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 6 out of 10. We evaluated NWC against 18 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. NWC also has an excellent dividend rating. These ratings could make NWC a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year NWC was profitable.
In the past year NWC had a positive cash flow from operations.
Each year in the past 5 years NWC has been profitable.
In the past 5 years NWC always reported a positive cash flow from operatings.
1.2 Ratios
NWC has a Return On Assets of 8.99%. This is amongst the best in the industry. NWC outperforms 100.00% of its industry peers.
NWC has a Return On Equity (17.78%) which is comparable to the rest of the industry.
The Return On Invested Capital of NWC (12.62%) is better than 94.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWC is above the industry average of 8.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.78% | ||
| ROIC | 12.62% |
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's Profit Margin of 5.33% is amongst the best of the industry. NWC outperforms 100.00% of its industry peers.
NWC's Profit Margin has improved in the last couple of years.
The Operating Margin of NWC (8.13%) is better than 94.44% of its industry peers.
NWC's Operating Margin has improved in the last couple of years.
NWC's Gross Margin of 33.70% is amongst the best of the industry. NWC outperforms 88.89% 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 | 8.13% | ||
| PM (TTM) | 5.33% | ||
| GM | 33.7% |
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.
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 4.92. This indicates that NWC is financially healthy and has little risk of bankruptcy at the moment.
NWC has a better Altman-Z score (4.92) than 88.89% of its industry peers.
The Debt to FCF ratio of NWC is 3.69, which is a good value as it means it would take NWC, 3.69 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.69, NWC belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
NWC has a Debt/Equity ratio of 0.52. This is a neutral value indicating NWC is somewhat dependend on debt financing.
NWC has a Debt to Equity ratio of 0.52. This is amongst the best in the industry. NWC outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 4.92 |
ROIC/WACC1.78
WACC7.09%
2.3 Liquidity
A Current Ratio of 2.00 indicates that NWC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.00, NWC belongs to the top of the industry, outperforming 94.44% 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.
The Quick ratio of NWC (0.76) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.33% 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)0.33%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%12.2%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%4.94%
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 15.32% on average per year.
NWC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.86% yearly.
EPS Next Y13.19%
EPS Next 2Y19.98%
EPS Next 3Y15.32%
EPS Next 5YN/A
Revenue Next Year2.51%
Revenue Next 2Y5.71%
Revenue Next 3Y4.86%
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 18.12 indicates a rather expensive valuation of NWC.
NWC's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of NWC to the average of the S&P500 Index (28.98), we can say NWC is valued slightly cheaper.
NWC is valuated correctly with a Price/Forward Earnings ratio of 16.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWC indicates a somewhat cheap valuation: NWC is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. NWC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
NWC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NWC is more expensive than 61.11% of the companies in the same industry.
NWC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. NWC is more expensive than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.85 | ||
| EV/EBITDA | 9.12 |
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.
NWC's earnings are expected to grow with 15.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)1.18
EPS Next 2Y19.98%
EPS Next 3Y15.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, 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 1.43. NWC pays more dividend than 100.00% of the companies in the same industry.
NWC's Dividend Yield is comparable with the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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 Years5
Div Non Decr Years12
5.3 Sustainability
55.01% 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.
DP55.01%
EPS Next 2Y19.98%
EPS Next 3Y15.32%
TSX:NWC (4/29/2025, 7:00:00 PM)
54.55
-0.49 (-0.89%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.76%
Inst Owner ChangeN/A
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap2.61B
Analysts80
Price Target62.22 (14.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend1.58
Dividend Growth(5Y)3.72%
DP55.01%
Div Incr Years5
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.74%
Min EPS beat(2)0.83%
Max EPS beat(2)20.65%
EPS beat(4)2
Avg EPS beat(4)1.79%
Min EPS beat(4)-10.04%
Max EPS beat(4)20.65%
EPS beat(8)5
Avg EPS beat(8)4.72%
EPS beat(12)8
Avg EPS beat(12)7.14%
EPS beat(16)12
Avg EPS beat(16)11.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)-1.24%
Revenue beat(4)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)0.56%
Revenue beat(8)4
Avg Revenue beat(8)-0.27%
Revenue beat(12)7
Avg Revenue beat(12)0.58%
Revenue beat(16)9
Avg Revenue beat(16)0.37%
PT rev (1m)3.98%
PT rev (3m)4.27%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)-11.36%
EPS NY rev (1m)-5.69%
EPS NY rev (3m)-2.93%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.69%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 16.01 | ||
| P/S | 1.01 | ||
| P/FCF | 22.85 | ||
| P/OCF | 10.02 | ||
| P/B | 3.38 | ||
| P/tB | 3.78 | ||
| EV/EBITDA | 9.12 |
EPS(TTM)3.01
EY5.52%
EPS(NY)3.41
Fwd EY6.25%
FCF(TTM)2.39
FCFY4.38%
OCF(TTM)5.44
OCFY9.98%
SpS53.82
BVpS16.13
TBVpS14.42
PEG (NY)1.37
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.78% | ||
| ROCE | 16.73% | ||
| ROIC | 12.62% | ||
| ROICexc | 13.33% | ||
| ROICexgc | 14.32% | ||
| OM | 8.13% | ||
| PM (TTM) | 5.33% | ||
| GM | 33.7% | ||
| FCFM | 4.44% |
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 Turnover1.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 126.58% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 10.8 | ||
| Cash Conversion | 80.15% | ||
| Profit Quality | 83.23% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.92 |
F-Score5
WACC7.09%
ROIC/WACC1.78
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%12.2%
EPS Next Y13.19%
EPS Next 2Y19.98%
EPS Next 3Y15.32%
EPS Next 5YN/A
Revenue 1Y (TTM)4.23%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%4.94%
Revenue Next Year2.51%
Revenue Next 2Y5.71%
Revenue Next 3Y4.86%
Revenue Next 5YN/A
EBIT growth 1Y4.99%
EBIT growth 3Y-0.32%
EBIT growth 5Y13.31%
EBIT Next Year76.32%
EBIT Next 3Y26.81%
EBIT Next 5YN/A
FCF growth 1Y6.78%
FCF growth 3Y-4.22%
FCF growth 5Y23.67%
OCF growth 1Y13.11%
OCF growth 3Y5.16%
OCF growth 5Y10.1%