Northwest Bancshares (NWBI) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: 6.66%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.70
• Revenue Growth: 14.86%
• EPS Growth: 40.09%
• Country: US
• Employees: 1,996
• Sector: Financial
• Sector Strength: 65
• Industry: Banks - Regional
• EPS (TTM): 0.30
• Shares Outstanding: 146,211,700
• 10 Day Avg. Volume: 1,099,737
• 30 Day Avg. Volume: 1,102,970
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 3.51
• Enterprise Value/Ebitda: 10.95
• 1Y Price Target: $13.00
• Price Target Upside: 8.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: $13.50 ▲(12.31% Upside)

Northwest Bancshares has a strong financial foundation and attractive valuation, supported by a successful merger. However, technical indicators suggest caution, and potential risks from increased classified loans and noninterest expenses could impact future performance. The high dividend yield and reasonable P/E ratio provide a solid investment case, but investors should be mindful of the mixed technical signals.

Northwest Bancshares Business Overview & Revenue Model

Company Description

Northwest Bancshares, Inc. operates as the holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts various deposits, including checking, savings, money market deposit, term certificate, and individual retirement accounts. It also offers loan products comprising one-to-four-family residential real estate loans and loans collateralized by multi-family residential and commercial real estate; commercial business loans; and consumer loans, including automobile loans, sales finance loans, unsecured personal loans, credit card loans, and loans secured by deposit accounts. The company also offers investment management and trust services. As of December 31, 2021, it operated 170 community-banking locations in Pennsylvania, Western New York, Eastern Ohio, and Indiana. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Columbus, Ohio.

How the Company Makes Money

Northwest Bancshares generates revenue primarily through interest income from loans and investments, as well as non-interest income from service fees and other financial services. Key revenue streams include interest earned on commercial and consumer loans, mortgage loans, and investment securities. Non-interest income is derived from fees associated with deposit accounts, wealth management services, and insurance products. The company also benefits from partnerships with local businesses and organizations, enhancing its community presence and customer base. Additionally, prudent management of its loan portfolio and investment strategies plays a critical role in optimizing earnings and minimizing risk.

Northwest Bancshares Financial Statement Overview

Summary

Northwest Bancshares shows strong revenue growth and a robust balance sheet with zero debt and substantial cash reserves. However, declining profitability margins and cash flow challenges indicate areas needing improvement.

Income Statement

Northwest Bancshares shows a stable revenue base with a recent revenue growth rate of approximately 27.07% from 2023 to 2024. The gross profit margin remains robust at 100%, typical for the banking industry. However, the net profit margin decreased to 15.00% in 2024 from 25.62% in 2023, indicating reduced profitability. The EBIT margin also decreased to 2.99% in 2024, suggesting pressure on operational profitability.

Balance Sheet

The company's balance sheet reflects strong liquidity with significant cash reserves. The equity ratio improved to 11.08% in 2024 from 10.76% in 2023, showing a slight increase in financial stability. The debt-to-equity ratio improved as total debt was eliminated in 2024, reducing financial leverage risk. Return on equity declined to 6.28% from 8.70%, indicating a decrease in shareholder profitability.

Cash Flow

Operating cash flow decreased by 32.86% in 2024, reflecting a drop in cash-generating efficiency. The free cash flow also decreased by 26.07% from the previous year. The operating cash flow to net income ratio was 0.62 in 2024, indicating moderate cash flow coverage relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	775.19M	754.09M	700.05M	558.36M	534.14M	563.06M
Gross Profit	516.87M	495.96M	524.94M	501.41M	522.68M	436.74M
EBITDA	165.62M	150.89M	199.57M	179.31M	207.76M	97.26M
Net Income	114.57M	100.28M	134.96M	133.67M	154.32M	74.85M
Balance Sheet
Total Assets	14.45B	14.41B	14.42B	14.11B	14.50B	13.81B
Cash, Cash Equivalents and Short-Term Investments	1.51B	1.40B	1.17B	1.36B	2.83B	2.14B
Total Debt	441.79M	444.70M	642.66M	924.32M	391.72M	411.84M
Total Liabilities	12.82B	12.81B	12.87B	12.62B	12.92B	12.27B
Stockholders Equity	1.63B	1.60B	1.55B	1.49B	1.58B	1.54B
Cash Flow
Free Cash Flow	165.92M	125.36M	84.33M	171.11M	187.94M	128.18M
Operating Cash Flow	164.58M	127.67M	92.89M	175.43M	205.46M	140.44M
Investing Cash Flow	272.63M	174.97M	-239.68M	-917.42M	-232.97M	-560.58M
Financing Cash Flow	-203.32M	-136.52M	129.69M	-397.90M	570.49M	1.10B

Northwest Bancshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.02
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWBI, the sentiment is Neutral. The current price of 12.02 is below the 20-day moving average (MA) of 12.09, below the 50-day MA of 12.39, and below the 200-day MA of 12.41, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 93.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NWBI.

Northwest Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUBI	79 Outperform	$2.11B	16.29	8.17%	―	-7.45%	-45.67%
NWBI	75 Outperform	$1.78B	10.87	8.96%	6.66%	14.86%	40.09%
FCF	74 Outperform	$1.77B	12.97	9.31%	3.18%	4.57%	-15.68%
FBNC	74 Outperform	$2.19B	22.52	6.53%	1.70%	-2.04%	-14.82%
LKFN	72 Outperform	$1.61B	17.14	13.86%	3.18%	-1.41%	-6.42%
Sector *	68 Neutral	$17.53B	11.78	10.43%	3.83%	9.94%	1.31%
CLBK	53 Neutral	$1.56B	241.93	0.57%	―	-0.90%	-67.89%

Northwest Bancshares Corporate Events

Northwest Bancshares Completes Merger with Penns Woods

On July 25, 2025, Northwest Bancshares, Inc. completed its merger with Penns Woods Bancorp, Inc., enhancing its presence in Pennsylvania by adding 21 branch locations. The merger involved the consolidation of Penns Woods’ subsidiary banks into Northwest Bank, with all financial centers rebranded under the Northwest name. This strategic move positions Northwest to deliver greater value to shareholders and expand its range of services across its Pennsylvania footprint. Additionally, Richard Grafmyre, former CEO of Penns Woods, was appointed to the boards of Northwest and Northwest Bank, marking a significant leadership transition.

The most recent analyst rating on (NWBI) stock is a Sell with a $12.00 price target. To see the full list of analyst forecasts on Northwest Bancshares stock, see the NWBI Stock Forecast page.