CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
TSX:CTC • CA1366811034
216.21 CAD
+0.21 (+0.1%)
Last: Feb 25, 2026, 07:00 PM
Taking everything into account, CTC scores 4 out of 10 in our fundamental rating. CTC was compared to 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.
- Of the past 5 years CTC 4 years were profitable.
- CTC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- CTC has a Return On Assets of 3.33%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
- CTC has a worse Return On Equity (12.37%) than 66.67% of its industry peers.
- The Return On Invested Capital of CTC (5.83%) is worse than 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 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
- 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
- CTC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- There is no outstanding debt for CTC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 2.00 indicates that CTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CTC has a better Altman-Z score (2.00) than 66.67% of its industry peers.
- CTC has a debt to FCF ratio of 17.07. This is a negative value and a sign of low solvency as CTC would need 17.07 years to pay back of 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 |
ROIC/WACC0.76
WACC7.69%
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.
- CTC has a Current ratio of 1.80. This is in the better half of the industry: CTC outperforms 66.67% of its industry peers.
- A Quick Ratio of 1.36 indicates that CTC should not have too much problems paying 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
- The Earnings Per Share has grown by an nice 9.08% over the past year.
- The Earnings Per Share has been growing slightly by 1.20% on average over the past years.
EPS 1Y (TTM)9.08%
EPS 3Y-10%
EPS 5Y1.2%
EPS Q2Q%7.96%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.9%
3.2 Future
- The Earnings Per Share is expected to grow by 5.56% on average over the next years.
- CTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.48% yearly.
EPS Next Y2.87%
EPS Next 2Y5.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y1.48%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
- CTC is valuated correctly with a Price/Earnings ratio of 15.74.
- Compared to the rest of the industry, the Price/Earnings ratio of CTC indicates a somewhat cheap valuation: CTC is cheaper than 66.67% of the companies listed in the same industry.
- CTC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 15.29 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 28.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 15.29 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are more expensive than CTC, based on the Enterprise Value to EBITDA ratio.
- CTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CTC is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.95 | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)5.48
PEG (5Y)13.15
EPS Next 2Y5.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- CTC has a Yearly Dividend Yield of 3.94%.
- CTC's Dividend Yield is rather good when compared to the industry average which is at 2.70. CTC pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, CTC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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 Years14
Div Non Decr Years22
5.3 Sustainability
- 49.67% of the earnings are spent on dividend by CTC. 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 2Y5.56%
EPS Next 3YN/A
TSX:CTC (2/25/2026, 7:00:00 PM)
216.21
+0.21 (+0.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners35.33%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap11.45B
Revenue(TTM)N/A
Net Income(TTM)730.40M
Analysts50.59
Price Target245.82 (13.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP49.67%
Div Incr Years14
Div Non Decr Years22
Ex-Date01-30 2026-01-30 (1.8)
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)-4.58%
EPS NQ rev (1m)-1.78%
EPS NQ rev (3m)-2.09%
EPS NY rev (1m)0%
EPS NY rev (3m)5.63%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 15.29 | ||
| P/S | 0.7 | ||
| P/FCF | 24.95 | ||
| P/OCF | 11.14 | ||
| P/B | 1.94 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)13.74
EY6.35%
EPS(NY)14.14
Fwd EY6.54%
FCF(TTM)8.67
FCFY4.01%
OCF(TTM)19.41
OCFY8.98%
SpS307.25
BVpS111.45
TBVpS85.69
PEG (NY)5.48
PEG (5Y)13.15
Graham Number185.62
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 |
F-Score7
WACC7.69%
ROIC/WACC0.76
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)9.08%
EPS 3Y-10%
EPS 5Y1.2%
EPS Q2Q%7.96%
EPS Next Y2.87%
EPS Next 2Y5.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.9%
Revenue Next Year1.2%
Revenue Next 2Y1.48%
Revenue Next 3YN/A
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.
Can you provide the valuation status for CANADIAN TIRE CORP?
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.
How financially healthy is CANADIAN TIRE CORP?
The financial health rating of CANADIAN TIRE CORP (CTC.CA) is 4 / 10.
Is the dividend of CANADIAN TIRE CORP sustainable?
The dividend rating of CANADIAN TIRE CORP (CTC.CA) is 7 / 10 and the dividend payout ratio is 49.67%.