North West (NWC) AI Stock Analysis

• Market Cap: C$2.41B
• Dividend Yield: 3.17%
• Average Volume (3M): 126.82K
• Price to Earnings (P/E): 17.3
• Beta (1Y): >-0.01
• Revenue Growth: 4.19%
• EPS Growth: 2.56%
• Country: CA
• Employees: 7,003
• Sector: Consumer Defensive
• Sector Strength: 50
• Industry: Grocery Stores
• EPS (TTM): 0.64
• Shares Outstanding: 47,843,250
• 10 Day Avg. Volume: 145,145
• 30 Day Avg. Volume: 126,818
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$59.40
• Price Target Upside: 17.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: C$56.00 ▲(11.07% Upside)

North West's overall stock score is driven by its solid financial performance and effective cash flow management, which are significant strengths. Technical indicators suggest positive momentum, though caution is advised due to potential overbought conditions. Valuation is reasonable, with an attractive dividend yield. The earnings call provided a balanced outlook with optimism for future growth despite some challenges.

Positive Factors

Earnings

The Q4 earnings were higher than expected, driven by strong same-store sales growth and gross margin expansion.

Market Position

North West is rated as Outperform due to its attractive retail franchise with a high proportion of stores in defensive markets.

Strategic Initiatives

The company's Next 100 initiative is anticipated to contribute positively to earnings, outpacing investments through the coming years.

Negative Factors

Environmental Factors

Wildfires are seen as a factor that could hurt the company's performance.

North West Business Overview & Revenue Model

Company Description

North West Company (NWC) is a leading retailer catering primarily to underserved rural and remote communities across Canada, Alaska, the South Pacific, and the Caribbean. The company operates through a network of retail stores, including Northern and NorthMart, offering a wide range of products such as food, general merchandise, pharmaceuticals, and services tailored to meet the unique needs of these communities.

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 solid financial health with stable revenue growth and profitability. The company maintains a balanced leverage level and offers strong returns to shareholders. Cash flow management is effective, with growth in free cash flow and a robust cash conversion rate.

Income Statement

North West has demonstrated consistent revenue growth with a TTM gross profit margin of 33.94%. The net profit margin stands at 5.29%, showing stable profitability. Revenue growth is observed at 0.93% from the previous year, indicating moderate growth. The EBIT margin is 8.08%, and the EBITDA margin is 12.60%, reflecting efficient operational performance.

Balance Sheet

The company's debt-to-equity ratio is 0.55, suggesting a balanced leverage position. The return on equity is 18.11%, indicating strong returns for shareholders. The equity ratio is 50.45%, reflecting a solid financial structure with a good proportion of equity in total assets.

Cash Flow

Free cash flow has grown by 3.11% compared to the prior year, showcasing effective cash management. The operating cash flow to net income ratio is 1.96, suggesting strong cash flow generation relative to net income. The free cash flow to net income ratio is 0.86, showing adequate cash conversion.

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	882.67M	868.32M	809.42M	747.91M	737.75M	774.55M
EBITDA	327.69M	325.61M	301.93M	279.69M	312.48M	302.13M
Net Income	137.60M	137.30M	129.39M	122.19M	154.80M	139.87M
Balance Sheet
Total Assets	1.51B	1.53B	1.40B	1.34B	1.22B	1.19B
Cash, Cash Equivalents and Short-Term Investments	74.28M	67.39M	53.36M	58.81M	49.43M	71.54M
Total Debt	419.99M	422.18M	405.47M	402.53M	349.71M	402.04M
Total Liabilities	722.55M	732.79M	690.24M	688.99M	639.07M	685.94M
Stockholders Equity	759.73M	772.01M	684.69M	629.22M	563.63M	491.30M
Cash Flow
Free Cash Flow	117.83M	114.27M	107.02M	65.73M	130.06M	263.47M
Operating Cash Flow	269.37M	260.63M	230.43M	182.84M	224.13M	338.72M
Investing Cash Flow	-135.02M	-131.00M	-107.70M	-106.80M	-75.86M	-66.90M
Financing Cash Flow	-141.84M	-119.05M	-128.27M	-68.30M	-170.20M	-227.06M

North West Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.42
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 50.42 is above the 20-day moving average (MA) of 49.96, above the 50-day MA of 48.66, and above the 200-day MA of 49.45, indicating a bullish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 21.02 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWC	67 Neutral	C$2.41B	17.31	18.85%	3.17%	4.19%	2.56%
Sector *	63 Neutral	$20.42B	14.64	-2.96%	3.11%	2.04%	-6.12%
LBLCF	―	$48.65B	27.97	21.77%	0.92%	―	―
EMP.A	73 Outperform	C$12.34B	17.91	13.02%	1.54%	1.77%	0.77%
MRU	69 Neutral	C$21.35B	21.09	14.60%	1.47%	2.26%	12.56%
SPB	66 Neutral	C$1.63B	19.46	6.30%	4.27%	6.01%	―
WN	62 Neutral	C$33.82B	33.66	17.72%	1.27%	3.21%	-12.20%

North West Corporate Events

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.

North West Company Reports Strong Q1 Earnings and Declares Dividend

North West Company Inc. reported a strong first quarter with a 3.9% increase in consolidated sales, driven by same-store sales growth and strategic initiatives under the Next 100 program. The company declared a quarterly dividend, reflecting confidence in its operational strategy, despite increased expenses due to investments in staff and technology. The company’s focus on operational excellence and improved merchandise assortment has positively impacted its earnings and market positioning.

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.