NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis
Canada - TSX:NWC - CA6632782083 - Common Stock
48.57 CAD
+0.88 (+1.85%)
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. 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 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.
NWC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NWC has a Return On Assets of 9.14%. This is amongst the best in 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 has a better Return On Invested Capital (12.77%) than 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 8.70%.
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 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 fine compared to the rest of the industry. NWC outperforms 62.50% of its industry peers.
NWC's Operating Margin has improved in the last couple of years.
NWC has a better Gross Margin (33.95%) than 81.25% 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
NWC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NWC has more shares outstanding
Compared to 5 years ago, NWC has less shares outstanding
NWC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.79 indicates that NWC is not in any danger for bankruptcy at the moment.
NWC has a better Altman-Z score (4.79) than 93.75% of its industry peers.
NWC has a debt to FCF ratio of 3.56. This is a good value and a sign of high solvency as NWC would need 3.56 years to pay back of all of its debts.
NWC has a better Debt to FCF ratio (3.56) than 93.75% of its industry peers.
NWC has a Debt/Equity ratio of 0.53. This is a neutral value indicating 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 | 4.79 |
ROIC/WACC1.72
WACC7.43%
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 87.50% of its industry peers.
A Quick Ratio of 0.76 indicates that NWC may have some problems paying its short term obligations.
NWC's Quick ratio of 0.76 is fine compared to the rest of the industry. NWC outperforms 68.75% 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 grown by an nice 10.92% over the past year.
The Earnings Per Share has been growing by 15.41% on average over the past years. This is quite good.
NWC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.23%.
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)10.92%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%10.96%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%0.08%
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 14.22% yearly.
NWC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.74% yearly.
EPS Next Y15.76%
EPS Next 2Y20.5%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue Next Year-1.8%
Revenue Next 2Y3.4%
Revenue Next 3Y2.74%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.94 indicates a correct valuation of NWC.
68.75% of the companies in the same industry are more expensive than NWC, based on the Price/Earnings ratio.
NWC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
NWC is valuated reasonably with a Price/Forward Earnings ratio of 11.11.
68.75% of the companies in the same industry are more expensive than NWC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NWC to the average of the S&P500 Index (22.71), we can say NWC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
NWC's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NWC is valued a bit more expensive than the industry average as 68.75% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.72 | ||
| EV/EBITDA | 8.15 |
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.
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 14.22% in the coming years.
PEG (NY)0.95
PEG (5Y)0.97
EPS Next 2Y20.5%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
NWC has a Yearly Dividend Yield of 3.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.54, 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 2.38, NWC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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 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 3Y14.22%
TSX:NWC (9/16/2025, 7:00:00 PM)
48.57
+0.88 (+1.85%)
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 Cap2.32B
Analysts80
Price Target60.69 (24.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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)-1.24%
PT rev (3m)-2.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.52%
EPS NY rev (1m)2.27%
EPS NY rev (3m)2.27%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | 11.11 | ||
| P/S | 0.89 | ||
| P/FCF | 19.72 | ||
| P/OCF | 8.63 | ||
| P/B | 3.06 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 8.15 |
EPS(TTM)3.25
EY6.69%
EPS(NY)4.37
Fwd EY9%
FCF(TTM)2.46
FCFY5.07%
OCF(TTM)5.63
OCFY11.59%
SpS54.35
BVpS15.88
TBVpS14.23
PEG (NY)0.95
PEG (5Y)0.97
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 | 4.79 |
F-Score5
WACC7.43%
ROIC/WACC1.72
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 Y15.76%
EPS Next 2Y20.5%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue 1Y (TTM)4.23%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%0.08%
Revenue Next Year-1.8%
Revenue Next 2Y3.4%
Revenue Next 3Y2.74%
Revenue Next 5YN/A
EBIT growth 1Y2.14%
EBIT growth 3Y-0.32%
EBIT growth 5Y13.31%
EBIT Next Year50.96%
EBIT Next 3Y21.95%
EBIT Next 5Y11.95%
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%