NORTH WEST CO INC/THE (NWC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NWC - CA6632782083 - Common Stock
49.29 CAD
+0.17 (+0.35%)
We assign a fundamental rating of 7 out of 10 to NWC. NWC was compared to 18 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 has a decent growth rate and is not valued too expensively. 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.
NWC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NWC has a Return On Assets of 8.95%. This is amongst the best in the industry. NWC outperforms 100.00% of its industry peers.
The Return On Equity of NWC (17.99%) is better than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.16%, NWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NWC had an Average Return On Invested Capital over the past 3 years of 12.75%. This is above the industry average of 8.07%.
| 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
Looking at the Profit Margin, with a value of 5.51%, NWC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NWC has grown nicely.
Looking at the Operating Margin, with a value of 8.27%, NWC belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
NWC's Operating Margin has improved in the last couple of years.
NWC has a Gross Margin of 34.10%. This is in the better half of the industry: NWC outperforms 77.78% 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 | 8.27% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NWC is still 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 4.58. This indicates that NWC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.58, NWC belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
NWC has a debt to FCF ratio of 4.12. This is a neutral value as NWC would need 4.12 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.12, NWC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that NWC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, NWC belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 4.58 |
ROIC/WACC1.69
WACC7.18%
2.3 Liquidity
NWC has a Current Ratio of 2.26. This indicates that NWC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.26, NWC belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
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.
NWC has a better Quick ratio (0.82) than 72.22% 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.
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 2.08%.
NWC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.23% yearly.
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 13.22% yearly.
Based on estimates for the next years, NWC will show a small growth in Revenue. The Revenue will grow by 3.37% on average per year.
EPS Next Y33.21%
EPS Next 2Y18.5%
EPS Next 3Y13.22%
EPS Next 5YN/A
Revenue Next Year-1.8%
Revenue Next 2Y3.33%
Revenue Next 3Y3.37%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.98 indicates a correct valuation of NWC.
Based on the Price/Earnings ratio, NWC is valued a bit cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. NWC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.66, which indicates a very decent valuation of NWC.
Based on the Price/Forward Earnings ratio, NWC is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NWC to the average of the S&P500 Index (24.03), we can say NWC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWC is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, NWC is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.29 | ||
| EV/EBITDA | 8.22 |
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 13.22% in the coming years.
PEG (NY)0.45
PEG (5Y)0.97
EPS Next 2Y18.5%
EPS Next 3Y13.22%
5. Dividend
5.1 Amount
NWC has a Yearly Dividend Yield of 3.31%.
NWC's Dividend Yield is a higher than the industry average which is at 2.17.
Compared to an average S&P500 Dividend Yield of 1.87, NWC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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 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 2Y18.5%
EPS Next 3Y13.22%
TSX:NWC (12/23/2025, 7:00:00 PM)
49.29
+0.17 (+0.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners33.73%
Inst Owner ChangeN/A
Ins Owners0.6%
Ins Owner ChangeN/A
Market Cap2.35B
Revenue(TTM)2.60B
Net Income(TTM)143.10M
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend1.58
Dividend Growth(5Y)3.72%
DP53.85%
Div Incr Years6
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.11%
Min EPS beat(2)1.84%
Max EPS beat(2)2.38%
EPS beat(4)4
Avg EPS beat(4)10.66%
Min EPS beat(4)1.84%
Max EPS beat(4)20.65%
EPS beat(8)6
Avg EPS beat(8)5.18%
EPS beat(12)9
Avg EPS beat(12)7.7%
EPS beat(16)12
Avg EPS beat(16)8.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-0.21%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)-0.21%
Revenue beat(8)1
Avg Revenue beat(8)-1.33%
Revenue beat(12)5
Avg Revenue beat(12)-0.08%
Revenue beat(16)8
Avg Revenue beat(16)0.36%
PT rev (1m)-0.84%
PT rev (3m)-0.84%
EPS NQ rev (1m)-5.56%
EPS NQ rev (3m)-7.75%
EPS NY rev (1m)0%
EPS NY rev (3m)15.07%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 11.66 | ||
| P/S | 0.91 | ||
| P/FCF | 20.29 | ||
| P/OCF | 9.02 | ||
| P/B | 2.96 | ||
| P/tB | 3.29 | ||
| EV/EBITDA | 8.22 |
EPS(TTM)3.29
EY6.67%
EPS(NY)4.23
Fwd EY8.58%
FCF(TTM)2.43
FCFY4.93%
OCF(TTM)5.47
OCFY11.09%
SpS54.41
BVpS16.66
TBVpS14.99
PEG (NY)0.45
PEG (5Y)0.97
Graham Number35.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.95% | ||
| ROE | 17.99% | ||
| ROCE | 16.12% | ||
| ROIC | 12.16% | ||
| ROICexc | 12.97% | ||
| ROICexgc | 13.85% | ||
| OM | 8.27% | ||
| PM (TTM) | 5.51% | ||
| GM | 34.1% | ||
| FCFM | 4.46% |
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%
ROICexgc growth 3Y-10.73%
ROICexgc 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-Score7
Asset Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.12 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 121.26% | ||
| Cap/Sales | 5.58% | ||
| Interest Coverage | 11.76 | ||
| Cash Conversion | 78.01% | ||
| Profit Quality | 81.04% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 4.58 |
F-Score7
WACC7.18%
ROIC/WACC1.69
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)12.92%
EPS 3Y-0.66%
EPS 5Y15.41%
EPS Q2Q%4.34%
EPS Next Y33.21%
EPS Next 2Y18.5%
EPS Next 3Y13.22%
EPS Next 5YN/A
Revenue 1Y (TTM)2.08%
Revenue growth 3Y4.64%
Revenue growth 5Y4.23%
Sales Q2Q%-0.5%
Revenue Next Year-1.8%
Revenue Next 2Y3.33%
Revenue Next 3Y3.37%
Revenue Next 5YN/A
EBIT growth 1Y7.2%
EBIT growth 3Y-0.32%
EBIT growth 5Y13.31%
EBIT Next Year49.81%
EBIT Next 3Y19.63%
EBIT Next 5Y12.43%
FCF growth 1Y9.09%
FCF growth 3Y-4.22%
FCF growth 5Y23.67%
OCF growth 1Y8.65%
OCF growth 3Y5.16%
OCF growth 5Y10.1%
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 7 / 10 to NWC.CA.
What is the valuation status for NWC stock?
ChartMill assigns a valuation rating of 6 / 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.
How financially healthy is NORTH WEST CO INC/THE?
The financial health rating of NORTH WEST CO INC/THE (NWC.CA) is 7 / 10.
Can you provide the expected EPS growth for NWC stock?
The Earnings per Share (EPS) of NORTH WEST CO INC/THE (NWC.CA) is expected to grow by 33.21% in the next year.