CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada - TSX:CTC - CA1366811034 - Common Stock
240 CAD
-4 (-1.64%)
Overall CTC gets a fundamental rating of 4 out of 10. We evaluated CTC against 3 industry peers in the Broadline Retail industry. While CTC seems to be doing ok healthwise, there are quite some concerns on its profitability. CTC has a correct valuation and a medium growth rate. CTC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CTC had positive earnings in the past year.
In the past year CTC had a positive cash flow from operations.
CTC had positive earnings in each of the past 5 years.
Each year in the past 5 years CTC had a positive operating cash flow.
1.2 Ratios
CTC has a worse Return On Assets (3.33%) than 66.67% of its industry peers.
CTC's Return On Equity of 12.37% is on the low side compared to the rest of the industry. CTC is outperformed by 66.67% of its industry peers.
CTC's Return On Invested Capital of 5.83% is on the low side compared to the rest of the industry. CTC is outperformed by 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTC 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
With a Profit Margin value of 4.49%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
CTC's Profit Margin has been stable in the last couple of years.
The Operating Margin of CTC (8.54%) is worse than 66.67% of its industry peers.
CTC's Operating Margin has improved in the last couple of years.
The Gross Margin of CTC (34.22%) is worse than 66.67% of its industry peers.
In the last couple of years the Gross Margin of CTC 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 is destroying value.
The number of shares outstanding for CTC remains at a similar level compared to 1 year ago.
CTC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CTC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.05 indicates that CTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTC's Altman-Z score of 2.05 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 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.
CTC's Debt to FCF ratio of 17.07 is on the low side compared to the rest of the industry. CTC is outperformed by 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.
CTC's Debt to Equity ratio of 1.13 is fine compared to the rest of the industry. CTC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.79
WACC7.34%
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.
A Quick Ratio of 1.36 indicates that CTC should not have too much problems paying its short term obligations.
CTC's Quick ratio of 1.36 is fine compared to the rest of the industry. CTC outperforms 66.67% 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 impressive 20.92% over the past year.
Measured over the past years, CTC 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 shows a decrease in Revenue. The Revenue has decreased by -0.13% in the last year.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)20.92%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%-12.73%
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-2.08%
3.2 Future
The Earnings Per Share is expected to grow by 5.59% on average over the next years.
The Revenue is expected to grow by 0.61% on average over the next years.
EPS Next Y-0.38%
EPS Next 2Y4.41%
EPS Next 3Y5.59%
EPS Next 5YN/A
Revenue Next Year-1.17%
Revenue Next 2Y0.04%
Revenue Next 3Y0.61%
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
The Price/Earnings ratio is 19.05, which indicates a rather expensive current valuation of CTC.
CTC's Price/Earnings ratio is a bit cheaper when compared to the industry. CTC is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, CTC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.47, the valuation of CTC can be described as rather expensive.
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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.05 | ||
| Fwd PE | 17.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
66.67% of the companies in the same industry are more expensive than CTC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.02 | ||
| EV/EBITDA | 8.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.41%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
CTC has a Yearly Dividend Yield of 4.19%, which is a nice return.
CTC's Dividend Yield is rather good when compared to the industry average which is at 2.86. CTC pays more dividend than 100.00% of the companies in the same industry.
CTC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y4.41%
EPS Next 3Y5.59%
TSX:CTC (11/14/2025, 7:00:00 PM)
240
-4 (-1.64%)
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 Cap12.86B
Revenue(TTM)16.27B
Net Income(TTM)730.40M
Analysts50.59
Price Target258.94 (7.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP49.67%
Div Incr Years14
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)-11.09%
PT rev (3m)3.42%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)5.81%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.05 | ||
| Fwd PE | 17.47 | ||
| P/S | 0.79 | ||
| P/FCF | 28.02 | ||
| P/OCF | 12.51 | ||
| P/B | 2.18 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 8.93 |
EPS(TTM)12.6
EY5.25%
EPS(NY)13.74
Fwd EY5.72%
FCF(TTM)8.57
FCFY3.57%
OCF(TTM)19.19
OCFY7.99%
SpS303.63
BVpS110.14
TBVpS84.68
PEG (NY)N/A
PEG (5Y)N/A
Graham Number176.7
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 | 2.05 |
F-Score7
WACC7.34%
ROIC/WACC0.79
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)20.92%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%-12.73%
EPS Next Y-0.38%
EPS Next 2Y4.41%
EPS Next 3Y5.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-2.08%
Revenue Next Year-1.17%
Revenue Next 2Y0.04%
Revenue Next 3Y0.61%
Revenue Next 5YN/A
EBIT growth 1Y1.6%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year46.76%
EBIT Next 3Y15.76%
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 decline by -0.38% 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%.