CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
TSX:CTC - Toronto Stock Exchange - CA1366811034 - Common Stock - Currency: CAD
CTC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 3 industry peers in the Broadline Retail industry. CTC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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
In the past year CTC was profitable.
In the past year CTC had a positive cash flow from operations.
In the past 5 years CTC has always been profitable.
Each year in the past 5 years CTC had a positive operating cash flow.
1.2 Ratios
CTC's Return On Assets of 3.74% is on the low side compared to the rest of the industry. CTC is outperformed by 66.67% of its industry peers.
The Return On Equity of CTC (14.22%) is worse than 66.67% of its industry peers.
With a Return On Invested Capital value of 6.07%, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for CTC is below the industry average of 11.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 14.22% | ||
| ROIC | 6.07% |
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 5.21%, CTC is doing worse than 66.67% of the companies in the same industry.
CTC's Profit Margin has been stable in the last couple of years.
CTC has a worse Operating Margin (9.23%) than 66.67% of its industry peers.
CTC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.13%, CTC is doing worse than 66.67% of the companies in the same industry.
CTC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.23% | ||
| PM (TTM) | 5.21% | ||
| GM | 34.13% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTC is destroying value.
CTC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTC has less shares outstanding
CTC has a better debt/assets ratio than last year.
2.2 Solvency
CTC has an Altman-Z score of 2.07. 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.
CTC has a Altman-Z score of 2.07. This is in the better half of the industry: CTC outperforms 66.67% of its industry peers.
CTC has a debt to FCF ratio of 8.51. This is a slightly negative value and a sign of low solvency as CTC would need 8.51 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.51, CTC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
CTC has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
CTC's Debt to Equity ratio of 1.24 is fine compared to the rest of the industry. CTC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.81
WACC7.51%
2.3 Liquidity
A Current Ratio of 1.76 indicates that CTC should not have too much problems paying its short term obligations.
CTC has a better Current ratio (1.76) than 66.67% of its industry peers.
CTC has a Quick Ratio of 1.40. 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 1.40, 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 | 1.76 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.41% over the past year.
The Earnings Per Share has been decreasing by -0.74% on average over the past years.
The Revenue has decreased by -1.12% in the past year.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)22.41%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%44.93%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-1.93%
3.2 Future
Based on estimates for the next years, CTC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.02% 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 Y4.67%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue Next Year-0.86%
Revenue Next 2Y0.37%
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
With a Price/Earnings ratio of 19.29, CTC is valued on the expensive side.
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 26.29, CTC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.19, the valuation of CTC can be described as rather expensive.
66.67% of the companies in the same industry are more expensive than CTC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, CTC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.29 | ||
| Fwd PE | 17.19 |
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 | 14.15 | ||
| EV/EBITDA | 8.85 |
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)4.13
PEG (5Y)N/A
EPS Next 2Y8.5%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
CTC has a Yearly Dividend Yield of 4.12%, which is a nice return.
CTC's Dividend Yield is rather good when compared to the industry average which is at 2.82. 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
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 42.68% 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.
DP42.68%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
TSX:CTC (6/2/2025, 7:00:00 PM)
255
+9 (+3.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.37%
Inst Owner ChangeN/A
Ins Owners1.49%
Ins Owner ChangeN/A
Market Cap14.05B
Analysts72
Price Target243.75 (-4.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend6.47
Dividend Growth(5Y)20.98%
DP42.68%
Div Incr Years14
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.16%
Min EPS beat(2)-7.38%
Max EPS beat(2)53.7%
EPS beat(4)3
Avg EPS beat(4)26.15%
Min EPS beat(4)-7.38%
Max EPS beat(4)53.7%
EPS beat(8)4
Avg EPS beat(8)19.66%
EPS beat(12)5
Avg EPS beat(12)9.98%
EPS beat(16)8
Avg EPS beat(16)14.55%
Revenue beat(2)0
Avg Revenue beat(2)-5.24%
Min Revenue beat(2)-5.76%
Max Revenue beat(2)-4.73%
Revenue beat(4)0
Avg Revenue beat(4)-3.49%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-1.65%
Revenue beat(8)0
Avg Revenue beat(8)-4.29%
Revenue beat(12)1
Avg Revenue beat(12)-3.23%
Revenue beat(16)3
Avg Revenue beat(16)-1.95%
PT rev (1m)2.43%
PT rev (3m)3.75%
EPS NQ rev (1m)4.2%
EPS NQ rev (3m)-2.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)-3.62%
Revenue NQ rev (3m)-3.42%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.29 | ||
| Fwd PE | 17.19 | ||
| P/S | 0.86 | ||
| P/FCF | 14.15 | ||
| P/OCF | 8.73 | ||
| P/B | 2.36 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 8.85 |
EPS(TTM)13.22
EY5.18%
EPS(NY)14.83
Fwd EY5.82%
FCF(TTM)18.03
FCFY7.07%
OCF(TTM)29.2
OCFY11.45%
SpS295.69
BVpS108.23
TBVpS83.4
PEG (NY)4.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 14.22% | ||
| ROCE | 9.74% | ||
| ROIC | 6.07% | ||
| ROICexc | 6.29% | ||
| ROICexgc | 6.86% | ||
| OM | 9.23% | ||
| PM (TTM) | 5.21% | ||
| GM | 34.13% | ||
| FCFM | 6.1% |
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-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 8.51 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 79.47% | ||
| Cap/Sales | 3.78% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 70.6% | ||
| Profit Quality | 117.1% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 2.07 |
F-Score7
WACC7.51%
ROIC/WACC0.81
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)22.41%
EPS 3Y-12.66%
EPS 5Y-0.74%
EPS Q2Q%44.93%
EPS Next Y4.67%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y0.13%
Revenue growth 5Y2.39%
Sales Q2Q%-1.93%
Revenue Next Year-0.86%
Revenue Next 2Y0.37%
Revenue Next 3Y0.84%
Revenue Next 5YN/A
EBIT growth 1Y19.34%
EBIT growth 3Y-1.48%
EBIT growth 5Y4.86%
EBIT Next Year47.81%
EBIT Next 3Y18.36%
EBIT Next 5YN/A
FCF growth 1Y1718.86%
FCF growth 3Y11.28%
FCF growth 5Y24.67%
OCF growth 1Y87.45%
OCF growth 3Y4.39%
OCF growth 5Y13.67%