NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis
TSX:NWC - Toronto Stock Exchange - CA6632782083 - Common Stock - Currency: CAD
Overall NWC gets a fundamental rating of 7 out of 10. We evaluated NWC against 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 is not valued too expensively and it also shows a decent growth rate. Finally NWC also has an excellent dividend rating. This makes NWC very considerable 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.
In the past 5 years NWC always reported a positive cash flow from operatings.
1.2 Ratios
NWC's Return On Assets of 9.14% is amongst the best of the industry. NWC outperforms 100.00% of its industry peers.
With a Return On Equity value of 18.11%, NWC perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
NWC has a better Return On Invested Capital (12.77%) than 93.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWC is above the industry average of 8.41%.
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 Profit Margin of 5.29%. This is amongst the best in the industry. NWC outperforms 100.00% of its industry peers.
NWC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 8.08%, NWC belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
NWC's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 33.95%, NWC belongs to the best of the industry, outperforming 87.50% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NWC is creating some value.
NWC has more shares outstanding than it did 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 4.71. This indicates that NWC is financially healthy and has little risk of bankruptcy at the moment.
NWC has a better Altman-Z score (4.71) than 93.75% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 3.56, NWC belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
NWC has a Debt/Equity ratio of 0.53. This is a neutral value indicating NWC is somewhat dependend on debt financing.
The Debt to Equity ratio of NWC (0.53) is better than 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 4.71 |
ROIC/WACC1.76
WACC7.26%
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 93.75% 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.
The Quick ratio of NWC (0.76) is better than 81.25% 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 been growing slightly by 4.97% over the past year.
NWC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.41% yearly.
The Revenue has been growing slightly by 4.19% 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)4.97%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%30.19%
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.
The Revenue is expected to grow by 4.07% on average over the next years.
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
NWC is valuated correctly with a Price/Earnings ratio of 14.64.
NWC's Price/Earnings ratio is a bit cheaper when compared to the industry. NWC is cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.05, NWC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 10.71, the valuation of NWC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWC indicates a somewhat cheap valuation: NWC is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.67, NWC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
NWC's Enterprise Value to EBITDA is on the same level as the industry average.
62.50% of the companies in the same industry are cheaper than NWC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.88 | ||
| EV/EBITDA | 7.85 |
4.3 Compensation for Growth
The 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.
NWC's earnings are expected to grow with 15.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)0.95
EPS Next 2Y19.98%
EPS Next 3Y15.42%
5. Dividend
5.1 Amount
NWC has a Yearly Dividend Yield of 3.43%.
NWC's Dividend Yield is rather good when compared to the industry average which is at 1.52. NWC pays more dividend than 100.00% of the companies in the same industry.
NWC's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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 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.
NWC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.28%
EPS Next 2Y19.98%
EPS Next 3Y15.42%
TSX:NWC (7/25/2025, 7:00:00 PM)
46.42
+0.18 (+0.39%)
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 Cap2.22B
Analysts80
Price Target61.54 (32.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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)0%
PT rev (3m)-1.09%
EPS NQ rev (1m)-12.36%
EPS NQ rev (3m)-12.36%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 10.71 | ||
| P/S | 0.86 | ||
| P/FCF | 18.88 | ||
| P/OCF | 8.26 | ||
| P/B | 2.93 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 7.85 |
EPS(TTM)3.17
EY6.83%
EPS(NY)4.33
Fwd EY9.33%
FCF(TTM)2.46
FCFY5.3%
OCF(TTM)5.62
OCFY12.11%
SpS54.25
BVpS15.85
TBVpS14.21
PEG (NY)1.11
PEG (5Y)0.95
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 | 4.71 |
F-Score5
WACC7.26%
ROIC/WACC1.76
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)4.97%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%30.19%
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%