North West (NWC) AI Stock Analysis

• Market Cap: C$2.64B
• Dividend Yield: 3.27%
• Average Volume (3M): 204.25K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.04
• 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: 47,629,450
• 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: 3.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.72
• Revenue Forecast (FY): C$2.71B

• Rating: 69 Neutral
• Price Target: C$60.00 ▲(8.60% Upside)
• Action: Reiterated Date: 12/18/25
• Date: Action: Reiterated 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

Niche market position

Serving remote and underserved northern communities creates a durable commercial moat: captive demand for essentials, limited competition, and recurring store-level sales. This structural presence supports steady revenue streams and pricing flexibility tied to convenience and logistics advantages.

Margin improvement & operational program

Improving gross profit rates and a clear operational program (Next 100) indicate sustainable margin expansion via assortment optimization and private label growth. Combined with disciplined expense control, these structural initiatives can deliver persistent profit improvement beyond short-term cycles.

Balanced leverage and capital efficiency

Moderate leverage with an ROE near 18% shows efficient use of capital and a solid financial structure. This balance supports investment in store operations and supply chain while retaining flexibility to manage periodic working capital needs or targeted growth without excessive refinancing risk.

Negative Factors

Sales and same-store declines

Persistent same-store sales declines signal demand headwinds in core markets. If continued, declines erode scale economics, pressure merchandising leverage and gross margins, and limit the upside from cost programs. Recovering sustainable traffic and basket trends is essential for durable earnings growth.

Free cash flow deterioration

Shrinking free cash flow growth constrains reinvestment, dividends and debt repayment capacity. Even with strong operating cash to net income, a lower FCF-to-net-income ratio increases reliance on external financing for capital expenditures or working capital, reducing financial resilience over time.

Dependence on external funding

Customer demand in select regions is sensitive to public transfers and dividend payments. This funding-dependency creates structural revenue volatility and exposes topline to policy or macro moves, making sales and planning less predictable and increasing execution risk for long-term growth initiatives.

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 stable profitability and efficient operations, as seen in its income statement. The balance sheet is well-managed with moderate leverage, but the recent increase in debt warrants caution. Cash flow management shows some weaknesses, particularly in free cash flow growth, which needs to be addressed to maintain financial health. Overall, the company is performing well but should focus on reversing the negative revenue growth trend and improving cash flow sustainability.

Income Statement

North West's income statement shows a stable gross profit margin of around 33-34% over the years, with a slight dip in the TTM period. The net profit margin remains consistent at approximately 5.3%, indicating stable profitability. However, the revenue growth rate has turned negative in the TTM period, which could be a concern if it continues. EBIT and EBITDA margins are stable, reflecting efficient operations, but the recent revenue decline needs attention.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of around 0.55-0.64, indicating a balanced approach to leverage. Return on equity is healthy at approximately 18%, showing effective use of equity to generate profits. The equity ratio is stable, suggesting a solid financial structure. However, the increase in total debt in the TTM period could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth in the TTM period, which is concerning. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, suggesting potential challenges in maintaining free cash flow levels. Overall, cash flow management needs improvement to ensure long-term sustainability.

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

• Technical Analysis Sentiment: Positive
• Last Price: 55.25
• 50DMA: Positive
• 100DMA: Positive
• 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 55.25 is above the 20-day moving average (MA) of 54.76, above the 50-day MA of 51.50, and above the 200-day MA of 49.47, indicating a bullish trend. The MACD of 1.35 indicates Positive momentum. The RSI at 60.94 is Neutral, neither overbought nor oversold. The STOCH value of 37.97 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	69 Neutral	C$2.64B	13.57	18.69%	3.27%	2.08%	9.31%
EMP.A	68 Neutral	C$11.02B	17.29	12.66%	1.78%	2.58%	7.85%
MRU	66 Neutral	C$20.38B	23.42	14.48%	1.50%	3.71%	12.40%
WN	65 Neutral	C$37.60B	5.57	26.36%	1.23%	4.15%	149.50%
L	64 Neutral	C$73.21B	27.64	21.51%	1.52%	4.21%	14.03%
DOL	64 Neutral	C$54.54B	38.95	102.01%	0.20%	14.02%	20.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

North West Corporate Events

North West Company Reports Earnings Growth Amid Sales Dip, Declares Dividend

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’s strategic efforts led to increased gross profit and reduced expenses, contributing to a 12.9% rise in net earnings. The board declared a quarterly dividend, reflecting confidence in ongoing operational strength and shareholder value.

The most recent analyst rating on (TSE:NWC) stock is a Buy with a C$53.00 price target. To see the full list of analyst forecasts on North West stock, see the TSE:NWC Stock Forecast page.