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NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis

TSX:NWC - Toronto Stock Exchange - CA6632782083 - Common Stock - Currency: CAD

56.04  -0.93 (-1.63%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to NWC. NWC was compared to 17 industry peers in the Consumer Staples Distribution & Retail industry. NWC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NWC is not valued too expensively and it also shows a decent growth rate. NWC also has an excellent dividend rating. With these ratings, NWC could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

8

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.
NWC had positive earnings in each of the past 5 years.
NWC had a positive operating cash flow in each of the past 5 years.
NWC.CA Yearly Net Income VS EBIT VS OCF VS FCFNWC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

1.2 Ratios

The Return On Assets of NWC (8.99%) is better than 100.00% of its industry peers.
NWC has a Return On Equity (17.78%) which is comparable to the rest of the industry.
NWC's Return On Invested Capital of 12.62% is amongst the best of the industry. NWC outperforms 94.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWC is above the industry average of 8.17%.
Industry RankSector 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%
NWC.CA Yearly ROA, ROE, ROICNWC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

NWC's Profit Margin of 5.33% is amongst the best of the industry. NWC outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of NWC has grown nicely.
NWC has a Operating Margin of 8.13%. This is amongst the best in the industry. NWC outperforms 94.12% of its industry peers.
In the last couple of years the Operating Margin of NWC has grown nicely.
NWC's Gross Margin of 33.70% is amongst the best of the industry. NWC outperforms 94.12% of its industry peers.
NWC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
NWC.CA Yearly Profit, Operating, Gross MarginsNWC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWC is destroying value.
NWC has more shares outstanding than it did 1 year ago.
NWC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NWC has been reduced compared to a year ago.
NWC.CA Yearly Shares OutstandingNWC.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
NWC.CA Yearly Total Debt VS Total AssetsNWC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

NWC has an Altman-Z score of 4.98. This indicates that NWC is financially healthy and has little risk of 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.
The Debt to FCF ratio of NWC is 3.69, which is a good value as it means it would take NWC, 3.69 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.69, NWC belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
NWC has a Debt/Equity ratio of 0.52. This is a neutral value indicating NWC is somewhat dependend on debt financing.
NWC has a better Debt to Equity ratio (0.52) than 88.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 3.69
Altman-Z 4.98
ROIC/WACC0.95
WACC13.22%
NWC.CA Yearly LT Debt VS Equity VS FCFNWC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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.
NWC has a Quick Ratio of 2.00. This is a bad value and indicates that NWC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.76, NWC is doing good in the industry, outperforming 76.47% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 0.76
NWC.CA Yearly Current Assets VS Current LiabilitesNWC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

4

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.
The Revenue has been growing slightly by 4.23% in the past 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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
NWC.CA Yearly Revenue VS EstimatesNWC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
NWC.CA Yearly EPS VS EstimatesNWC.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.62 indicates a rather expensive valuation of NWC.
The rest of the industry has a similar Price/Earnings ratio as NWC.
Compared to an average S&P500 Price/Earnings ratio of 26.17, NWC is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.45, which 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.
NWC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.62
Fwd PE 16.45
NWC.CA Price Earnings VS Forward Price EarningsNWC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

NWC's Enterprise Value to EBITDA ratio is in line with the industry average.
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 RankSector Rank
P/FCF 23.51
EV/EBITDA 9.35
NWC.CA Per share dataNWC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

NWC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NWC has an outstanding profitability rating, which 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%

7

5. Dividend

5.1 Amount

NWC has a Yearly Dividend Yield of 2.83%.
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 RankSector 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
NWC.CA Yearly Dividends per shareNWC.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

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.
The dividend of NWC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.01%
EPS Next 2Y19.98%
EPS Next 3Y15.32%
NWC.CA Yearly Income VS Free CF VS DividendNWC.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
NWC.CA Dividend Payout.NWC.CA Dividend Payout, showing the Payout Ratio.NWC.CA Dividend Payout.PayoutRetained Earnings

NORTH WEST CO INC/THE

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)04-09 2025-04-09/dmh
Earnings (Next)N/A N/A
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 RankSector Rank
Dividend Yield 2.83%
Yearly Dividend1.58
Dividend Growth(5Y)3.72%
DP55.01%
Div Incr Years5
Div Non Decr Years12
Ex-Date04-16 2025-04-16 (0.4)
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 RankSector 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 RankSector 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 RankSector 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%