North West Company (TSE:NWC)
TSX:NWC
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North West
(TSX:NWC)
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Rating:72Outperform
Price Target:
C$61.00
â–²(19.07% Upside)
Action:UpgradedDate:04/10/26
The score is driven primarily by strong cash generation, steady revenue growth, and improving leverage, supported by a constructive (but not strong) technical trend and reasonable valuation. The main offset is mixed near-term demand commentary from the earnings call, with sales pressure from funding-related headwinds and supply chain disruption despite margin and cost control gains.
Positive Factors
Cash generation strength
Consistent operating cash flow and a strong 2026 free cash flow outcome provide durable internal funding for store investments, inventory build, dividends and debt paydown. Reliable cash conversion supports resilience in remote retail markets and cushions against cyclical sales pressure.
Negative Factors
Funding-dependent sales
Significant exposure to government transfers and regional payouts creates durable demand sensitivity: funding cuts materially lower customer spending in core markets. This structural dependence can compress volumes and make revenue more volatile when public benefits or regional dividends are reduced.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation strength
Consistent operating cash flow and a strong 2026 free cash flow outcome provide durable internal funding for store investments, inventory build, dividends and debt paydown. Reliable cash conversion supports resilience in remote retail markets and cushions against cyclical sales pressure.
Read all positive factors
North West (NWC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.43B
Dividend Yield3.27%
Average Volume (3M)204.25K
Price to Earnings (P/E)15.4
Beta (1Y)0.08
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 Ratio9.57
Price to Book (P/B)2.91
Price to Sales (P/S)0.89
P/FCF Ratio16.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$62.00Price Target Upside21.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)3.82
Revenue Forecast (FY)C$2.70B
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 makes money primarily by selling goods through its retail stores. The largest revenue stream is retail sales of food and consumables (e.g., groceries and everyday household necessities), with additional revenue from sales of general merchandis...
North West Earnings Call Summary
Earnings Call Date:Dec 09, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jun 10, 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
74
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | Jan 2026 | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.60B | 2.58B | 2.47B | 2.35B | 2.25B |
| Gross Profit | 760.48M | 868.32M | 809.42M | 747.91M | 737.75M |
| EBITDA | 332.64M | 325.61M | 301.93M | 279.69M | 312.48M |
| Net Income | 139.49M | 137.30M | 129.39M | 122.19M | 154.80M |
Balance Sheet | |||||
| Total Assets | 1.57B | 1.53B | 1.40B | 1.34B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 90.37M | 67.39M | 53.36M | 58.81M | 49.43M |
| Total Debt | 438.95M | 422.18M | 405.47M | 402.53M | 349.71M |
| Total Liabilities | 744.25M | 732.79M | 690.24M | 688.99M | 639.07M |
| Stockholders Equity | 799.39M | 772.01M | 684.69M | 629.22M | 563.63M |
Cash Flow | |||||
| Free Cash Flow | 141.28M | 114.27M | 107.02M | 65.73M | 130.06M |
| Operating Cash Flow | 267.29M | 260.63M | 230.43M | 182.84M | 224.13M |
| Investing Cash Flow | -137.84M | -131.00M | -107.70M | -106.80M | -75.86M |
| Financing Cash Flow | -103.03M | -119.05M | -128.27M | -68.30M | -170.20M |
North West Technical Analysis
Negative
51.23
Price Trends
54.03
Negative
51.36
Negative
49.15
Positive
Market Momentum
-0.31
Positive
36.68
Neutral
16.31
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NWC, the sentiment is Negative. The current price of 51.23 is below the 20-day moving average (MA) of 53.53, below the 50-day MA of 54.03, and above the 200-day MA of 49.15, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 16.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | C$2.43B | 15.38 | 17.82% | 3.27% | 2.08% | 9.31% | |
70 Outperform | C$18.97B | 20.48 | 13.93% | 1.50% | 3.71% | 12.40% | |
65 Neutral | C$46.47B | 38.62 | 99.41% | 0.20% | 14.02% | 20.11% | |
65 Neutral | C$36.56B | 31.90 | 21.94% | 1.23% | 4.15% | 149.50% | |
64 Neutral | C$72.36B | 27.64 | 24.03% | 1.52% | 4.21% | 14.03% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | C$10.55B | -6.61 | 2.98% | 1.78% | 2.58% | 7.85% |
* Consumer Defensive Sector Average
TSE:NWC
North West
51.58
-1.51
-2.85%
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North West Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
North West Edges Up Earnings, Lifts Dividend Amid Tough Canadian Market
Positive
Apr 8, 2026
North West reported essentially flat fourth-quarter sales at $675.5 million, modestly higher annual sales of $2.6 billion and a 1.9% rise in net earnings to $145.9 million, despite a challenging Canadian environment and tough comparisons to strong...
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.