NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis
Canada - TSX:NWC - CA6632782083 - Common Stock
48.15 CAD
-0.42 (-0.86%)
NWC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 16 industry peers in the Consumer Staples Distribution & Retail industry. NWC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NWC has a correct valuation and a medium growth rate. Finally 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.
NWC had a positive operating cash flow in the past year.
Each year in the past 5 years NWC has been profitable.
Each year in the past 5 years NWC had a positive operating cash flow.
1.2 Ratios
NWC has a better Return On Assets (9.14%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 18.11%, NWC belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.77%, NWC belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NWC 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
The Profit Margin of NWC (5.29%) 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 8.08%. This is in the better half of the industry: NWC outperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of NWC has grown nicely.
NWC's Gross Margin of 33.95% is amongst the best of the industry. NWC outperforms 81.25% of its industry peers.
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.
NWC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NWC has less shares outstanding
NWC has a better debt/assets ratio than last year.
2.2 Solvency
NWC has an Altman-Z score of 4.77. This indicates that NWC is financially healthy and has little risk of bankruptcy at the moment.
NWC has a better Altman-Z score (4.77) 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 Debt to FCF ratio of 3.56. This is amongst the best in the industry. NWC outperforms 93.75% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that 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 | 4.77 |
ROIC/WACC1.72
WACC7.42%
2.3 Liquidity
NWC has a Current Ratio of 2.06. This indicates that NWC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.06, NWC belongs to the best of the industry, outperforming 87.50% 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 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.
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.
NWC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.23%.
NWC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.23% yearly.
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
Based on estimates for the next years, NWC will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.22% on average per year.
The Revenue is expected to grow by 2.74% on average over the next years.
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
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.
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
The Price/Earnings ratio is 14.82, which indicates a correct valuation of NWC.
Compared to the rest of the industry, the Price/Earnings ratio of NWC indicates a somewhat cheap valuation: NWC is cheaper than 68.75% of the companies listed in the same industry.
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 11.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWC indicates a somewhat cheap valuation: NWC is cheaper than 68.75% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NWC to the average of the S&P500 Index (22.70), we can say NWC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
NWC's Enterprise Value to EBITDA is on the same level as the industry average.
NWC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. NWC is more expensive than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.55 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
The 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)0.94
PEG (5Y)0.96
EPS Next 2Y20.5%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
NWC has a Yearly Dividend Yield of 3.40%.
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.
NWC's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| 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 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
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 (9/17/2025, 7:00:00 PM)
48.15
-0.42 (-0.86%)
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 Cap2.30B
Analysts80
Price Target60.69 (26.04%)
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 | 14.82 | ||
| Fwd PE | 11.02 | ||
| P/S | 0.89 | ||
| P/FCF | 19.55 | ||
| P/OCF | 8.55 | ||
| P/B | 3.03 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)3.25
EY6.75%
EPS(NY)4.37
Fwd EY9.08%
FCF(TTM)2.46
FCFY5.12%
OCF(TTM)5.63
OCFY11.69%
SpS54.35
BVpS15.88
TBVpS14.23
PEG (NY)0.94
PEG (5Y)0.96
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 | 4.77 |
F-Score5
WACC7.42%
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%