Finward Bancorp (FNWD) AI Stock Analysis

• Market Cap: $120.21M
• Dividend Yield: 1.73%
• Average Volume (3M): 32.53K
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.13
• Revenue Growth: -7.58%
• EPS Growth: -78.69%
• Country: US
• Employees: 293
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Regional
• EPS (TTM): 0.50
• Shares Outstanding: 4,325,589
• 10 Day Avg. Volume: 37,684
• 30 Day Avg. Volume: 32,529
• PEG Ratio: -0.62
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.26
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 3.04
• Enterprise Value/Ebitda: 5.20
• 1Y Price Target: $34.00
• Price Target Upside: 22.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $31.00 ▲(11.55%Upside)

Finward Bancorp's financial stability and profitability are the primary strengths, contributing to a solid base score. However, bearish technical indicators and concerns over high valuation weigh down the overall stock score.

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 interest income generated from its lending activities. This includes interest collected on loans such as commercial, residential, and consumer loans. Additionally, the company earns revenue from fees associated with its banking services, including service charges on deposit accounts and transaction fees. Investment income from securities and other financial instruments also contributes to its earnings. Significant partnerships with local businesses and community organizations enhance its customer base and revenue opportunities. The company's performance is closely tied to interest rate trends and regional economic conditions, which can impact its net interest margin and overall 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.06M	71.09M	65.30M	78.66M	64.52M	64.03M
Gross Profit	78.83M	71.09M	63.28M	78.66M	64.52M	64.03M
EBITDA	2.67M	0.00	15.21M	22.53M	20.94M	21.91M
Net Income	3.31M	12.13M	8.38M	15.08M	14.96M	15.93M
Balance Sheet
Total Assets	2.04B	2.06B	2.11B	2.07B	1.62B	1.50B
Cash, Cash Equivalents and Short-Term Investments	348.69M	404.14M	457.38M	404.63M	560.07M	430.59M
Total Debt	0.00	0.00	118.12M	120.00M	14.58M	6.15M
Total Liabilities	1.89B	1.91B	1.96B	1.93B	1.46B	1.34B
Stockholders Equity	151.81M	151.41M	147.34M	136.39M	156.62M	151.69M
Cash Flow
Free Cash Flow	3.66M	6.73M	20.79M	14.70M	13.91M	16.00M
Operating Cash Flow	6.02M	9.80M	21.93M	17.73M	17.04M	19.74M
Investing Cash Flow	23.43M	42.79M	17.30M	-1.13M	-125.93M	-185.06M
Financing Cash Flow	-28.68M	-68.02M	15.49M	-18.49M	122.14M	137.99M

Finward Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 27.79 is above the 20-day moving average (MA) of 27.62, below the 50-day MA of 28.54, and below the 200-day MA of 29.02, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 51.80 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
UNB	75 Outperform	$127.72M	13.87	56.66%	5.12%	11.94%	-8.29%
CZWI	73 Outperform	$147.54M	11.90	6.93%	2.44%	-0.81%	-7.17%
Sector *	68 Neutral	$17.09B	11.26	9.71%	3.70%	11.16%	-4.08%
RMBI	67 Neutral	$148.51M	15.20	7.23%	4.06%	9.70%	18.24%
EBMT	65 Neutral	$130.57M	11.59	6.42%	3.47%	6.51%	27.04%
FNWD	63 Neutral	$120.21M	36.16	2.18%	1.73%	-7.58%	-78.69%
ECBK	―	$147.56M	25.78	3.18%	―	―	―

Finward Bancorp Corporate Events

Finward Bancorp Approves 2025 Omnibus Equity Incentive Plan

Finward Bancorp‘s shareholders approved the 2025 Omnibus Equity Incentive Plan during the Annual Meeting on May 22, 2025. This plan aims to align the interests of participants with shareholders, encourage employment, and improve operations by offering various stock-based incentives. The plan includes a maximum of 265,174 shares available for issuance and will be administered by the Bancorp’s Compensation and Benefits Committee. Additionally, the meeting saw the election of four directors, approval of auditors, and an advisory vote on executive compensation.

The most recent analyst rating on (FNWD) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Finward Bancorp stock, see the FNWD Stock Forecast page.

Finward Bancorp Holds Virtual Annual Shareholders Meeting

Finward Bancorp announced its Annual Meeting of Shareholders to be held virtually on May 22, 2025, where it will present financial and strategic information. The company is navigating several challenges, including compliance with regulatory requirements and managing risks related to market conditions and interest rates. The Bancorp is focused on improving profitability, optimizing funding, and managing balance sheet risks while expanding its capital ratios. The company has also refreshed its board with independent directors to enhance corporate governance.

The most recent analyst rating on (FNWD) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Finward Bancorp stock, see the FNWD Stock Forecast page.