NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis
TSX:NWC - CA6632782083 - Common Stock
50.34 CAD
-0.35 (-0.69%)
Taking everything into account, NWC scores 7 out of 10 in our fundamental rating. NWC was compared to 16 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 has a correct valuation and a medium growth rate. 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.
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.
1.2 Ratios
NWC's Return On Assets of 9.14% is amongst the best of the industry. NWC outperforms 100.00% of its industry peers.
The Return On Equity of NWC (18.11%) is better than 87.50% of its industry peers.
NWC's Return On Invested Capital of 12.77% is amongst the best of the industry. NWC outperforms 93.75% of its industry peers.
NWC had an Average Return On Invested Capital over the past 3 years of 12.75%. This is above the industry average of 8.81%.
The 3 year average ROIC (12.75%) for NWC is below the current ROIC(12.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.14% | ||
| ROE | 18.11% | ||
| ROIC | 12.77% |
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
NWC's Profit Margin of 5.29% is amongst the best of the industry. NWC outperforms 100.00% of its industry peers.
NWC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.08%, NWC is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Operating Margin of NWC has grown nicely.
NWC has a Gross Margin of 33.95%. This is amongst the best in the industry. NWC outperforms 87.50% of its industry peers.
In the last couple of years the Gross Margin of NWC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.08% | ||
| PM (TTM) | 5.29% | ||
| GM | 33.95% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NWC is still creating some 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
NWC has an Altman-Z score of 4.85. 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 4.85, NWC belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
The Debt to FCF ratio of NWC is 3.56, which is a good value as it means it would take NWC, 3.56 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.56, NWC belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that NWC is somewhat dependend on debt financing.
NWC's Debt to Equity ratio of 0.53 is amongst the best of the industry. NWC outperforms 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 4.85 |
ROIC/WACC1.71
WACC7.45%
2.3 Liquidity
A Current Ratio of 2.06 indicates that NWC has no problem at all paying its short term obligations.
NWC's Current ratio of 2.06 is amongst the best of the industry. NWC outperforms 93.75% of its industry peers.
A Quick Ratio of 0.76 indicates that NWC may have some problems paying its short term obligations.
NWC has a Quick ratio of 0.76. This is in the better half of the industry: NWC outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.97% 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.
NWC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.19%.
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)4.97%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%30.19%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%3.87%
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 14.43% on average per year.
The Revenue is expected to grow by 3.99% on average over the next years.
EPS Next Y15.76%
EPS Next 2Y20.5%
EPS Next 3Y14.43%
EPS Next 5YN/A
Revenue Next Year-1.05%
Revenue Next 2Y4.41%
Revenue Next 3Y3.99%
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
With a Price/Earnings ratio of 15.88, NWC is valued correctly.
NWC's Price/Earnings is on the same level as the industry average.
NWC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.52, the valuation of NWC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWC indicates a somewhat cheap valuation: NWC is cheaper than 68.75% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.67. NWC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 11.52 |
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 a bit more expensive when compared to the industry. NWC is more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.44 | ||
| EV/EBITDA | 8.41 |
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.
NWC's earnings are expected to grow with 14.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)1.03
EPS Next 2Y20.5%
EPS Next 3Y14.43%
5. Dividend
5.1 Amount
NWC has a Yearly Dividend Yield of 3.11%.
NWC's Dividend Yield is rather good when compared to the industry average which is at 1.78. NWC pays more dividend than 93.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NWC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
The dividend of NWC has a limited annual growth rate of 3.72%.
NWC has paid a dividend for at least 10 years, which is 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 Years6
Div Non Decr Years13
5.3 Sustainability
NWC pays out 55.28% 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.
DP55.28%
EPS Next 2Y20.5%
EPS Next 3Y14.43%
TSX:NWC (8/25/2025, 7:00:00 PM)
50.34
-0.35 (-0.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners32.38%
Inst Owner ChangeN/A
Ins Owners0.6%
Ins Owner ChangeN/A
Market Cap2.41B
Analysts80
Price Target61.46 (22.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend1.58
Dividend Growth(5Y)3.72%
DP55.28%
Div Incr Years6
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.22%
Min EPS beat(2)17.79%
Max EPS beat(2)20.65%
EPS beat(4)3
Avg EPS beat(4)8.75%
Min EPS beat(4)-4.27%
Max EPS beat(4)20.65%
EPS beat(8)6
Avg EPS beat(8)8.86%
EPS beat(12)8
Avg EPS beat(12)8.26%
EPS beat(16)12
Avg EPS beat(16)10.8%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)-1.24%
Revenue beat(8)3
Avg Revenue beat(8)-0.83%
Revenue beat(12)6
Avg Revenue beat(12)0.27%
Revenue beat(16)9
Avg Revenue beat(16)0.43%
PT rev (1m)-0.14%
PT rev (3m)-1.23%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)-11.52%
EPS NY rev (1m)2.27%
EPS NY rev (3m)2.27%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.47%
Revenue NY rev (3m)-3.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 11.52 | ||
| P/S | 0.93 | ||
| P/FCF | 20.44 | ||
| P/OCF | 8.94 | ||
| P/B | 3.17 | ||
| P/tB | 3.54 | ||
| EV/EBITDA | 8.41 |
EPS(TTM)3.17
EY6.3%
EPS(NY)4.37
Fwd EY8.68%
FCF(TTM)2.46
FCFY4.89%
OCF(TTM)5.63
OCFY11.19%
SpS54.35
BVpS15.88
TBVpS14.23
PEG (NY)1.01
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.14% | ||
| ROE | 18.11% | ||
| ROCE | 16.93% | ||
| ROIC | 12.77% | ||
| ROICexc | 13.58% | ||
| ROICexgc | 14.57% | ||
| OM | 8.08% | ||
| PM (TTM) | 5.29% | ||
| GM | 33.95% | ||
| FCFM | 4.53% |
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 Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.56 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 129.21% | ||
| Cap/Sales | 5.83% | ||
| Interest Coverage | 11.08 | ||
| Cash Conversion | 82.29% | ||
| Profit Quality | 85.63% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.85 |
F-Score5
WACC7.45%
ROIC/WACC1.71
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)4.97%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%30.19%
EPS Next Y15.76%
EPS Next 2Y20.5%
EPS Next 3Y14.43%
EPS Next 5YN/A
Revenue 1Y (TTM)4.19%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%3.87%
Revenue Next Year-1.05%
Revenue Next 2Y4.41%
Revenue Next 3Y3.99%
Revenue Next 5YN/A
EBIT growth 1Y2.14%
EBIT growth 3Y-0.32%
EBIT growth 5Y13.31%
EBIT Next Year50.96%
EBIT Next 3Y22.42%
EBIT Next 5Y12.04%
FCF growth 1Y57.37%
FCF growth 3Y-4.22%
FCF growth 5Y23.67%
OCF growth 1Y40.11%
OCF growth 3Y5.16%
OCF growth 5Y10.1%