Finward Bancorp (FNWD) AI Stock Analysis

• Market Cap: $125.15M
• Dividend Yield: 1.66%
• Average Volume (3M): 4.41K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.12
• Revenue Growth: 15.97%
• EPS Growth: 45.41%
• Country: US
• Employees: 276
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 2.83
• Shares Outstanding: 4,324,485
• 10 Day Avg. Volume: 3,951
• 30 Day Avg. Volume: 4,413
• PEG Ratio: 0.22
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.78
• Price to Cash Flow (P/CF): -8.40
• P/FCF Ratio: 4.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $35.00
• Price Target Upside: 20.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Finward Bancorp demonstrates solid financial health with revenue and profit growth, alongside strong technical indicators suggesting potential price appreciation. The stock is fairly valued with a reasonable dividend yield, making it an attractive investment in the banking sector. However, the absence of recent cash flow data introduces some uncertainty.

Finward Bancorp Business Overview & Revenue Model

Company Description

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company's deposit products include non-interest and interest bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning services, guardianships, land trusts, profit sharing and 401(k) retirement plans, IRA and Keogh accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. As of March 2, 2022, the company operated through 30 locations in Lake and Porter counties in Northwest Indiana and South Chicagoland. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was incorporated in 1994 and is headquartered in Munster, Indiana.

How the Company Makes Money

Finward Bancorp makes money primarily through the interest income generated from its lending activities. The company extends various types of loans, such as residential mortgages, commercial loans, and consumer loans, and earns interest on these financial products. Additionally, Finward generates revenue through non-interest income, which includes fees from deposit accounts, transaction processing, wealth management services, and other banking-related fees. The company's earnings are further supported by strategic partnerships with financial service providers and its focus on maintaining a diversified loan portfolio to manage risk and enhance profitability.

Finward Bancorp Financial Statement Overview

Summary

Finward Bancorp shows strong financial performance with consistent revenue and profit growth, high profitability margins, and improved ROE. The elimination of debt strengthens its financial position, but the low equity ratio and absence of 2024 cash flow data are concerns.

Income Statement

Finward Bancorp has shown consistent revenue growth, with a notable increase of 9.64% from 2023 to 2024. The gross profit margin remains strong at 100% due to the nature of the banking industry. However, the net profit margin improved significantly to 16.95% in 2024 from 12.83% in 2023, indicating enhanced profitability. The EBIT margin also improved to 31.42% in 2024, reflecting better operational efficiency. The absence of EBITDA in the latest year indicates potential changes in financial reporting or operations.

Balance Sheet

The company's balance sheet shows a strong equity base with an equity ratio of 7.35% in 2024, though slightly decreased from the previous year. The elimination of total debt by 2024 significantly strengthens the balance sheet, reducing financial risk. Return on equity (ROE) improved to 8.01% in 2024, indicating better returns generated from shareholders' equity. However, the relatively low equity ratio suggests a higher reliance on liabilities, which could pose risks if not managed properly.

Cash Flow

Cash flow analysis shows volatility, with free cash flow unavailable in 2024, contrasting with positive free cash flow in previous years. The operating cash flow to net income ratio for 2023 was 2.62, indicating solid cash flow generation relative to profits. However, the absence of cash flow data for 2024 raises concerns about cash management and operational efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
71.60M	65.30M	78.66M	64.52M	64.03M
	Gross Profit
71.60M	63.55M	78.66M	64.52M	64.03M
	EBIT
22.49M	15.21M	15.48M	16.38M	19.50M
	EBITDA
0.00	15.21M	22.53M	20.94M	21.91M
	Net Income Common Stockholders
12.13M	8.38M	15.08M	14.96M	15.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
70.58M	81.91M	31.28M	560.07M	430.59M
	Total Assets
2.06B	2.11B	2.07B	1.62B	1.50B
	Total Debt
0.00	80.00M	120.00M	14.58M	6.15M
	Net Debt
-70.58M	-5.59M	88.72M	-18.59M	-13.77M
	Total Liabilities
1.91B	1.96B	1.93B	1.47B	6.15M
	Stockholders Equity
151.41M	147.34M	136.39M	156.62M	152.92M
Cash Flow		Free Cash Flow
0.00	20.79M	14.73M	13.91M	17.41M
	Operating Cash Flow
0.00	21.93M	17.76M	17.04M	21.15M
	Investing Cash Flow
0.00	17.30M	-1.16M	-125.93M	-186.56M
	Financing Cash Flow
0.00	15.49M	-18.49M	122.14M	138.07M

Finward Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNWD, the sentiment is Neutral. The current price of 28.94 is below the 20-day moving average (MA) of 28.96, above the 50-day MA of 27.56, and above the 200-day MA of 28.40, indicating a neutral trend. The MACD of 0.49 indicates Positive momentum. The RSI at 61.70 is Neutral, neither overbought nor oversold. The STOCH value of 66.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FNWD.

Finward Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTB	77 Outperform	$568.32M	10.12	10.32%	1.42%	11.01%	8.09%
FCBC	73 Outperform	$689.08M	13.43	10.02%	3.45%	6.25%	5.16%
FNWD	72 Outperform	$125.15M	10.20	8.12%	1.66%	15.97%	45.41%
SFBS	70 Neutral	$4.04B	17.79	14.87%	1.67%	16.28%	9.61%
FMBH	65 Neutral	$774.39M	9.78	9.62%	2.94%	17.70%	3.88%
Sector *	63 Neutral	$14.39B	9.81	8.95%	4.37%	16.38%	-11.64%
MSBI	54 Neutral	$339.00M	12.51	-1.83%	7.83%	3.95%	-135.44%

Finward Bancorp Corporate Events

Finward Bancorp Announces Board Changes Post-2025 Meeting

On March 21, 2025, James L. Wieser announced his retirement from the Board of Directors of Finward Bancorp and Peoples Bank, effective after the 2025 Annual Meeting of Shareholders. His departure is not due to any disagreements with the company. Concurrently, the Board decided to reassign Jennifer R. Evans from a Class II to a Class III director to balance the board’s composition, with her service considered uninterrupted. Following Wieser’s retirement, the board size will be reduced from 11 to 10 members, and the vacant Class II directorship will be eliminated.