CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
Canada - TSX:CTC - CA1366811034 - Common Stock
249.75 CAD
-0.25 (-0.1%)
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 is not valued too expensively and it also shows a decent growth rate. 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.
Each year in the past 5 years CTC has been profitable.
CTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTC's Return On Assets of 3.55% 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 Return On Equity of 13.06%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.20%, CTC is doing worse than 66.67% of the companies in the same industry.
CTC had an Average Return On Invested Capital over the past 3 years of 6.91%. This is below the industry average of 10.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 13.06% | ||
| ROIC | 6.2% |
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 Profit Margin of 4.65%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
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 (8.87%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CTC has grown nicely.
With a Gross Margin value of 34.06%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
CTC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.87% | ||
| PM (TTM) | 4.65% | ||
| GM | 34.06% |
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.
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
CTC has an Altman-Z score of 2.13. 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.
The Altman-Z score of CTC (2.13) is better than 66.67% of its industry peers.
The Debt to FCF ratio of CTC is 7.43, which is on the high side as it means it would take CTC, 7.43 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.43, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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 | 7.43 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.85
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.83 indicates that CTC should not have too much problems paying its short term obligations.
The Current ratio of CTC (1.83) is better than 66.67% of its industry peers.
A Quick Ratio of 1.42 indicates that CTC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.42, 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 | 1.83 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.29% over the past year.
The Earnings Per Share has been decreasing by -0.74% on average over the past years.
Looking at the last year, CTC shows a small growth in Revenue. The Revenue has grown by 0.05% in the last year.
Measured over the past years, CTC shows a small growth in Revenue. The Revenue has been growing by 2.39% on average per year.
EPS 1Y (TTM)17.29%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%0.28%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
3.2 Future
CTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.95% yearly.
The Revenue is expected to grow by 0.67% on average over the next years.
EPS Next Y-0.01%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
EPS Next 5YN/A
Revenue Next Year-1.1%
Revenue Next 2Y0.12%
Revenue Next 3Y0.67%
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
With a Price/Earnings ratio of 18.88, CTC is valued on the expensive side.
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.
The average S&P500 Price/Earnings ratio is at 26.89. CTC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.97, 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.
When comparing the Price/Forward Earnings ratio of CTC to the average of the S&P500 Index (22.99), we can say CTC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 17.97 |
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 | 13.04 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.03%
EPS Next 3Y4.95%
5. Dividend
5.1 Amount
CTC has a Yearly Dividend Yield of 4.07%, which is a nice return.
CTC's Dividend Yield is rather good when compared to the industry average which is at 2.79. 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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
CTC pays out 47.47% 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.
DP47.47%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
TSX:CTC (10/24/2025, 7:00:00 PM)
249.75
-0.25 (-0.1%)
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 Cap13.38B
Revenue(TTM)16.36B
Net Income(TTM)761.40M
Analysts50.59
Price Target291.25 (16.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP47.47%
Div Incr Years14
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.83%
Min EPS beat(2)-10.03%
Max EPS beat(2)53.7%
EPS beat(4)2
Avg EPS beat(4)12.94%
Min EPS beat(4)-10.03%
Max EPS beat(4)53.7%
EPS beat(8)4
Avg EPS beat(8)18.82%
EPS beat(12)5
Avg EPS beat(12)10.51%
EPS beat(16)7
Avg EPS beat(16)12.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-5.76%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-3.96%
Revenue beat(12)1
Avg Revenue beat(12)-3.22%
Revenue beat(16)3
Avg Revenue beat(16)-1.89%
PT rev (1m)13.92%
PT rev (3m)16.33%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-12.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 17.97 | ||
| P/S | 0.82 | ||
| P/FCF | 13.04 | ||
| P/OCF | 8.23 | ||
| P/B | 2.3 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 8.5 |
EPS(TTM)13.23
EY5.3%
EPS(NY)13.9
Fwd EY5.57%
FCF(TTM)19.15
FCFY7.67%
OCF(TTM)30.35
OCFY12.15%
SpS305.26
BVpS108.78
TBVpS83.1
PEG (NY)N/A
PEG (5Y)N/A
Graham Number179.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 13.06% | ||
| ROCE | 9.53% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 7.37% | ||
| OM | 8.87% | ||
| PM (TTM) | 4.65% | ||
| GM | 34.06% | ||
| FCFM | 6.27% |
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-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 78.82% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 73.51% | ||
| Profit Quality | 134.79% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 2.13 |
F-Score8
WACC7.3%
ROIC/WACC0.85
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)17.29%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%0.28%
EPS Next Y-0.01%
EPS Next 2Y5.03%
EPS Next 3Y4.95%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
Revenue Next Year-1.1%
Revenue Next 2Y0.12%
Revenue Next 3Y0.67%
Revenue Next 5YN/A
EBIT growth 1Y9.96%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year46.76%
EBIT Next 3Y15.76%
EBIT Next 5YN/A
FCF growth 1Y125.07%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y33.55%
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 -0.01% 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 47.47%.