North West (TSX:NWC) is engaged in the retail of food and everyday products and services to communities in Canada, Alaska, the South Pacific, and the Caribbean. Shares have dropped 2% in 2020 as of late afternoon trading on June 9. Investors can expect to see its first quarter 2020 results this afternoon.
The company released its fourth quarter and full-year 2019 results on March 12. Sales increased 3.9% year-over-year to $553.1 million on the back of same store food sales. Gross profit climbed 2.3% while the gross profit rate dropped by 46 basis points.
This was due to increased promotional pricing. Meanwhile, net earnings rose 23.6% year-over-year to $16.3 million.
In late March, North West provided an update on its COVID-19 response. At this date, North West announced that it possessed $190 million of available capacity on existing loan facilities.
Grocers have been one of the most reliable holds during this uncertain period. North West is still a solid target as we look ahead to the summer.
Shares of North West last had a favourable price-to-earnings ratio of 15 and a high price-to-book value of 3.1. North West announced a quarterly dividend of $0.33 per share in its Q4 report.
This represents a strong 5% yield. Investors on the hunt for income and stability should consider adding North West to their portfolios as we get set to see its first-quarter earnings.
