North West (NWC) AI Stock Analysis

• Market Cap: C$2.30B
• Dividend Yield: 3.35%
• Average Volume (3M): 204.25K
• Price to Earnings (P/E): 16.1
• Beta (1Y): -0.12
• Revenue Growth: 2.08%
• EPS Growth: 9.31%
• Country: CA
• Employees: 7,003
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.86
• Shares Outstanding: 47,736,755
• 10 Day Avg. Volume: 172,863
• 30 Day Avg. Volume: 204,247
• PEG Ratio: 2.74
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 19.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$57.00
• Price Target Upside: 18.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$53.00 ▲(10.19% Upside)

North West's overall stock score reflects stable financial performance and reasonable valuation, with some concerns about profitability and cash flow management. The earnings call highlighted operational improvements but also significant sales challenges. Technical analysis suggests a neutral trend, balancing the overall outlook.

Positive Factors

Operational Efficiency

The Next 100 program's focus on operational excellence and cost efficiencies can enhance long-term profitability and competitive positioning.

Revenue Stability

Diversified revenue streams and long-term contracts with key clients provide stable cash flow, supporting financial resilience and growth.

Gross Profit Margin

A strong gross profit margin reflects effective cost management, which can sustain profitability and support reinvestment in growth initiatives.

Negative Factors

Sales Decline

Declining sales, particularly in same-store metrics, pose a risk to revenue growth and market share, potentially impacting long-term financial performance.

Negative Free Cash Flow Growth

Negative free cash flow growth limits the company's ability to fund new projects and expansions, potentially hindering long-term strategic initiatives.

Funding Reductions Impact

Funding reductions in key markets can lead to sustained revenue pressure, affecting the company's ability to maintain growth and profitability.

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 company's Canadian operations comprise 118 Northern stores, which offers food, financial services, and general merchandise; 5 NorthMart stores that provides fresh foods, apparel, and health products and services; 26 Quickstop convenience stores that provides ready-to-eat foods, and fuel and related services; 5 Giant Tiger junior discount stores, which offers family fashion, household products, and food; 2 Valu Lots discount center and direct-to-customer food distribution outlet; 1 solo market, a store in remote market; 3 Pharmacy and Convenience stores; and 1 North West Company motorsports dealership offering sales, service, parts and accessories for Ski-doo, Honda, Can-am and other premier brands. 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 30 Alaska Commercial Company stores that provides food and general merchandise to remote and rural regions; 12 Cost-U-Less mid-size warehouse stores, which offers discount food and general merchandise; 4 Quickstop convenience stores; 9 Riteway food markets; and Pacific Alaska wholesale, a distributor to independent grocery stores, commercial accounts, and individual households in rural Alaska. The North West Company Inc. was founded in 1668 and is headquartered in Winnipeg, Canada.

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 customers in remote locations where access to such goods and services is limited. Key revenue streams include the sale of food products, household items, and health-related products, along with financial services like check cashing and money transfers. Strategic partnerships with suppliers and efficient supply chain management contribute to cost-effectiveness and competitive pricing, enhancing profitability. NWC's presence in niche markets with little competition further solidifies its revenue generation capabilities.

North West Financial Statement Overview

Summary

North West demonstrates a stable financial position with consistent revenue growth and solid operational efficiency. The balance sheet reflects a moderate leverage level, while cash flow generation is strong but shows potential constraints in free cash flow. The company is well-positioned in the grocery industry, but there is room for improvement in profitability and cash flow management.

Income Statement

North West shows a stable financial performance with a consistent revenue growth rate of 1.9% TTM. The gross profit margin is healthy at 33.95%, indicating efficient cost management. However, the net profit margin is relatively low at 5.32%, suggesting room for improvement in profitability. EBIT and EBITDA margins are stable, reflecting solid operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.57 indicates a moderate level of leverage, which is manageable. The return on equity is strong at 18.19%, showing effective use of shareholder funds. However, the equity ratio of 49.93% suggests a balanced but slightly leveraged capital structure.

Cash Flow

Operating cash flow remains strong, with a coverage ratio of 0.94, indicating good cash generation relative to net income. However, free cash flow growth is negative at -85.9% TTM, which could be a concern for future investments. The free cash flow to net income ratio is moderate at 44.04%, suggesting some constraints in cash available for expansion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.60B	2.58B	2.47B	2.35B	2.25B	2.36B
Gross Profit	882.85M	868.32M	809.42M	747.91M	737.75M	774.55M
EBITDA	329.27M	325.61M	301.93M	279.69M	312.48M	302.13M
Net Income	138.40M	137.30M	129.39M	122.19M	154.80M	139.87M
Balance Sheet
Total Assets	1.55B	1.53B	1.40B	1.34B	1.22B	1.19B
Cash, Cash Equivalents and Short-Term Investments	68.51M	67.39M	53.36M	58.81M	49.43M	71.54M
Total Debt	438.42M	422.18M	405.47M	402.53M	349.71M	402.04M
Total Liabilities	756.84M	732.79M	690.24M	688.99M	639.07M	685.94M
Stockholders Equity	775.96M	772.01M	684.69M	629.22M	563.63M	491.30M
Cash Flow
Free Cash Flow	116.82M	114.27M	107.02M	65.73M	130.06M	263.47M
Operating Cash Flow	265.28M	260.63M	230.43M	182.84M	224.13M	338.72M
Investing Cash Flow	-147.22M	-131.00M	-107.70M	-106.80M	-75.86M	-66.90M
Financing Cash Flow	-136.47M	-119.05M	-128.27M	-68.30M	-170.20M	-227.06M

North West Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 48.1 is below the 20-day moving average (MA) of 48.73, above the 50-day MA of 47.31, and below the 200-day MA of 49.13, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 48.75 is Neutral, neither overbought nor oversold. The STOCH value of 50.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NWC.

North West Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRU	78 Outperform	C$21.17B	21.31	14.48%	1.49%	3.71%	12.40%
L	78 Outperform	C$72.30B	29.56	21.51%	1.53%	4.21%	14.03%
WN	70 Outperform	C$36.20B	24.76	26.36%	1.23%	4.15%	149.50%
NWC	69 Neutral	C$2.30B	16.08	18.69%	3.35%	2.08%	9.31%
EMP.A	69 Neutral	C$10.57B	15.57	12.66%	1.82%	2.58%	7.85%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SPB	54 Neutral	C$1.53B	76.99	2.49%	2.62%	6.58%	9.33%

North West Corporate Events

North West Company Reports Resilient Q2 Earnings Amid Challenges

North West Company Inc. reported a slight increase in second-quarter sales to $647.0 million, despite challenges such as wildfires in northern Canada and reduced funding from Jordan’s Principle. The company announced a 2.5% increase in its quarterly dividend to $0.41 per share. The company’s Next 100 strategy, focusing on merchandise refinement and operational efficiency, helped mitigate these challenges, demonstrating resilience in a softer economy. Earnings from operations increased by 0.5%, and the company remains committed to driving sustainable value for its stakeholders.

The most recent analyst rating on (TSE:NWC) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on North West stock, see the TSE:NWC Stock Forecast page.

North West Company Appoints Aviation Expert Gregg Saretsky to Board

North West Company Inc. has appointed Gregg Saretsky, a veteran in the aviation industry, as a director. Saretsky’s extensive experience, including leadership roles at WestJet Airlines and board positions at InterGlobe Aviation and Southwest Airlines, is expected to enhance North West’s strategic direction, particularly in developing its subsidiary, North Star Air.

The most recent analyst rating on (TSE:NWC) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on North West stock, see the TSE:NWC Stock Forecast page.

North West Company Announces Successful Election of Directors

The North West Company Inc. announced that its shareholders voted in favor of all items at the annual general meeting, including the election of all nominee directors. This decision reflects strong shareholder support and ensures continuity in the company’s leadership, potentially reinforcing its market position and strategic direction.

The most recent analyst rating on (TSE:NWC) stock is a Buy with a C$58.00 price target. To see the full list of analyst forecasts on North West stock, see the TSE:NWC Stock Forecast page.