CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CTC - CA1366811034 - Common Stock
225.01 CAD
-9.54 (-4.07%)
CTC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 3 industry peers in the Broadline Retail industry. The financial health of CTC is average, but there are quite some concerns on its profitability. CTC has a valuation in line with the averages, but on the other hand it scores bad on growth. CTC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CTC was profitable.
CTC had a positive operating cash flow in the past year.
CTC had positive earnings in each of the past 5 years.
In the past 5 years CTC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.33%, CTC is doing worse than 66.67% of the companies in the same industry.
With a Return On Equity value of 12.37%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Return On Invested Capital of CTC (5.83%) is worse than 66.67% of its industry peers.
CTC had an Average Return On Invested Capital over the past 3 years of 6.91%. This is below the industry average of 10.70%.
| 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 has a worse Profit Margin (4.49%) than 66.67% of its industry peers.
CTC's Profit Margin has been stable in the last couple of years.
CTC has a worse Operating Margin (8.54%) than 66.67% of its industry peers.
CTC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.22%, CTC is doing worse than 66.67% of the companies in the same industry.
CTC's Gross Margin has been stable in the last couple of years.
| 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
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 remains at a similar level compared to 1 year ago.
The number of shares outstanding for CTC has been reduced compared to 5 years ago.
Compared to 1 year ago, CTC has an improved debt to assets ratio.
2.2 Solvency
CTC has an Altman-Z score of 2.02. This is not the best score and indicates that CTC is in the grey zone with still only limited risk for bankruptcy at the moment.
CTC has a better Altman-Z score (2.02) than 66.67% of its industry peers.
The Debt to FCF ratio of CTC is 17.07, which is on the high side as it means it would take CTC, 17.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CTC (17.07) is worse than 66.67% of its industry peers.
CTC has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.13, CTC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.81
WACC7.22%
2.3 Liquidity
CTC has a Current Ratio of 1.80. This is a normal value and indicates that CTC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.80, CTC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CTC has a Quick Ratio of 1.36. This is a normal value and indicates that CTC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.36, CTC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
CTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.68%, which is quite good.
CTC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
CTC shows a decrease in Revenue. In the last year, the revenue decreased by -0.13%.
CTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.39% yearly.
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
CTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.55% yearly.
CTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.54% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
CTC is valuated correctly with a Price/Earnings ratio of 16.77.
Based on the Price/Earnings ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of CTC to the average of the S&P500 Index (26.22), we can say CTC is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.95 indicates a correct valuation of CTC.
Based on the Price/Forward Earnings ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
CTC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 15.95 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTC indicates a somewhat cheap valuation: CTC is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.08 | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.28
PEG (5Y)N/A
EPS Next 2Y5.83%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.37%, CTC is a good candidate for dividend investing.
CTC's Dividend Yield is rather good when compared to the industry average which is at 2.98. CTC pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, CTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
5.2 History
The dividend of CTC is nicely growing with an annual growth rate of 20.98%!
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 Years14
Div Non Decr Years22
5.3 Sustainability
CTC pays out 49.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CTC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.67%
EPS Next 2Y5.83%
EPS Next 3Y6.55%
TSX:CTC (12/17/2025, 7:00:00 PM)
225.01
-9.54 (-4.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.79%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap11.97B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target257.62 (14.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP49.67%
Div Incr Years14
Div Non Decr Years22
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)-0.51%
PT rev (3m)-4.7%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)5.52%
EPS NY rev (3m)4.85%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 15.95 | ||
| P/S | 0.74 | ||
| P/FCF | 26.08 | ||
| P/OCF | 11.64 | ||
| P/B | 2.03 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)13.42
EY5.96%
EPS(NY)14.11
Fwd EY6.27%
FCF(TTM)8.63
FCFY3.83%
OCF(TTM)19.33
OCFY8.59%
SpS305.86
BVpS110.95
TBVpS85.3
PEG (NY)3.28
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 | 2.02 |
F-Score7
WACC7.22%
ROIC/WACC0.81
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 / CTC.CA 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 for CTC stock?
ChartMill assigns a valuation rating of 4 / 10 to CANADIAN TIRE CORP (CTC.CA). This can be considered as Fairly Valued.
How profitable is CANADIAN TIRE CORP (CTC.CA) stock?
CANADIAN TIRE CORP (CTC.CA) has a profitability rating of 3 / 10.
What is the expected EPS growth for CANADIAN TIRE CORP (CTC.CA) stock?
The Earnings per Share (EPS) of CANADIAN TIRE CORP (CTC.CA) is expected to grow by 5.12% in the next year.
How sustainable is the dividend of CANADIAN TIRE CORP (CTC.CA) stock?
The dividend rating of CANADIAN TIRE CORP (CTC.CA) is 8 / 10 and the dividend payout ratio is 49.67%.