ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The North West Co's annualized return on capital (ROC %) for the quarter that ended in Apr. 2026 was 10.53%.
As of today (2026-06-26), The North West Co's WACC % is 3.48%. The North West Co's ROC % is 13.09% (calculated using TTM income statement data).
The North West Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
The North West Co (TSX:NWC) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, The North West Co's WACC % is 3.48%. The North West Co's ROC % is 13.09% (calculated using TTM income statement data).
The North West Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
The North West Co ROC % Related Terms
The North West Co ROC % Historical Data
* Premium members only.
The historical data trend for The North West Co's ROC % 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:
The Operating Income data used here is four times the quarterly (Apr. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 North West Co (TSX:NWC) has a ROC % of 10.53% as of Apr. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on The North West Co and its competitors.
Is The North West Co's ROC % too high?
The North West Co's current ROC % is 10.53%. The Retail - Defensive industry median ROC % is 5.54. The North West Co's value of 10.53% is 90.1% above this industry median. 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 ROC % compare to KR and SFM?
The North West Co's ROC % of 10.53% can be compared against companies in the Retail - Defensive industry. The industry median ROC % is 5.54. The North West Co's value of 10.53% is 90.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Retail - Defensive company?
The median ROC % among Retail - Defensive companies is 5.54, based on 309 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The North West Co's current ROC % of 10.53% is 90.1% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on The North West Co and its competitors. For the Retail - Defensive industry, the median ROC % is 5.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The North West Co's current ROC % is 10.53%. 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$50.08 — trading 5.8% above its estimated fair value. The current ROC % is 10.53% and 90.1% above the Retail - Defensive industry median of 5.54. 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For The North West Co (TSX:NWC), the current ROC % is 10.53% 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$50.08 is trading 5.8% 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:
ROC %: 10.53%
GF Value™: C$47.35 vs. price of C$50.08 (5.8% above fair value)
Industry Position: 90.1% above the Retail - Defensive median
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 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
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