North West (NWC) AI Stock Analysis

• Market Cap: C$2.33B
• Dividend Yield: 3.3%
• Average Volume (3M): 180.20K
• Price to Earnings (P/E): 16.9
• Beta (1Y): -0.13
• Revenue Growth: 3.04%
• EPS Growth: 4.17%
• Country: CA
• Employees: 7,003
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.78
• Shares Outstanding: 47,843,250
• 10 Day Avg. Volume: 218,509
• 30 Day Avg. Volume: 180,203
• 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$59.50
• Price Target Upside: 22.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: C$51.00 ▲(5.28% Upside)

North West's overall stock score reflects stable financial performance and reasonable valuation, despite technical indicators suggesting bearish momentum. The earnings call provided a balanced outlook with strong sales growth offset by higher expenses and operational challenges. The dividend yield adds to the stock's attractiveness, but improvements in profitability and cash flow management are needed.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Operational Efficiency

The Next 100 program enhances operational efficiency, leading to cost savings and productivity improvements, which are crucial for sustaining profitability.

International Market Success

Strong international sales growth demonstrates effective market penetration and diversification, reducing reliance on domestic markets and enhancing resilience.

Negative Factors

Wildfire Impact

The impact of wildfires on operations highlights vulnerability to environmental risks, potentially affecting long-term sales and operational stability.

Higher Expenses

Rising expenses could pressure margins and limit profitability, challenging the company's ability to maintain cost efficiency over time.

Reduced Government Funding

Reduced government funding may impact revenue streams and community support, potentially affecting market positioning in key regions.

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 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	882.85M	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: 48.44
• 50DMA: Negative
• 100DMA: Negative
• 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 48.44 is below the 20-day moving average (MA) of 49.11, below the 50-day MA of 48.90, and below the 200-day MA of 49.26, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 67.69 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
L	71 Outperform	64.01B	26.44	22.36%	1.71%	3.26%	22.10%
MRU	69 Neutral	20.01B	20.03	13.23%	1.56%	2.26%	12.56%
EMP.A	69 Neutral	11.52B	16.66	12.94%	1.66%	1.96%	9.26%
SPB	68 Neutral	1.73B	20.65	5.93%	4.04%	6.01%	―
NWC	64 Neutral	C$2.33B	16.85	18.55%	3.30%	3.04%	4.17%
WN	63 Neutral	32.29B	32.14	19.06%	1.36%	3.21%	-12.20%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

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.