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 6 out of 10 in our fundamental rating. CTC-A was compared to 3 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 may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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
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
The Return On Assets of CTC-A (3.99%) is better than 66.67% of its industry peers.
CTC-A has a better Return On Equity (14.42%) than 66.67% of its industry peers.
CTC-A has a better Return On Invested Capital (6.53%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTC-A is significantly below the industry average of 11.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 14.42% | ||
| ROIC | 6.53% |
ROA(3y)3.23%
ROA(5y)3.71%
ROE(3y)12.28%
ROE(5y)15.11%
ROIC(3y)6.58%
ROIC(5y)6.89%
1.3 Margins
The Profit Margin of CTC-A (5.43%) is better than 66.67% of its industry peers.
CTC-A's Profit Margin has been stable in the last couple of years.
The Operating Margin of CTC-A (9.75%) is better than 66.67% of its industry peers.
CTC-A's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 34.35%, 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 | 9.75% | ||
| PM (TTM) | 5.43% | ||
| GM | 34.35% |
OM growth 3Y-6.1%
OM growth 5Y-0.42%
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-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 about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for CTC-A has been reduced compared to 5 years ago.
CTC-A has a better debt/assets ratio than last year.
2.2 Solvency
CTC-A has an Altman-Z score of 1.91. This is not the best score and indicates that CTC-A is in the grey zone with still only limited risk for bankruptcy at the moment.
CTC-A's Altman-Z score of 1.91 is on the low side compared to the rest of the industry. CTC-A is outperformed by 66.67% of its industry peers.
The Debt to FCF ratio of CTC-A is 5.54, which is a neutral value as it means it would take CTC-A, 5.54 years of fcf income to pay off all of its debts.
CTC-A's Debt to FCF ratio of 5.54 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 1.11. This is a high value indicating a heavy dependency on external financing.
CTC-A has a Debt to Equity ratio of 1.11. This is amongst the best in the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.84
WACC7.76%
2.3 Liquidity
A Current Ratio of 1.79 indicates that CTC-A should not have too much problems paying its short term obligations.
CTC-A has a Current ratio of 1.79. This is amongst the best in the industry. CTC-A outperforms 100.00% of its industry peers.
A Quick Ratio of 1.39 indicates that CTC-A should not have too much problems paying its short term obligations.
CTC-A's Quick ratio of 1.39 is amongst the best of the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.92% 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.
Looking at the last year, CTC-A shows a decrease in Revenue. The Revenue has decreased by -1.79% in the last year.
CTC-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.39% yearly.
EPS 1Y (TTM)20.92%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%20.41%
Revenue 1Y (TTM)-1.79%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.45%
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 9.02% on average per year.
The Revenue is expected to grow by 0.84% on average over the next years.
EPS Next Y4.67%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue Next Year0.42%
Revenue Next 2Y1.11%
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.
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
A Price/Earnings ratio of 11.98 indicates a reasonable 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 is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
CTC-A is valuated reasonably with a Price/Forward Earnings ratio of 11.45.
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.
When comparing the Price/Forward Earnings ratio of CTC-A to the average of the S&P500 Index (20.86), we can say CTC-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 11.45 |
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.
100.00% of the companies in the same industry are more expensive than CTC-A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.83 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTC-A does not grow enough to justify the current Price/Earnings ratio.
CTC-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.57
PEG (5Y)N/A
EPS Next 2Y8.5%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
CTC-A has a Yearly Dividend Yield of 4.75%, which is a nice return.
Compared to an average industry Dividend Yield of 3.25, CTC-A pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, CTC-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
On average, the dividend of CTC-A grows each year by 20.98%, 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 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 Years34
5.3 Sustainability
40.53% of the earnings are spent on dividend by CTC-A. 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.
DP40.53%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
TSX:CTC-A (5/2/2025, 7:00:00 PM)
150.95
+0.18 (+0.12%)
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 Cap8.32B
Analysts72
Price Target163.29 (8.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP40.53%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.04%
Min EPS beat(2)-7.38%
Max EPS beat(2)15.47%
EPS beat(4)3
Avg EPS beat(4)38.04%
Min EPS beat(4)-7.38%
Max EPS beat(4)101.26%
EPS beat(8)3
Avg EPS beat(8)9.74%
EPS beat(12)5
Avg EPS beat(12)11.39%
EPS beat(16)8
Avg EPS beat(16)30%
Revenue beat(2)0
Avg Revenue beat(2)-3.28%
Min Revenue beat(2)-4.73%
Max Revenue beat(2)-1.83%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)-1.65%
Revenue beat(8)0
Avg Revenue beat(8)-3.7%
Revenue beat(12)2
Avg Revenue beat(12)-2.06%
Revenue beat(16)4
Avg Revenue beat(16)-0.95%
PT rev (1m)-0.17%
PT rev (3m)-0.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-4.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 11.45 | ||
| P/S | 0.51 | ||
| P/FCF | 5.83 | ||
| P/OCF | 4.03 | ||
| P/B | 1.35 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 6.15 |
EPS(TTM)12.6
EY8.35%
EPS(NY)13.19
Fwd EY8.74%
FCF(TTM)25.9
FCFY17.16%
OCF(TTM)37.46
OCFY24.82%
SpS296.93
BVpS111.73
TBVpS72.22
PEG (NY)2.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 14.42% | ||
| ROCE | 10.03% | ||
| ROIC | 6.53% | ||
| ROICexc | 6.76% | ||
| ROICexgc | 7.81% | ||
| OM | 9.75% | ||
| PM (TTM) | 5.43% | ||
| GM | 34.35% | ||
| FCFM | 8.72% |
ROA(3y)3.23%
ROA(5y)3.71%
ROE(3y)12.28%
ROE(5y)15.11%
ROIC(3y)6.58%
ROIC(5y)6.89%
ROICexc(3y)6.79%
ROICexc(5y)7.49%
ROICexgc(3y)7.91%
ROICexgc(5y)8.89%
ROCE(3y)10.28%
ROCE(5y)10.62%
ROICexcg growth 3Y-13.7%
ROICexcg growth 5Y-1.08%
ROICexc growth 3Y-12.15%
ROICexc growth 5Y-0.32%
OM growth 3Y-6.1%
OM growth 5Y-0.42%
PM growth 3Y-7.79%
PM growth 5Y0.27%
GM growth 3Y-1.38%
GM growth 5Y0.48%
F-Score8
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.54 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 81.11% | ||
| Cap/Sales | 3.89% | ||
| Interest Coverage | 3.86 | ||
| Cash Conversion | 86.71% | ||
| Profit Quality | 160.75% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 1.91 |
F-Score8
WACC7.76%
ROIC/WACC0.84
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)20.92%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%20.41%
EPS Next Y4.67%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.79%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.45%
Revenue Next Year0.42%
Revenue Next 2Y1.11%
Revenue Next 3Y0.84%
Revenue Next 5YN/A
EBIT growth 1Y34.32%
EBIT growth 3Y-5.98%
EBIT growth 5Y1.96%
EBIT Next Year55.25%
EBIT Next 3Y18.07%
EBIT Next 5YN/A
FCF growth 1Y108.29%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y52.46%
OCF growth 3Y4.39%
OCF growth 5Y13.67%