North West Company

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Results of stock price testing is that the stock price is probably reasonable. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is moderate with dividend growth low. See my spreadsheet on North West Company. Is it a good company at a reasonable price? This is a rather safe consumer stock that produces dividend income and has a reasonable return. I think a reasonable long term total return to be 8% per year, with part from dividends and part from capital gains. This stock has done this for shareholders in the past and there is no reason to believe that it will not continue to do so. The stock price seems to be reasonable at the present time. I do not own this stock of North West Company (TSX-NWC, OTC-NWTUF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Income Trust being currently good buys with very good yields. This stock changed from an income trust to a corporation in 2011. This company has a financial year end of January 31, so I will be looking at the financials for their financial year ending January 31, 2023. When I was updating my spreadsheet, I noticed this is a relatively small company, but it has done quite well for its shareholders. See the chart below. I it growing all items I am following. Year Item Tot. Growth Per Year 5 Revenue Growth 20.42% 3.79% 5 AEPS Growth 59.73% 9.82% 5 Net Income Growth 81.95% 12.72% 5 Cash Flow Growth 29.29% 5.27% 5 Dividend Growth 16.41% 3.08% 5 Stock Price Growth 24.37% 4.46% 10 Revenue Growth 55.44% 4.51% 10 AEPS Growth 102.99% 7.34% 10 Net Income Growth 87.56% 6.49% 10 Cash Flow Growth 41.74% 3.55% 10 Dividend Growth 43.27% 3.66% 10 Stock Price Growth 56.61% 4.59% If you look at the chart below, this records the returns using January 31 to January 31 returns. The Total Return per year is shown below for years of 5 to 31 to the end of January 2023. It varies somewhat from the chart further down which is showing returns of 5 to 31 to the end of December 2022. From Years Div. Gth Tot Ret Cap Gain Div. 2018 5 3.08% 8.81% 4.46% 4.35% 2013 10 3.66% 9.16% 4.59% 4.58% 2008 15 2.49% 9.90% 4.61% 5.28% 2003 20 5.61% 17.16% 8.65% 8.51% 1998 25 10.19% 16.34% 8.25% 8.10% 1993 30 8.76% 11.22% 6.33% 4.90% 1990 31 8.27% 12.10% 6.99% 5.11% If you had invested in this company in December 2012, for $1,007.55 you would have bought 45 shares at $22.39 per share. In December 2022, after 10 years you would have received $581.85 in dividends. The stock would be worth $1,600.65. Your total return would have been $2,182.50. This is a total return would be a total return of 7.72% per year with 3.42% from capital gain and 3.45% from dividends. Cost Tot. Cost Shares Years Dividends Stock Val Tot Ret $22.39 $1,007.55 45 10 $581.85 $1,600.65 $2,182.50 The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 4.33%. The 5, 10 and historical dividend yields are also moderate at 4.35%, 4.36% and 4.75%. The dividend growth is low (below 8% per year) at 3.1% per year over the past 5 years. The last dividend increase was in 2023 and it was for 2.6%. The Dividend Payout Ratios (DPR) are fine. The DPR for Earnings per Share (EPS) for 2023 is 59% with 5 year coverage at 58%. The DPR for Adjusted Earnings per Share (AEPS) for 2023 is 55% with 5 year coverage at 63%. The DPR for 2023 for Cash Flow per Share (CFPS) is 25% with 5 year coverage at 27%. The DPR for 2023 for Free Cash Flow (FCF) is 52% with 5 year coverage at 65%. Item Cur 5 Years EPS 59.36% 58.04% AEPS 54.78% 62.63% CFPS 25.31% 26.72% FCF 51.75% 65.07% Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.17. The Liquidity Ratio for 2023 is good at 1.91. The Debt Ratio for 2023 is good at 2.36. The Leverage and Debt/Equity Ratios for 2023 are fine at 2.12 and 1.07. Type Year End Ratio Curr Lg Term R 0.17 0.19 Intang/GW 0.04 0.05 Liquidity 1.91 2.17 Liq. + CF 2.36 2.78 Debt Ratio 1.94 1.90 Leverage 2.12 2.17 D/E Ratio 1.09 1.14 The Total Return per year is shown below for years of 5 to 31 to the end of 2022. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below. From Years Div. Gth Tot Ret Cap Gain Div. 2017 5 3.08% 7.72% 3.42% 4.35% 2012 10 3.66% 9.44% 4.74% 4.58% 2007 15 2.49% 8.49% 3.60% 5.28% 2002 20 5.61% 17.05% 8.52% 8.51% 1997 25 10.19% 18.98% 9.22% 8.10% 1992 30 8.76% 12.01% 6.73% 4.90% 1990 31 8.27% 17.66% 9.62% 5.11% The 5-year low, median, and high median Price/Earnings per Share Ratios are 12.73, 14.31 and 15.90. The corresponding 10 year ratios are 15.92, 18.09 and 20.12. The corresponding historical ratios are 9.97, 12.82 and 15.19. The current P/E Ratio is 13.29 based on a stock price of 36.02 and EPS estimate for 2024 of $2.71. It is below the low ratio for the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 11.74, 1321 and 14.68. The corresponding 10 year ratios are 15.64, 17.59 and 19.47. The current P/AEPS Ratio is 13.05 based on a stock price of $36.02 and AEPS estimate for 2024 of $2.76. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. I get a Graham Price of $28.82. The 10-year low, median, and high median Price/Graham Price Ratios are 1.49, 1.68 and 1.87. The current P/GP Ratio is 1.25 based on a stock price of $36.02. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. I get a 10-year median Price/Book Value per Share Ratio of 3.58. The current P/B Ratio is 2.69 based on a stock price of $36.02, Book Value of $638.5M and Book Value per Share of $13.37. The current ratio is 25% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. I get a 10-year median Price/Cash Flow per Share Ratio of 9.94. The current P/CF Ratio is 6.47 based on a stock price of $36.02, Cash Flow per Share estimate for 2024 of $5.57 and Cash Flow of $266M. The current ratio is 35% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. I get an historical median dividend yield of 4.75%. The current dividend yield is 4.33% based on a stock price of $36.02 and dividends of $1.56. The current ratio is 8.8% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. I get a 10 year median dividend yield of 4.36%. The current dividend yield is 4.33% based on a stock price of $36.02 and dividends of $1.56. The current ratio is 0.6% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. The 10-year median Price/Sales (Revenue) Ratio is 0.72. The current P/S Ratio is 0.70 based on a stock price of $36.02, Revenue estimate for 2024 of $2,465M and Revenue per Share of $51.62. The current ratio is 3.6% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. Results of stock price testing is that the stock price is probably reasonable. The 10 year median dividend yield says this and it is confirmed by the P/S Ratio test. There are a number of tests that say that the stock price is cheap, but I do wonder about them. For example, the P/E Ratio testing says cheap, but a P/E Ratio of 13.29 is not considered cheap. A P/E Ratio of 10.00 or less would be. I do find that the stocks P/E Ratios, P/AEPS Ratios and P/GP Ratios to be rather high. When I look at analysts’ recommendations, I find Buy (1) and Hold (3). The consensus would be a Hold. The 12 month stock price is $38.75, with a high of $41.00 and a low of $36.00. The consensus price of $38.75 implies a total return of 11.91% with 7.58% from capital gains and 4.33% from dividends. All the analysts’ recommendations on Stock Chase for 2023 are buys. Stock Chase gives this company 4 stars out of 5. It is on all three of my dividends lists of Money Sense, Maple Money, and Dividend Aristocrats. Joey Frenette on Motley Fool thinks this stock is cheap. Christopher Liew on Motley Fool thinks this is good dividend stock to buy and hold. The company put out a press release on Globe Newswire about its fourth quarter results. The company put out a press release on Global Newswire about their second quarter. Simply Wall Street via Yahoo Finance reviews this stock and its dividend payments. Simply Wall Street gives this stock 3 and one half stars out of 5. They have no warnings on this stock. The North West Company is a Canada-based company that is principally engaged in retail business in underserved rural communities and urban neighborhoods. The company provides food, family apparel, housewares, appliances, and outdoor products, with food products accounting for the majority of the company's revenue. The company also offers services, including post offices, income tax return preparation, money transfers, commercial business sales, and others. Its geographical segment includes Canada and International. The company generates maximum revenue from Canada. Its web site is here North West Company. The last stock I wrote about was about was Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more. The next stock I will write about will be Medtronic PLC (NYSE-MDT) ... learn more on Tuesday, October 10, 2023 around 5 pm. This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct. See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures. [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored [Take Action Now to Safeguard Against the Dollar's Imminent Decline]( The truth is that the stability of the dollar is eroding rapidly, influenced by a series of pressing factors that have made headlines worldwide. Skyrocketing national debt, persistent inflationary pressures, and a government struggling to implement effective measures all serve as clear signals of an impending collapse. The implications of such an event would be nothing short of catastrophic. [Go HERE to Learn More]( By clicking the link you are subscribing to the American Wealth Investing Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( [North West Company]( Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Results of stock price testing is that the stock price is probably reasonable. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is moderate with dividend growth low. See my spreadsheet on North West Company. Is it a good company at a reasonable price? This is a rather safe consumer stock that produces dividend income and has a reasonable return. I think a reasonable long term total return to be 8% per year, with part from dividends and part from capital gains. This stock has done this for shareholders in the past and there is no reason to believe that it will not continue to do so. The stock price seems to be reasonable at the present time. I do not own this stock of North West Company (TSX-NWC, OTC-NWTUF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Income Trust being currently good buys with very good yields. This stock changed from an income trust to a corporation in 2011. This company has a financial year end of January 31, so I will be looking at the financials for their financial year ending January 31, 2023. When I was updating my spreadsheet, I noticed this is a relatively small company, but it has done quite well for its shareholders. See the chart below. I it growing all items I am following. Year Item Tot. Growth Per Year 5 Revenue Growth 20.42% 3.79% 5 AEPS Growth 59.73% 9.82% 5 Net Income Growth 81.95% 12.72% 5 Cash Flow Growth 29.29% 5.27% 5 Dividend Growth 16.41% 3.08% 5 Stock Price Growth 24.37% 4.46% 10 Revenue Growth 55.44% 4.51% 10 AEPS Growth 102.99% 7.34% 10 Net Income Growth 87.56% 6.49% 10 Cash Flow Growth 41.74% 3.55% 10 Dividend Growth 43.27% 3.66% 10 Stock Price Growth 56.61% 4.59% If you look at the chart below, this records the returns using January 31 to January 31 returns. The Total Return per year is shown below for years of 5 to 31 to the end of January 2023. It varies somewhat from the chart further down which is showing returns of 5 to 31 to the end of December 2022. From Years Div. Gth Tot Ret Cap Gain Div. 2018 5 3.08% 8.81% 4.46% 4.35% 2013 10 3.66% 9.16% 4.59% 4.58% 2008 15 2.49% 9.90% 4.61% 5.28% 2003 20 5.61% 17.16% 8.65% 8.51% 1998 25 10.19% 16.34% 8.25% 8.10% 1993 30 8.76% 11.22% 6.33% 4.90% 1990 31 8.27% 12.10% 6.99% 5.11% If you had invested in this company in December 2012, for $1,007.55 you would have bought 45 shares at $22.39 per share. In December 2022, after 10 years you would have received $581.85 in dividends. The stock would be worth $1,600.65. Your total return would have been $2,182.50. This is a total return would be a total return of 7.72% per year with 3.42% from capital gain and 3.45% from dividends. Cost Tot. Cost Shares Years Dividends Stock Val Tot Ret $22.39 $1,007.55 45 10 $581.85 $1,600.65 $2,182.50 The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 4.33%. The 5, 10 and historical dividend yields are also moderate at 4.35%, 4.36% and 4.75%. The dividend growth is low (below 8% per year) at 3.1% per year over the past 5 years. The last dividend increase was in 2023 and it was for 2.6%. The Dividend Payout Ratios (DPR) are fine. The DPR for Earnings per Share (EPS) for 2023 is 59% with 5 year coverage at 58%. The DPR for Adjusted Earnings per Share (AEPS) for 2023 is 55% with 5 year coverage at 63%. The DPR for 2023 for Cash Flow per Share (CFPS) is 25% with 5 year coverage at 27%. The DPR for 2023 for Free Cash Flow (FCF) is 52% with 5 year coverage at 65%. Item Cur 5 Years EPS 59.36% 58.04% AEPS 54.78% 62.63% CFPS 25.31% 26.72% FCF 51.75% 65.07% Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.17. The Liquidity Ratio for 2023 is good at 1.91. The Debt Ratio for 2023 is good at 2.36. The Leverage and Debt/Equity Ratios for 2023 are fine at 2.12 and 1.07. Type Year End Ratio Curr Lg Term R 0.17 0.19 Intang/GW 0.04 0.05 Liquidity 1.91 2.17 Liq. + CF 2.36 2.78 Debt Ratio 1.94 1.90 Leverage 2.12 2.17 D/E Ratio 1.09 1.14 The Total Return per year is shown below for years of 5 to 31 to the end of 2022. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below. From Years Div. Gth Tot Ret Cap Gain Div. 2017 5 3.08% 7.72% 3.42% 4.35% 2012 10 3.66% 9.44% 4.74% 4.58% 2007 15 2.49% 8.49% 3.60% 5.28% 2002 20 5.61% 17.05% 8.52% 8.51% 1997 25 10.19% 18.98% 9.22% 8.10% 1992 30 8.76% 12.01% 6.73% 4.90% 1990 31 8.27% 17.66% 9.62% 5.11% The 5-year low, median, and high median Price/Earnings per Share Ratios are 12.73, 14.31 and 15.90. The corresponding 10 year ratios are 15.92, 18.09 and 20.12. The corresponding historical ratios are 9.97, 12.82 and 15.19. The current P/E Ratio is 13.29 based on a stock price of 36.02 and EPS estimate for 2024 of $2.71. It is below the low ratio for the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 11.74, 1321 and 14.68. The corresponding 10 year ratios are 15.64, 17.59 and 19.47. The current P/AEPS Ratio is 13.05 based on a stock price of $36.02 and AEPS estimate for 2024 of $2.76. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. I get a Graham Price of $28.82. The 10-year low, median, and high median Price/Graham Price Ratios are 1.49, 1.68 and 1.87. The current P/GP Ratio is 1.25 based on a stock price of $36.02. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. I get a 10-year median Price/Book Value per Share Ratio of 3.58. The current P/B Ratio is 2.69 based on a stock price of $36.02, Book Value of $638.5M and Book Value per Share of $13.37. The current ratio is 25% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. I get a 10-year median Price/Cash Flow per Share Ratio of 9.94. The current P/CF Ratio is 6.47 based on a stock price of $36.02, Cash Flow per Share estimate for 2024 of $5.57 and Cash Flow of $266M. The current ratio is 35% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. I get an historical median dividend yield of 4.75%. The current dividend yield is 4.33% based on a stock price of $36.02 and dividends of $1.56. The current ratio is 8.8% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. I get a 10 year median dividend yield of 4.36%. The current dividend yield is 4.33% based on a stock price of $36.02 and dividends of $1.56. The current ratio is 0.6% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. The 10-year median Price/Sales (Revenue) Ratio is 0.72. The current P/S Ratio is 0.70 based on a stock price of $36.02, Revenue estimate for 2024 of $2,465M and Revenue per Share of $51.62. The current ratio is 3.6% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. Results of stock price testing is that the stock price is probably reasonable. The 10 year median dividend yield says this and it is confirmed by the P/S Ratio test. There are a number of tests that say that the stock price is cheap, but I do wonder about them. For example, the P/E Ratio testing says cheap, but a P/E Ratio of 13.29 is not considered cheap. A P/E Ratio of 10.00 or less would be. I do find that the stocks P/E Ratios, P/AEPS Ratios and P/GP Ratios to be rather high. When I look at analysts’ recommendations, I find Buy (1) and Hold (3). The consensus would be a Hold. The 12 month stock price is $38.75, with a high of $41.00 and a low of $36.00. The consensus price of $38.75 implies a total return of 11.91% with 7.58% from capital gains and 4.33% from dividends. All the analysts’ recommendations on Stock Chase for 2023 are buys. Stock Chase gives this company 4 stars out of 5. It is on all three of my dividends lists of Money Sense, Maple Money, and Dividend Aristocrats. Joey Frenette on Motley Fool thinks this stock is cheap. Christopher Liew on Motley Fool thinks this is good dividend stock to buy and hold. The company put out a press release on Globe Newswire about its fourth quarter results. The company put out a press release on Global Newswire about their second quarter. Simply Wall Street via Yahoo Finance reviews this stock and its dividend payments. Simply Wall Street gives this stock 3 and one half stars out of 5. They have no warnings on this stock. The North West Company is a Canada-based company that is principally engaged in retail business in underserved rural communities and urban neighborhoods. The company provides food, family apparel, housewares, appliances, and outdoor products, with food products accounting for the majority of the company's revenue. The company also offers services, including post offices, income tax return preparation, money transfers, commercial business sales, and others. Its geographical segment includes Canada and International. The company generates maximum revenue from Canada. Its web site is here North West Company. The last stock I wrote about was about was Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more. The next stock I will write about will be Medtronic PLC (NYSE-MDT) ... learn more on Tuesday, October 10, 2023 around 5 pm. This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct. See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures. [Continue Reading...]( [North West Company]( And, in case you missed it: - [Invisible, yet Invaluable: Valuing Intangibles in the Birkenstock IPO!]( - [2024 Stock Trader’s Almanac Hit The Warehouse!]( - [Options Trading Basics: Warren Buffett’s Time-Tested Rule for Options Trading Success]( - [Booz Allen Hamilton HullMA Curl Up On $630 Million Contract]( - [5 Hidden Money Mindset Lessons From Beyoncé Songs]( - FREE OR LOW COST INVESTING RESOURCES - [i]( [i]( [i]( [i]( Sponsored [Exclusive Report: Master Uncertain Markets]( In the world of investing, uncertain markets can be downright terrifying. The fear of losing your hard-earned money can keep you up at night, and the anxiety of not knowing what tomorrow holds can be overwhelming. But what if you could take control of this uncertainty and turn it to your advantage? What if you could not only survive but actually profit from market volatility? 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