NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis
Canada - TSX:NWC - CA6632782083 - Common Stock
46.17 CAD
-0.42 (-0.9%)
We assign a fundamental rating of 7 out of 10 to NWC. 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 and quality investing.
1. Profitability
1.1 Basic Checks
NWC had positive earnings in the past year.
NWC had a positive operating cash flow in the past year.
NWC had positive earnings in each of the past 5 years.
In the past 5 years NWC always reported a positive cash flow from operatings.
1.2 Ratios
NWC has a better Return On Assets (8.91%) than 100.00% of its industry peers.
The Return On Equity of NWC (17.84%) is better than 94.12% of its industry peers.
NWC has a better Return On Invested Capital (12.48%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWC is significantly above the industry average of 7.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.91% | ||
| ROE | 17.84% | ||
| ROIC | 12.48% |
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 5.32% 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.
With a decent Operating Margin value of 8.09%, NWC is doing good in the industry, outperforming 70.59% of the companies in the same industry.
In the last couple of years the Operating Margin of NWC has grown nicely.
NWC has a better Gross Margin (33.95%) than 82.35% of its industry peers.
NWC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.09% | ||
| PM (TTM) | 5.32% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NWC is creating some value.
The number of shares outstanding for NWC has been increased compared to 1 year ago.
NWC has less shares outstanding than it did 5 years ago.
NWC has a better debt/assets ratio than last year.
2.2 Solvency
NWC has an Altman-Z score of 4.58. This indicates that NWC is financially healthy and has little risk of bankruptcy at the moment.
NWC has a Altman-Z score of 4.58. This is amongst the best in the industry. NWC outperforms 94.12% of its industry peers.
NWC has a debt to FCF ratio of 3.75. This is a good value and a sign of high solvency as NWC would need 3.75 years to pay back of all of its debts.
NWC's Debt to FCF ratio of 3.75 is amongst the best of the industry. NWC outperforms 88.24% of its industry peers.
NWC has a Debt/Equity ratio of 0.54. This is a neutral value indicating NWC is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.54, NWC belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 4.58 |
ROIC/WACC1.74
WACC7.18%
2.3 Liquidity
A Current Ratio of 2.06 indicates that NWC has no problem at all paying its short term obligations.
The Current ratio of NWC (2.06) is better than 88.24% of its industry peers.
NWC has a Quick Ratio of 2.06. 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 Quick ratio value of 0.74, NWC perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.92% 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 3.04% in the past year.
NWC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.23% yearly.
EPS 1Y (TTM)10.92%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%10.96%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%0.08%
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 13.49% on average per year.
The Revenue is expected to grow by 3.61% on average over the next years.
EPS Next Y33.21%
EPS Next 2Y18.5%
EPS Next 3Y13.49%
EPS Next 5YN/A
Revenue Next Year-1.8%
Revenue Next 2Y3.33%
Revenue Next 3Y3.61%
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
A Price/Earnings ratio of 14.21 indicates a correct valuation of NWC.
Based on the Price/Earnings ratio, NWC is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
NWC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
NWC is valuated reasonably with a Price/Forward Earnings ratio of 10.92.
NWC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NWC is cheaper than 64.71% of the companies in the same industry.
NWC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NWC is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NWC is valued a bit more expensive than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.91 | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
NWC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NWC may justify a higher PE ratio.
NWC's earnings are expected to grow with 13.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)0.92
EPS Next 2Y18.5%
EPS Next 3Y13.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.52%, NWC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.60, NWC pays a bit more dividend than its industry peers.
NWC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.72%
Div Incr Years6
Div Non Decr Years13
5.3 Sustainability
NWC pays out 55.33% 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.
DP55.33%
EPS Next 2Y18.5%
EPS Next 3Y13.49%
TSX:NWC (10/24/2025, 7:00:00 PM)
46.17
-0.42 (-0.9%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners33.73%
Inst Owner ChangeN/A
Ins Owners0.6%
Ins Owner ChangeN/A
Market Cap2.21B
Revenue(TTM)2.60B
Net Income(TTM)138.40M
Analysts80
Price Target60.69 (31.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend1.58
Dividend Growth(5Y)3.72%
DP55.33%
Div Incr Years6
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.81%
Min EPS beat(2)1.84%
Max EPS beat(2)17.79%
EPS beat(4)4
Avg EPS beat(4)10.28%
Min EPS beat(4)0.83%
Max EPS beat(4)20.65%
EPS beat(8)6
Avg EPS beat(8)6.99%
EPS beat(12)9
Avg EPS beat(12)8.46%
EPS beat(16)12
Avg EPS beat(16)9.34%
Revenue beat(2)0
Avg Revenue beat(2)-1.45%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)-0.21%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)-0.21%
Revenue beat(8)2
Avg Revenue beat(8)-0.86%
Revenue beat(12)6
Avg Revenue beat(12)0.32%
Revenue beat(16)9
Avg Revenue beat(16)0.65%
PT rev (1m)0%
PT rev (3m)-1.38%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-2.99%
EPS NY rev (1m)15.07%
EPS NY rev (3m)17.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 10.92 | ||
| P/S | 0.85 | ||
| P/FCF | 18.91 | ||
| P/OCF | 8.33 | ||
| P/B | 2.85 | ||
| P/tB | 3.17 | ||
| EV/EBITDA | 7.9 |
EPS(TTM)3.25
EY7.04%
EPS(NY)4.23
Fwd EY9.15%
FCF(TTM)2.44
FCFY5.29%
OCF(TTM)5.55
OCFY12.01%
SpS54.36
BVpS16.22
TBVpS14.57
PEG (NY)0.43
PEG (5Y)0.92
Graham Number34.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.91% | ||
| ROE | 17.84% | ||
| ROCE | 16.54% | ||
| ROIC | 12.48% | ||
| ROICexc | 13.19% | ||
| ROICexgc | 14.12% | ||
| OM | 8.09% | ||
| PM (TTM) | 5.32% | ||
| GM | 33.95% | ||
| FCFM | 4.49% |
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%
ROICexgc growth 3Y-10.73%
ROICexgc 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-Score6
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.75 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 125.04% | ||
| Cap/Sales | 5.71% | ||
| Interest Coverage | 11.29 | ||
| Cash Conversion | 80.62% | ||
| Profit Quality | 84.41% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 4.58 |
F-Score6
WACC7.18%
ROIC/WACC1.74
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)10.92%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%10.96%
EPS Next Y33.21%
EPS Next 2Y18.5%
EPS Next 3Y13.49%
EPS Next 5YN/A
Revenue 1Y (TTM)3.04%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%0.08%
Revenue Next Year-1.8%
Revenue Next 2Y3.33%
Revenue Next 3Y3.61%
Revenue Next 5YN/A
EBIT growth 1Y4.05%
EBIT growth 3Y-0.32%
EBIT growth 5Y13.31%
EBIT Next Year49.6%
EBIT Next 3Y21.72%
EBIT Next 5Y12.22%
FCF growth 1Y28.54%
FCF growth 3Y-4.22%
FCF growth 5Y23.67%
OCF growth 1Y23.78%
OCF growth 3Y5.16%
OCF growth 5Y10.1%
NORTH WEST CO INC/THE / NWC.CA FAQ
Can you provide the ChartMill fundamental rating for NORTH WEST CO INC/THE?
ChartMill assigns a fundamental rating of 7 / 10 to NWC.CA.
What is the valuation status for NWC stock?
ChartMill assigns a valuation rating of 6 / 10 to NORTH WEST CO INC/THE (NWC.CA). This can be considered as Fairly Valued.
What is the profitability of NWC stock?
NORTH WEST CO INC/THE (NWC.CA) has a profitability rating of 9 / 10.
How financially healthy is NORTH WEST CO INC/THE?
The financial health rating of NORTH WEST CO INC/THE (NWC.CA) is 7 / 10.
Can you provide the expected EPS growth for NWC stock?
The Earnings per Share (EPS) of NORTH WEST CO INC/THE (NWC.CA) is expected to grow by 33.21% in the next year.