In our last Number Cruncher we discussed how Bank of Nova Scotia (BNS), Toronto-Dominion (TD) and The North West Company (NWC) are companies with defensive attributes that could limit losses in the event of a market collapse.
Let’s begin with BNS
BNS has an SP score of 66, down by one in the past 90 days. This is derived by using the Performance score of 59.8 and the Risk score of 14.5. Although the bank has hit setbacks in the past years, it is now attractive due to its strong Value score of 77 and a quality score of 75. In addition, it had a terrific year with an increase of 19.8% regarding sales growth and an average 5Y EPS growth of 6.2%.
As to the stock’s intrinsic value, our model values it at 112.89 versus its market price of 69.19. This represents a 63.2% upside. We further observe that the intrinsic value is continuing an upward trend that started in April 2021. Although the trend took a downturn last quarter, we expect the upward trend to continue.
Regarding the Toronto-Dominion bank,
TD’s SP score has increased by 3 points in the past 90 days, reaching 73. This score is calculated using the Performance score of 69 and the Risk score of 15.2. Overcoming challenges in recent years, TD remains appealing due to its high Value score of 72 and Quality score of 80.
Since its low of July 2020, TD’s EVA and NOPAT have until October 2022. We expect this trend to continue and influence the share price in the same manner.
Lastly, The North West Company (NWC).
NWC’s SP score has decreased by 1 point in the past 90 days, reaching a score of 73. This score is calculated using the Performance score of 72.2 and the Risk score of 22.4. NWC is attractive due to its strong Value score of 58 and Quality score of 77. Additionally, the company has seen an average annual sales growth of 4.1% over the last 5 years.
Regarding its Performance vs Risk, NWC exceptionally outperforms its peers in the grocery and retail industries. Consequently, NWC seems the best choice at this moment, at least, compared to its peers.
If you have any questions about the article, feel free to contact Anthony :
Amenard@Inovestor.com
If you would like to sign up for a free trial and learn how Inovestor can benefit you, contact Olivier:
olamothe@inovestor.com
