The North West Co., Inc. (NWC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Leon's Furniture Ltd.

Canadian Tire Corp. Ltd.

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Sleep Country Canada Holdings, Inc.

AutoCanada, Inc.

The North West Co., Inc.

Alimentation Couche-Tard, Inc.

High Tide, Inc.

Pet Valu Holdings Ltd.

Indigo Books & Music, Inc.

MedMen Enterprises, Inc.

Why is The North West Co., Inc. ?

High Management Efficiency with a high ROCE of 22.21%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 12.20

Poor long term growth as Net Sales has grown by an annual rate of 2.37% and Operating profit at 8.01% over the last 5 years

Positive results in Apr 25

OPERATING CASH FLOW(Y) Highest at CAD 255.91 MM
DEBT-EQUITY RATIO (HY) Lowest at 45.5 %
DIVIDEND PER SHARE(HY) Highest at CAD 23.9

With ROE of 18.63%, it has a fair valuation with a 3.00 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.65%, its profits have risen by 4.7% ; the PEG ratio of the company is 4

Majority shareholders : Non Institution

Below par performance in long term as well as near term

Along with generating -4.65% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The North West Co., Inc. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The North West Co., Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

The North West Co., Inc.

-8.03%

0.56

23.06%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.37%

EBIT Growth (5y)

8.01%

EBIT to Interest (avg)

12.20

Debt to EBITDA (avg)

0.85

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

2.41

Tax Ratio

25.16%

Dividend Payout Ratio

54.99%

Pledged Shares

Institutional Holding

0.39%

ROCE (avg)

22.21%

ROE (avg)

22.31%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.84

EV to EBIT

11.75

EV to EBITDA

7.51

EV to Capital Employed

2.37

EV to Sales

0.95

PEG Ratio

3.77

Dividend Yield

ROCE (Latest)

20.17%

ROE (Latest)

18.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 255.91 MM

DEBT-EQUITY RATIO (HY)

Lowest at 45.5 %

DIVIDEND PER SHARE(HY)

Highest at CAD 23.9

RAW MATERIAL COST(Y)

Fallen by -3.51% (YoY

CASH AND EQV(HY)

Highest at CAD 141.67 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 23.9%

-1What is not working for the Company

OPERATING PROFIT MARGIN(Q)

Lowest at 10.92 %

Here's what is working for The North West Co., Inc.

Operating Cash Flow

Highest at CAD 255.91 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at 45.5 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at CAD 23.9 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Cash and Eqv

Highest at CAD 141.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 23.9%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.51% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 29.75 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for The North West Co., Inc.

Operating Profit Margin

Lowest at 10.92 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales