CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
TSX:CTC-A - Toronto Stock Exchange - CA1366812024 - Common Stock - Currency: CAD
Taking everything into account, CTC-A scores 5 out of 10 in our fundamental rating. CTC-A was compared to 3 industry peers in the Broadline Retail industry. CTC-A has an average financial health and profitability rating. CTC-A is not valued too expensively and it also shows a decent growth rate. Finally CTC-A also has an excellent dividend rating. With these ratings, CTC-A could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year CTC-A was profitable.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.74%, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.22%, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.07%, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CTC-A had an Average Return On Invested Capital over the past 3 years of 6.91%. This is below the industry average of 11.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 14.22% | ||
| ROIC | 6.07% |
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 has a better Profit Margin (5.21%) than 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 (9.23%) is better than 66.67% of its industry peers.
CTC-A's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 34.13%, CTC-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CTC-A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.23% | ||
| PM (TTM) | 5.21% | ||
| GM | 34.13% |
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.
Compared to 1 year ago, CTC-A has about the same amount of shares outstanding.
CTC-A has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CTC-A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.91 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 1.91. This is in the lower half of the industry: CTC-A underperforms 66.67% of its industry peers.
The Debt to FCF ratio of CTC-A is 8.51, which is on the high side as it means it would take CTC-A, 8.51 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.51, CTC-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.24 is on the high side and indicates that CTC-A has dependencies on debt financing.
CTC-A's Debt to Equity ratio of 1.24 is amongst the best of the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.71
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.76 indicates that CTC-A should not have too much problems paying its short term obligations.
CTC-A has a Current ratio of 1.76. This is amongst the best in the industry. CTC-A outperforms 100.00% of its industry peers.
CTC-A has a Quick Ratio of 1.40. This is a normal value and indicates that CTC-A is financially healthy and should not expect problems in meeting its short term obligations.
CTC-A has a Quick ratio of 1.40. This is amongst the best in the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
CTC-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.41%, which is quite impressive.
Measured over the past years, CTC-A shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.74% on average per year.
CTC-A shows a decrease in Revenue. In the last year, the revenue decreased by -1.12%.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)22.41%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%44.93%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-1.93%
3.2 Future
CTC-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.02% 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 Y4.67%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue Next Year-0.86%
Revenue Next 2Y0.37%
Revenue Next 3Y0.84%
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.
4. Valuation
4.1 Price/Earnings Ratio
CTC-A is valuated correctly with a Price/Earnings ratio of 13.19.
Based on the Price/Earnings ratio, CTC-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.25. CTC-A is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.76, the valuation of CTC-A can be described as very reasonable.
100.00% of the companies in the same industry are more expensive than CTC-A, based on the Price/Forward Earnings ratio.
CTC-A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTC-A indicates a rather cheap valuation: CTC-A is cheaper than 100.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CTC-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| EV/EBITDA | 6.9 |
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)2.83
PEG (5Y)N/A
EPS Next 2Y8.5%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.12%, CTC-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.82, CTC-A pays a bit more dividend than its industry peers.
CTC-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
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 42.68% 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.
DP42.68%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
TSX:CTC-A (5/30/2025, 7:00:00 PM)
174.39
+1.9 (+1.1%)
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 Cap9.61B
Analysts72
Price Target162.55 (-6.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP42.68%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.16%
Min EPS beat(2)-7.38%
Max EPS beat(2)53.7%
EPS beat(4)3
Avg EPS beat(4)26.15%
Min EPS beat(4)-7.38%
Max EPS beat(4)53.7%
EPS beat(8)4
Avg EPS beat(8)19.66%
EPS beat(12)5
Avg EPS beat(12)9.98%
EPS beat(16)8
Avg EPS beat(16)14.55%
Revenue beat(2)0
Avg Revenue beat(2)-5.24%
Min Revenue beat(2)-5.76%
Max Revenue beat(2)-4.73%
Revenue beat(4)0
Avg Revenue beat(4)-3.49%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-1.65%
Revenue beat(8)0
Avg Revenue beat(8)-4.29%
Revenue beat(12)1
Avg Revenue beat(12)-3.23%
Revenue beat(16)3
Avg Revenue beat(16)-1.95%
PT rev (1m)-0.45%
PT rev (3m)0.17%
EPS NQ rev (1m)4.2%
EPS NQ rev (3m)-2.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)-3.62%
Revenue NQ rev (3m)-3.42%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 11.76 | ||
| P/S | 0.59 | ||
| P/FCF | 9.67 | ||
| P/OCF | 5.97 | ||
| P/B | 1.61 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)13.22
EY7.58%
EPS(NY)14.83
Fwd EY8.51%
FCF(TTM)18.03
FCFY10.34%
OCF(TTM)29.2
OCFY16.75%
SpS295.69
BVpS108.23
TBVpS83.4
PEG (NY)2.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 14.22% | ||
| ROCE | 9.74% | ||
| ROIC | 6.07% | ||
| ROICexc | 6.29% | ||
| ROICexgc | 6.86% | ||
| OM | 9.23% | ||
| PM (TTM) | 5.21% | ||
| GM | 34.13% | ||
| FCFM | 6.1% |
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-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 8.51 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 79.47% | ||
| Cap/Sales | 3.78% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 70.6% | ||
| Profit Quality | 117.1% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 1.91 |
F-Score7
WACC8.51%
ROIC/WACC0.71
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)22.41%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%44.93%
EPS Next Y4.67%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-1.93%
Revenue Next Year-0.86%
Revenue Next 2Y0.37%
Revenue Next 3Y0.84%
Revenue Next 5YN/A
EBIT growth 1Y19.34%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year47.81%
EBIT Next 3Y18.36%
EBIT Next 5YN/A
FCF growth 1Y1718.86%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y87.45%
OCF growth 3Y4.39%
OCF growth 5Y13.67%