TSX:NWC

Stock Analysis Report

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Executive Summary

The North West Company Inc., through its subsidiaries, engages in the retail of food and everyday products and services to rural communities and urban neighborhood markets in Canada, Alaska, the South Pacific, and the Caribbean. More Details


Snowflake Analysis

Outstanding track record and fair value.


Similar Companies

Share Price & News

How has North West's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NWC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NWC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

NWC

1.4%

CA Consumer Retailing

0.3%

CA Market


1 Year Return

17.0%

NWC

-1.6%

CA Consumer Retailing

1.8%

CA Market

Return vs Industry: NWC exceeded the Canadian Consumer Retailing industry which returned -2.1% over the past year.

Return vs Market: NWC exceeded the Canadian Market which returned 1.3% over the past year.


Shareholder returns

NWCIndustryMarket
7 Day-1.1%1.4%0.3%
30 Day-0.8%-0.2%9.7%
90 Day17.4%0.5%8.7%
1 Year23.0%17.0%-0.2%-1.6%5.5%1.8%
3 Year18.0%2.7%27.7%16.6%13.3%2.2%
5 Year50.4%20.1%37.4%22.4%53.9%30.3%

Long-Term Price Volatility Vs. Market

How volatile is North West's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is North West undervalued compared to its fair value and its price relative to the market?

13.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWC (CA$33.24) is trading below our estimate of fair value (CA$38.53)

Significantly Below Fair Value: NWC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NWC is good value based on its PE Ratio (14.3x) compared to the CA Consumer Retailing industry average (14.4x).

PE vs Market: NWC is good value based on its PE Ratio (14.3x) compared to the Canadian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NWC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NWC is overvalued based on its PB Ratio (3.5x) compared to the CA Consumer Retailing industry average (2.4x).


Next Steps

Future Growth

How is North West forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-2.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NWC's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if NWC's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NWC's revenue is expected to decline over the next 3 years (-2.6% per year).

High Growth Revenue: NWC's revenue is forecast to decline over the next 3 years (-2.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NWC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has North West performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWC has high quality earnings.

Growing Profit Margin: NWC's current net profit margins (4.9%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: NWC's earnings have grown by 6.3% per year over the past 5 years.

Accelerating Growth: NWC's earnings growth over the past year (21.5%) exceeds its 5-year average (6.3% per year).

Earnings vs Industry: NWC earnings growth over the past year (21.5%) exceeded the Consumer Retailing industry 16.7%.


Return on Equity

High ROE: NWC's Return on Equity (24.5%) is considered high.


Next Steps

Financial Health

How is North West's financial position?


Financial Position Analysis

Short Term Liabilities: NWC's short term assets (CA$403.6M) exceed its short term liabilities (CA$294.1M).

Long Term Liabilities: NWC's short term assets (CA$403.6M) do not cover its long term liabilities (CA$453.9M).


Debt to Equity History and Analysis

Debt Level: NWC's debt to equity ratio (77.9%) is considered high.

Reducing Debt: NWC's debt to equity ratio has increased from 62.9% to 77.9% over the past 5 years.

Debt Coverage: NWC's debt is well covered by operating cash flow (67.7%).

Interest Coverage: NWC's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Next Steps

Dividend

What is North West current dividend yield, its reliability and sustainability?

4.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWC's dividend (4.33%) is higher than the bottom 25% of dividend payers in the Canadian market (1.63%).

High Dividend: NWC's dividend (4.33%) is low compared to the top 25% of dividend payers in the Canadian market (5.31%).


Stability and Growth of Payments

Stable Dividend: NWC's dividend payments have been volatile in the past 10 years.

Growing Dividend: NWC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.6%), NWC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Edward Kennedy (60 yo)

23.92yrs

Tenure

CA$5,072,011

Compensation

Mr. Edward S. Kennedy has been the Chief Executive Officer and President of The North West Company Inc., since 1997 and its Executive since 1989 and serves as its Director since 1996. Mr. Kennedy has been ...


CEO Compensation Analysis

Compensation vs Market: Edward's total compensation ($USD3.94M) is above average for companies of similar size in the Canadian market ($USD2.05M).

Compensation vs Earnings: Edward's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Edward Kennedy
President23.92yrsCA$5.07m0.84%
CA$ 13.6m
John King
Executive VP & CFO10.5yrsCA$1.17m0.19%
CA$ 3.1m
Daniel McConnell
President of International Retailno dataCA$1.87m0.060%
CA$ 963.0k
Gary Merasty
Executive VP & Chief Development Officer2.92yrsCA$1.13m0.0032%
CA$ 52.3k
Alex Yeo
President of Canadian Retail2.92yrsCA$1.10m0.0056%
CA$ 90.6k
Amanda Sutton
VP of Legal & Corporate Secretary3.25yrsno data0.0019%
CA$ 30.4k
Beth Millard-Hales
Vice President of Human Resources2.67yrsno data0.015%
CA$ 234.5k
Toby Noiles
Executive Vice President of Canadian Food Procurement & Marketing2.92yrsno datano data
Frank Kelner
President of North Star Air Ltd.3.92yrsno datano data
Rex Wilhelm
Vice Chair of NWCI - International Operationsno dataCA$580.14kno data
Kyle Hill
Vice-President of Strategy & Special Projectsno datano datano data
Angela Berry
Employee Relations Specialistno datano datano data

3.1yrs

Average Tenure

60yo

Average Age

Experienced Management: NWC's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Kennedy
President23.92yrsCA$5.07m0.84%
CA$ 13.6m
Brock Bulbuck
Independent Director2.75yrsCA$117.50k0.0041%
CA$ 66.2k
H. Riley
Independent Chairman12.5yrsCA$240.00k0.023%
CA$ 364.1k
Eric Stefanson
Independent Director8.92yrsCA$131.00k0.0066%
CA$ 106.8k
Frank Coleman
Independent Director21.92yrsCA$125.00k0.026%
CA$ 413.8k
Violet A. Konkle
Independent Director6.75yrsCA$125.00k0.0075%
CA$ 120.8k
Annalisa King
Independent Director6yrsCA$114.50k0.010%
CA$ 163.8k
Stewart Glendinning
Independent Director6.08yrsCA$125.00kno data
Wendy Evans
Independent Director15.92yrsCA$126.50k0.016%
CA$ 252.4k
Deepak Chopra
Independent Director2.67yrsCA$116.00kno data
Victor Tootoo
Independent Director5.42yrsCA$125.00k0.021%
CA$ 345.2k
Jennefer Nepinak
Independent Director1.67yrsCA$97.50kno data

6.4yrs

Average Tenure

60yo

Average Age

Experienced Board: NWC's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The North West Company Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The North West Company Inc.
  • Ticker: NWC
  • Exchange: TSX
  • Founded: 1668
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: CA$1.615b
  • Shares outstanding: 48.80m
  • Website: https://www.northwest.ca

Number of Employees


Location

  • The North West Company Inc.
  • Gibraltar House
  • 77 Main Street
  • Winnipeg
  • Manitoba
  • R3C 2R1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NNWW.FOTCPK (Pink Sheets LLC)YesCommon Voting SharesUSUSDSep 1990
NWCTSX (The Toronto Stock Exchange)YesCommon Voting SharesCACADSep 1990
3NWDB (Deutsche Boerse AG)YesCommon Voting SharesDECADSep 1990

Biography

The North West Company Inc., through its subsidiaries, engages in the retail of food and everyday products and services to rural communities and urban neighborhood markets in Canada, Alaska, the South Paci...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 23:48
End of Day Share Price2020/12/03 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.