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 7 out of 10. We evaluated NWC against 19 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. This makes NWC very considerable 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
The Return On Assets of NWC (8.76%) is better than 94.74% of its industry peers.
Looking at the Return On Equity, with a value of 17.76%, NWC belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
NWC has a Return On Invested Capital of 12.39%. This is amongst the best in the industry. NWC outperforms 89.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWC is significantly above the industry average of 8.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.76% | ||
| ROE | 17.76% | ||
| ROIC | 12.39% |
ROA(3y)10.37%
ROA(5y)9.93%
ROE(3y)21.93%
ROE(5y)22.85%
ROIC(3y)14.41%
ROIC(5y)13.93%
1.3 Margins
NWC has a Profit Margin of 5.14%. This is amongst the best in the industry. NWC outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of NWC has grown nicely.
The Operating Margin of NWC (7.88%) is better than 94.74% of its industry peers.
In the last couple of years the Operating Margin of NWC has grown nicely.
With an excellent Gross Margin value of 33.33%, NWC belongs to the best of the industry, outperforming 89.47% 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 | 7.88% | ||
| PM (TTM) | 5.14% | ||
| GM | 33.33% |
OM growth 3Y-2.93%
OM growth 5Y7%
PM growth 3Y-4.07%
PM growth 5Y3.98%
GM growth 3Y-0.09%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NWC is creating value.
Compared to 1 year ago, NWC has less shares outstanding
The number of shares outstanding for NWC has been reduced compared to 5 years ago.
Compared to 1 year ago, NWC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.63 indicates that NWC is not in any danger for bankruptcy at the moment.
NWC has a better Altman-Z score (4.63) than 89.47% of its industry peers.
The Debt to FCF ratio of NWC is 4.10, which is a neutral value as it means it would take NWC, 4.10 years of fcf income to pay off all of its debts.
NWC has a better Debt to FCF ratio (4.10) than 78.95% of its industry peers.
NWC has a Debt/Equity ratio of 0.57. This is a neutral value indicating NWC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, NWC is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 4.63 |
ROIC/WACC1.73
WACC7.16%
2.3 Liquidity
A Current Ratio of 2.16 indicates that NWC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.16, NWC belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that NWC may have some problems paying its short term obligations.
NWC has a Quick ratio of 0.79. This is in the better half of the industry: NWC outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
NWC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.68%.
The Earnings Per Share has been growing by 13.40% on average over the past years. This is quite good.
NWC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.28%.
Measured over the past years, NWC shows a small growth in Revenue. The Revenue has been growing by 4.19% on average per year.
EPS 1Y (TTM)-0.68%
EPS 3Y0.11%
EPS 5Y13.4%
EPS Q2Q%-2.35%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y1.56%
Revenue growth 5Y4.19%
Sales Q2Q%3.34%
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 10.71% on average per year.
NWC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.75% yearly.
EPS Next Y10.09%
EPS Next 2Y11.23%
EPS Next 3Y10.71%
EPS Next 5YN/A
Revenue Next Year2.81%
Revenue Next 2Y5.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.85, which indicates a correct valuation of NWC.
NWC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NWC to the average of the S&P500 Index (29.63), we can say NWC is valued slightly cheaper.
NWC is valuated correctly with a Price/Forward Earnings ratio of 12.42.
68.42% of the companies in the same industry are more expensive than NWC, based on the Price/Forward Earnings ratio.
NWC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 12.42 |
4.2 Price Multiples
63.16% of the companies in the same industry are cheaper than NWC, based on the Enterprise Value to EBITDA ratio.
NWC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. NWC is more expensive than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.54 | ||
| EV/EBITDA | 8.22 |
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.
PEG (NY)1.57
PEG (5Y)1.18
EPS Next 2Y11.23%
EPS Next 3Y10.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.39%, NWC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.55, 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
5.2 History
The dividend of NWC has a limited annual growth rate of 3.85%.
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)3.85%
Div Incr Years5
Div Non Decr Years12
5.3 Sustainability
57.37% 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.
DP57.37%
EPS Next 2Y11.23%
EPS Next 3Y10.71%
TSX:NWC (2/21/2025, 7:00:00 PM)
46.11
-1.03 (-2.18%)
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 Cap2.21B
Analysts80
Price Target59.67 (29.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
Yearly Dividend1.54
Dividend Growth(5Y)3.85%
DP57.37%
Div Incr Years5
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.72%
Min EPS beat(2)-4.27%
Max EPS beat(2)0.83%
EPS beat(4)2
Avg EPS beat(4)-0.31%
Min EPS beat(4)-10.04%
Max EPS beat(4)12.24%
EPS beat(8)5
Avg EPS beat(8)6.21%
EPS beat(12)8
Avg EPS beat(12)7.22%
EPS beat(16)12
Avg EPS beat(16)10.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)-1.34%
Revenue beat(4)1
Avg Revenue beat(4)-1.26%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)0.56%
Revenue beat(8)5
Avg Revenue beat(8)0.57%
Revenue beat(12)8
Avg Revenue beat(12)0.95%
Revenue beat(16)9
Avg Revenue beat(16)0.39%
PT rev (1m)0%
PT rev (3m)1.74%
EPS NQ rev (1m)-13.41%
EPS NQ rev (3m)-4.7%
EPS NY rev (1m)11.99%
EPS NY rev (3m)11.99%
Revenue NQ rev (1m)-3.8%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 12.42 | ||
| P/S | 0.87 | ||
| P/FCF | 20.54 | ||
| P/OCF | 9.09 | ||
| P/B | 3 | ||
| P/tB | 3.35 | ||
| EV/EBITDA | 8.22 |
EPS(TTM)2.91
EY6.31%
EPS(NY)3.71
Fwd EY8.05%
FCF(TTM)2.24
FCFY4.87%
OCF(TTM)5.07
OCFY11%
SpS53.16
BVpS15.38
TBVpS13.75
PEG (NY)1.57
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.76% | ||
| ROE | 17.76% | ||
| ROCE | 16.3% | ||
| ROIC | 12.39% | ||
| ROICexc | 13.1% | ||
| ROICexgc | 14.04% | ||
| OM | 7.88% | ||
| PM (TTM) | 5.14% | ||
| GM | 33.33% | ||
| FCFM | 4.22% |
ROA(3y)10.37%
ROA(5y)9.93%
ROE(3y)21.93%
ROE(5y)22.85%
ROIC(3y)14.41%
ROIC(5y)13.93%
ROICexc(3y)15.19%
ROICexc(5y)14.77%
ROICexgc(3y)16.57%
ROICexgc(5y)16.23%
ROCE(3y)18.96%
ROCE(5y)18.33%
ROICexcg growth 3Y-11.98%
ROICexcg growth 5Y7.16%
ROICexc growth 3Y-10.96%
ROICexc growth 5Y7.6%
OM growth 3Y-2.93%
OM growth 5Y7%
PM growth 3Y-4.07%
PM growth 5Y3.98%
GM growth 3Y-0.09%
GM growth 5Y0.58%
F-Score6
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 4.1 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 119.39% | ||
| Cap/Sales | 5.32% | ||
| Interest Coverage | 10.56 | ||
| Cash Conversion | 77.36% | ||
| Profit Quality | 82.21% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 4.63 |
F-Score6
WACC7.16%
ROIC/WACC1.73
Cap/Depr(3y)113.24%
Cap/Depr(5y)111.54%
Cap/Sales(3y)4.72%
Cap/Sales(5y)4.63%
Profit Quality(3y)73.51%
Profit Quality(5y)91.33%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.68%
EPS 3Y0.11%
EPS 5Y13.4%
EPS Q2Q%-2.35%
EPS Next Y10.09%
EPS Next 2Y11.23%
EPS Next 3Y10.71%
EPS Next 5YN/A
Revenue 1Y (TTM)3.28%
Revenue growth 3Y1.56%
Revenue growth 5Y4.19%
Sales Q2Q%3.34%
Revenue Next Year2.81%
Revenue Next 2Y5.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.44%
EBIT growth 3Y-1.41%
EBIT growth 5Y11.48%
EBIT Next Year57.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y38.27%
FCF growth 3Y-25.94%
FCF growth 5Y15.31%
OCF growth 1Y45.13%
OCF growth 3Y-12.05%
OCF growth 5Y8.16%