This report should not be construed as providing investment advice. It is for educational purposes only.  Before making any investment decision, you should always do your own research or consult a investment professional.
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The North West Company   www.northwest.ca   NWF   Fiscal Yr: Dec 31     10/31/10                  
Year 1/31/99 1/31/00 1/31/01 1/31/02 1/31/03 1/31/04 1/31/05 1/31/06 1/31/07 1/31/08 1/31/09 1/31/10 1/31/11 1/31/12 1/30/13         #Y    
Revenue* $629.1 $626.5 $659.0 $704.4 $749.8 $782.7 $788.7 $849.7 $944.9 $1,064.5 $1,392.6 $1,444.4 $1,444.1 <-12 mths     130.56% <-Total Growth   10 Revenue  
Increase 2.01% -0.42% 5.20% 6.88% 6.44% 4.40% 0.76% 7.73% 11.21% 12.65% 30.83% 3.71% -0.02% <-12 mths     8.71% <-IRR #YR->   10 Revenue  
Rev per Share $13.98 $13.92 $14.95 $14.56 $15.67 $16.18 $16.30 $17.56 $19.53 $22.00 $28.79 $29.86 $29.85 <-12 mths     12.86% <-IRR #YR->   5 Revenue  
P/S (Price/Sales) 0.31 0.29 0.29 0.39 0.44 0.49 0.63 0.71 0.84 0.84 0.56 0.60 0.71 <-12 mths     7.93% <-IRR #YR->   10 Rev Per share  
Averages             P/S 10 Yrs 0.58 5Yrs 0.71         12.86% <-IRR #YR->   5 Rev Per share  
*Revenue in M CDN $                                           
    -$626.5 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1,444.4                    
              -$788.7 $0.0 $0.0 $0.0 $0.0 $1,444.4                    
    -$13.9 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $29.9                    
              -$16.3 $0.0 $0.0 $0.0 $0.0 $29.9                    
                                             
EPS* $0.36 $0.62 $0.63 $0.65 $0.71 $0.74 $0.77 $0.89 $1.12 $1.31 $1.56 $1.69 $1.65 $1.36 $1.53   172.58% <-Total Growth   10 Earnings  
Increase -22.86% 72.22% 1.61% 3.17% 9.74% 3.74% 4.50% 15.09% 25.84% 16.96% 19.08% 8.33% -2.37% -17.58% 12.50%   10.55% <-IRR #YR->   10 Earnings  
* ESP per share (Cdn GAAP)                             16.92% <-IRR #YR->   5 Earnings  
    -$0.62 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1.69                    
              -$0.77 $0.00 $0.00 $0.00 $0.00 $1.69                    
                                             
pre-split Sp Div $0.25 $0.24 $0.24 $0.00 $0.06 $0.34 $0.00 $0.00                            
pre-split Div $1.00 $1.20 $1.20 $1.46 $1.50 $1.56 $1.80 $1.88                            
Sp  Div $0.08 $0.08 $0.08 $0.00 $0.02 $0.11 $0.00 $0.00 $0.10 $0.12 $0.07 $0.00 $0.00 $0.00               Sp Div
Div* $0.33 $0.40 $0.40 $0.49 $0.50 $0.52 $0.60 $0.63 $0.80 $1.03 $1.28 $1.32 $1.36 $1.36       240.00% <-Total Growth 10 Div only  
Increase 153.16% 20.00% 0.00% 21.25% 3.09% 4.00% 15.38% 4.44% 27.66% 28.75% 24.27% 3.13% 3.03% 0.00%       13.50% <-Average 10 Div only  
Yield H/L 8.92% 10.59% 12.63% 9.62% 8.21% 8.19% 6.70% 5.77% 6.18% 6.11% 8.18% 7.67% 6.79% #DIV/0!       7.34% <-Average 10 Div + Sp Div  
Yield on Low 10.60% 12.80% 14.69% 11.41% 9.20% 9.10% 7.79% 7.06% 8.46% 7.67% 10.38% 8.77% 7.74% #DIV/0!       8.76% <-Average 10 Div + Sp Div  
Yield on Cl 9.54% 12.00% 11.08% 8.46% 7.54% 8.04% 5.87% 5.01% 5.48% 6.25% 8.36% 7.36% 6.45% 6.37%       6.88% <-Average 10 Div + Sp Div  
Payout Ratio 115.7% 77.4% 76.2% 74.6% 72.9% 85.6% 77.6% 70.4% 80.4% 87.9% 86.5% 78.1% 82.4% 100.0%       79.64% <-Average 10 Div + Sp Div  
Payout Ratio CF 32.0% 57.6% 59.2% 48.1% 41.9% 45.9% 59.3% 40.3% 53.4% 59.5% 72.4% 59.1% 68.7% 63.3%       54.87% <-Average 10 Div + Sp Div  
Average 5 Yrs Div Yd 8.13% in 5 yrs 10.38% in 10 yrs Yield  H/L: L 6.78% 8.47% Payout 80.66% 56.96%           13.02% <-IRR #YR-> 10 Div only  
* Dividends per share  5.00% 5 5.00% 10                         16.76% <-IRR #YR-> 5 Div only  
                                             
      -$0.40 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1.36                  
                -$0.63 $0.00 $0.00 $0.00 $0.00 $1.36                  
                                             
H/LYield held 5 yrs       11.13% 13.24% 16.49% 15.87% 16.27% 16.56% 14.73% 12.53% 9.33% Ave H/L Yield on your    Div only  
H/LYield held 10 yrs       27.41% 29.12% 35.79% 26.98% Ave H/L original money   Div only  
                                             
Graham No. $5.44 $7.26 $7.84 $8.15 $8.58 $8.87 $9.22 $10.02 $11.46 $12.50 $14.11 $15.10 $15.33 $13.92     Cl Pr higher/lower by?        
Prem /Disc. High -0.46% -26.74% -44.71% -28.39% -18.29% -4.15% 10.86% 28.04% 61.49% 81.50% 41.67% 28.18%         15.62% <-Average   10 Graham Price  
Prem /Disc. Ave -14.08% -37.54% -51.51% -38.11% -26.21% -12.85% -2.81% 8.33% 27.19% 50.81% 16.90% 13.94%         -1.43% <-Average   10 Graham Price  
Prem /Disc. Low -27.69% -48.33% -58.32% -47.83% -34.14% -21.55% -16.47% -11.38% -7.12% 20.12% -7.87% -0.30%         -18.49% <-Average   10 Graham Price  
Prem /Disc. Cl -19.66% -44.88% -44.71% -29.62% -19.57% -11.17% 10.83% 24.75% 43.25% 47.40% 14.39% 18.84% 37.60% 53.36%     5.44% <-Average   10 Graham Price  
                                             
pre-split '06 $13.10 $12.00 $13.00 $17.20 $20.70 $23.63 $30.65                              
Price Cl $4.37 $4.00 $4.33 $5.73 $6.90 $7.88 $10.22 $12.50 $16.41 $18.42 $16.14 $17.94 $21.09 $21.34       386.69% <-Total Growth 10 Stock Price  
Increase -7.09% -8.40% 8.33% 32.31% 20.35% 14.15% 29.71% 22.35% 31.28% 12.25% -12.38% 11.15% 17.56% 1.19%       17.15% <-IRR #YR-> 10 Stock Price  
P/E 12.13 6.45 6.88 8.82 9.67 10.64 13.21 14.04 14.65 14.06 10.35 10.62 12.78 15.69       11.03% <-IRR #YR-> 5 Stock Price  
Trailing P/E 9.36 11.11 6.99 9.10 10.62 11.04 13.81 16.16 18.44 16.45 12.32 11.50 12.48 12.93       26.75% <-IRR #YR-> 10 Price & Div  
Median 5 Yrs       7.83% 9.61% Div %  5, 10 yrs   Price Inc 12.25% P/E: Y-T 12.78 12.48         18.86% <-IRR #YR-> 5 Price & Div  
                                             
      -$4.33 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $21.09                  
                -$12.50 $0.00 $0.00 $0.00 $0.00 $21.09                  
      -$4.33 $0.49 $0.52 $0.63 $0.60 $0.63 $0.90 $1.15 $1.35 $1.32 $22.45                  
                -$12.50 $0.90 $1.15 $1.35 $1.32 $22.45                  
                                             
Price Average H/L $4.67 $4.53 $3.80 $5.04 $6.33 $7.73 $8.96 $10.86 $14.57 $18.85 $16.50 $17.20 $20.03         426.97% <-Total Growth 10 Stock Price  
Increase #DIV/0! -2.93% -16.18% 32.68% 25.55% 22.09% 15.94% 21.15% 34.22% 29.34% -12.47% 4.27% 16.42%         18.08% <-IRR #YR-> 10 Stock Price  
P/E 12.97 7.31 6.03 7.76 8.87 10.44 11.59 12.20 13.01 14.39 10.57 10.18 12.14         13.03% <-IRR #YR-> 5 Stock Price  
Trailing P/E 10.01 12.59 6.13 8.00 9.74 10.83 12.11 14.04 16.37 16.83 12.59 11.03 11.85         28.75% <-IRR #YR-> 10 Price & Div  
Median 5 Yrs       8.73% 10.67% Div %  5, 10 yrs   Price Inc 16.42% P/E: Y-T 12.14 12.59         21.76% <-IRR #YR-> 5 Price & Div  
                                             
      -$3.80 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $20.03                  
                -$10.86 $0.00 $0.00 $0.00 $0.00 $20.03                  
      -$3.80 $0.49 $0.52 $0.63 $0.60 $0.63 $0.90 $1.15 $1.35 $1.32 $21.39                  
                -$10.86 $0.90 $1.15 $1.35 $1.32 $21.39                  
                                             
Hi Mths May 98 Jan 99 Jan 01 Jan 02 Jan 03 Dec 03 Jan 05 Dec 05 Sep 06 Nov 07 Apr 08 Dec 09 Nov 10                  
pre-split '06   $15.95 $13.00 $17.50 $21.03 $25.50 $31.74                              
Price Hi $5.41 $5.32 $4.33 $5.83 $7.01 $8.50 $10.22 $12.83 $18.50 $22.68 $19.99 $19.35 $22.48         418.77% <-Total Growth 10 Stock Price  
Increase   -1.73% -18.50% 34.62% 20.17% 21.26% 20.24% 25.54% 44.19% 22.59% -11.86% -3.20% 16.18%         17.90% <-IRR #YR-> 10 Stock Price  
P/E 15.03 8.58 6.88 8.97 9.83 11.49 13.22 14.42 16.52 17.31 12.81 11.45 13.62         11.87% <-IRR #YR-> 5 Stock Price  
Trailing P/E 11.59 14.77 6.99 9.26 10.78 11.92 13.81 16.59 20.79 20.25 15.26 12.40 13.30                  
Median 5 Yrs               Price Inc 16.18% P/E: Y-T 13.62 15.26                  
                                             
      -$4.33 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $22.48                  
                -$12.83 $0.00 $0.00 $0.00 $0.00 $22.48                  
                                             
Low Mths Aug 98 Jan 00 Oct 00 Feb 01 Feb 02 Mar 03 May 04 Nov 05 Feb 06 Mar 07 Oct 08 Jun 09 May 10                  
Price Low $3.93 $3.75 $3.27 $4.25 $5.65 $6.96 $7.70 $8.88 $10.64 $15.01 $13.00 $15.05 $17.57         437.86% <-Total Growth 10 Stock Price  
Increase   -4.58% -12.89% 30.10% 32.94% 23.13% 10.69% 15.32% 19.82% 41.07% -13.39% 15.77% 16.74%         18.32% <-IRR #YR-> 10 Stock Price  
P/E 10.92 6.05 5.19 6.54 7.92 9.40 9.96 9.98 9.50 11.46 8.33 8.91 10.65         14.62% <-IRR #YR-> 5 Stock Price  
Trailing P/E 8.42 10.42 5.27 6.75 8.69 9.75 10.41 11.48 11.96 13.40 9.92 9.65 10.40                  
Median 5 Yrs               Price Inc 16.74% P/E: Y-T 9.50 10.40                  
                                             
      -$3.27 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $17.57                  
                                     
Market Cap $197 $180 $191 $277 $330 $381 $494 $605 $794 $891 $781 $868 $1,020 $1,032             Market Cap
                                         
# of Sh in M 45.00 45.00 44.07 48.38 47.84 48.38 48.38 48.38 48.38 48.38 48.38 48.38 48.38 48.38 Capital Shares
Increase 0.00% 0.00% -2.06% 9.77% -1.11% 1.12% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%     0.77% <-Average   10 Shares
CF fr Op $M 58.6 37.5 35.7 48.8 59.4 66.8 48.9 75.3 81.5 93.6 90.2 108.0 $95.79 $104.01 187.87% <-Total Growth 10 Cash Flow
OPS $1.30 $0.83 $0.81 $1.01 $1.24 $1.38 $1.01 $1.56 $1.68 $1.93 $1.86 $2.23 $1.98 $2.15 167.77% <-Total Growth 10 Cash Flow
Increase 174.80% -35.97% -2.75% 24.33% 23.11% 11.26% -26.74% 53.89% 8.23% 14.86% -3.65% 19.73% -11.28% 8.59%   12.23% <-Average   10 Cash Flow
Non-Cash CF  -$7.54 $7.35 $12.06 $7.02 -$0.18 $7.75 $13.70 -$9.86 -$3.84 -$0.74 $17.54 $6.68 $0.00 $0.00 10.35% <-IRR #YR-> 10 Cash Flow
OPS non-cash $1.13 $1.00 $1.08 $1.15 $1.24 $1.54 $1.29 $1.35 $1.60 $1.92 $2.23 $2.37 $1.98 $2.15 17.15% <-IRR #YR-> 5 Cash Flow
Increase 43% -12% 9% 6% 7% 25% -16% 4% 19% 20% 16% 6% -16% 9% 9.05% <-IRR #YR-> 10 CF - non-cash
P/CF on Cl 3.9 4.01 4.00 4.97 5.58 5.11 7.89 9.24 10.22 9.60 7.25 7.57 10.65 9.93 12.86% <-IRR #YR-> 5 CF - non-cash
Averages P/CF 10 Yrs 7.14 5 Yrs 8.78
*Operational Cash Flow per share
-$0.83 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2.23              
-$1.01 $0.00 $0.00 $0.00 $0.00 $2.23  
-$1.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2.37  
-$1.29 $0.00 $0.00 $0.00 $0.00 $2.37  
                                     
OPM 9.31% 5.99% 5.42% 6.92% 7.92% 8.53% 6.20% 8.86% 8.62% 8.79% 6.48% 7.48%       should be zero, it is a check on calculations      
Diff from Ave 23.8% -20.4% -27.9% -8.0% 5.3% 13.4% -17.5% 17.8% 14.6% 16.9% -13.9% -0.6%         0.00% <-Average   10
*Operational Profit Margin (CF/Revenue) Ratio OPM 10 Yrs 7.52% 5 Yrs 8.05%    
                          Q3 2011              
Curr Assets $182.93 $176.16 $192.25 $219.96 $209.90 $196.83 $207.64 $218.74 $226.16 $254.06 $285.09 $285.84 $306.78       Liq ratio of 1.5 and up, best     Assets  
Curr Liab. $88.80 $92.49 $100.89 $204.02 $92.00 $83.14 $87.44 $95.47 $122.78 $134.90 $175.30 $171.95 $162.68       1.93 <-Average   10 Liabilities  
Liquidity 2.06 1.90 1.91 1.08 2.28 2.37 2.37 2.29 1.84 1.88 1.63 1.66 1.89       1.86 <-Average   5 Ratio  
                                             
Assets $393.28 $387.54 $415.97 $433.18 $418.19 $409.60 $413.64 $423.85 $441.87 $529.67 $609.17 $623.80 $639.62       A/L ratio of 1.5 and up, best     Assets  
Liab. $229.16 $217.63 $224.99 $213.65 $198.81 $181.12 $177.35 $181.28 $189.94 $273.37 $334.76 $333.87 $333.49       2.09 <-Average   10 Liabilities  
Liquidity 1.72 1.78 1.85 2.03 2.10 2.26 2.33 2.34 2.33 1.94 1.82 1.87 1.92       2.06 <-Average   5 Ratio  
                                             
Book Value $164.1 $169.9 $191.0 $219.5 $219.4 $228.5 $236.3 $242.6 $251.9 $256.3 $274.4 $289.9 $306.1     70.64% <-Total Growth 10 Book Value  
BV per share $3.65 $3.78 $4.33 $4.54 $4.59 $4.72 $4.88 $5.01 $5.21 $5.30 $5.67 $5.99 $6.33 $6.33   58.73% <-Total Growth 10 Book Value  
Change 2.47% 3.53% 14.76% 4.72% 1.05% 2.99% 3.42% 2.66% 3.86% 1.74% 7.07% 5.65% 5.59% 0.00%     1.4996 Current/Historical   Book Value  
P/BV (CL) 1.20 1.06 1.00 1.26 1.50 1.67 2.09 2.49 3.15 3.48 2.85 2.99 3.33 3.37   4.73% <-IRR #YR->   10 Book Value  
Change -9.33% -11.52% -5.60% 26.34% 19.09% 10.84% 25.42% 19.18% 26.40% 10.33% -18.16% 5.20% 11.33% 1.19% 4.18% <-IRR #YR->   5 Book Value  
Leverage (A/BK) 2.40 2.28 2.18 1.97 1.91 1.79 1.75 1.75 1.75 2.07 2.22 2.15 2.09 #DIV/0!     1.95 <-Average   10 A/BV  
Averages               P/BV 10 Yrs 2.25 5 Yrs 2.99   1.99 <-Average   5 A/BV  
                                 
-$3.78 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $5.99                    
            -$4.88 $0.00 $0.00 $0.00 $0.00 $5.99                    
                                           
ROE 9.8% 16.5% 14.7% 13.2% 15.7% 15.6% 15.8% 17.7% 21.3% 24.6% 27.5% 28.2% 26.0% <-12 mths     Net Income/Shareholders' equity          
5Yr Running Ave       #REF! 14.1% 15.1% 15.0% 15.6% 17.3% 19.1% 21.6% 24.1% 25.6% <-12 mths                
                                           
Net Income $16.15 $27.96 $28.13 $29.02 $34.47 $35.73 $37.27 $42.89 $53.66 $62.99 $75.38 $81.81 $79.55 <-12 mths   192.64% <-Total Growth 10    
Oper C. F. $58.57 $37.51 $35.73 $48.76 $59.36 $66.78 $48.93 $75.29 $81.49 $93.59 $90.18 $107.97 $94.89 <-12 mths       Cash Flow Statement       
Invest. C. F -$16.75 -$20.67 -$16.26 -$19.92 -$18.18 -$30.20 -$21.63 -$23.90 -$35.48 -$98.12 -$49.44 -$59.37 -$34.73 <-12 mths       Cash Flow Statement      
Total Accruals -$25.67 $11.12 $8.67 $0.17 -$6.71 -$0.85 $9.97 -$8.50 $7.65 $67.52 $34.64 $33.21 $19.39 <-12 mths                
Total Assets $393.28 $387.54 $415.97 $433.18 $418.19 $409.60 $413.64 $423.85 $441.87 $529.67 $609.17 $623.80 $319.81 <-12 mths       Balance Sheet        
Accruals Ratio -6.53% 2.87% 2.09% 0.04% -1.60% -0.21% 2.41% -2.01% 1.73% 12.75% 5.69% 5.32% 6.06% <-12 mths                
up/down/neutral                                            
Chge in Close -7.09% -8.40% 8.33% 32.31% 20.35% 14.15% 29.71% 22.35% 31.28% 12.25% -12.38% 11.15% 17.56%                  
Any Predictions?                                          
                                             
Fin. C. F $3.17 $3.29 $0.42 $27.45 -$40.70 -$30.40 -$32.49 -$40.85 -$45.50 $1.12 -$36.75 -$47.05 -$67.30 <-12 mths                
Total Accruals -$28.84 $7.84 $8.25 -$27.28 $33.99 $29.55 $42.45 $32.35 $53.15 $66.40 $71.38 $80.27 $86.70 <-12 mths                
Accruals Ratio -7.33% 2.02% 1.98% -6.30% 8.13% 7.22% 10.26% 7.63% 12.03% 12.54% 11.72% 12.87% 27.11% <-12 mths                
                                           
Taxes                                            
Dividend 20% 0% 0% 2% 0% 0% 13% 17% 19% 0% 0% 0%         4.62% <-Average   11    
Cap Gain 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%         0.00% <-Average   11    
Taxable Inc 80% 100% 100% 98% 100% 100% 87% 83% 81% 100% 100% 100%         95.37% <-Average   11    
Ret of Cap. 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%         0.01% <-Average   11    
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%                    
For Tax Cr                                            
                                             
Feb 4, 2011.  The last time I looked at this stock I got 2010 and 2011 estimates of $1.65 and $1.72 for earnings and $1.96 and $2.06 for cash flow.                  
Company has changed to a stock company.                                      
Company does not use FFO or Distributable Cash.  It does its comparisons to Cash Flow.  Distributions are not expected to be decreased until after 2011 and by an amount of 30% or less.  The reduction will probably be in the low 20% range.  
                                             
How they make their money.                                        
The North West Company is a leading retailer of food and everyday products and services to rural communities and urban neighborhoods in Canada, Alaska, the South Pacific and the Caribbean. North West         
operates 225 stores under the trading names Northern, NorthMart, Giant Tiger, AC Value Center, and Cost-U-Less.                        
                                             
For most ratios, lower is better when looking for a good stock price.  However, there are exceptions such as for yield and asset/liability ratios and here you want a higher ratios to indicate a good stock price.          
Also, for the Operational Profit Margin, a higher percentage is better.  With the OPM, you should only compare companies in similar industries.                    
                                             
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