NWC has had quite a decline from over $38 a month ago to a little over $30 today. What are your thoughts about the company at this point. Is it a buy with the price drop, is their market dominance in their markets somehow altered, will they return to form in the next year or so, and is it a buy at this price?
Much thanks
stuart
NWC was under pressure recently after the earnings and is now trading at 11.8x times' Forward P/E. In 1Q - 2024, NWC's revenue grew 7.5% to $594M, beating estimates of $589M and EPS was $0.54, missing estimates of $0.59. Overall, okay results, the earnings were under pressure due to high inflation (costs) and interest rates, which were largely expected. We think the share price overreacted a bit to the miss in earnings. We like the company still and think the long-term thesis on it as a solid consumer staple name is mostly unchanged. NWC is currently trading at a low multiple compared to historical averages (ranging from 11.7x to 15x Forward P/E)