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North West

TSX:NWC
Snowflake Description

Solid track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NWC
TSX
CA$1B
Market Cap
  1. Home
  2. CA
  3. Consumer Retailing
Company description

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 last earnings update was 38 days ago. More info.


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NWC Share Price and Events
7 Day Returns
-1.7%
TSX:NWC
-3%
CA Consumer Retailing
-0.2%
CA Market
1 Year Returns
-3.1%
TSX:NWC
10.8%
CA Consumer Retailing
-2.8%
CA Market
NWC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
North West (NWC) -1.7% -5.1% 2.7% -3.1% -3.5% 21%
CA Consumer Retailing -3% -5.7% 1.3% 10.8% 11.5% 70.9%
CA Market -0.2% -0.4% -2.3% -2.8% 7.6% 0%
1 Year Return vs Industry and Market
  • NWC underperformed the Consumer Retailing industry which returned 10.8% over the past year.
  • NWC matched the Canada Market (-2.8%) over the past year.
Price Volatility
NWC
Industry
5yr Volatility vs Market
Related Companies

Value

 Is North West undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of North West to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for North West.

TSX:NWC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:NWC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.5
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.503 (1 + (1- 26.5%) (37.93%))
0.761
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.8 * 5.96%)
6.72%

Discounted Cash Flow Calculation for TSX:NWC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for North West is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:NWC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 6.72%)
2020 67.75 Analyst x2 63.49
2021 85.40 Analyst x2 74.99
2022 112.20 Analyst x1 92.32
2023 134.17 Est @ 19.58% 103.46
2024 153.35 Est @ 14.29% 110.81
2025 169.59 Est @ 10.59% 114.83
2026 183.15 Est @ 8% 116.21
2027 194.47 Est @ 6.18% 115.63
2028 204.03 Est @ 4.91% 113.67
2029 212.23 Est @ 4.02% 110.80
Present value of next 10 years cash flows CA$1,016.21
TSX:NWC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$212.23 × (1 + 1.95%) ÷ (6.72% – 1.95%)
CA$4,537.83
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$4,537.83 ÷ (1 + 6.72%)10
CA$2,369.16
TSX:NWC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$1,016.21 + CA$2,369.16
CA$3,385.36
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$3,385.36 / 48.75
CA$69.44
TSX:NWC Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$69.44
Current discount Discount to share price of CA$29.35
= -1 x (CA$29.35 - CA$69.44) / CA$69.44
57.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price North West is available for.
Intrinsic value
>50%
Share price is CA$29.35 vs Future cash flow value of CA$69.44
Current Discount Checks
For North West to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • North West's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • North West's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for North West's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are North West's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:NWC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in CAD CA$1.93
TSX:NWC Share Price ** TSX (2019-07-19) in CAD CA$29.35
Canada Consumer Retailing Industry PE Ratio Median Figure of 6 Publicly-Listed Consumer Retailing Companies 21.65x
Canada Market PE Ratio Median Figure of 538 Publicly-Listed Companies 15.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of North West.

TSX:NWC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:NWC Share Price ÷ EPS (both in CAD)

= 29.35 ÷ 1.93

15.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • North West is good value based on earnings compared to the CA Consumer Retailing industry average.
  • North West is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does North West's expected growth come at a high price?
Raw Data
TSX:NWC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
Not available
North America Consumer Retailing Industry PEG Ratio Median Figure of 17 Publicly-Listed Consumer Retailing Companies 2.84x
Canada Market PEG Ratio Median Figure of 249 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for North West, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on North West's assets?
Raw Data
TSX:NWC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in CAD CA$8.44
TSX:NWC Share Price * TSX (2019-07-19) in CAD CA$29.35
Canada Consumer Retailing Industry PB Ratio Median Figure of 12 Publicly-Listed Consumer Retailing Companies 2.25x
Canada Market PB Ratio Median Figure of 2,442 Publicly-Listed Companies 1.44x
TSX:NWC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:NWC Share Price ÷ Book Value per Share (both in CAD)

= 29.35 ÷ 8.44

3.48x

* Primary Listing of North West.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • North West is overvalued based on assets compared to the CA Consumer Retailing industry average.
X
Value checks
We assess North West's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. North West has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.4%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is North West expected to grow at an attractive rate?
  • Unable to compare North West's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare North West's earnings growth to the Canada market average as no estimate data is available.
  • North West's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:NWC Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:NWC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 3.4%
Canada Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 20.3%
Canada Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:NWC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:NWC Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-01-31 2,247 2
2021-01-31 2,195 197 4
2020-01-31 2,116 203 5
TSX:NWC Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-04-30 2,042 138 94
2019-01-31 2,013 127 87
2018-10-31 1,978 142 89
2018-07-31 1,954 146 71
2018-04-30 1,965 143 76
2018-01-31 1,985 141 67
2017-10-31 1,969 137 67
2017-07-31 1,946 139 74
2017-04-30 1,891 141 68
2017-01-31 1,844 126 77
2016-10-31 1,839 126 77
2016-07-31 1,833 143 70

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if North West is high growth as no earnings estimate data is available.
  • North West's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:NWC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from North West Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:NWC Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-01-31
2021-01-31
2020-01-31 1.71 1.71 1.71 1.00
TSX:NWC Past Financials Data
Date (Data in CAD Millions) EPS *
2019-04-30 1.93
2019-01-31 1.78
2018-10-31 1.83
2018-07-31 1.47
2018-04-30 1.57
2018-01-31 1.38
2017-10-31 1.37
2017-07-31 1.52
2017-04-30 1.39
2017-01-31 1.59
2016-10-31 1.59
2016-07-31 1.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if North West will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess North West's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
North West has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has North West performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare North West's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • North West's year on year earnings growth rate has been positive over the past 5 years.
  • North West's 1-year earnings growth exceeds its 5-year average (23.2% vs 6.1%)
  • North West's earnings growth has exceeded the CA Consumer Retailing industry average in the past year (23.2% vs 9.9%).
Earnings and Revenue History
North West's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from North West Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:NWC Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 2,042.29 94.19 475.31
2019-01-31 2,013.49 86.75 468.16
2018-10-31 1,978.20 89.07 442.97
2018-07-31 1,953.68 71.38 441.99
2018-04-30 1,965.06 76.45 435.78
2018-01-31 1,985.12 67.15 448.77
2017-10-31 1,968.52 66.75 450.81
2017-07-31 1,945.53 73.97 434.18
2017-04-30 1,890.91 67.67 424.29
2017-01-31 1,844.09 77.08 406.49
2016-10-31 1,838.71 77.29 405.82
2016-07-31 1,832.80 70.17 411.52
2016-04-30 1,820.97 71.87 407.07
2016-01-31 1,796.04 69.78 402.01
2015-10-31 1,754.33 69.53 349.73
2015-07-31 1,709.79 67.18 342.22
2015-04-30 1,662.18 65.90 331.45
2015-01-31 1,624.40 62.88 327.16
2014-10-31 1,593.76 63.79 326.24
2014-07-31 1,567.43 62.77 323.83
2014-04-30 1,554.91 64.03 320.79
2014-01-31 1,543.13 64.26 317.84
2013-10-31 1,526.88 63.92 317.41
2013-07-31 1,517.37 63.71 312.63
2013-04-30 1,512.60 63.56 313.45
2013-01-31 1,513.65 63.89 312.00
2012-10-31 1,524.59 61.87 312.46
2012-07-31 1,525.29 61.70 311.64

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • North West has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • North West used its assets more efficiently than the CA Consumer Retailing industry average last year based on Return on Assets.
  • North West's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess North West's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
North West has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is North West's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up North West's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • North West is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • North West's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of North West's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from North West Company Filings, last reported 2 months ago.

TSX:NWC Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 425.54 408.06 63.44
2019-01-31 421.10 366.76 38.45
2018-10-31 419.19 395.68 55.95
2018-07-31 394.68 366.81 54.58
2018-04-30 389.03 354.24 41.81
2018-01-31 382.16 313.55 25.16
2017-10-31 388.43 342.02 52.82
2017-07-31 379.15 313.12 55.30
2017-04-30 383.45 282.70 47.98
2017-01-31 367.79 229.27 30.24
2016-10-31 359.90 259.05 47.59
2016-07-31 343.19 240.55 43.10
2016-04-30 346.13 232.69 35.05
2016-01-31 357.61 225.49 37.24
2015-10-31 344.23 219.04 33.91
2015-07-31 338.06 227.72 40.01
2015-04-30 326.44 204.93 26.23
2015-01-31 329.28 201.34 29.13
2014-10-31 329.31 213.96 33.05
2014-07-31 322.42 208.65 34.46
2014-04-30 320.17 208.36 35.50
2014-01-31 322.44 182.72 22.35
2013-10-31 317.93 204.53 35.74
2013-07-31 302.33 202.72 41.70
2013-04-30 296.35 203.02 41.52
2013-01-31 296.25 163.03 38.68
2012-10-31 290.43 187.36 40.96
2012-07-31 290.47 190.16 41.83
  • North West's level of debt (95.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (65.1% vs 95.9% today).
  • Debt is well covered by operating cash flow (33.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.9x coverage).
X
Financial health checks
We assess North West's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. North West has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.5%
Current annual income from North West dividends. Estimated to be 4.53% next year.
If you bought CA$2,000 of North West shares you are expected to receive CA$90 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • North West's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.06%).
  • North West's dividend is below the markets top 25% of dividend payers in Canada (5.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:NWC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Canada Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1.4%
Canada Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:NWC Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-01-31
2021-01-31 1.34 2.00
2020-01-31 1.32 2.00
TSX:NWC Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-06-12 1.320 4.374
2019-03-14 1.320 4.535
2018-12-11 1.280 4.034
2018-09-06 1.280 4.426
2018-06-13 1.280 4.338
2018-03-15 1.280 4.626
2017-12-12 1.280 4.432
2017-09-07 1.280 4.108
2017-06-14 1.280 4.124
2017-04-11 1.280 3.985
2017-03-15 1.280 4.113
2016-12-13 1.240 4.294
2016-09-08 1.240 4.829
2016-06-08 1.240 4.178
2016-03-15 1.240 4.273
2015-12-10 1.240 4.191
2015-09-10 1.240 4.430
2015-06-10 1.160 4.387
2015-03-12 1.160 4.701
2014-12-11 1.160 4.513
2014-09-11 1.160 4.961
2014-06-11 1.160 4.814
2014-03-12 1.160 4.703
2013-12-11 1.120 4.405
2013-09-05 1.120 4.494
2013-06-05 1.120 4.770
2013-03-14 1.120 4.596
2012-12-14 1.040 4.527
2012-09-06 1.040 4.561
2012-06-06 1.040 4.837
2012-03-16 1.040 4.748
2011-12-08 0.960 4.838
2011-09-08 1.050 5.477
2011-06-14 0.960 4.795
2011-03-16 0.960 4.710
2010-12-09 1.450 6.801
2010-09-09 1.020 4.968
2010-06-10 1.420 7.093
2010-03-18 1.420 7.666
2009-12-10 1.420 7.809
2009-09-10 1.430 8.172
2009-06-11 1.350 8.613
2009-03-19 1.350 8.454
2008-12-12 1.350 8.331
2008-09-11 1.400 8.627

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of North West's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess North West's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can North West afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. North West has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of North West's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Edward Kennedy
COMPENSATION CA$3,315,367
AGE 59
TENURE AS CEO 22.5 years
CEO Bio

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 the Chief Executive Officer and Chairman of Alaska Commercial Co. since 1997. Mr. Kennedy serves as the Chairman and Chief Executive Officer at Cost-U-Less, Inc. He served as the Chief Executive Officer, President and Chairman of International Operations at North West Company Inc. He served as Chairman & Chief Executive Officer of AC from 1995 to 1997 and also served as its President. Mr. Kennedy is a Canadian Top 40 under 40 recipient in 1999 and is active in Aboriginal economic development initiatives. Mr. Kennedy served as an Executive Vice-President and Chief Operating Officer of The North West Co. Inc. (NWC) from 1993 to 1995. He also served as its Vice-President of Corporate Development, Counsel and Secretary of NWC from 1989 to 1993. He served as Chairman of North West Company. He has been a Director of North West Company Inc. since 1996. He serves as a Member of Advisory Board at University of Western Ontario, Ivey School of Business. Mr. Kennedy has been a Trustee of North West Co. Fund since 2005. Mr. Kennedy serves as a Director of Balmoral Hall School, Alaska Commercial Co., Northwest Transport Ltd., Transport Nanuk Inc., The Conference Board of Canada and Business Council of Manitoba. He served as a Director of Norcraft Companies, Inc. from November 04, 2014 to May 12, 2015. He served as a Trustee of North West Company since 1996. Mr. Kennedy holds a Honours Bachelor of Arts in Business Administration from University of Western Ontario and Bachelor of Laws from Osgoode Hall Law School.

CEO Compensation
  • Edward's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Edward's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the North West management team in years:

1.8
Average Tenure
  • The average tenure for the North West management team is less than 2 years, this suggests a new team.
Management Team

Edward Kennedy

TITLE
President
COMPENSATION
CA$3M
AGE
59
TENURE
22.5 yrs

John King

TITLE
Executive VP & CFO
COMPENSATION
CA$1M
TENURE
9.1 yrs

Dan McConnell

TITLE
President of International Retail
COMPENSATION
CA$2M

Craig Gilpin

TITLE
Executive VP & Chief Corporate Officer
COMPENSATION
CA$1M
TENURE
9.3 yrs

Gary Merasty

TITLE
Executive VP & Chief Development Officer
COMPENSATION
CA$936K
AGE
54
TENURE
1.5 yrs

Amanda Sutton

TITLE
VP of Legal & Corporate Secretary
TENURE
1.8 yrs

Beth Millard-Hales

TITLE
Vice President of Human Resources
TENURE
1.3 yrs

Toby Noiles

TITLE
Executive Vice President of Canadian Food Procurement & Marketing
TENURE
1.5 yrs

Alex Yeo

TITLE
President of Canadian Retail
TENURE
1.5 yrs

Frank Kelner

TITLE
President of North Star Air Ltd.
TENURE
2.5 yrs
Board of Directors Tenure

Average tenure and age of the North West board of directors in years:

9.3
Average Tenure
65
Average Age
  • The tenure for the North West board of directors is about average.
Board of Directors

Sandy Riley

TITLE
Independent Chairman
COMPENSATION
CA$240K
AGE
68
TENURE
11.1 yrs

Edward Kennedy

TITLE
President
COMPENSATION
CA$3M
AGE
59
TENURE
23.5 yrs

Bob Kennedy

TITLE
Independent Director
COMPENSATION
CA$137K
AGE
69
TENURE
16.5 yrs

Wendy Evans

TITLE
Independent Director
COMPENSATION
CA$132K
AGE
68
TENURE
14.5 yrs

Eric Stefanson

TITLE
Independent Director
COMPENSATION
CA$136K
AGE
68
TENURE
7.5 yrs

Vi Konkle

TITLE
Independent Director
COMPENSATION
CA$122K
AGE
65
TENURE
5.3 yrs

Frank Coleman

TITLE
Independent Director
COMPENSATION
CA$125K
AGE
65
TENURE
20.5 yrs

Annalisa King

TITLE
Independent Director
COMPENSATION
CA$119K
AGE
52
TENURE
4.6 yrs

Stewart Glendinning

TITLE
Independent Director
COMPENSATION
CA$124K
AGE
54
TENURE
4.7 yrs

Victor Tootoo

TITLE
Independent Director
COMPENSATION
CA$119K
AGE
54
TENURE
4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
20. Dec 18 Buy Eric Stefanson Individual 17. Dec 18 17. Dec 18 324 CA$30.89 CA$10,008
X
Management checks
We assess North West's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. North West has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

North West (TSE:NWC) Takes On Some Risk With Its Use Of Debt

TSX:NWC Historical Debt, July 17th 2019 How Strong Is North West's Balance Sheet? … Since North West does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … Our View North West's struggle to grow its EBIT had us second guessing its balance sheet strength, but the other data-points we considered were relatively redeeming.

Simply Wall St -

Does The North West Company Inc.'s (TSE:NWC) CEO Pay Compare Well With Peers?

View our latest analysis for North West How Does Edward Kennedy's Compensation Compare With Similar Sized Companies? … When we examined a selection of companies with market caps ranging from CA$523m to CA$2.1b, we found the median CEO total compensation was CA$2.0m. … Thus we can conclude that Edward Kennedy receives more in total compensation than the median of a group of companies in the same market, and of similar size to The North West Company Inc..

Simply Wall St -

If You Had Bought North West (TSE:NWC) Stock Five Years Ago, You Could Pocket A 28% Gain Today

To wit, the North West share price has climbed 28% in five years, easily topping the market return of 2.2% (ignoring dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, North West achieved compound earnings per share (EPS) growth of 7.9% per year.

Simply Wall St -

Why The North West Company Inc.’s (TSE:NWC) Return On Capital Employed Is Impressive

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for North West: 0.13 = CA$113m ÷ (CA$1.0b - CA$177m) (Based on the trailing twelve months to January 2019.) Therefore, North West has an ROCE of 13%. … See our latest analysis for North West Is North West's ROCE Good? … Do North West's Current Liabilities Skew Its ROCE?

Simply Wall St -

Are Investors Undervaluing The North West Company Inc. (TSE:NWC) By 49%?

Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (CA$, Millions) CA$48.19 CA$60.50 CA$86.23 CA$106.49 CA$124.62 CA$140.20 CA$153.29 CA$164.21 CA$173.35 CA$181.12 Growth Rate Estimate Source Analyst x4 Analyst x3 Analyst x3 Est @ 23.49% Est @ 17.03% Est @ 12.5% Est @ 9.34% Est @ 7.12% Est @ 5.57% Est @ 4.48% Present Value (CA$, Millions) Discounted @ 6.72% CA$45.16 CA$53.13 CA$70.96 CA$82.11 CA$90.05 CA$94.93 CA$97.26 CA$97.63 CA$96.58 CA$94.56 Present Value of 10-year Cash Flow (PVCF)= CA$822.37m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.7%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CA$181m × (1 + 1.9%) ÷ (6.7% – 1.9%) = CA$3.9b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CA$CA$3.9b ÷ ( 1 + 6.7%)10 = CA$2.02b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$2.84b.

Simply Wall St -

Something To Consider Before Buying The North West Company Inc. (TSE:NWC) For The 4.4% Dividend

North West paid out 241% of its free cash flow last year, suggesting the dividend is poorly covered by cash flow. … North West paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough free cash flow to cover the dividend. … Were it to repeatedly pay dividends that were not well covered by cash flow, this could be a risk to North West's ability to maintain its dividend.

Simply Wall St -

You Might Like The North West Company Inc. (TSE:NWC) But Do You Like Its Debt?

Help shape the future of investing tools and you could win a $250 gift card! … Investors are always looking for growth in small-cap stocks like The North West Company Inc. … since poor capital management may bring about bankruptcies,

Simply Wall St -

What Kind Of Shareholders Own The North West Company Inc. (TSE:NWC)?

The big shareholder groups in The North West Company Inc. … North West has a market capitalization of CA$1.4b, so we would expect some institutional investors to have noticed the stock. … institutional investors have bought into the company.

Simply Wall St -

Should You Be Excited About The North West Company Inc.'s (TSE:NWC) 22% Return On Equity?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every CA$1 worth of equity in the company, it was able to earn CA$0.22. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand The North West Company Inc. (TSE:NWC)

To keep it practical, we'll show how The North West Company Inc.'s (TSE:NWC) P/E ratio could help you assess the value on offer. … North West has a P/E ratio of 16.17, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

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.

Details
Name: The North West Company Inc.
NWC
Exchange: TSX
Founded: 1668
CA$1,430,839,766
48,750,929
Website: http://www.northwest.ca
Address: The North West Company Inc.
Gibraltar House,
77 Main Street,
Winnipeg,
Manitoba, R3C 2R1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX NWC Common Voting Shares The Toronto Stock Exchange CA CAD 28. Sep 1990
OTCPK NNWW.F Common Voting Shares Pink Sheets LLC US USD 28. Sep 1990
Number of employees
Current staff
Staff numbers
7,925
North West employees.
Industry
Food Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 00:50
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/06/12
Last earnings reported: 2019/04/30
Last annual earnings reported: 2019/01/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.