North West Company (TSE:NWC)
TSX:NWC
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North West
(TSX:NWC)
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Rating:69Neutral
Price Target:
C$60.00
â–²(10.03% Upside)
Action:ReiteratedDate:12/18/25
North West's overall stock score reflects stable financial performance and positive technical indicators. However, challenges in sales growth and cash flow management, along with mixed earnings call sentiment, moderate the score. The valuation is fair, providing a balance of growth and income potential.
Positive Factors
Stable margins
Consistent gross margins (~33-34%) and a steady net profit margin (~5.3%) reflect durable profitability from core grocery and essentials retailing. These margins provide a buffer to absorb funding volatility in remote markets, support reinvestment in stores and private label, and underpin long-term cash generation.
Negative Factors
Revenue and same-store sales decline
Top-line weakness — negative TTM revenue growth and declining same-store sales in Canada and consolidated operations — undermines scale economics in low-density markets. Continued sales erosion reduces leverage over fixed costs, pressures inventory turns and supplier terms, and limits the company’s ability to fund growth or margin initiatives organically.
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Positive Factors
Negative Factors
Stable margins
Consistent gross margins (~33-34%) and a steady net profit margin (~5.3%) reflect durable profitability from core grocery and essentials retailing. These margins provide a buffer to absorb funding volatility in remote markets, support reinvestment in stores and private label, and underpin long-term cash generation.
Read all positive factors
North West (NWC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.59B
Dividend Yield3.27%
Average Volume (3M)204.25K
Price to Earnings (P/E)13.6
Beta (1Y)0.13
Revenue Growth2.08%
EPS Growth9.31%
CountryCA
Employees7,003
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.86
Shares Outstanding47,645,870
10 Day Avg. Volume172,863
30 Day Avg. Volume204,247
Financial Highlights & Ratios
PEG Ratio2.74
Price to Book (P/B)2.87
Price to Sales (P/S)0.86
P/FCF Ratio19.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.72
Revenue Forecast (FY)C$2.71B
North West Business Overview & Revenue Model
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 northern Canada, rural Alaska, the South Pacific, and the Caribbean. The...
How the Company Makes Money
NWC generates revenue through its extensive network of retail stores, which serve as the primary sales channel for its diverse product offerings. The company earns money by selling groceries, general merchandise, and essential services to customer...
North West Earnings Call Summary
Earnings Call Date:Dec 09, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 15, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with strong net earnings growth and operational improvements countered by significant sales challenges and funding-related headwinds.Positive Updates
Net Earnings Increase
Despite a challenging quarter, net earnings increased by 12.9% compared to last year, driven by improved gross profit rates and lower expenses.
Negative Updates
Sales Decline
Overall sales in the quarter decreased by 0.5% compared to last year, with consolidated same-store sales down 1.7%.
Read all updates
Q3-2025 Updates
Positive
Negative
Net Earnings Increase
Despite a challenging quarter, net earnings increased by 12.9% compared to last year, driven by improved gross profit rates and lower expenses.
Read all positive updates
Company Guidance
During The North West Company Inc.'s third quarter results conference call, several key metrics and factors were discussed regarding the company's performance and outlook. The company experienced a 0.5% decrease in sales compared to the previous year, largely due to reduced Child and Family services funding in Canada and a lower permanent fund dividend in Alaska. Despite these challenges, net earnings increased by 12.9%, driven by an improved gross profit rate up by 64 basis points and a 1% reduction in expenses. Same-store sales in Canada declined by 2.8%, with a notable 11.1% decrease in general merchandise sales. Conversely, international operations saw a 1% increase in same-store food sales, offsetting a 9.9% drop in general merchandise sales. The company's gross profit grew by 1.4%, attributed to the Next 100 work, such as merchandise assortment refinement and private label expansion. Looking ahead, the company anticipates continued impacts from funding reductions but expects some offset from Child and Care settlement payments, which began distribution at the end of Q3. The Next 100 program remains a focus, with significant progress in operational excellence and cost efficiencies anticipated to continue delivering value.North West Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.60B | 2.58B | 2.47B | 2.35B | 2.25B | 2.36B |
| Gross Profit | 855.67M | 868.32M | 809.42M | 747.91M | 737.75M | 774.55M |
| EBITDA | 334.63M | 325.61M | 301.93M | 279.69M | 312.48M | 302.13M |
| Net Income | 143.10M | 137.30M | 129.39M | 122.19M | 154.80M | 139.87M |
Balance Sheet | ||||||
| Total Assets | 1.60B | 1.53B | 1.40B | 1.34B | 1.22B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 83.03M | 67.39M | 53.36M | 58.81M | 49.43M | 71.54M |
| Total Debt | 477.91M | 422.18M | 405.47M | 402.53M | 349.71M | 402.04M |
| Total Liabilities | 782.13M | 732.79M | 690.24M | 688.99M | 639.07M | 685.94M |
| Stockholders Equity | 795.52M | 772.01M | 684.69M | 629.22M | 563.63M | 491.30M |
Cash Flow | ||||||
| Free Cash Flow | 115.00M | 114.27M | 107.02M | 65.73M | 130.06M | 263.47M |
| Operating Cash Flow | 257.50M | 260.63M | 230.43M | 182.84M | 224.13M | 338.72M |
| Investing Cash Flow | -143.70M | -131.00M | -107.70M | -106.80M | -75.86M | -66.90M |
| Financing Cash Flow | -98.03M | -119.05M | -128.27M | -68.30M | -170.20M | -227.06M |
North West Technical Analysis
Positive
54.53
Price Trends
53.01
Positive
50.69
Positive
49.40
Positive
Market Momentum
0.09
Positive
50.06
Neutral
50.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NWC, the sentiment is Positive. The current price of 54.53 is below the 20-day moving average (MA) of 54.90, above the 50-day MA of 53.01, and above the 200-day MA of 49.40, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 50.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NWC.
North West Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$2.59B | 13.57 | 18.44% | 3.27% | 2.08% | 9.31% | |
66 Neutral | C$19.96B | 23.42 | 14.48% | 1.50% | 3.71% | 12.40% | |
65 Neutral | C$37.02B | 31.90 | 21.94% | 1.23% | 4.15% | 149.50% | |
64 Neutral | C$74.02B | 27.64 | 24.03% | 1.52% | 4.21% | 14.03% | |
64 Neutral | C$51.08B | 38.95 | 99.41% | 0.20% | 14.02% | 20.11% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | C$11.30B | -6.61 | 12.66% | 1.78% | 2.58% | 7.85% |
* Consumer Defensive Sector Average
TSE:NWC
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54.18
7.68
16.51%
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North West Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
North West Company Reports Earnings Growth Amid Sales Dip, Declares Dividend
Positive
Dec 10, 2025
North West Company Inc. reported a slight decrease in third-quarter sales but achieved double-digit earnings growth driven by improved margins and cost reductions from its Next 100 initiative. Despite a softer sales environment, the company’...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.