Q: Thoughts on the quarter. Market seems to like the results.
Steve
Steve
5i Research Answer:
NWC is now trading at 14.4x Forward P/E. In 2Q-FY2025, NWC’s revenue grew 4.6% to $646.5M, in line with the consensus estimate, and its EPS of $0.84 beat estimates of $0.76. NWC’s Canadian operations had a same-store sales growth of 6.8% during the quarter. The balance sheet is strong, with net debt of $358M, and the net debt/EBITDA ratio currently stands at 1.2x. NWC also raised its dividend by 2.6%. NWC currently has authorization to repurchase shares, however, historically NWC has never repurchased shares meaningfully. Overall, NWC reported strong numbers, which was led by the company’s Canadian segment, and NWC’s operating results remain consistent with previous quarters.