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NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis

TSX:NWC - Toronto Stock Exchange - CA6632782083 - Common Stock - Currency: CAD

46.245  -0.4 (-0.85%)

Fundamental Rating

7

Taking everything into account, NWC scores 7 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively. NWC also has an excellent dividend rating. This makes NWC very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

9

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.
In the past 5 years NWC has always been profitable.
Each year in the past 5 years NWC had a positive operating cash flow.
NWC.CA Yearly Net Income VS EBIT VS OCF VS FCFNWC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

1.2 Ratios

NWC has a better Return On Assets (8.76%) than 100.00% of its industry peers.
The Return On Equity of NWC (17.76%) is better than 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.39%, NWC belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
NWC had an Average Return On Invested Capital over the past 3 years of 14.41%. This is significantly above the industry average of 8.25%.
Industry RankSector Rank
ROA 8.76%
ROE 17.76%
ROIC 12.39%
ROA(3y)10.37%
ROA(5y)9.93%
ROE(3y)21.93%
ROE(5y)22.85%
ROIC(3y)14.41%
ROIC(5y)13.93%
NWC.CA Yearly ROA, ROE, ROICNWC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

The Profit Margin of NWC (5.14%) is better than 100.00% of its industry peers.
NWC's Profit Margin has improved in the last couple of years.
NWC has a Operating Margin of 7.88%. This is amongst the best in the industry. NWC outperforms 93.75% of its industry peers.
In the last couple of years the Operating Margin of NWC has grown nicely.
With an excellent Gross Margin value of 33.33%, NWC belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
NWC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.88%
PM (TTM) 5.14%
GM 33.33%
OM growth 3Y-2.93%
OM growth 5Y7%
PM growth 3Y-4.07%
PM growth 5Y3.98%
GM growth 3Y-0.09%
GM growth 5Y0.58%
NWC.CA Yearly Profit, Operating, Gross MarginsNWC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

8

2. Health

2.1 Basic Checks

NWC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, NWC has less shares outstanding
The number of shares outstanding for NWC has been reduced compared to 5 years ago.
The debt/assets ratio for NWC has been reduced compared to a year ago.
NWC.CA Yearly Shares OutstandingNWC.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
NWC.CA Yearly Total Debt VS Total AssetsNWC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 4.65 indicates that NWC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.65, NWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NWC has a debt to FCF ratio of 4.10. This is a neutral value as NWC would need 4.10 years to pay back of all of its debts.
NWC has a better Debt to FCF ratio (4.10) than 81.25% of its industry peers.
NWC has a Debt/Equity ratio of 0.57. This is a neutral value indicating NWC is somewhat dependend on debt financing.
The Debt to Equity ratio of NWC (0.57) is better than 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF 4.1
Altman-Z 4.65
ROIC/WACC1.73
WACC7.16%
NWC.CA Yearly LT Debt VS Equity VS FCFNWC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.3 Liquidity

NWC has a Current Ratio of 2.16. This indicates that NWC is financially healthy and has no problem in meeting its short term obligations.
NWC has a better Current ratio (2.16) than 100.00% of its industry peers.
A Quick Ratio of 0.79 indicates that NWC may have some problems paying its short term obligations.
The Quick ratio of NWC (0.79) is better than 81.25% of its industry peers.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 0.79
NWC.CA Yearly Current Assets VS Current LiabilitesNWC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

4

3. Growth

3.1 Past

The earnings per share for NWC have decreased by -0.68% in the last year.
The Earnings Per Share has been growing by 13.40% on average over the past years. This is quite good.
Looking at the last year, NWC shows a small growth in Revenue. The Revenue has grown by 3.28% in the last year.
NWC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.19% yearly.
EPS 1Y (TTM)-0.68%
EPS 3Y0.11%
EPS 5Y13.4%
EPS Q2Q%-2.35%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y1.56%
Revenue growth 5Y4.19%
Sales Q2Q%3.34%

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 10.71% yearly.
NWC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.75% yearly.
EPS Next Y10.09%
EPS Next 2Y11.23%
EPS Next 3Y10.71%
EPS Next 5YN/A
Revenue Next Year2.81%
Revenue Next 2Y5.75%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 accelerating.
NWC.CA Yearly Revenue VS EstimatesNWC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B 2.5B
NWC.CA Yearly EPS VS EstimatesNWC.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 15.89, the valuation of NWC can be described as correct.
NWC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.12, NWC is valued a bit cheaper.
NWC is valuated correctly with a Price/Forward Earnings ratio of 12.46.
NWC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NWC is cheaper than 68.75% of the companies in the same industry.
NWC is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.77, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.89
Fwd PE 12.46
NWC.CA Price Earnings VS Forward Price EarningsNWC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NWC is valued a bit more expensive than 68.75% of the companies in the same industry.
NWC's Price/Free Cash Flow ratio is rather expensive when compared to the industry. NWC is more expensive than 81.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.6
EV/EBITDA 8.3
NWC.CA Per share dataNWC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

NWC's 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.
PEG (NY)1.58
PEG (5Y)1.19
EPS Next 2Y11.23%
EPS Next 3Y10.71%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.43%, NWC has a reasonable but not impressive dividend return.
NWC's Dividend Yield is rather good when compared to the industry average which is at 1.63. NWC pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, NWC pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.43%

5.2 History

The dividend of NWC has a limited annual growth rate of 3.85%.
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)3.85%
Div Incr Years5
Div Non Decr Years12
NWC.CA Yearly Dividends per shareNWC.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

NWC pays out 57.37% 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.
DP57.37%
EPS Next 2Y11.23%
EPS Next 3Y10.71%
NWC.CA Yearly Income VS Free CF VS DividendNWC.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
NWC.CA Dividend Payout.NWC.CA Dividend Payout, showing the Payout Ratio.NWC.CA Dividend Payout.PayoutRetained Earnings

NORTH WEST CO INC/THE

TSX:NWC (2/7/2025, 7:00:00 PM)

46.245

-0.4 (-0.85%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)12-08 2024-12-08/amc
Earnings (Next)N/A N/A
Inst Owners35.36%
Inst Owner ChangeN/A
Ins Owners0.36%
Ins Owner ChangeN/A
Market Cap2.21B
Analysts80
Price Target59.67 (29.03%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.43%
Yearly Dividend1.54
Dividend Growth(5Y)3.85%
DP57.37%
Div Incr Years5
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.72%
Min EPS beat(2)-4.27%
Max EPS beat(2)0.83%
EPS beat(4)2
Avg EPS beat(4)-0.31%
Min EPS beat(4)-10.04%
Max EPS beat(4)12.24%
EPS beat(8)5
Avg EPS beat(8)6.21%
EPS beat(12)8
Avg EPS beat(12)7.22%
EPS beat(16)12
Avg EPS beat(16)10.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)-1.34%
Revenue beat(4)1
Avg Revenue beat(4)-1.26%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)0.56%
Revenue beat(8)5
Avg Revenue beat(8)0.57%
Revenue beat(12)8
Avg Revenue beat(12)0.95%
Revenue beat(16)9
Avg Revenue beat(16)0.39%
PT rev (1m)0%
PT rev (3m)8.33%
EPS NQ rev (1m)-13.41%
EPS NQ rev (3m)-4.7%
EPS NY rev (1m)11.99%
EPS NY rev (3m)11.99%
Revenue NQ rev (1m)-3.8%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.4%
Revenue NY rev (3m)-1.4%
Valuation
Industry RankSector Rank
PE 15.89
Fwd PE 12.46
P/S 0.87
P/FCF 20.6
P/OCF 9.11
P/B 3.01
P/tB 3.36
EV/EBITDA 8.3
EPS(TTM)2.91
EY6.29%
EPS(NY)3.71
Fwd EY8.03%
FCF(TTM)2.25
FCFY4.86%
OCF(TTM)5.07
OCFY10.97%
SpS53.18
BVpS15.38
TBVpS13.76
PEG (NY)1.58
PEG (5Y)1.19
Profitability
Industry RankSector Rank
ROA 8.76%
ROE 17.76%
ROCE 16.3%
ROIC 12.39%
ROICexc 13.1%
ROICexgc 14.04%
OM 7.88%
PM (TTM) 5.14%
GM 33.33%
FCFM 4.22%
ROA(3y)10.37%
ROA(5y)9.93%
ROE(3y)21.93%
ROE(5y)22.85%
ROIC(3y)14.41%
ROIC(5y)13.93%
ROICexc(3y)15.19%
ROICexc(5y)14.77%
ROICexgc(3y)16.57%
ROICexgc(5y)16.23%
ROCE(3y)18.96%
ROCE(5y)18.33%
ROICexcg growth 3Y-11.98%
ROICexcg growth 5Y7.16%
ROICexc growth 3Y-10.96%
ROICexc growth 5Y7.6%
OM growth 3Y-2.93%
OM growth 5Y7%
PM growth 3Y-4.07%
PM growth 5Y3.98%
GM growth 3Y-0.09%
GM growth 5Y0.58%
F-Score6
Asset Turnover1.71
Health
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF 4.1
Debt/EBITDA 1.34
Cap/Depr 119.39%
Cap/Sales 5.32%
Interest Coverage 10.56
Cash Conversion 77.36%
Profit Quality 82.21%
Current Ratio 2.16
Quick Ratio 0.79
Altman-Z 4.65
F-Score6
WACC7.16%
ROIC/WACC1.73
Cap/Depr(3y)113.24%
Cap/Depr(5y)111.54%
Cap/Sales(3y)4.72%
Cap/Sales(5y)4.63%
Profit Quality(3y)73.51%
Profit Quality(5y)91.33%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.68%
EPS 3Y0.11%
EPS 5Y13.4%
EPS Q2Q%-2.35%
EPS Next Y10.09%
EPS Next 2Y11.23%
EPS Next 3Y10.71%
EPS Next 5YN/A
Revenue 1Y (TTM)3.28%
Revenue growth 3Y1.56%
Revenue growth 5Y4.19%
Sales Q2Q%3.34%
Revenue Next Year2.81%
Revenue Next 2Y5.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.44%
EBIT growth 3Y-1.41%
EBIT growth 5Y11.48%
EBIT Next Year57.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y38.27%
FCF growth 3Y-25.94%
FCF growth 5Y15.31%
OCF growth 1Y45.13%
OCF growth 3Y-12.05%
OCF growth 5Y8.16%