Northwest Bancshares (NWBI) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: 6.37%
• Average Volume (3M): 658.17K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.70
• Revenue Growth: 6.30%
• EPS Growth: -12.43%
• Country: US
• Employees: 1,996
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 0.35
• Shares Outstanding: 127,752,450
• 10 Day Avg. Volume: 594,214
• 30 Day Avg. Volume: 658,173
• PEG Ratio: -0.95
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.31
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 3.97
• Enterprise Value/Ebitda: 3.84
• 1Y Price Target: $13.50
• Price Target Upside: 7.74% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $14.00 ▲(11.73%Upside)

The overall stock score reflects strong financial performance and strategic growth through commercial lending and a successful merger. Despite economic uncertainties and pressure on profitability margins, the company's solid balance sheet, attractive dividend yield, and positive technical indicators support a favorable outlook. The leadership transition further aligns with its growth trajectory.

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 its lending activities, which include residential mortgage loans, commercial real estate loans, and consumer loans. Additionally, the company earns non-interest income from fees and service charges related to deposit accounts, loan servicing, and other banking services. Investment management and insurance services also contribute to its revenue streams. Northwest Bancshares benefits from strategic partnerships with financial service providers and local businesses to enhance its product offerings and expand its customer base. The company's focus on community banking helps maintain a loyal customer base, contributing to stable earnings.

Northwest Bancshares Financial Statement Overview

Summary

Northwest Bancshares demonstrates strong revenue growth and a solid balance sheet with zero debt and substantial cash reserves. However, profitability margins are under pressure, and cash flow metrics reflect challenges in cash generation. While the company maintains a sound equity base, there is a need for improvement in cash flow management to sustain long-term growth.

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
747.83M	498.08M	587.92M	558.36M	534.14M	520.72M
	Gross Profit
516.87M	495.96M	524.94M	501.41M	522.68M	520.72M
	EBIT
158.72M	129.55M	202.88M	173.69M	201.12M	113.31M
	EBITDA
165.62M	150.89M	199.57M	179.31M	207.76M	97.26M
	Net Income Common Stockholders
114.57M	100.28M	134.96M	133.67M	154.32M	74.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.51B	1.40B	122.26M	1.36B	2.83B	2.14B
	Total Assets
14.45B	14.41B	14.42B	14.11B	14.50B	13.81B
	Total Debt
441.79M	444.70M	642.66M	900.22M	391.72M	411.84M
	Net Debt
88.59M	156.32M	520.40M	760.86M	-887.54M	-324.44M
	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
170.13M	125.36M	84.33M	171.11M	187.94M	128.18M
	Operating Cash Flow
167.29M	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: Positive
• Last Price: 12.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWBI, the sentiment is Positive. The current price of 12.53 is above the 20-day moving average (MA) of 12.39, above the 50-day MA of 11.97, and below the 200-day MA of 12.65, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 57.79 is Neutral, neither overbought nor oversold. The STOCH value of 78.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWBI.

Northwest Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWBI	76 Outperform	$1.60B	14.03	7.19%	6.37%	6.30%	-12.43%
CUBI	74 Outperform	$1.68B	13.30	8.14%	―	-5.61%	-44.11%
FCF	72 Outperform	$1.68B	11.90	9.91%	3.36%	6.42%	-15.95%
FBNC	69 Neutral	$1.75B	20.03	6.03%	2.08%	-2.00%	-23.83%
LKFN	68 Neutral	$1.58B	17.68	13.44%	3.29%	5.03%	-3.19%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
CLBK	48 Neutral	$1.52B	97.23	-0.15%	―	4.29%	-109.93%

Northwest Bancshares Corporate Events

Northwest Bancshares Appoints New Chairman Timothy M. Hunter

On May 12, 2025, Northwest Bancshares, Inc. announced a leadership transition with Timothy M. Hunter appointed as the new Chairman of the Board, succeeding Timothy B. Fannin, who stepped down in anticipation of his retirement in 2026. The transition marks a significant moment for the company, which is on track to becoming a Top 100 US bank by assets, with a merger with Penns Woods expected to close in late July. This leadership change is seen as a strategic move to continue the company’s growth trajectory, leveraging Hunter’s extensive business experience and previous roles within the company.

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.