Northwest Bancshares (NWBI) AI Stock Analysis

• Market Cap: $1.63B
• Dividend Yield: 6.27%
• Average Volume (3M): 659.52K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.70
• Revenue Growth: 6.30%
• EPS Growth: -12.43%
• Country: US
• Employees: 1,996
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.35
• Shares Outstanding: 127,752,450
• 10 Day Avg. Volume: 723,297
• 30 Day Avg. Volume: 659,517
• PEG Ratio: 0.98
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.39
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 3.18
• Enterprise Value/Ebitda: 2.64
• 1Y Price Target: $13.50
• Price Target Upside: 6.89% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $14.00 ▲(10.85%Upside)

Northwest Bancshares shows a strong financial foundation with robust revenue growth and liquidity. The stock is technically positioned for potential gains, with a reasonable valuation supported by a high dividend yield. Positive developments from the earnings call and corporate events, including leadership changes and merger progress, enhance the long-term outlook. However, challenges such as economic uncertainty and a recent 'Sell' analyst rating may temper immediate investor enthusiasm.

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 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: Negative
• Last Price: 12.63
• 50DMA: Negative
• 100DMA: Positive
• 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 12.63 is below the 20-day moving average (MA) of 13.22, below the 50-day MA of 12.72, and below the 200-day MA of 12.68, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 39.97 is Neutral, neither overbought nor oversold. The STOCH value of 12.42 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
CUBI	77 Outperform	$1.94B	15.44	8.17%	―	-5.67%	-44.11%
NWBI	75 Outperform	$1.63B	14.66	7.19%	6.27%	6.30%	-12.43%
FBNC	74 Outperform	$2.04B	19.99	6.55%	1.78%	-2.03%	-14.86%
Sector *	74 Outperform	15.39B	18.29	16.30%	216.87%	8.25%	25.93%
FCF	73 Outperform	$1.72B	12.46	9.91%	3.21%	6.42%	-15.95%
LKFN	68 Neutral	$1.64B	18.56	13.86%	3.08%	5.03%	-3.19%
CLBK	57 Neutral	$1.51B	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.