Northwest Bancshares (NWBI) AI Stock Analysis

• Market Cap: $1.71B
• Dividend Yield: 6.83%
• Average Volume (3M): 872.84K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.65
• Revenue Growth: 15.94%
• EPS Growth: 16.17%
• Country: US
• Employees: 1,996
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.29
• Shares Outstanding: 146,211,700
• 10 Day Avg. Volume: 1,131,238
• 30 Day Avg. Volume: 872,840
• PEG Ratio: -0.66
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 2.22
• P/FCF Ratio: 13.36
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 3.72
• Enterprise Value/Ebitda: 10.50
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.26
• Revenue Forecast (FY): $650.20M

• Rating: 71 Outperform
• Price Target: $13.50 ▲(14.70% Upside)

Northwest Bancshares' strong financial performance and successful merger integration are key strengths, contributing to a positive outlook. The attractive dividend yield and reasonable valuation further enhance its appeal. However, technical indicators suggest a bearish trend, and rising non-performing assets pose risks that need monitoring.

Positive Factors

Successful Merger Integration

The successful integration of the Penns Woods merger enhances Northwest Bancshares' market position and operational scale, supporting long-term growth and efficiency improvements.

Record Revenue Growth

Strong revenue growth indicates robust demand for services and effective business strategies, positioning the company well for continued financial performance.

Strong Capital and Liquidity Position

A solid capital and liquidity position ensures financial stability and the capacity to withstand economic fluctuations, supporting long-term resilience.

Negative Factors

Increased Non-Performing Assets

Rising non-performing assets can strain financial resources and increase risk, potentially impacting profitability and requiring careful management.

Rising Loan Delinquencies

An increase in loan delinquencies may signal underlying credit quality issues, necessitating enhanced risk management to prevent future losses.

Declining Free Cash Flow Growth

A decline in free cash flow growth could limit the company's ability to invest in new opportunities and maintain financial flexibility, impacting long-term growth.

Northwest Bancshares Business Overview & Revenue Model

Company Description

Northwest Bancshares (NWBI) is a financial holding company headquartered in Warren, Pennsylvania, primarily engaged in the business of banking and financial services. The company operates through its subsidiary, Northwest Bank, which offers a wide range of services including personal and business banking, wealth management, insurance, and investment services. With a focus on community banking, Northwest Bancshares serves customers across Pennsylvania, Ohio, and New York, emphasizing local relationships and customer service.

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 demonstrates solid financial performance with strong revenue growth and profitability margins. The balance sheet reflects a conservative approach to leverage, enhancing financial stability. However, declining free cash flow growth and potential cost pressures on margins warrant careful monitoring.

Income Statement

Northwest Bancshares shows a solid revenue growth rate of 5.64% TTM, with improving margins. The gross profit margin is strong at 68.30%, and the net profit margin has increased to 17.52% TTM. EBIT and EBITDA margins are also healthy, indicating efficient operations. However, the gross profit margin has decreased from previous years, suggesting potential cost pressures.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.27 TTM, reflecting prudent financial management. Return on equity is moderate at 8.89%, indicating decent profitability. The equity ratio is stable, suggesting a balanced capital structure. However, the decrease in stockholders' equity over time could be a concern if it continues.

Cash Flow

Operating cash flow to net income ratio is low at 0.98% TTM, indicating potential cash flow challenges. Free cash flow growth has declined significantly by 30.19% TTM, which could impact future investments. Despite this, the free cash flow to net income ratio remains strong at 95.25%, showing efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	818.91M	754.09M	700.05M	558.36M	534.14M	563.06M
Gross Profit	559.31M	495.96M	524.94M	501.41M	522.68M	436.74M
EBITDA	198.51M	150.89M	199.57M	179.31M	207.76M	97.26M
Net Income	143.50M	100.28M	134.96M	133.67M	154.32M	74.85M
Balance Sheet
Total Assets	14.49B	14.41B	14.42B	14.11B	14.50B	13.81B
Cash, Cash Equivalents and Short-Term Investments	1.46B	1.40B	1.17B	1.36B	2.83B	2.14B
Total Debt	442.69M	444.70M	642.66M	924.32M	391.72M	411.84M
Total Liabilities	12.84B	12.81B	12.87B	12.62B	12.92B	12.27B
Stockholders Equity	1.64B	1.60B	1.55B	1.49B	1.58B	1.54B
Cash Flow
Free Cash Flow	115.82M	125.36M	84.33M	171.11M	187.94M	128.18M
Operating Cash Flow	121.59M	127.67M	92.89M	175.43M	205.46M	140.44M
Investing Cash Flow	-48.64M	174.97M	-239.68M	-917.42M	-232.97M	-560.58M
Financing Cash Flow	-34.31M	-136.52M	129.69M	-397.90M	570.49M	1.10B

Northwest Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWBI, the sentiment is Negative. The current price of 11.77 is below the 20-day moving average (MA) of 11.91, below the 50-day MA of 12.14, and below the 200-day MA of 11.96, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 17.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NWBI.

Northwest Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFG	75 Outperform	$1.81B	9.21	14.82%	2.94%	3.98%	6.75%
CHCO	74 Outperform	$1.73B	13.84	16.42%	2.69%	6.09%	11.49%
CASH	74 Outperform	$1.56B	8.73	21.81%	0.29%	7.80%	19.38%
FCF	72 Outperform	$1.65B	11.34	9.71%	3.40%	3.83%	―
NWBI	71 Outperform	$1.71B	13.36	6.55%	6.83%	15.94%	16.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VBTX	59 Neutral	$1.66B	14.37	7.25%	3.50%	-1.28%	32.40%

Northwest Bancshares Corporate Events

Northwest Bancshares Reports Q3 2025 Financial Results

Northwest Bancshares, Inc., headquartered in Columbus, Ohio, is a bank holding company for Northwest Bank, which offers a comprehensive range of business and personal banking services, as well as employee benefits and wealth management services across Pennsylvania, New York, Ohio, and Indiana. The company’s stock is listed on Nasdaq under the ticker NWBI.

Northwest Bancshares’ Earnings Call Highlights Growth and Challenges

Northwest Bancshares’ recent earnings call reflected a generally positive sentiment, underscored by the successful integration of the Penns Woods merger and record revenue growth. Despite facing challenges such as increased non-performing assets and rising delinquencies, the company remains optimistic due to its strong capital and liquidity position, along with improved net interest margins.

Northwest Bancshares Reports Strong Revenue Growth

Northwest Bancshares, Inc., headquartered in Columbus, Ohio, is a bank holding company for Northwest Bank, providing a wide range of financial services including personal and business banking, employee benefits, and wealth management across several states. In its latest earnings report for the second quarter of 2025, Northwest Bancshares announced a net income of $34 million, or $0.26 per diluted share, marking a significant increase from the same quarter last year. The company also highlighted a 54% growth in total revenue and a 12% increase in net interest income compared to the previous year. Key financial metrics revealed a strong net interest margin of 3.56%, and a notable 19% growth in commercial C&I lending over the past year. The successful completion of the Penns Woods merger was also a significant milestone for the company. Despite a decrease in net income from the previous quarter, the company maintained its commitment to shareholder returns by declaring a quarterly cash dividend of $0.20 per share. Looking ahead, Northwest Bancshares remains focused on optimizing operations post-merger and expanding its footprint through new branch openings, while continuing to evaluate strategic acquisition opportunities.

Northwest Bancshares’ Earnings Call: Growth Amid Challenges

Northwest Bancshares’ recent earnings call painted a picture of robust growth and strategic success, tempered by some emerging challenges. The company showcased strong revenue growth and successful merger execution, which were key highlights of the call. However, concerns over increased classified loans and noninterest expenses, along with potential issues with non-performing assets, were also discussed, indicating areas that require attention.