NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis
TSX:NWC - Toronto Stock Exchange - CA6632782083 - Common Stock - Currency: CAD
Taking everything into account, NWC scores 6 out of 10 in our fundamental rating. NWC was compared to 17 industry peers in the Consumer Staples Distribution & Retail industry. Both the health and profitability get an excellent rating, making NWC a very profitable company, without any liquidiy or solvency issues. NWC has a decent growth rate and is not valued too expensively. NWC also has an excellent dividend rating. These ratings could make NWC a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
NWC had positive earnings in the past year.
In the past year NWC had a positive cash flow from operations.
Each year in the past 5 years NWC has been profitable.
In the past 5 years NWC always reported a positive cash flow from operatings.
1.2 Ratios
NWC has a better Return On Assets (8.99%) than 100.00% of its industry peers.
NWC has a Return On Equity of 17.78%. This is comparable to the rest of the industry: NWC outperforms 52.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.62%, NWC belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
NWC had an Average Return On Invested Capital over the past 3 years of 12.75%. This is above the industry average of 8.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.78% | ||
| ROIC | 12.62% |
ROA(3y)9.13%
ROA(5y)10.37%
ROE(3y)18.7%
ROE(5y)22.41%
ROIC(3y)12.75%
ROIC(5y)14.69%
1.3 Margins
Looking at the Profit Margin, with a value of 5.33%, NWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NWC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.13%, NWC belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
In the last couple of years the Operating Margin of NWC has grown nicely.
With an excellent Gross Margin value of 33.70%, NWC belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
NWC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.13% | ||
| PM (TTM) | 5.33% | ||
| GM | 33.7% |
OM growth 3Y-4.74%
OM growth 5Y8.71%
PM growth 3Y-8.18%
PM growth 5Y6.18%
GM growth 3Y0.9%
GM growth 5Y1.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWC is destroying value.
Compared to 1 year ago, NWC has more shares outstanding
The number of shares outstanding for NWC has been reduced compared to 5 years ago.
NWC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.98 indicates that NWC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.98, NWC belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
NWC has a debt to FCF ratio of 3.69. This is a good value and a sign of high solvency as NWC would need 3.69 years to pay back of all of its debts.
NWC has a Debt to FCF ratio of 3.69. This is amongst the best in the industry. NWC outperforms 94.12% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that NWC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, NWC belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 4.98 |
ROIC/WACC0.95
WACC13.22%
2.3 Liquidity
A Current Ratio of 2.00 indicates that NWC has no problem at all paying its short term obligations.
The Current ratio of NWC (2.00) is better than 94.12% of its industry peers.
A Quick Ratio of 0.76 indicates that NWC may have some problems paying its short term obligations.
The Quick ratio of NWC (0.76) is better than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
NWC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.33%.
Measured over the past years, NWC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.41% on average per year.
The Revenue has been growing slightly by 4.23% in the past year.
The Revenue has been growing slightly by 4.23% on average over the past years.
EPS 1Y (TTM)0.33%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%12.2%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%4.94%
3.2 Future
Based on estimates for the next years, NWC will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.32% on average per year.
Based on estimates for the next years, NWC will show a small growth in Revenue. The Revenue will grow by 4.86% on average per year.
EPS Next Y13.19%
EPS Next 2Y19.98%
EPS Next 3Y15.32%
EPS Next 5YN/A
Revenue Next Year2.51%
Revenue Next 2Y5.71%
Revenue Next 3Y4.86%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.62, the valuation of NWC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NWC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of NWC to the average of the S&P500 Index (26.35), we can say NWC is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.45 indicates a correct valuation of NWC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWC is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NWC to the average of the S&P500 Index (22.20), we can say NWC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 16.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWC is on the same level as its industry peers.
NWC's Price/Free Cash Flow ratio is rather expensive when compared to the industry. NWC is more expensive than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.51 | ||
| EV/EBITDA | 9.35 |
4.3 Compensation for Growth
NWC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NWC may justify a higher PE ratio.
A more expensive valuation may be justified as NWC's earnings are expected to grow with 15.32% in the coming years.
PEG (NY)1.41
PEG (5Y)1.21
EPS Next 2Y19.98%
EPS Next 3Y15.32%
5. Dividend
5.1 Amount
NWC has a Yearly Dividend Yield of 2.83%.
Compared to an average industry Dividend Yield of 1.47, NWC pays a better dividend. On top of this NWC pays more dividend than 100.00% of the companies listed in the same industry.
NWC's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of NWC has a limited annual growth rate of 3.72%.
NWC has been paying a dividend for at least 10 years, so it has a reliable track record.
NWC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.72%
Div Incr Years5
Div Non Decr Years12
5.3 Sustainability
NWC pays out 55.01% of its income as dividend. This is a bit on the high side, but may be sustainable.
NWC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.01%
EPS Next 2Y19.98%
EPS Next 3Y15.32%
TSX:NWC (5/27/2025, 7:00:00 PM)
56.04
-0.93 (-1.63%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.76%
Inst Owner ChangeN/A
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap2.69B
Analysts80
Price Target62.22 (11.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend1.58
Dividend Growth(5Y)3.72%
DP55.01%
Div Incr Years5
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.74%
Min EPS beat(2)0.83%
Max EPS beat(2)20.65%
EPS beat(4)2
Avg EPS beat(4)1.79%
Min EPS beat(4)-10.04%
Max EPS beat(4)20.65%
EPS beat(8)5
Avg EPS beat(8)4.72%
EPS beat(12)8
Avg EPS beat(12)7.14%
EPS beat(16)12
Avg EPS beat(16)11.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)-1.24%
Revenue beat(4)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)0.56%
Revenue beat(8)4
Avg Revenue beat(8)-0.27%
Revenue beat(12)7
Avg Revenue beat(12)0.58%
Revenue beat(16)9
Avg Revenue beat(16)0.37%
PT rev (1m)3.98%
PT rev (3m)4.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 16.45 | ||
| P/S | 1.04 | ||
| P/FCF | 23.51 | ||
| P/OCF | 10.31 | ||
| P/B | 3.48 | ||
| P/tB | 3.89 | ||
| EV/EBITDA | 9.35 |
EPS(TTM)3.01
EY5.37%
EPS(NY)3.41
Fwd EY6.08%
FCF(TTM)2.38
FCFY4.25%
OCF(TTM)5.44
OCFY9.7%
SpS53.75
BVpS16.11
TBVpS14.4
PEG (NY)1.41
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.78% | ||
| ROCE | 16.73% | ||
| ROIC | 12.62% | ||
| ROICexc | 13.33% | ||
| ROICexgc | 14.32% | ||
| OM | 8.13% | ||
| PM (TTM) | 5.33% | ||
| GM | 33.7% | ||
| FCFM | 4.44% |
ROA(3y)9.13%
ROA(5y)10.37%
ROE(3y)18.7%
ROE(5y)22.41%
ROIC(3y)12.75%
ROIC(5y)14.69%
ROICexc(3y)13.44%
ROICexc(5y)15.62%
ROICexgc(3y)14.51%
ROICexgc(5y)17.1%
ROCE(3y)16.91%
ROCE(5y)19.48%
ROICexcg growth 3Y-10.73%
ROICexcg growth 5Y8.83%
ROICexc growth 3Y-9.9%
ROICexc growth 5Y9.37%
OM growth 3Y-4.74%
OM growth 5Y8.71%
PM growth 3Y-8.18%
PM growth 5Y6.18%
GM growth 3Y0.9%
GM growth 5Y1.22%
F-Score5
Asset Turnover1.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 126.58% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 10.8 | ||
| Cash Conversion | 80.15% | ||
| Profit Quality | 83.23% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.98 |
F-Score5
WACC13.22%
ROIC/WACC0.95
Cap/Depr(3y)120.95%
Cap/Depr(5y)109.59%
Cap/Sales(3y)5.22%
Cap/Sales(5y)4.6%
Profit Quality(3y)73.24%
Profit Quality(5y)98.42%
High Growth Momentum
Growth
EPS 1Y (TTM)0.33%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%12.2%
EPS Next Y13.19%
EPS Next 2Y19.98%
EPS Next 3Y15.32%
EPS Next 5YN/A
Revenue 1Y (TTM)4.23%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%4.94%
Revenue Next Year2.51%
Revenue Next 2Y5.71%
Revenue Next 3Y4.86%
Revenue Next 5YN/A
EBIT growth 1Y4.99%
EBIT growth 3Y-0.32%
EBIT growth 5Y13.31%
EBIT Next Year50.96%
EBIT Next 3Y22.71%
EBIT Next 5YN/A
FCF growth 1Y6.78%
FCF growth 3Y-4.22%
FCF growth 5Y23.67%
OCF growth 1Y13.11%
OCF growth 3Y5.16%
OCF growth 5Y10.1%