CANADIAN TIRE CORP (CTC.CA) Fundamental Analysis & Valuation
TSX:CTC • CA1366811034
Current stock price
211.01 CAD
+0.79 (+0.38%)
Last:
This CTC.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CTC.CA Profitability Analysis
1.1 Basic Checks
- CTC had positive earnings in the past year.
- In the past year CTC had a positive cash flow from operations.
- In the past 5 years CTC has always been profitable.
- CTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CTC has a worse Return On Assets (2.44%) than 66.67% of its industry peers.
- The Return On Equity of CTC (8.99%) is worse than 66.67% of its industry peers.
- With a Return On Invested Capital value of 5.54%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- CTC had an Average Return On Invested Capital over the past 3 years of 6.14%. This is below the industry average of 10.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 8.99% | ||
| ROIC | 5.54% |
ROA(3y)2.47%
ROA(5y)3.46%
ROE(3y)9.09%
ROE(5y)13.57%
ROIC(3y)6.14%
ROIC(5y)7.39%
1.3 Margins
- CTC's Profit Margin of 3.23% is on the low side compared to the rest of the industry. CTC is outperformed by 66.67% of its industry peers.
- In the last couple of years the Profit Margin of CTC has declined.
- CTC's Operating Margin of 7.20% is on the low side compared to the rest of the industry. CTC is outperformed by 66.67% of its industry peers.
- In the last couple of years the Operating Margin of CTC has declined.
- CTC has a Gross Margin of 34.42%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
- CTC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.2% | ||
| PM (TTM) | 3.23% | ||
| GM | 34.42% |
OM growth 3Y-6.24%
OM growth 5Y-1.82%
PM growth 3Y-18.05%
PM growth 5Y-8.6%
GM growth 3Y0.17%
GM growth 5Y0.16%
2. CTC.CA Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTC is destroying value.
- The number of shares outstanding for CTC has been reduced compared to 1 year ago.
- CTC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CTC has remained at the same level compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.99 indicates that CTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CTC's Altman-Z score of 1.99 is fine compared to the rest of the industry. CTC outperforms 66.67% of its industry peers.
- The Debt to FCF ratio of CTC is 26.59, which is on the high side as it means it would take CTC, 26.59 years of fcf income to pay off all of its debts.
- CTC has a Debt to FCF ratio of 26.59. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
- A Debt/Equity ratio of 1.12 is on the high side and indicates that CTC has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.12, CTC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 26.59 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.7
WACC7.87%
2.3 Liquidity
- A Current Ratio of 1.83 indicates that CTC should not have too much problems paying its short term obligations.
- CTC has a better Current ratio (1.83) than 66.67% of its industry peers.
- CTC has a Quick Ratio of 1.44. This is a normal value and indicates that CTC is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of CTC (1.44) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.44 |
3. CTC.CA Growth Analysis
3.1 Past
- CTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.68%, which is quite good.
- CTC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.31% yearly.
- Looking at the last year, CTC shows a decrease in Revenue. The Revenue has decreased by -0.26% in the last year.
- Measured over the past years, CTC shows a small growth in Revenue. The Revenue has been growing by 1.87% on average per year.
EPS 1Y (TTM)9.68%
EPS 3Y-9.83%
EPS 5Y1.31%
EPS Q2Q%9.83%
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y-2.88%
Revenue growth 5Y1.87%
Sales Q2Q%0.97%
3.2 Future
- CTC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.98% yearly.
- CTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.75% yearly.
EPS Next Y7.6%
EPS Next 2Y8.78%
EPS Next 3Y12.98%
EPS Next 5YN/A
Revenue Next Year1.95%
Revenue Next 2Y2.37%
Revenue Next 3Y2.75%
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 accelerating.
4. CTC.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.27, which indicates a correct valuation of CTC.
- Based on the Price/Earnings ratio, CTC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 26.86, CTC is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 14.19, the valuation of CTC can be described as correct.
- CTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CTC is cheaper than 66.67% of the companies in the same industry.
- CTC is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 14.19 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTC indicates a somewhat cheap valuation: CTC is cheaper than 66.67% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CTC is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.57 | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as CTC's earnings are expected to grow with 12.98% in the coming years.
PEG (NY)2.01
PEG (5Y)11.66
EPS Next 2Y8.78%
EPS Next 3Y12.98%
5. CTC.CA Dividend Analysis
5.1 Amount
- CTC has a Yearly Dividend Yield of 3.67%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.54, CTC pays a better dividend. On top of this CTC pays more dividend than 100.00% of the companies listed in the same industry.
- CTC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
- On average, the dividend of CTC grows each year by 20.98%, which is quite nice.
- CTC has paid a dividend for at least 10 years, which is a reliable track record.
- CTC 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 Years15
Div Non Decr Years23
5.3 Sustainability
- CTC pays out 68.73% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of CTC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP68.73%
EPS Next 2Y8.78%
EPS Next 3Y12.98%
CTC.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:CTC (4/10/2026, 7:00:00 PM)
211.01
+0.79 (+0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-07 2026-05-07
Inst Owners36.08%
Inst Owner ChangeN/A
Ins Owners1.59%
Ins Owner ChangeN/A
Market Cap11.12B
Revenue(TTM)16.32B
Net Income(TTM)526.30M
Analysts51.76
Price Target220.07 (4.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP68.73%
Div Incr Years15
Div Non Decr Years23
Ex-Date04-30 2026-04-30 (1.8)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.69%
Min EPS beat(2)14.09%
Max EPS beat(2)29.28%
EPS beat(4)3
Avg EPS beat(4)21.76%
Min EPS beat(4)-10.03%
Max EPS beat(4)53.7%
EPS beat(8)6
Avg EPS beat(8)29.9%
EPS beat(12)6
Avg EPS beat(12)13.75%
EPS beat(16)8
Avg EPS beat(16)13.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.78%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.41%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-2.56%
Revenue beat(12)0
Avg Revenue beat(12)-3.27%
Revenue beat(16)2
Avg Revenue beat(16)-2.15%
PT rev (1m)-10.47%
PT rev (3m)-10.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.44%
EPS NY rev (1m)1.07%
EPS NY rev (3m)5.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 14.19 | ||
| P/S | 0.68 | ||
| P/FCF | 38.57 | ||
| P/OCF | 11.68 | ||
| P/B | 1.9 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)13.82
EY6.55%
EPS(NY)14.87
Fwd EY7.05%
FCF(TTM)5.47
FCFY2.59%
OCF(TTM)18.06
OCFY8.56%
SpS309.53
BVpS111.09
TBVpS85.27
PEG (NY)2.01
PEG (5Y)11.66
Graham Number185.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 8.99% | ||
| ROCE | 7.65% | ||
| ROIC | 5.54% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 6.34% | ||
| OM | 7.2% | ||
| PM (TTM) | 3.23% | ||
| GM | 34.42% | ||
| FCFM | 1.77% |
ROA(3y)2.47%
ROA(5y)3.46%
ROE(3y)9.09%
ROE(5y)13.57%
ROIC(3y)6.14%
ROIC(5y)7.39%
ROICexc(3y)6.37%
ROICexc(5y)7.92%
ROICexgc(3y)7.22%
ROICexgc(5y)9.25%
ROCE(3y)8.58%
ROCE(5y)10.25%
ROICexgc growth 3Y-11.1%
ROICexgc growth 5Y-4%
ROICexc growth 3Y-8.95%
ROICexc growth 5Y-2.15%
OM growth 3Y-6.24%
OM growth 5Y-1.82%
PM growth 3Y-18.05%
PM growth 5Y-8.6%
GM growth 3Y0.17%
GM growth 5Y0.16%
F-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 26.59 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 86.87% | ||
| Cap/Sales | 4.07% | ||
| Interest Coverage | 3.19 | ||
| Cash Conversion | 49.13% | ||
| Profit Quality | 54.8% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 1.99 |
F-Score8
WACC7.87%
ROIC/WACC0.7
Cap/Depr(3y)83.78%
Cap/Depr(5y)94.92%
Cap/Sales(3y)4.06%
Cap/Sales(5y)4.33%
Profit Quality(3y)178.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.68%
EPS 3Y-9.83%
EPS 5Y1.31%
EPS Q2Q%9.83%
EPS Next Y7.6%
EPS Next 2Y8.78%
EPS Next 3Y12.98%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y-2.88%
Revenue growth 5Y1.87%
Sales Q2Q%0.97%
Revenue Next Year1.95%
Revenue Next 2Y2.37%
Revenue Next 3Y2.75%
Revenue Next 5YN/A
EBIT growth 1Y-26.87%
EBIT growth 3Y-8.94%
EBIT growth 5Y0.02%
EBIT Next Year70.83%
EBIT Next 3Y24%
EBIT Next 5YN/A
FCF growth 1Y-79.79%
FCF growth 3YN/A
FCF growth 5Y-32.15%
OCF growth 1Y-53.87%
OCF growth 3Y18.93%
OCF growth 5Y-17.18%
CANADIAN TIRE CORP / CTC.CA Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for CANADIAN TIRE CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CTC.CA.
What is the valuation status of CANADIAN TIRE CORP (CTC.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to CANADIAN TIRE CORP (CTC.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for CANADIAN TIRE CORP?
CANADIAN TIRE CORP (CTC.CA) has a profitability rating of 2 / 10.
What is the financial health of CANADIAN TIRE CORP (CTC.CA) stock?
The financial health rating of CANADIAN TIRE CORP (CTC.CA) is 4 / 10.
Can you provide the expected EPS growth for CTC stock?
The Earnings per Share (EPS) of CANADIAN TIRE CORP (CTC.CA) is expected to grow by 7.6% in the next year.