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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

The North West Company (NWC-T) has reported strong financial results for the quarter, beating estimates for EPS, sales, and EBITDA. The company saw a significant rise in sales and profit, and its outlook for the future is relatively positive. Despite recent challenges related to inflation and interest rates, experts believe that NWC remains a solid investment with a stable long-term outlook. The company operates in remote northern locations, giving it a natural economic moat with limited competition, and has demonstrated pricing power and profitability. Overall, analysts view NWC as a defensive consumer staples name with attractive valuation and a healthy dividend yield.

Consensus
Positive
Valuation
Undervalued
BUY
North West Company
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

NWC slightly missed EPS forecasts of 60c coming in at 57c. Revenue marginally beat estimates of $617.16M coming in at $617.5M displaying growth of 4% year-over-year. Same-store-sales growth was 3.8%. Adjusted profit increased 13% to $29.4M, from $26.1M last year due to due to gross profit and expense factors. It was a solid quarter for NWC displaying signicant EPS growth year-over-year that was largely in line with expectations. Over the last four quarters, sales growth was declining and margins were declining, but the most recent quarter shook off these issues. Being a consumer staples company, the bull case relies on strength of the consumer. If the company's target consumer becomes stronger paired with NWC opening more stores in target markets, it could see solid top and bottom line growth. On the flip side, the bear case is more conservative due to the defensive nature of the industry however, the stock has seen some big dips in March 2020 and June 2023 which are possible if sales/profitability meaningfully comes under pressure. We think it is a relatively safe company that trades at an attractive valuation, and pays a nice yield. 
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merchandising / lodging
BUY ON WEAKNESS
North West Company
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

The quarter is a big relief for worried investors. EPS of 83c beat estimates of 68c. Sales of $618M beat estimates by 2%. EBITDA of $83.3M beat estimates of $73.1M. Sales rose 6.8% with comp. sales up 4.7%. Profit rose 17%. EBITDA rose 15% year over year. TD has already raised its target on the news. The dividend was increased 2.6%. Expenses were kept in line and it was a solid quarter. The outlook sounded relatively positive as well. The write off of the Fox Lake store due to fire was embedded in these results and this should not have a material impact going forward. 
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merchandising / lodging
BUY
North West Company
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

NWC was under pressure recently after weak earnings and the stock is now trading at 11.4x times' Forward P/E. In 1Q - 2024, NWC’s revenue grew 7.5% to $594M, beating estimates of $589M and EPS was $0.54 missing estimates of $0.59. Based on consensus estimates, sales are expected to grow by 4% to $2.45B, while EPS is expected to be $2.52 in 2024 and $2.72 in 2025 (note January year end). Recent earnings were under pressure due to high inflation and interest rates, which were largely expected. NWC might have some exposure to a slowing consumer, but it is also a defensive consumer staples name.

We like the company in general and think the long-term thesis on it as a consumer staple name is unchanged. We would be okay to slowly accumulate, especially at this valuation, which we think is quite attractive compared both to peers and historical averages. The current quarter may have been impacted by fires, but the company is supposed to announce if there are 'material' concerns, and it has not. 
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merchandising / lodging
TOP PICK
North West Company

Retailer mainly in remote northern locations, a natural economic moat. Competition is limited. Pricing power, which leads to profitability. ROE better than TSX average. Missed earnings due to inflation, so valuation is attractive. Yield is 4.77%.

(Analysts’ price target is $38.25)
merchandising / lodging
BUY
North West Company
Allan Tong’s Discover Picks

Average daily volumes are only 90,000 shares, but NWC pays a hefty dividend yield of 4.22% (huge among the grocers) and safe based on a 21.88% payout ratio. NWC also offers a super-low beta of 0.62. It is safe and defensive. Performance is also consistent. The company has beaten or met its last four quarters. Its PE of 14.34x is in-line with this sector (with Empire trading at 12.87x and Metro close to 20x). Read 3 Deep Value Stocks to Buy Now for our full analysis.

merchandising / lodging
BUY
North West Company

Trades at 13x PE. Offers a bigger yield of 4.5% than the major grocery stocks.

merchandising / lodging
HOLD
North West Company
A safe place to invest--groceries in remote areas of Canada. Stocks are pricey vs. historic multiples, because they are defensive and stable. If you own, hold on or take some profits. Good to hold this in an uncertain world. They're well-managed.
merchandising / lodging
BUY
North West Company
Allan Tong’s Discover Picks NWC operates convenience stores in the Arctic, Alaska, South Pacific and Caribbean. Given these remote locations, NWC faces little competition, so it has a decent moat around its business. NWC pays a dividend of 3.93% based on a 46.1% payout ratio. Read 3 Canadian Dividend Stocks for our full analysis.
merchandising / lodging
BUY
North West Company

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company reports on Thursday. Likes the company somewhat. It’s cheap at 13x earnings and offers a nice, secure dividend. $591M in sales is expected with a $0.73 per share income. Unlock Premium - Try 5i Free

merchandising / lodging
BUY
North West Company

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They beat EPS estimates by 4 cents, at 70 cents. EBITDA beat estimates by 20% at $83.6M. Same store sales rose. They continue to benefit from the pandemic and have controlled costs well. Unlock Premium - Try 5i Free

merchandising / lodging
PAST TOP PICK
North West Company
(A Top Pick Dec 03/19, Up 20%) Consumer staples have been a good place to be. It is one of the original unit trust companies and one of the oldest companies in Canada. They have benefited from servicing remote communities where there is little competition. They have maintained a good dividend. Management is doing a good job.
merchandising / lodging
BUY
North West Company
Allan Tong’s Discover Picks This consumer defensive name operates retail stores, selling groceries and household items, in the Canadian far north, Alaska and Caribbean. Because it operates in such an extreme geography, NWC enjoys a monopoly. North West Company pays 4.45% dividend. Read Best Dividend Stocks Canada for our full analysis.
merchandising / lodging
COMMENT
North West Company
He used to it own two years ago when its growth stalled. They operate in the extreme north so enjoy a retail monopoly, even insulated from e-commerce. So, they're stable. But they struggle to integrate an airline they bought. It yields 4%, which is safe, but he doesn't see stock price appreciation.
merchandising / lodging
COMMENT
North West Company
Resistance at $28. He predicts a general market pullback in January of 5-10%. This will return to $27. Wait. But if it breaks below $23, it will head lower.
merchandising / lodging
TOP PICK
North West Company
They're going more into services. They're integrating a small airline for delivery, so there's synergy. Pays a fine 4.65% yield. A long-term buy. (Analysts’ price target is $31.00)
merchandising / lodging
Showing 1 to 15 of 95 entries

North West Company(NWC-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for North West Company is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

North West Company(NWC-T) Frequently Asked Questions

What is North West Company stock symbol?

North West Company is a Canadian stock, trading under the symbol NWC-T on the Toronto Stock Exchange (NWC-CT). It is usually referred to as TSX:NWC or NWC-T

Is North West Company a buy or a sell?

In the last year, 3 stock analysts published opinions about NWC-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for North West Company.

Is North West Company a good investment or a top pick?

North West Company was recommended as a Top Pick by on . Read the latest stock experts ratings for North West Company.

Why is North West Company stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is North West Company worth watching?

3 stock analysts on Stockchase covered North West Company In the last year. It is a trending stock that is worth watching.

What is North West Company stock price?

On 2024-06-19, North West Company (NWC-T) stock closed at a price of $41.33.