CANADIAN TIRE CORP-CLASS A (CTC-A.CA) Stock Fundamental Analysis
Canada - TSX:CTC-A - CA1366812024 - Common Stock
170.82 CAD
+2.91 (+1.73%)
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 has a correct valuation and a medium growth rate. Finally CTC-A also has an excellent dividend rating. These ratings would make CTC-A suitable 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.
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 3.55%, 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 Equity (13.06%) than 66.67% of its industry peers.
With a decent Return On Invested Capital value of 6.20%, CTC-A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTC-A is below the industry average of 10.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 13.06% | ||
| ROIC | 6.2% |
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
Looking at the Profit Margin, with a value of 4.65%, CTC-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CTC-A's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 8.87%, 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 Operating Margin of CTC-A has grown nicely.
CTC-A has a better Gross Margin (34.06%) 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 | 8.87% | ||
| PM (TTM) | 4.65% | ||
| GM | 34.06% |
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
CTC-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CTC-A has about the same amount of shares outstanding.
The number of shares outstanding for CTC-A has been reduced compared to 5 years ago.
Compared to 1 year ago, CTC-A has an improved debt to assets ratio.
2.2 Solvency
CTC-A has an Altman-Z score of 1.96. 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 1.96, CTC-A is doing worse than 66.67% of the companies in the same industry.
CTC-A has a debt to FCF ratio of 7.43. This is a slightly negative value and a sign of low solvency as CTC-A would need 7.43 years to pay back of all of its debts.
CTC-A has a better Debt to FCF ratio (7.43) than 66.67% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that CTC-A has dependencies on debt financing.
CTC-A's Debt to Equity ratio of 1.12 is amongst the best of the industry. CTC-A outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.86
WACC7.21%
2.3 Liquidity
A Current Ratio of 1.83 indicates that CTC-A should not have too much problems paying its short term obligations.
CTC-A has a better Current ratio (1.83) than 100.00% of its industry peers.
CTC-A has a Quick Ratio of 1.42. This is a normal value and indicates that CTC-A is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CTC-A (1.42) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.29% over the past year.
The Earnings Per Share has been decreasing by -0.74% on average over the past years.
CTC-A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
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)17.29%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%0.28%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
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 4.95% on average per year.
The Revenue is expected to grow by 0.67% on average over the next years.
EPS Next Y-0.01%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
EPS Next 5YN/A
Revenue Next Year-1.1%
Revenue Next 2Y0.12%
Revenue Next 3Y0.67%
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 12.91, CTC-A is valued correctly.
100.00% of the companies in the same industry are more expensive than CTC-A, based on the Price/Earnings ratio.
CTC-A is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.29, which indicates a correct valuation of CTC-A.
Based on the Price/Forward Earnings ratio, CTC-A is valued 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 (22.99), we can say CTC-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 12.29 |
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 cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.97 | ||
| EV/EBITDA | 6.54 |
4.3 Compensation for Growth
CTC-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.03%
EPS Next 3Y4.95%
5. Dividend
5.1 Amount
CTC-A has a Yearly Dividend Yield of 4.21%, which is a nice return.
CTC-A's Dividend Yield is a higher than the industry average which is at 2.89.
Compared to an average S&P500 Dividend Yield of 2.44, CTC-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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 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
47.47% of the earnings are spent on dividend by CTC-A. 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.
DP47.47%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
TSX:CTC-A (10/14/2025, 7:00:00 PM)
170.82
+2.91 (+1.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.2%
Inst Owner ChangeN/A
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap9.21B
Analysts50.59
Price Target179.72 (5.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP47.47%
Div Incr Years14
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.83%
Min EPS beat(2)-10.03%
Max EPS beat(2)53.7%
EPS beat(4)2
Avg EPS beat(4)12.94%
Min EPS beat(4)-10.03%
Max EPS beat(4)53.7%
EPS beat(8)4
Avg EPS beat(8)18.82%
EPS beat(12)5
Avg EPS beat(12)10.51%
EPS beat(16)7
Avg EPS beat(16)12.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-5.76%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-3.96%
Revenue beat(12)1
Avg Revenue beat(12)-3.22%
Revenue beat(16)3
Avg Revenue beat(16)-1.89%
PT rev (1m)0%
PT rev (3m)3.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.24%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 12.29 | ||
| P/S | 0.56 | ||
| P/FCF | 8.97 | ||
| P/OCF | 5.66 | ||
| P/B | 1.58 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 6.54 |
EPS(TTM)13.23
EY7.74%
EPS(NY)13.9
Fwd EY8.14%
FCF(TTM)19.03
FCFY11.14%
OCF(TTM)30.17
OCFY17.66%
SpS303.39
BVpS108.11
TBVpS82.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 13.06% | ||
| ROCE | 9.53% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 7.37% | ||
| OM | 8.87% | ||
| PM (TTM) | 4.65% | ||
| GM | 34.06% | ||
| FCFM | 6.27% |
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-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 78.82% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 73.51% | ||
| Profit Quality | 134.79% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.96 |
F-Score8
WACC7.21%
ROIC/WACC0.86
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)17.29%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%0.28%
EPS Next Y-0.01%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
Revenue Next Year-1.1%
Revenue Next 2Y0.12%
Revenue Next 3Y0.67%
Revenue Next 5YN/A
EBIT growth 1Y9.96%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year46.76%
EBIT Next 3Y15.76%
EBIT Next 5YN/A
FCF growth 1Y125.07%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y33.55%
OCF growth 3Y4.39%
OCF growth 5Y13.67%