NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis
TSX:NWC - Toronto Stock Exchange - CA6632782083 - Common Stock - Currency: CAD
NWC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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. Finally 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.
NWC had a positive operating cash flow in the past year.
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 (9.14%) than 100.00% of its industry peers.
NWC has a Return On Equity (18.11%) which is in line with its industry peers.
NWC has a Return On Invested Capital of 12.77%. This is amongst the best in the industry. NWC outperforms 94.12% 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 7.95%.
The last Return On Invested Capital (12.77%) for NWC is above the 3 year average (12.75%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (5.29%) than 100.00% of its industry peers.
NWC's Profit Margin has improved in the last couple of years.
NWC's Operating Margin of 8.08% is amongst the best of the industry. NWC outperforms 94.12% of its industry peers.
In the last couple of years the Operating Margin of NWC has grown nicely.
Looking at the Gross Margin, with a value of 33.95%, NWC belongs to the top of the industry, outperforming 88.24% 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 | 8.08% | ||
| 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
NWC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for NWC has been increased compared to 1 year ago.
The number of shares outstanding for NWC has been reduced compared to 5 years ago.
Compared to 1 year ago, NWC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.78 indicates that NWC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.78, 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 3.56, 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.
The Debt to FCF ratio of NWC (3.56) is better than 88.24% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that NWC is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.53, NWC belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.77
WACC7.2%
2.3 Liquidity
A Current Ratio of 2.06 indicates that NWC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.06, NWC belongs to the top of the industry, outperforming 88.24% 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 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| 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%.
NWC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.41% yearly.
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)0.33%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%0.53%
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 15.42% on average per year.
Based on estimates for the next years, NWC will show a small growth in Revenue. The Revenue will grow by 4.07% on average per year.
EPS Next Y13.19%
EPS Next 2Y19.98%
EPS Next 3Y15.42%
EPS Next 5YN/A
Revenue Next Year2.51%
Revenue Next 2Y5.71%
Revenue Next 3Y4.07%
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
The Price/Earnings ratio is 15.82, which indicates a correct valuation of NWC.
Based on the Price/Earnings ratio, NWC is valued a bit cheaper than 70.59% of the companies in the same industry.
NWC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
With a Price/Forward Earnings ratio of 10.99, the valuation of NWC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, NWC is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NWC to the average of the S&P500 Index (21.76), we can say NWC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWC.
Based on the Price/Free Cash Flow ratio, NWC is valued a bit more expensive than the industry average as 70.59% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.37 | ||
| EV/EBITDA | 8.12 |
4.3 Compensation for Growth
The 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 15.42% in the coming years.
PEG (NY)1.2
PEG (5Y)1.03
EPS Next 2Y19.98%
EPS Next 3Y15.42%
5. Dividend
5.1 Amount
NWC has a Yearly Dividend Yield of 3.31%.
Compared to an average industry Dividend Yield of 1.51, NWC pays a better dividend. On top of this NWC pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, NWC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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
55.28% of the earnings are spent on dividend by NWC. 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.
DP55.28%
EPS Next 2Y19.98%
EPS Next 3Y15.42%
TSX:NWC (7/2/2025, 7:00:00 PM)
47.61
-0.66 (-1.37%)
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 Cap2.28B
Analysts80
Price Target61.54 (29.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend1.58
Dividend Growth(5Y)3.72%
DP55.28%
Div Incr Years6
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.91%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-1.24%
Revenue beat(8)3
Avg Revenue beat(8)-0.82%
Revenue beat(12)6
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)0.44%
PT rev (1m)-1.09%
PT rev (3m)2.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.69%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 10.99 | ||
| P/S | 0.88 | ||
| P/FCF | 19.37 | ||
| P/OCF | 8.47 | ||
| P/B | 3 | ||
| P/tB | 3.35 | ||
| EV/EBITDA | 8.12 |
EPS(TTM)3.01
EY6.32%
EPS(NY)4.33
Fwd EY9.1%
FCF(TTM)2.46
FCFY5.16%
OCF(TTM)5.62
OCFY11.8%
SpS54.25
BVpS15.85
TBVpS14.21
PEG (NY)1.2
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 | 4.78 |
F-Score5
WACC7.2%
ROIC/WACC1.77
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%0.53%
EPS Next Y13.19%
EPS Next 2Y19.98%
EPS Next 3Y15.42%
EPS Next 5YN/A
Revenue 1Y (TTM)4.19%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%3.87%
Revenue Next Year2.51%
Revenue Next 2Y5.71%
Revenue Next 3Y4.07%
Revenue Next 5YN/A
EBIT growth 1Y2.14%
EBIT growth 3Y-0.32%
EBIT growth 5Y13.31%
EBIT Next Year50.96%
EBIT Next 3Y23.06%
EBIT Next 5YN/A
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%