CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
TSX:CTC - CA1366811034 - Common Stock
245 CAD
-5 (-2%)
We assign a fundamental rating of 4 out of 10 to CTC. CTC was compared to 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 decent growth rate and is not valued too expensively. 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 Return On Assets of 3.55%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
CTC has a worse Return On Equity (13.06%) than 66.67% of its industry peers.
CTC has a Return On Invested Capital of 6.20%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTC is below the industry average of 11.40%.
| 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
The Profit Margin of CTC (4.65%) is worse than 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.
Looking at the Operating Margin, with a value of 8.87%, CTC is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CTC has grown nicely.
CTC's Gross Margin of 34.06% is on the low side compared to the rest of the industry. CTC is outperformed by 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 | 8.87% | ||
| 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.
Compared to 1 year ago, CTC has about the same amount of shares outstanding.
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
An Altman-Z score of 2.12 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 2.12, CTC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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.
The Debt to FCF ratio of CTC (7.43) is worse than 66.67% of its industry peers.
CTC has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CTC (1.12) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.43 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.82
WACC7.6%
2.3 Liquidity
A Current Ratio of 1.83 indicates that CTC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.83, CTC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CTC has a Quick Ratio of 1.42. 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 1.42, 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.
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 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
Based on estimates for the next years, CTC will show a small growth in Earnings Per Share. The EPS will grow by 5.39% on average per year.
Based on estimates for the next years, CTC will show a small growth in Revenue. The Revenue will grow by 0.84% on average per year.
EPS Next Y0.26%
EPS Next 2Y5.57%
EPS Next 3Y5.39%
EPS Next 5YN/A
Revenue Next Year-1.14%
Revenue Next 2Y0.24%
Revenue Next 3Y0.84%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CTC is valuated rather expensively with a Price/Earnings ratio of 18.52.
66.67% of the companies in the same industry are more expensive than CTC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.13. CTC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.45, 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.
The average S&P500 Price/Forward Earnings ratio is at 22.76. CTC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 17.45 |
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.
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 | 12.91 | ||
| EV/EBITDA | 8.44 |
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)72.08
PEG (5Y)N/A
EPS Next 2Y5.57%
EPS Next 3Y5.39%
5. Dividend
5.1 Amount
CTC has a Yearly Dividend Yield of 4.16%, which is a nice return.
CTC's Dividend Yield is rather good when compared to the industry average which is at 2.85. 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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
47.47% of the earnings are spent on dividend by CTC. 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.
DP47.47%
EPS Next 2Y5.57%
EPS Next 3Y5.39%
TSX:CTC (8/28/2025, 7:00:00 PM)
245
-5 (-2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners32.57%
Inst Owner ChangeN/A
Ins Owners1.52%
Ins Owner ChangeN/A
Market Cap13.25B
Analysts72.63
Price Target270.33 (10.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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)7.97%
PT rev (3m)10.91%
EPS NQ rev (1m)-11.55%
EPS NQ rev (3m)-21.03%
EPS NY rev (1m)-4.21%
EPS NY rev (3m)-4.21%
Revenue NQ rev (1m)1.17%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)1.8%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 17.45 | ||
| P/S | 0.81 | ||
| P/FCF | 12.91 | ||
| P/OCF | 8.14 | ||
| P/B | 2.27 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 8.44 |
EPS(TTM)13.23
EY5.4%
EPS(NY)14.04
Fwd EY5.73%
FCF(TTM)18.98
FCFY7.75%
OCF(TTM)30.08
OCFY12.28%
SpS302.55
BVpS107.81
TBVpS82.36
PEG (NY)72.08
PEG (5Y)N/A
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%
ROICexcg growth 3Y-9.58%
ROICexcg 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 | 2.12 |
F-Score8
WACC7.6%
ROIC/WACC0.82
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 Y0.26%
EPS Next 2Y5.57%
EPS Next 3Y5.39%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%1.67%
Revenue Next Year-1.14%
Revenue Next 2Y0.24%
Revenue Next 3Y0.84%
Revenue Next 5YN/A
EBIT growth 1Y9.96%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year47.81%
EBIT Next 3Y18.36%
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%