CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CTC-A - CA1366812024 - Common Stock
176.41 CAD
+1.31 (+0.75%)
Overall CTC-A gets a fundamental rating of 5 out of 10. We evaluated CTC-A against 3 industry peers in the Broadline Retail industry. CTC-A has an average financial health and profitability rating. CTC-A is valued correctly, but it does not seem to be growing. CTC-A also has an excellent dividend rating. This makes CTC-A very considerable 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.
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
The Return On Assets of CTC-A (3.33%) is better than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 12.37%, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CTC-A has a better Return On Invested Capital (5.83%) 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 11.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 12.37% | ||
| ROIC | 5.83% |
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 Profit Margin of 4.49%. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
CTC-A's Profit Margin has been stable in the last couple of years.
CTC-A's Operating Margin of 8.54% is fine compared to the rest of the industry. CTC-A outperforms 66.67% of its industry peers.
CTC-A's Operating Margin has improved in the last couple of years.
CTC-A has a better Gross Margin (34.22%) 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 | 8.54% | ||
| PM (TTM) | 4.49% | ||
| GM | 34.22% |
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
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.
Looking at the Altman-Z score, with a value of 1.92, CTC-A is doing worse than 66.67% of the companies in the same industry.
The Debt to FCF ratio of CTC-A is 17.07, which is on the high side as it means it would take CTC-A, 17.07 years of fcf income to pay off all of its debts.
CTC-A has a Debt to FCF ratio of 17.07. This is in the better half of the industry: CTC-A outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that CTC-A has dependencies on debt financing.
CTC-A's Debt to Equity ratio of 1.13 is amongst the best of the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.8
WACC7.28%
2.3 Liquidity
A Current Ratio of 1.80 indicates that CTC-A should not have too much problems paying its short term obligations.
CTC-A has a better Current ratio (1.80) than 100.00% of its industry peers.
CTC-A has a Quick Ratio of 1.36. 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 better Quick ratio (1.36) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.68% 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 decrease in Revenue. In the last year, the revenue decreased by -0.13%.
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)12.68%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%5.29%
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-2.08%
3.2 Future
Based on estimates for the next years, CTC-A will show a small growth in Earnings Per Share. The EPS will grow by 6.55% 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 0.54% on average per year.
EPS Next Y5.12%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue Next Year-1.34%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.54%
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
CTC-A is valuated correctly with a Price/Earnings ratio of 13.15.
Based on the Price/Earnings ratio, CTC-A is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. CTC-A is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.50, CTC-A is valued correctly.
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.
CTC-A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.5 |
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 | 20.45 | ||
| EV/EBITDA | 7.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 2Y5.83%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
CTC-A has a Yearly Dividend Yield of 4.11%, which is a nice return.
CTC-A's Dividend Yield is a higher than the industry average which is at 2.81.
CTC-A's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
5.2 History
The dividend of CTC-A is nicely growing with an annual growth rate of 20.98%!
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)20.98%
Div Incr Years14
Div Non Decr Years34
5.3 Sustainability
49.67% 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.
DP49.67%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
TSX:CTC-A (1/9/2026, 7:00:00 PM)
176.41
+1.31 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners35.33%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap9.39B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target185.03 (4.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP49.67%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.62%
Min EPS beat(2)-10.03%
Max EPS beat(2)29.28%
EPS beat(4)2
Avg EPS beat(4)16.39%
Min EPS beat(4)-10.03%
Max EPS beat(4)53.7%
EPS beat(8)5
Avg EPS beat(8)24.08%
EPS beat(12)6
Avg EPS beat(12)14.39%
EPS beat(16)8
Avg EPS beat(16)14.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.34%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-4.12%
Revenue beat(12)1
Avg Revenue beat(12)-3.18%
Revenue beat(16)3
Avg Revenue beat(16)-1.78%
PT rev (1m)0%
PT rev (3m)2.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)0%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.5 | ||
| P/S | 0.58 | ||
| P/FCF | 20.45 | ||
| P/OCF | 9.13 | ||
| P/B | 1.59 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 7.31 |
EPS(TTM)13.42
EY7.61%
EPS(NY)14.11
Fwd EY8%
FCF(TTM)8.63
FCFY4.89%
OCF(TTM)19.33
OCFY10.96%
SpS305.86
BVpS110.95
TBVpS85.3
PEG (NY)2.57
PEG (5Y)N/A
Graham Number183.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 12.37% | ||
| ROCE | 9% | ||
| ROIC | 5.83% | ||
| ROICexc | 6% | ||
| ROICexgc | 6.56% | ||
| OM | 8.54% | ||
| PM (TTM) | 4.49% | ||
| GM | 34.22% | ||
| FCFM | 2.82% |
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%
ROICexgc growth 3Y-9.58%
ROICexgc 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 Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 74.9% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 47.83% | ||
| Profit Quality | 62.84% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 1.92 |
F-Score7
WACC7.28%
ROIC/WACC0.8
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)12.68%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%5.29%
EPS Next Y5.12%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-2.08%
Revenue Next Year-1.34%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.54%
Revenue Next 5YN/A
EBIT growth 1Y1.6%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year50.73%
EBIT Next 3Y16.55%
EBIT Next 5YN/A
FCF growth 1Y-44.51%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y-32.32%
OCF growth 3Y4.39%
OCF growth 5Y13.67%
CANADIAN TIRE CORP-CLASS A / CTC-A.CA FAQ
Can you provide the ChartMill fundamental rating for CANADIAN TIRE CORP-CLASS A?
ChartMill assigns a fundamental rating of 5 / 10 to CTC-A.CA.
What is the valuation status for CTC-A stock?
ChartMill assigns a valuation rating of 6 / 10 to CANADIAN TIRE CORP-CLASS A (CTC-A.CA). This can be considered as Fairly Valued.
How profitable is CANADIAN TIRE CORP-CLASS A (CTC-A.CA) stock?
CANADIAN TIRE CORP-CLASS A (CTC-A.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for CTC-A stock?
The Price/Earnings (PE) ratio for CANADIAN TIRE CORP-CLASS A (CTC-A.CA) is 13.15 and the Price/Book (PB) ratio is 1.59.
Can you provide the financial health for CTC-A stock?
The financial health rating of CANADIAN TIRE CORP-CLASS A (CTC-A.CA) is 5 / 10.