y)10.72%
ROICexcg growth 3Y-10.91%
ROICexcg growth 5Y-6.85%
ROICexc growth 3Y-9.68%
ROICexc growth 5Y-5.8%
OM growth 3Y-7.73%
OM growth 5Y-3.5%
PM growth 3Y-36.73%
PM growth 5Y-23.61%
GM growth 3Y0.1%
GM growth 5Y0.43%
F-Score5
Asset Turnover0.71
Health
Industry RankSector 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 1.75
F-Score5
WACC8.24%
ROIC/WACC0.67
Cap/Depr(3y)102.21%
Cap/Depr(5y)92.55%
Cap/Sales(3y)4.49%
Cap/Sales(5y)4.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.29%
EPS 3Y-6.99%
EPS 5Y-3.15%
EPS Q2Q%21.28%
EPS Next Y25.93%
EPS Next 2Y15.65%
EPS Next 3Y13.67%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.18%
Revenue growth 3Y3.85%
Revenue growth 5Y3.45%
Sales Q2Q%-1.36%
Revenue Next Year-4.22%
Revenue Next 2Y-0.37%
Revenue Next 3Y0.75%
Revenue Next 5YN/A
EBIT growth 1Y-16.72%
EBIT growth 3Y-4.18%
EBIT growth 5Y-0.17%
EBIT Next Year65.11%
EBIT Next 3Y20.67%
EBIT Next 5YN/A
FCF growth 1Y714.31%
FCF growth 3Y-30.1%
FCF growth 5Y21.28%
OCF growth 1Y206.4%
OCF growth 3Y-17.86%
OCF growth 5Y10.89%