NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis
TSX:NWC - Toronto Stock Exchange - CA6632782083 - Common Stock - Currency: CAD
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!.
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
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 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
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 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 4.98 |
ROIC/WACC0.95
WACC13.22%
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 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 16.45 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.51 | ||
| EV/EBITDA | 9.35 |
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%
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 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
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%
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)
Earnings (Next)
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 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 | 18.62 | ||
| 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 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 | 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%