The North West Co (TSX:NWC) Interest Coverage: 9.86 (As of Apr. 2026) — 13% Below Median


TSX:NWC The North West Co Inc TSX:NWC
80 GF Score
Price C$50.15
GF Value C$47.35
Valuation Fairly Valued
! 3 Warning Signs
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What is The North West Co Interest Coverage?

The North West Co TSX:NWC +0.14% 80 Interest Coverage is 9.86 as of Apr. 2026, which is 13% below its 10-year median of 11.30. GuruFocus rates TSX:NWC with a GF Score™ of 80/100 and a GF Value™ of C$47.35 (Fairly Valued). The stock has 3 warning signs investors should review. Among 254 Retail - Defensive companies, The North West Co ranks better than 56.3% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. The North West Co's Operating Income for the three months ended in Apr. 2026 was C$43 Mil. The North West Co's Interest Expense for the three months ended in Apr. 2026 was C$-4 Mil. The North West Co's interest coverage for the quarter that ended in Apr. 2026 was 9.86. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for The North West Co's Interest Coverage or its related term are showing as below:

TSX:NWC' s Interest Coverage Range Over the Past 10 Years
Min: 6.22   Med: 11.3   Max: 16.16
Current: 11.65


TSX:NWC's Interest Coverage is ranked better than
56.3% of 254 companies
in the Retail - Defensive industry
Industry Median: 8.795 vs TSX:NWC: 11.65

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


The North West Co  (TSX:NWC) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


The North West Co Interest Coverage Related Terms


The North West Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for The North West Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

The North West Co Interest Coverage Chart

The North West Co Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.57 11.37 9.89 11.18 11.78

The North West Co Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.24 12.75 12.88 11.16 9.86

TSX:NWC vs KR, SFM, ACI: Interest Coverage Comparison

For the Grocery Stores subindustry, The North West Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The North West Co Interest Coverage vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, The North West Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The North West Co's Interest Coverage falls into.


TSX:NWC
80GF Score
The North West Co Inc TSX:NWC
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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The North West Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The North West Co's Interest Coverage for the fiscal year that ended in Jan. 2026 is calculated as

Here, for the fiscal year that ended in Jan. 2026, The North West Co's Interest Expense was C$-18 Mil. Its Operating Income was C$212 Mil. And its Long-Term Debt & Capital Lease Obligation was C$419 Mil.

Interest Coverage=-1* Operating Income (A: Jan. 2026 )/Interest Expense (A: Jan. 2026 )
=-1*212.036/-18.005
=11.78

The North West Co's Interest Coverage for the quarter that ended in Apr. 2026 is calculated as

Here, for the three months ended in Apr. 2026, The North West Co's Interest Expense was C$-4 Mil. Its Operating Income was C$43 Mil. And its Long-Term Debt & Capital Lease Obligation was C$440 Mil.

Interest Coverage=-1* Operating Income (Q: Apr. 2026 )/Interest Expense (Q: Apr. 2026 )
=-1*43.352/-4.398
=9.86

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 9.86 mean?
The North West Co (TSX:NWC) has a Interest Coverage of 9.86 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The North West Co and its competitors. This is 13% below median its historical median of 11.30. Over the past decade, The North West Co's Interest Coverage has ranged from 6.22 to 16.16. According to the industry distribution chart, The North West Co ranks #111 out of 254 companies in the Retail - Defensive industry, placing it in the top 43.7%.
Is The North West Co's Interest Coverage too high?
The North West Co's current Interest Coverage of 9.86 is 13% below median its 10-year median of 11.30. Over the past 10 years, this metric has ranged from a low of 6.22 to a high of 16.16. The Retail - Defensive industry median Interest Coverage is 8.80. The North West Co's value of 9.86 is 12.1% above this industry median. Based on the distribution chart, The North West Co ranks #111 out of 254 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, The North West Co has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The North West Co's Interest Coverage compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, The North West Co ranks #111 out of 254 companies for Interest Coverage. This puts The North West Co in the upper half of its industry. The industry median Interest Coverage is 8.80. The North West Co's value of 9.86 is 12.1% above this benchmark. Historically, The North West Co's own Interest Coverage has ranged from 6.22 to 16.16 over the past decade. While the company's 10-year median is 11.30 vs. the industry median of 8.80, The North West Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 8.80, based on 254 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The North West Co's current Interest Coverage of 9.86 is 12.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The North West Co and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 8.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The North West Co's current Interest Coverage is 9.86, which is 13% below median its own 10-year median of 11.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The North West Co stock overvalued right now?
Based on GuruFocus' analysis, The North West Co (TSX:NWC) is currently considered Fairly Valued. The stock's GF Value™ is C$47.35, compared to a current price of C$50.15 — trading 5.9% above its estimated fair value. The current Interest Coverage is 9.86, which is 13% below median its 10-year median of 11.30 and 12.1% above the Retail - Defensive industry median of 8.80. The North West Co's overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For The North West Co (TSX:NWC), the current Interest Coverage is 9.86 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is The North West Co (TSX:NWC) Overvalued in 2026?

Based on GuruFocus' analysis, The North West Co stock appears to be overvalued. The current stock price of C$50.15 is trading 5.9% above its estimated GF Value™ of C$47.35. GuruFocus considers The North West Co to be Fairly Valued.

Key valuation signals for TSX:NWC:

  • Interest Coverage: 9.86 (13% below median its 10-year median of 11.30)
  • GF Value™: C$47.35 vs. price of C$50.15 (5.9% above fair value)
  • GF Score™: 80/100 with 3 warning signs
  • Industry Position: 12.1% above the Retail - Defensive median (#111 of 254)

No single metric tells the full story. See the TSX:NWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


The North West Co Business Description

Other Exchanges NNWWF:USA3NW:Germany
Address 77 Main Street, Gibraltar House, Winnipeg, MB, CAN, R3C 2R1
The North West Co Inc is a retailer to rural and remote communities and underserved urban neighbourhood markets in Northern Canada, Western Canada, rural Alaska, the South Pacific islands, and the Caribbean. The Company offers a broad Multiple products and services with an emphasis on food, focusing on everyday household and local lifestyle needs. It operates as a retailer of food and everyday products and services through two geographical segments: Canadian and International. The Canadian segment generates maximum revenue and consists of subsidiaries operating retail stores and complementary businesses serving northern Canada, while the International segment consists of subsidiaries operating in the continental United States, the Caribbean, and the South Pacific.
80GF Score

Get the complete analysis for TSX:NWC

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$50.15
Price
C$47.35
GF Value