NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis
TSX:NWC - Toronto Stock Exchange - CA6632782083 - Common Stock - Currency: CAD
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 is not valued too expensively and it also shows a decent 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.
In the past 5 years NWC has always been profitable.
In the past 5 years NWC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.14%, NWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NWC's Return On Equity of 18.11% is in line compared to the rest of the industry. NWC outperforms 52.94% of its industry peers.
NWC has a Return On Invested Capital of 12.77%. This is amongst the best in the industry. NWC outperforms 94.12% 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 7.95%.
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
With an excellent Profit Margin value of 5.29%, NWC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 94.12% of the companies in the same industry.
NWC's Operating Margin has improved in the last couple of years.
NWC has a better Gross Margin (33.95%) than 88.24% 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
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.
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.
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 94.12% 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.
Looking at the Debt to FCF ratio, with a value of 3.56, NWC belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
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 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 4.77 |
ROIC/WACC1.77
WACC7.2%
2.3 Liquidity
A Current Ratio of 2.06 indicates that NWC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.06, NWC belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.76, NWC belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
| 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 0.33% 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.
The Revenue has been growing slightly by 4.23% on average over the past years.
EPS 1Y (TTM)0.33%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%0.53%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%3.87%
3.2 Future
The Earnings Per Share is expected to grow by 15.42% on average over the next years. This is quite good.
NWC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
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
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.
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
A Price/Earnings ratio of 15.94 indicates a correct valuation of NWC.
Based on the Price/Earnings ratio, NWC is valued a bit cheaper than 70.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, NWC is valued a bit cheaper.
NWC is valuated reasonably with a Price/Forward Earnings ratio of 11.08.
NWC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NWC is cheaper than 64.71% of the companies in the same industry.
NWC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NWC indicates a slightly more expensive valuation: NWC is more expensive than 70.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.52 | ||
| EV/EBITDA | 8.1 |
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.
NWC's earnings are expected to grow with 15.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)1.03
EPS Next 2Y19.98%
EPS Next 3Y15.42%
5. Dividend
5.1 Amount
NWC has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 1.51, 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 | 3.33% |
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 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 2Y19.98%
EPS Next 3Y15.42%
TSX:NWC (7/4/2025, 7:00:00 PM)
47.99
-0.08 (-0.17%)
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 Target61.54 (28.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend1.58
Dividend Growth(5Y)3.72%
DP55.28%
Div Incr Years6
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.91%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-1.24%
Revenue beat(8)3
Avg Revenue beat(8)-0.82%
Revenue beat(12)6
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)0.44%
PT rev (1m)-1.09%
PT rev (3m)2.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.69%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 11.08 | ||
| P/S | 0.88 | ||
| P/FCF | 19.52 | ||
| P/OCF | 8.54 | ||
| P/B | 3.03 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 8.1 |
EPS(TTM)3.01
EY6.27%
EPS(NY)4.33
Fwd EY9.03%
FCF(TTM)2.46
FCFY5.12%
OCF(TTM)5.62
OCFY11.71%
SpS54.25
BVpS15.85
TBVpS14.21
PEG (NY)1.21
PEG (5Y)1.03
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
WACC7.2%
ROIC/WACC1.77
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)0.33%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%0.53%
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%