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
Overall NWC gets a fundamental rating of 6 out of 10. We evaluated NWC against 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 has a correct valuation and a medium growth rate. Finally NWC also has an excellent dividend rating. This makes NWC very considerable 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.
- In the past 5 years NWC has always been profitable.
- Each year in the past 5 years NWC had a positive operating cash flow.
1.2 Ratios
- NWC's Return On Assets of 8.95% is amongst the best of the industry. NWC outperforms 100.00% of its industry peers.
- NWC's Return On Equity of 17.99% is fine compared to the rest of the industry. NWC outperforms 64.71% 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.
- 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 Profit Margin of 5.51%. 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.
- With an excellent Operating Margin value of 8.27%, 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 Gross Margin of 34.10%. This is in the better half of the industry: NWC outperforms 76.47% 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.
- 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
- An Altman-Z score of 4.55 indicates that NWC is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.55, NWC belongs to the top 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.
- NWC has a Debt to Equity ratio of 0.58. This is amongst the best in the industry. NWC outperforms 88.24% of its industry peers.
| 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.
- The Current ratio of NWC (2.26) is better than 88.24% of its industry peers.
- A Quick Ratio of 0.82 indicates that NWC may have some problems paying its short term obligations.
- NWC's Quick ratio of 0.82 is fine compared to the rest of the industry. NWC outperforms 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.
- The Earnings Per Share has been growing by 15.41% on average over the past years. This is quite good.
- Looking at the last year, NWC shows a small growth in Revenue. The Revenue has grown by 2.08% in the last year.
- The Revenue has been growing slightly by 4.23% on average over the past years.
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
- Based on estimates for the next years, NWC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.12% on average per year.
- Based on estimates for the next years, NWC will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.78 indicates a correct valuation of NWC.
- Compared to the rest of the industry, the Price/Earnings ratio of NWC indicates a somewhat cheap valuation: NWC is cheaper than 76.47% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, NWC is valued a bit cheaper.
- The Price/Forward Earnings ratio is 12.25, which indicates a correct valuation of NWC.
- Based on the Price/Forward Earnings ratio, NWC is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of NWC to the average of the S&P500 Index (25.57), we can say NWC is valued rather cheaply.
| 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 the industry average as 64.71% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.01 | ||
| EV/EBITDA | 8.12 |
4.3 Compensation for Growth
- The 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)1.07
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.
- Compared to an average industry Dividend Yield of 2.29, NWC pays a bit more dividend than its industry peers.
- 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 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.
- NWC's earnings are growing more than its dividend. This makes the dividend growth 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%.