# The North West Company Inc. (NWC.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Consumer Defensive / Food & Staples Retailing. Price C$49.38, market value C$2.4 billion.

## Valuation
- **P/E (trailing): 17.0×** (5-yr avg 13.6×, 3-yr avg 15.2×). The North West Company Inc. trades at 17.0× trailing earnings, well above its own five-year average of 13.6×: investors are paying up relative to the company's past. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 13.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 9.21**. A PEG of 9.21 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.9×**. The shares trade at 2.9× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 8.2×**. Enterprise value is 8.2× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.9%** (5-yr avg 6.2%). Free cash flow equals 5.9% of the market value, in line with its five-year average of 6.2%. Above 5% is generally attractive.
- **Earnings yield: 5.9%**. The inverse of the P/E: 5.9% of the price is earned each year.

## Profitability
- **Gross margin: 31.7%**. The North West Company Inc. keeps 31.7% of revenue after the direct cost of what it sells.
- **Operating margin: 8.3%**. 8.3% of revenue is left after running the business.
- **Net margin: 5.4%**. 5.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 17.4%**. 17.4% on shareholders' equity is solid.
- **Return on invested capital: 14.0%**. Return on all capital, debt included, is 14.0%.
- **Return on assets: 9.0%**. Each dollar of assets produces 9.0% of profit.

## Growth
- **Revenue growth (1 yr): 0.8%** (3-yr 3.4%/yr, 5-yr 1.9%/yr). Revenue grew 0.8% over the last year, against 1.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 1.4%** (3-yr 4.6%/yr, 5-yr 0.4%/yr). Earnings per share rose 1.4%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 29.1%/yr**. Free cash flow has compounded at 29.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.55**. Debt is 0.55 times equity, moderate leverage.
- **Net debt / EBITDA: 1.0×**. It would take 1.0 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 11.7×**. Operating profit covers interest 11.7× over, a safe margin.
- **Current ratio: 2.10** (quick 0.82). Current assets cover the next year's liabilities 2.10 times.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.32%** (C$1.63 per share, trailing). The North West Company Inc. yields 3.32%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 56%** (55% of free cash flow). 56% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 14**. 14 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 3.3%/yr** (1-yr 2.5%). The dividend has grown 3.3% a year over five years.
- **Shareholder yield: 3.9%**. Dividends plus net buybacks return 3.9% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (4 analysts). 4 analysts cover The North West Company Inc.; the consensus is strong_buy, with an average price target of C$60.25 (+22% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 0.3%** (YTD 2.6%, 3-mo -7.0%). The shares are up 0.3% over twelve months including dividends.
- **From 52-week high: -13.0%** (10.6% above the low). Trading 13% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 0.08** (volatility 21%). Beta of 0.08 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NWC.TO · Page: https://foliofundamentals.com/stocks/nwc.to

Not investment advice.