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.
Fair value with mediocre balance sheet.
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 has not had significant price volatility in the past 3 months.
7 Day Return
CA Consumer Retailing
1 Year Return
CA Consumer Retailing
Return vs Industry: NWC underperformed the Canadian Consumer Retailing industry which returned 13.6% over the past year.
Return vs Market: NWC underperformed the Canadian Market which returned 5.8% over the past year.
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
1 week ago | Simply Wall StAre North West's (TSE:NWC) Statutory Earnings A Good Guide To Its Underlying Profitability?
3 weeks ago | Simply Wall StWhere The North West Company Inc.'s (TSE:NWC) Earnings Growth Stands Against Its Industry
1 month ago | Simply Wall StDo Directors Own The North West Company Inc. (TSE:NWC) Shares?
Is North West undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NWC (CA$27.86) is trading below our estimate of fair value (CA$84.19)
Significantly Below Fair Value: NWC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NWC is good value based on its PE Ratio (17.1x) compared to the Consumer Retailing industry average (19.7x).
PE vs Market: NWC is poor value based on its PE Ratio (17.1x) compared to the Canadian market (15.9x).
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 (3.3x) compared to the CA Consumer Retailing industry average (1.7x).
How is North West forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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 (1.4%).
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 (3.2% per year) is forecast to grow slower than the Canadian market (5% per year).
High Growth Revenue: NWC's revenue (3.2% per year) is forecast to grow slower than 20% 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
How has North West performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NWC has high quality earnings.
Growing Profit Margin: NWC's current net profit margins (3.8%) are lower 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 has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NWC had negative earnings growth (-10.8%) over the past year, making it difficult to compare to the Consumer Retailing industry average (7%).
Return on Equity
High ROE: NWC's Return on Equity (19.3%) is considered low.
Return on Assets
Return on Capital Employed
How is North West's financial position?
Financial Position Analysis
Short Term Liabilities: NWC's short term assets (CA$440.4M) exceed its short term liabilities (CA$206.2M).
Long Term Liabilities: NWC's short term assets (CA$440.4M) do not cover its long term liabilities (CA$611.8M).
Debt to Equity History and Analysis
Debt Level: NWC's debt to equity ratio (100.8%) is considered high.
Reducing Debt: NWC's debt to equity ratio has increased from 64.9% to 100.8% over the past 5 years.
Debt Coverage: NWC's debt is well covered by operating cash flow (32.2%).
Interest Coverage: NWC's interest payments on its debt are well covered by EBIT (7.8x coverage).
Inventory Level: NWC has a high level of physical assets or inventory.
Debt Coverage by Assets: NWC's debt is covered by short term assets (assets are 1x debt).
What is North West's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NWC's dividend (4.74%) is higher than the bottom 25% of dividend payers in the Canadian market (1.89%).
High Dividend: NWC's dividend (4.74%) is low compared to the top 25% of dividend payers in the Canadian market (5.32%).
Stability and Growth of Payments
Stable Dividend: NWC's dividend payments have been volatile in the past 10 years.
Growing Dividend: NWC's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (80.4%), NWC's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NWC's dividends in 3 years are forecast to be covered by earnings (69.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Edward Kennedy (59yo)
Mr. Edward S. Kennedy has been the Chief Executive Officer and President of The North West Company Inc., since 1997 and its Executive since 1989 and serves as its Director since 1996. Mr. Kennedy has been ...
CEO Compensation Analysis
Compensation vs Market: Edward's total compensation ($USD2.51M) is above average for companies of similar size in the Canadian market ($USD1.58M).
Compensation vs Earnings: Edward's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||9.7yrs||CA$1.18m||0.18% CA$2.5m|
|President of International Retail||0yrs||CA$1.53m||0.055% CA$750.9k|
|Executive VP & Chief Corporate Officer||9.9yrs||CA$1.29m||0.048% CA$663.1k|
|Executive VP & Chief Development Officer||2.1yrs||CA$936.02k||no data|
|VP of Legal & Corporate Secretary||2.4yrs||no data||no data|
|Vice President of Human Resources||1.8yrs||no data||no data|
|Executive Vice President of Canadian Food Procurement & Marketing||2.1yrs||no data||0.0014% CA$19.4k|
|President of Canadian Retail||2.1yrs||no data||0.0018% CA$25.1k|
|President of North Star Air Ltd.||3.1yrs||no data||no data|
Experienced Management: NWC's management team is considered experienced (2.4 years average tenure).
|Independent Chairman||11.7yrs||CA$240.00k||0.020% CA$278.6k|
|Independent Director||8.1yrs||CA$135.50k||0.0081% CA$110.8k|
|Independent Director||21.1yrs||CA$125.00k||0.015% CA$208.9k|
|Independent Director||17.1yrs||CA$137.00k||0.0061% CA$83.5k|
|Independent Director||5.9yrs||CA$122.00k||0.0074% CA$101.7k|
|Independent Director||5.2yrs||CA$119.00k||0.010% CA$137.7k|
|Independent Director||5.3yrs||CA$123.50k||no data|
|Independent Director||15.1yrs||CA$131.50k||0.011% CA$147.6k|
|Independent Director||4.6yrs||CA$119.00k||no data|
Experienced Board: NWC's board of directors are considered experienced (9.9 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The North West Company Inc.'s company bio, employee growth, exchange listings and data sources
- Name: The North West Company Inc.
- Ticker: NWC
- Exchange: TSX
- Founded: 1668
- Industry: Food Retail
- Sector: Consumer Retailing
- Market Cap: CA$1.369b
- Shares outstanding: 49.15m
- Website: https://www.northwest.ca
Number of Employees
- The North West Company Inc.
- Gibraltar House
- 77 Main Street
- R3C 2R1
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NNWW.F||OTCPK (Pink Sheets LLC)||Yes||Common Voting Shares||US||USD||Sep 1990|
|NWC||TSX (The Toronto Stock Exchange)||Yes||Common Voting Shares||CA||CAD||Sep 1990|
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. The company’s Canadian operations comprise 117 Northern stores, which offers food, financial services, and general merchandise; 5 NorthMart stores that provides fresh foods, apparel, and health products and services; 44 Giant Tiger junior discount stores, which offers family fashion, household products, and food; 22 Quickstop convenience stores that provides ready-to-eat foods, and fuel and related services; 1 Solo Market store for rural market; 1 Valu Lots discount center and direct-to-customer food distribution outlet; 2 Pharmacy and Convenience stores; and 1 North West Company Fur Marketing outlet that offers wild furs, handicrafts, and authentic Canadian heritage products. The Canadian operations also provides contract tele-pharmacist services to rural hospitals and health centers; water and air-based transportation services; and produce and fresh meats to independent grocery stores. Its International operations include 27 Alaska Commercial Company stores that provides food and general merchandise to remote and rural regions; 11 Cost-U-Less mid-size warehouse stores, which offers discount food and general merchandise; 1 Cost-U-Less Express store that provides fresh and prepared foods; 5 Quickstop convenience stores; 7 Riteway food markets; and 1 Cash and Carry store. In addition, the company offers physician services; healthcare solutions; and airline cargo and passenger services. The North West Company Inc. was founded in 1668 and is headquartered in Winnipeg, Canada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/18 01:33|
|End of Day Share Price||2020/02/14 00:00|
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.