CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CTC • CA1366811034
224 CAD
-0.15 (-0.07%)
Last: Jan 30, 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. Finally 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.
- In the past 5 years CTC always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 3.33%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 12.37%, CTC is doing worse than 66.67% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 5.83%, CTC is doing worse than 66.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- Looking at the Profit Margin, with a value of 4.49%, CTC is doing worse than 66.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of CTC has remained more or less at the same level.
- CTC has a worse Operating Margin (8.54%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of CTC has grown nicely.
- 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.
- 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.
- CTC has about the same amout of shares outstanding than it did 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 2.02 indicates that CTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.02, CTC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- A Debt/Equity ratio of 1.13 is on the high side and indicates that CTC has dependencies on debt financing.
- CTC has a better Debt to Equity ratio (1.13) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.07 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.78
WACC7.44%
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.
- With a decent Quick ratio value of 1.36, CTC is doing good in 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.
- The Revenue has decreased by -0.13% in the past year.
- The Revenue has been growing slightly by 2.39% on average over the past years.
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
- The Earnings Per Share is expected to grow by 6.72% on average over the next years.
- Based on estimates for the next years, CTC will show a small growth in Revenue. The Revenue will grow by 0.54% on average per year.
EPS Next Y5.23%
EPS Next 2Y5.93%
EPS Next 3Y6.72%
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
- 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
- Based on the Price/Earnings ratio of 16.69, the valuation of CTC can be described as correct.
- 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 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 15.84, CTC is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CTC indicates a somewhat cheap valuation: CTC is cheaper than 66.67% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. CTC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.69 | ||
| Fwd PE | 15.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CTC is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.96 | ||
| EV/EBITDA | 8.49 |
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)3.19
PEG (5Y)N/A
EPS Next 2Y5.93%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.21%, CTC is a good candidate for dividend investing.
- CTC's Dividend Yield is rather good when compared to the industry average which is at 2.88. 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
- On average, the dividend of CTC grows each year by 20.98%, which is quite nice.
- CTC has been paying a dividend for at least 10 years, so it has 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.
- CTC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.67%
EPS Next 2Y5.93%
EPS Next 3Y6.72%
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 8 / 10 and the dividend payout ratio is 49.67%.