CANADIAN TIRE CORP (CTC.CA) Stock Fundamental Analysis
TSX:CTC - Toronto Stock Exchange - CA1366811034 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to CTC. CTC was compared to 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 is not valued too expensively and it also shows a decent growth rate. CTC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CTC had positive earnings in the past year.
CTC had a positive operating cash flow in the past year.
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 3.74%. This is in the lower half of the industry: CTC underperforms 66.67% of its industry peers.
CTC has a worse Return On Equity (14.22%) than 66.67% of its industry peers.
The Return On Invested Capital of CTC (6.07%) is worse than 66.67% of its industry peers.
CTC had an Average Return On Invested Capital over the past 3 years of 6.91%. This is below the industry average of 11.32%.
| 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
CTC's Profit Margin of 5.21% 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 Profit Margin of CTC has remained more or less at the same level.
CTC's Operating Margin of 9.23% is on the low side compared to the rest of the industry. CTC is outperformed by 66.67% of its industry peers.
CTC's Operating Margin has improved in the last couple of years.
The Gross Margin of CTC (34.13%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTC 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.
The debt/assets ratio for CTC has been reduced compared to a year ago.
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.
The Altman-Z score of CTC (2.07) is better than 66.67% of its industry peers.
The Debt to FCF ratio of CTC is 8.51, which is on the high side as it means it would take CTC, 8.51 years of fcf income to pay off all of its debts.
CTC's Debt to FCF ratio of 8.51 is on the low side compared to the rest of the industry. CTC is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 1.24 is on the high side and indicates that CTC has dependencies on debt 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/WACC0.86
WACC7.08%
2.3 Liquidity
CTC has a Current Ratio of 1.76. This is a normal value and indicates that CTC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CTC (1.76) is better than 66.67% of its industry peers.
A Quick Ratio of 1.40 indicates that CTC should not have too much problems paying 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.
CTC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
CTC shows a decrease in Revenue. In the last year, the revenue decreased by -1.12%.
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.
CTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.55% yearly.
EPS Next Y4.67%
EPS Next 2Y8.5%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue Next Year-2.89%
Revenue Next 2Y-0.29%
Revenue Next 3Y0.55%
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
A Price/Earnings ratio of 19.67 indicates a rather expensive valuation of CTC.
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 26.82, which is the current average of the S&P500 Index.
CTC is valuated rather expensively with a Price/Forward Earnings ratio of 17.53.
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 36.21. CTC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 17.53 |
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.
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 | 14.16 | ||
| EV/EBITDA | 8.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.21
PEG (5Y)N/A
EPS Next 2Y8.5%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
CTC has a Yearly Dividend Yield of 3.83%.
Compared to an average industry Dividend Yield of 2.63, CTC pays a better dividend. On top of this CTC pays more dividend than 100.00% of the companies listed in the same industry.
CTC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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 (7/31/2025, 7:00:00 PM)
260
+2.75 (+1.07%)
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 Cap14.06B
Analysts72.63
Price Target250.37 (-3.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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)2.72%
PT rev (3m)5.21%
EPS NQ rev (1m)1.41%
EPS NQ rev (3m)5.66%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)-2.04%
Revenue NY rev (3m)-3.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 17.53 | ||
| P/S | 0.86 | ||
| P/FCF | 14.16 | ||
| P/OCF | 8.74 | ||
| P/B | 2.36 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 8.86 |
EPS(TTM)13.22
EY5.08%
EPS(NY)14.83
Fwd EY5.7%
FCF(TTM)18.37
FCFY7.06%
OCF(TTM)29.76
OCFY11.44%
SpS301.27
BVpS110.27
TBVpS84.98
PEG (NY)4.21
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
WACC7.08%
ROIC/WACC0.86
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-2.89%
Revenue Next 2Y-0.29%
Revenue Next 3Y0.55%
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%