The North West Company Inc.
The North West Company Inc. Fundamental Analysis
The North West Company Inc. (NNWWF) shows moderate financial fundamentals with a PE ratio of 17.33, profit margin of 5.37%, and ROE of 17.82%. The company generates $2.6B in annual revenue with moderate year-over-year growth of 4.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NNWWF's fundamental strength across five key dimensions:
Efficiency Score
WeakNNWWF struggles to generate sufficient returns from assets.
Valuation Score
ModerateNNWWF shows balanced valuation metrics.
Growth Score
WeakNNWWF faces weak or negative growth trends.
Financial Health Score
ExcellentNNWWF maintains a strong and stable balance sheet.
Profitability Score
ModerateNNWWF maintains healthy but balanced margins.
Key Financial Metrics
Is NNWWF Expensive or Cheap?
P/E Ratio
NNWWF trades at 17.33 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NNWWF's PEG of 6.03 indicates potential overvaluation.
Price to Book
The market values The North West Company Inc. at 3.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.21 times EBITDA. This is generally considered low.
How Well Does NNWWF Make Money?
Net Profit Margin
For every $100 in sales, The North West Company Inc. keeps $5.37 as profit after all expenses.
Operating Margin
Core operations generate 8.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.82 in profit for every $100 of shareholder equity.
ROA
The North West Company Inc. generates $8.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The North West Company Inc. generates limited operating cash flow of $259.68M, signaling weaker underlying cash strength.
Free Cash Flow
The North West Company Inc. produces free cash flow of $138.02M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.91 in free cash annually.
FCF Yield
NNWWF converts 5.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How NNWWF Stacks Against Its Sector Peers
| Metric | NNWWF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.33 | 22.69 | Better (Cheaper) |
| ROE | 17.82% | 1207.00% | Weak |
| Net Margin | 5.37% | -5470.00% (disorted) | Weak |
| Debt/Equity | 0.55 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 2.10 | 2.53 | Strong Liquidity |
| ROA | 8.89% | -151946.00% (disorted) | Weak |
NNWWF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The North West Company Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.49%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
69.31%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
65.02%
Industry Style: Defensive, Dividend, Low Volatility
High Growth