Northwest Bancshares (NWBI) AI Stock Analysis

• Market Cap: $1.75B
• Dividend Yield: 6.64%
• Average Volume (3M): 901.64K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.63
• Revenue Growth: 15.86%
• EPS Growth: 16.50%
• Country: US
• Employees: 1,996
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.29
• Shares Outstanding: 146,099,980
• 10 Day Avg. Volume: 895,877
• 30 Day Avg. Volume: 901,639
• 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: 1.19
• Enterprise Value/Revenue: 2.46
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 13.76
• 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: 69 Neutral
• Price Target: $12.50 ▲(6.20% Upside)

Northwest Bancshares' overall score is driven by strong financial performance and attractive valuation, supported by a positive earnings call. However, technical indicators suggest bearish momentum, and liquidity concerns from declining cash flow metrics present risks.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for the company's services and effective business strategies, supporting long-term financial health.

Successful Merger Integration

Successful integration of the Penns Woods merger enhances the company's market position and operational scale, providing a foundation for future growth.

Strong Capital Position

A strong capital and liquidity position ensures the company can withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Increased Non-Performing Assets

Rising non-performing assets can strain financial resources and indicate potential issues in credit quality, impacting long-term profitability.

Rising Loan Delinquencies

Increased loan delinquencies may signal underlying credit risk issues, potentially leading to higher future losses and impacting financial stability.

Declining Cash Flow Metrics

Declining cash flow metrics can limit the company's ability to fund operations and growth initiatives, posing a risk to long-term sustainability.

Northwest Bancshares Business Overview & Revenue Model

Company Description

Northwest Bancshares, Inc. (NWBI) is a financial holding company headquartered in Warren, Pennsylvania, operating primarily through its wholly-owned subsidiary, Northwest Bank. The company provides a range of financial services, including retail and commercial banking, investment management, and insurance products. Northwest Bank serves customers across Pennsylvania, Ohio, and New York, offering core products such as savings and checking accounts, loans, mortgages, and wealth management services.

How the Company Makes Money

Northwest Bancshares generates revenue primarily through net interest income and non-interest income. The key revenue stream is net interest income, which is derived from the difference between the interest earned on loans and investments and the interest paid on deposits and borrowings. This includes various loan products such as commercial, residential, and consumer loans. Additionally, the company earns non-interest income through fees from wealth management services, insurance products, and transaction fees associated with deposit accounts. Significant partnerships with local businesses and community organizations enhance its customer base and service offerings, contributing to overall earnings growth.

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	846.27M	754.09M	700.05M	557.84M	534.14M	563.06M
Gross Profit	561.72M	495.96M	524.94M	501.41M	522.68M	436.74M
EBITDA	151.39M	150.89M	199.57M	180.14M	207.76M	97.26M
Net Income	113.05M	100.28M	134.96M	133.67M	154.32M	74.85M
Balance Sheet
Total Assets	16.38B	14.41B	14.42B	14.11B	14.50B	13.81B
Cash, Cash Equivalents and Short-Term Investments	301.61M	1.40B	1.17B	1.36B	2.83B	2.14B
Total Debt	613.07M	444.70M	642.66M	924.32M	391.72M	411.84M
Total Liabilities	14.53B	12.81B	12.87B	12.62B	12.92B	12.27B
Stockholders Equity	1.86B	1.60B	1.55B	1.49B	1.58B	1.54B
Cash Flow
Free Cash Flow	60.92M	125.36M	84.33M	171.11M	187.94M	128.18M
Operating Cash Flow	70.25M	127.67M	92.89M	175.43M	205.46M	140.44M
Investing Cash Flow	311.13M	174.97M	-239.68M	-917.42M	-232.97M	-560.58M
Financing Cash Flow	-329.45M	-136.52M	129.69M	-397.90M	570.49M	1.10B

Northwest Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.77
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 11.77 is above the 20-day moving average (MA) of 11.72, below the 50-day MA of 11.95, and below the 200-day MA of 11.91, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.39 is Neutral, neither overbought nor oversold. The STOCH value of 74.11 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
OFG	75 Outperform	$1.75B	9.03	14.82%	2.94%	3.98%	6.75%
CASH	74 Outperform	$1.61B	9.13	21.81%	0.30%	7.80%	19.38%
FCF	72 Outperform	$1.70B	11.82	9.71%	3.26%	3.80%	-6.23%
NWBI	69 Neutral	$1.75B	13.59	6.55%	6.64%	15.86%	16.50%
CHCO	68 Neutral	$1.75B	14.01	16.42%	2.66%	6.09%	11.49%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VBTX	59 Neutral	―	―	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.