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. NWC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NWC is valied quite expensively at the moment, while it does show a decent growth rate. Finally NWC also has an excellent dividend rating. These ratings would make NWC suitable 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.
In the past 5 years NWC has always been profitable.
NWC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.99%, NWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.78%, NWC is in line with its industry, outperforming 52.94% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for NWC 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.
In the last couple of years the Profit Margin of NWC has grown nicely.
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.
The Gross Margin of NWC (33.70%) is better than 94.12% of its industry peers.
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
NWC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NWC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NWC has less shares outstanding
Compared to 1 year ago, NWC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.01 indicates that NWC is not in any danger for bankruptcy at the moment.
The Altman-Z score of NWC (5.01) is better than 94.12% of its industry peers.
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's Debt to FCF ratio of 3.69 is amongst the best of 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 | 5.01 |
ROIC/WACC0.95
WACC13.23%
2.3 Liquidity
A Current Ratio of 2.00 indicates that NWC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.00, NWC belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that NWC may have some problems paying its short term obligations.
NWC has a better Quick ratio (0.76) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.33% over the past year.
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.
Looking at the last year, NWC shows a small growth in Revenue. The Revenue has grown by 4.23% in the last year.
Measured over the past years, NWC shows a small growth in Revenue. The Revenue has been growing by 4.23% on average per year.
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
NWC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.32% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.84, the valuation of NWC can be described as rather expensive.
NWC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NWC to the average of the S&P500 Index (26.19), we can say NWC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.64, the valuation of NWC can be described as correct.
NWC's Price/Forward Earnings ratio is in line with the industry average.
NWC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.84 | ||
| Fwd PE | 16.64 |
4.2 Price Multiples
64.71% of the companies in the same industry are cheaper than NWC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NWC is valued expensively inside the industry as 82.35% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.79 | ||
| EV/EBITDA | 9.45 |
4.3 Compensation for Growth
The 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)1.43
PEG (5Y)1.22
EPS Next 2Y19.98%
EPS Next 3Y15.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.83%, NWC has a reasonable but not impressive dividend return.
NWC's Dividend Yield is rather good when compared to the industry average which is at 1.47. NWC pays more dividend than 100.00% of the companies 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.72%
Div Incr Years5
Div Non Decr Years12
5.3 Sustainability
55.01% of the earnings are spent on dividend by NWC. 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 (5/29/2025, 7:00:00 PM)
56.71
-0.34 (-0.6%)
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 Cap2.72B
Analysts80
Price Target62.22 (9.72%)
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 | 18.84 | ||
| Fwd PE | 16.64 | ||
| P/S | 1.06 | ||
| P/FCF | 23.79 | ||
| P/OCF | 10.43 | ||
| P/B | 3.52 | ||
| P/tB | 3.94 | ||
| EV/EBITDA | 9.45 |
EPS(TTM)3.01
EY5.31%
EPS(NY)3.41
Fwd EY6.01%
FCF(TTM)2.38
FCFY4.2%
OCF(TTM)5.44
OCFY9.59%
SpS53.75
BVpS16.11
TBVpS14.4
PEG (NY)1.43
PEG (5Y)1.22
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 | 5.01 |
F-Score5
WACC13.23%
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%