Norwood Financial (NWFL) AI Stock Analysis

• Market Cap: $249.16M
• Dividend Yield: 4.71%
• Average Volume (3M): 33.67K
• Price to Earnings (P/E): 295.9
• Beta (1Y): 0.85
• Revenue Growth: -3.66%
• EPS Growth: -95.22%
• Country: US
• Employees: 264
• Sector: Financial
• Sector Strength: 85
• Industry: Banks - Regional
• EPS (TTM): 0.09
• Shares Outstanding: 9,262,592
• 10 Day Avg. Volume: 37,748
• 30 Day Avg. Volume: 33,674
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $25.25
• Price Target Upside: -6.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Norwood Financial's stock score reflects a mix of financial stability and challenges. Strong operational margins are overshadowed by profitability concerns. Technical indicators show bearish trends, and a high P/E ratio suggests potential overvaluation. However, the strategic repositioning of the securities portfolio is a positive step towards improving financial performance.

Positive Factors

Dividend Sustainability

The company has a strong dividend history with a current ~5.0% yield, viewed as sustainable despite lower profitability metrics compared to peers.

Growth Potential

NWFL operates a 29-branch network in growth markets in northern PA and southern NY, indicating potential for loan growth.

Profitability Improvement

The bank is well positioned, poised for margin EPS and profitability improvement due to balance sheet restructuring and a pro-growth management team.

Negative Factors

Return on Assets

The forecasted ROA of 1.05% in 2026 is below peers, contributing to the Equal-Weight rating and $25.50 price target.

Norwood Financial Business Overview & Revenue Model

Company Description

Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest bearing transaction accounts, and statement savings and money market accounts, as well as certificate of deposits. It also provides various loans, such as commercial loans comprising lines of credit, revolving credit, term loans, mortgages, secured lending products, and letter of credit facilities; municipal finance lending; construction loans for commercial construction projects and single-family residences; land loans; consumer loans; mortgage lending to finance principal residences and second home dwellings; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles. In addition, the company offers investment securities services; trust and investment products; and cash management, direct deposit, remote deposit capture, mobile deposit capture, mobile payment, automated clearing house activity, real estate settlement, and Internet and mobile banking services. Further, it engages in the annuity and mutual fund sale, and discount brokerage activities, as well as insurance agency business. The company serves consumers, businesses, nonprofit organizations, and municipalities. It operates fourteen offices in Northeastern Pennsylvania; and sixteen offices in Delaware, Sullivan, Ontario, Otsego, and Yates Counties, New York, as well as thirty-one automated teller machines. Norwood Financial Corp. was founded in 1870 and is headquartered in Honesdale, Pennsylvania.

How the Company Makes Money

Norwood Financial Corp generates revenue primarily through the interest income earned on loans and securities. The company provides various loan products, including residential and commercial real estate loans, consumer loans, and business loans, charging interest and fees on these financial products. Additionally, NWFL earns money from non-interest income sources such as service charges on deposit accounts, trust and investment services, and fees related to transaction processing. The company also benefits from strategic partnerships and its ability to attract deposits, which are utilized to fund lending activities, thereby contributing to its overall earnings.

Norwood Financial Financial Statement Overview

Summary

Norwood Financial demonstrates operational efficiency with strong margins but faces challenges in sustaining profitability due to recent negative net income. The balance sheet is stable with manageable leverage, yet return inconsistencies may warrant attention. Cash flow is managed effectively, providing liquidity, although growth is uneven.

Income Statement

Gross profit margin and EBIT margin are strong, indicating efficient operations. However, a recent negative net income highlights profitability challenges. Revenue growth has been volatile with notable fluctuations, suggesting potential instability in income generation.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, reflecting balanced leverage. The equity ratio is healthy, indicating a stable financial structure. However, return on equity has been inconsistent, suggesting variable returns for shareholders.

Cash Flow

Operating cash flow remains positive, supporting liquidity. Free cash flow growth has been mixed, but the company has managed to sustain a positive free cash flow to net income ratio. Cash flow management appears generally robust despite some fluctuations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
112.58M	64.64M	78.33M	73.64M	58.26M
	Gross Profit
112.58M	64.64M	78.33M	73.64M	58.26M
	EBIT
109.48M	21.15M	43.65M	30.86M	18.37M
	EBITDA
0.00	22.61M	37.96M	32.46M	19.80M
	Net Income Common Stockholders
-160.00K	16.76M	29.23M	24.91M	15.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
425.41M	66.12M	450.79M	613.46M	338.28M
	Total Assets
2.32B	2.20B	2.05B	2.07B	1.85B
	Total Debt
113.07M	114.24M	82.26M	90.82M	105.76M
	Net Debt
85.51M	48.12M	50.40M	-115.86M	-5.93M
	Total Liabilities
2.10B	2.02B	1.88B	1.86B	1.66B
	Stockholders Equity
213.51M	181.07M	167.09M	205.26M	194.78M
Cash Flow		Free Cash Flow
22.81M	28.41M	28.58M	27.94M	13.05M
	Operating Cash Flow
22.81M	29.82M	30.73M	29.20M	13.80M
	Investing Cash Flow
-115.20M	-116.57M	-207.99M	-130.96M	-61.36M
	Financing Cash Flow
98.62M	121.00M	2.44M	196.75M	143.84M

Norwood Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWFL, the sentiment is Positive. The current price of 26.9 is above the 20-day moving average (MA) of 23.57, above the 50-day MA of 24.18, and above the 200-day MA of 26.26, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 72.88 is Negative, neither overbought nor oversold. The STOCH value of 86.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWFL.

Norwood Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PKBK	72 Outperform	$229.63M	8.05	9.81%	3.80%	9.76%	24.43%
OVLY	72 Outperform	$201.16M	7.97	13.99%	2.06%	0.40%	-10.62%
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%
JMSB	59 Neutral	$249.39M	14.04	7.26%	1.43%	25.96%	485.31%
NWFL	55 Neutral	$249.16M	295.93	0.59%	4.71%	-3.66%	-95.22%
FFNW	55 Neutral	$208.18M	194.65	0.66%	2.30%	2.28%	-83.17%
MVBF	52 Neutral	$231.42M	11.68	6.38%	3.89%	-8.32%	-22.46%

Norwood Financial Corporate Events

Norwood Financial Holds 2025 Annual Stockholders Meeting

Norwood Financial Corp held its 2025 Annual Meeting of Stockholders on April 22, 2025, where it presented its financial performance and strategic initiatives. The company reported a decrease in adjusted net income for 2024 due to a one-time loss from investment portfolio repositioning, but noted improvements in tangible common equity and capital strength. The company’s capital raise and portfolio adjustments are expected to enhance future yields, and it continues to demonstrate financial stability with increased assets and loans. The meeting also highlighted leadership changes and employee recognitions, underscoring the company’s commitment to growth and operational excellence.

Spark’s Take on NWFL Stock

According to Spark, TipRanks’ AI Analyst, NWFL is a Neutral.

Norwood Financial’s stock score reflects a mix of financial stability and challenges. Strong operational margins are overshadowed by profitability concerns. Technical indicators show bearish trends, and a high P/E ratio suggests potential overvaluation. However, the strategic repositioning of the securities portfolio is a positive step towards improving financial performance.

To see Spark’s full report on NWFL stock, click here.

Norwood Financial Announces Board Member Retirement

Susan Campfield retired from the Board of Directors of Norwood Financial Corp and its subsidiary, Wayne Bank, on February 18, 2025, after 19 years of service. Her extensive knowledge of the local construction market and business community in Wayne County, Pennsylvania, greatly benefited the bank’s operations and market positioning.