NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:NWC • CA6632782083
48.61 CAD
-0.09 (-0.18%)
Last: Jan 30, 2026, 07:00 PM
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 gets an excellent profitability rating and is at the same time showing great financial health properties. NWC has a decent growth rate and is not valued too expensively. Finally NWC also has an excellent dividend rating. These ratings would make NWC suitable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year NWC was profitable.
- 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
- With an excellent Return On Assets value of 8.95%, NWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- With a decent Return On Equity value of 17.99%, NWC is doing good in the industry, outperforming 64.71% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 12.16%, NWC belongs to the best of the industry, outperforming 100.00% 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 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.95% | ||
| ROE | 17.99% | ||
| ROIC | 12.16% |
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 (5.51%) than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of NWC has grown nicely.
- NWC's Operating Margin of 8.27% is amongst the best of the industry. NWC outperforms 94.12% of its industry peers.
- In the last couple of years the Operating Margin of NWC has grown nicely.
- With a decent Gross Margin value of 34.10%, NWC is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- 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 | 8.27% | ||
| PM (TTM) | 5.51% | ||
| GM | 34.1% |
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.
- The number of shares outstanding for NWC has been increased compared to 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
- An Altman-Z score of 4.55 indicates that NWC is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.55, NWC belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
- The Debt to FCF ratio of NWC is 4.12, which is a neutral value as it means it would take NWC, 4.12 years of fcf income to pay off all of its debts.
- NWC has a better Debt to FCF ratio (4.12) than 82.35% of its industry peers.
- NWC has a Debt/Equity ratio of 0.58. This is a neutral value indicating NWC is somewhat dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.58, NWC belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 4.55 |
ROIC/WACC1.65
WACC7.35%
2.3 Liquidity
- A Current Ratio of 2.26 indicates that NWC has no problem at all paying its short term obligations.
- NWC's Current ratio of 2.26 is amongst the best of the industry. NWC outperforms 88.24% of its industry peers.
- NWC has a Quick Ratio of 2.26. 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 (0.82) is better than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
- NWC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.92%, which is quite good.
- NWC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.41% yearly.
- NWC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.08%.
- 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)12.92%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%4.34%
Revenue 1Y (TTM)2.08%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%-0.5%
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 10.12% yearly.
- NWC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.73% yearly.
EPS Next Y13.86%
EPS Next 2Y14.83%
EPS Next 3Y10.12%
EPS Next 5YN/A
Revenue Next Year-2.51%
Revenue Next 2Y1.26%
Revenue Next 3Y1.73%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.78, the valuation of NWC can be described as correct.
- Based on the Price/Earnings ratio, NWC is valued a bit cheaper than 76.47% of the companies in the same industry.
- When comparing the Price/Earnings ratio of NWC to the average of the S&P500 Index (28.32), we can say NWC is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 12.25, the valuation of NWC can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NWC indicates a somewhat cheap valuation: NWC is cheaper than 70.59% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. NWC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWC.
- Based on the Price/Free Cash Flow ratio, NWC is valued a bit more expensive than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.01 | ||
| EV/EBITDA | 8.12 |
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.
PEG (NY)1.07
PEG (5Y)0.96
EPS Next 2Y14.83%
EPS Next 3Y10.12%
5. Dividend
5.1 Amount
- NWC has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
- NWC's Dividend Yield is a higher than the industry average which is at 2.29.
- Compared to an average S&P500 Dividend Yield of 1.83, NWC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
- The dividend of NWC has a limited annual growth rate of 3.72%.
- NWC has paid a dividend for at least 10 years, which is 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
- 53.85% of the earnings are spent on dividend by NWC. 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.
DP53.85%
EPS Next 2Y14.83%
EPS Next 3Y10.12%
NORTH WEST CO INC/THE / NWC.CA FAQ
Can you provide the ChartMill fundamental rating for NORTH WEST CO INC/THE?
ChartMill assigns a fundamental rating of 6 / 10 to NWC.CA.
Can you provide the valuation status for NORTH WEST CO INC/THE?
ChartMill assigns a valuation rating of 5 / 10 to NORTH WEST CO INC/THE (NWC.CA). This can be considered as Fairly Valued.
What is the profitability of NWC stock?
NORTH WEST CO INC/THE (NWC.CA) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for NWC stock?
The Price/Earnings (PE) ratio for NORTH WEST CO INC/THE (NWC.CA) is 14.78 and the Price/Book (PB) ratio is 2.92.
How sustainable is the dividend of NORTH WEST CO INC/THE (NWC.CA) stock?
The dividend rating of NORTH WEST CO INC/THE (NWC.CA) is 7 / 10 and the dividend payout ratio is 53.85%.