CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
TSX:CTC-A - Toronto Stock Exchange - CA1366812024 - Common Stock - Currency: CAD
CTC-A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium 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
CTC-A had positive earnings in the past year.
CTC-A had a positive operating cash flow in the past year.
In the past 5 years CTC-A has always been profitable.
CTC-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTC-A has a Return On Assets of 3.74%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
CTC-A has a Return On Equity of 14.22%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
CTC-A has a better Return On Invested Capital (6.07%) than 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 11.32%.
| 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
The Profit Margin of CTC-A (5.21%) 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 (9.23%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CTC-A has grown nicely.
Looking at the Gross Margin, with a value of 34.13%, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 | 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.
The number of shares outstanding for CTC-A remains at a similar level compared to 1 year ago.
CTC-A has less shares outstanding than it did 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 1.92. 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.
The Altman-Z score of CTC-A (1.92) is worse than 66.67% of its industry peers.
CTC-A has a debt to FCF ratio of 8.51. This is a slightly negative value and a sign of low solvency as CTC-A would need 8.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.51, CTC-A is in the better half of 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.
Looking at the Debt to Equity ratio, with a value of 1.24, CTC-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.87
WACC6.97%
2.3 Liquidity
A Current Ratio of 1.76 indicates that CTC-A should not have too much problems paying its short term obligations.
The Current ratio of CTC-A (1.76) is better than 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's Quick ratio of 1.40 is amongst the best of 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.
Looking at the last year, CTC-A shows a decrease in Revenue. The Revenue has decreased by -1.12% in the last year.
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
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 0.55% on average over the next years.
EPS Next Y4.67%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue Next Year-2.89%
Revenue Next 2Y-0.29%
Revenue Next 3Y0.55%
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.
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
With a Price/Earnings ratio of 14.00, CTC-A is valued correctly.
Based on the Price/Earnings ratio, CTC-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
CTC-A is valuated rather cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.48 indicates a correct valuation of CTC-A.
Based on the Price/Forward Earnings ratio, CTC-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CTC-A to the average of the S&P500 Index (36.36), we can say CTC-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 12.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTC-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 7.09 |
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)3
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 3.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.63, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
On average, the dividend of CTC-A grows each year by 20.98%, which is quite nice.
CTC-A has been paying a dividend for at least 10 years, so it has 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
CTC-A pays out 42.68% 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.
DP42.68%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
TSX:CTC-A (8/6/2025, 7:00:00 PM)
185.11
-0.38 (-0.2%)
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 Cap10.01B
Analysts72.63
Price Target178.3 (-3.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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)2.76%
PT rev (3m)9.19%
EPS NQ rev (1m)1.41%
EPS NQ rev (3m)5.66%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)-2.04%
Revenue NY rev (3m)-3.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 12.48 | ||
| P/S | 0.61 | ||
| P/FCF | 10.08 | ||
| P/OCF | 6.22 | ||
| P/B | 1.68 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 7.09 |
EPS(TTM)13.22
EY7.14%
EPS(NY)14.83
Fwd EY8.01%
FCF(TTM)18.37
FCFY9.92%
OCF(TTM)29.76
OCFY16.07%
SpS301.27
BVpS110.27
TBVpS84.98
PEG (NY)3
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 | 1.92 |
F-Score7
WACC6.97%
ROIC/WACC0.87
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-2.89%
Revenue Next 2Y-0.29%
Revenue Next 3Y0.55%
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%