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North West
(TSX:NWC)
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Rating:76Outperform
Price Target:
C$61.00
â–²(23.61% Upside)
Action:Reiterated
Date:10/08/26
Overall score is driven primarily by solid and stable financial performance (steady growth, resilient profitability, strong ROE) and reinforced by a strong uptrend with positive momentum. Valuation is supportive with a moderate P/E and a ~3% dividend yield, while rising debt and uneven recent cash conversion keep the score from being higher.
Positive Factors
Remote-market positioning
NWC is positioned in communities where access to food and everyday goods is especially important, while logistics and local availability differentiate its stores. This market focus can support customer loyalty and provide a durable operating niche over the next several quarters.
Negative Factors
Rising absolute debt
Although leverage ratios remain controlled, the increase in absolute debt reduces financial flexibility compared with earlier periods. If margins soften or borrowing costs remain high, more cash could be directed toward debt service, limiting investment capacity and resilience during weaker trading conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Remote-market positioning
NWC is positioned in communities where access to food and everyday goods is especially important, while logistics and local availability differentiate its stores. This market focus can support customer loyalty and provide a durable operating niche over the next several quarters.
Read all positive factors
North West (NWC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.71B
Dividend Yield2.89%
Average Volume (3M)117.66K
Price to Earnings (P/E)19.2
Beta (1Y)<0.01
Revenue Growth0.88%
EPS Growth2.80%
CountryCA
Employees7,001
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)2.97
Shares Outstanding47,554,640
10 Day Avg. Volume101,586
30 Day Avg. Volume117,663
Financial Highlights & Ratios
PEG Ratio9.56
Price to Book (P/B)2.91
Price to Sales (P/S)0.89
P/FCF Ratio16.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$62.00Price Target Upside25.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)3.23
Revenue Forecast (FY)C$2.68B
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 in northern Canada, rural Alaska, the South Pacific, and the Caribbean. The company operates Northern stores, which offers food...
How the Company Makes Money
NWC primarily makes money by selling merchandise through its retail stores. Its core revenue stream is retail sales of food and consumables (e.g., groceries and other everyday essentials) and general merchandise (e.g., household goods and other no...
North West Earnings Call Summary
Earnings Call Date:Jun 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Neutral
The quarter shows a mixed but resilient performance: profitability and gross margin improvements and strong international same-store sales demonstrate effective execution of the Next 100 program and operational resilience. However, persistent near-term headwinds — slower-than-expected settlement payment distributions in Canada, rising fuel and labor costs, weather-related disruptions, and modest consolidated sales decline — create uncertainty for near-term top-line momentum. Management expects to offset labor inefficiencies and continue Next 100 rollouts to mitigate external pressures, but timing of key tailwinds (settlement payments, government-related investments) remains uncertain.Positive Updates
Net Earnings Increase
Net earnings rose 5.4% for the quarter, driven by gross margin improvements and expense management despite sales pressure.
Negative Updates
Consolidated Sales Decline
Consolidated sales decreased 1.5% for the quarter as international gains were more than offset by lower Canadian sales and foreign exchange impacts.
Read all updates
Q1-2026 Updates
Positive
Negative
Net Earnings Increase
Net earnings rose 5.4% for the quarter, driven by gross margin improvements and expense management despite sales pressure.
Read all positive updates
Company Guidance
Management guided that Canadian results will be shaped by the slower‑than‑expected rollout of the First Nations Child in Care settlement — roughly 110,000 claims have been submitted, individuals in 50 of the 63 impacted communities served have received funds, and distributions are expected to continue into 2026 and beyond though timing is uncertain — and that when payments accelerate they should boost Canadian demand. They expect Next 100 initiatives to continue to drive the 72 basis‑point gross‑profit‑rate improvement and help offset external headwinds (higher oil/fuel-driven freight and utility costs and recent labor inflation, which management expects to get back in line for the remainder of the year). Management also reiterated that fuel surcharges began late in the quarter, that international momentum should persist, and that store activity (sale of CUL Chalan Pago with a $3.8M gain, a new CUL Agana store planned, and a 55,000 sq ft consolidation opening expected to lift Q4 sales) will support results after a quarter in which consolidated sales fell 1.5% while gross profit rose 0.6%, expenses fell 1% and net earnings increased 5.4%.North West Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Jan 2026 | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.62B | 2.60B | 2.58B | 2.47B | 2.35B | 2.25B |
| Gross Profit | 801.92M | 760.48M | 868.32M | 809.42M | 747.91M | 737.75M |
| EBITDA | 342.02M | 333.13M | 325.61M | 301.93M | 279.69M | 312.48M |
| Net Income | 141.68M | 139.49M | 137.30M | 129.39M | 122.19M | 154.80M |
Balance Sheet | ||||||
| Total Assets | 1.65B | 1.57B | 1.53B | 1.40B | 1.34B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 102.40M | 90.37M | 67.39M | 53.36M | 58.81M | 49.43M |
| Total Debt | 475.00M | 438.95M | 422.18M | 405.47M | 402.53M | 349.71M |
| Total Liabilities | 796.13M | 744.25M | 732.79M | 690.24M | 688.99M | 639.07M |
| Stockholders Equity | 833.37M | 799.39M | 772.01M | 684.69M | 629.22M | 563.63M |
Cash Flow | ||||||
| Free Cash Flow | 130.72M | 141.28M | 114.27M | 107.02M | 65.73M | 130.06M |
| Operating Cash Flow | 273.71M | 267.29M | 260.63M | 230.43M | 182.84M | 224.13M |
| Investing Cash Flow | -147.99M | -137.84M | -131.00M | -107.70M | -106.80M | -75.86M |
| Financing Cash Flow | -102.44M | -103.03M | -119.05M | -128.27M | -68.30M | -170.20M |
North West Technical Analysis
Positive
49.35
Price Trends
52.78
Positive
51.16
Positive
51.35
Positive
Market Momentum
0.98
Positive
68.92
Neutral
49.07
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 49.35 is below the 20-day moving average (MA) of 55.63, below the 50-day MA of 52.78, and below the 200-day MA of 51.35, indicating a bullish trend. The MACD of 0.98 indicates Positive momentum. The RSI at 68.92 is Neutral, neither overbought nor oversold. The STOCH value of 49.07 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$79.47B | 28.90 | 25.25% | 0.86% | 3.75% | 16.92% | |
76 Outperform | C$2.71B | 19.21 | 17.50% | 2.89% | 0.88% | 2.80% | |
68 Neutral | C$55.73B | 41.42 | 97.52% | 0.22% | 17.86% | 10.53% | |
63 Neutral | C$40.15B | 41.26 | 20.42% | 1.15% | 3.74% | -0.07% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | C$20.15B | 23.05 | 12.87% | 1.68% | 2.94% | -8.82% | |
55 Neutral | C$11.20B | 51.30 | 4.27% | 1.84% | 2.45% | -67.24% |
* Consumer Defensive Sector Average
TSE:NWC
North West
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29.48%
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North West Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
North West Company Posts Strong Q2 Results and Raises Dividend Amid Fuel Cost Pressures
Positive
Sep 8, 2026
North West reported a 5.4% increase in second quarter consolidated sales to $682.0 million, driven by robust same-store sales growth in both Canadian and International Operations and aided by foreign exchange effects. Food sales rose 4.1% and gene...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.