Norwood Financial (NWFL) AI Stock Analysis

• Market Cap: $246.10M
• Dividend Yield: 4.67%
• Average Volume (3M): 25.90K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 0.81
• Revenue Growth: -4.66%
• EPS Growth: -59.22%
• Country: US
• Employees: 264
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.89
• Shares Outstanding: 9,262,325
• 10 Day Avg. Volume: 33,518
• 30 Day Avg. Volume: 25,901
• PEG Ratio: 13.48
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 2.15
• P/FCF Ratio: 11.06
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 4.77
• Enterprise Value/Ebitda: 48.72
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $29.00 ▲(16.98% Upside)

Norwood Financial's overall stock score reflects its stable financial position and positive earnings call highlights, such as asset growth and improved margins. However, high valuation metrics and profitability challenges weigh on the score.

Positive Factors

Community Banking Strength

Norwood Financial's focus on community banking provides a stable customer base and fosters long-term relationships, supporting consistent growth.

Improved Credit Quality

Enhanced credit quality reduces default risk and strengthens the financial position, ensuring sustainable operations and profitability.

Balanced Leverage Profile

A balanced leverage profile indicates prudent financial management, providing stability and flexibility for future growth initiatives.

Negative Factors

Declining Free Cash Flow

A decline in free cash flow suggests potential liquidity challenges, which could limit the company's ability to invest in growth opportunities.

Low Profitability

Low profitability margins indicate challenges in converting revenue into profit, which may affect long-term financial health and shareholder returns.

Earnings Decline

A significant decline in earnings per share growth reflects potential operational inefficiencies and could impact investor confidence and valuation.

Norwood Financial Business Overview & Revenue Model

Company Description

Norwood Financial (NWFL) is a financial services company that specializes in providing a range of banking and investment solutions. Operating primarily in the regional banking sector, NWFL offers services such as personal and commercial lending, deposit accounts, wealth management, and financial advisory services. With a commitment to community-focused banking, the company aims to support local businesses and individuals in achieving their financial goals.

How the Company Makes Money

Norwood Financial generates revenue through multiple streams, including interest income from loans, fees from deposit accounts, and commissions from investment services. The primary revenue source is the interest earned on personal and commercial loans, where the company charges borrowers interest over the life of the loan. Additionally, NWFL earns fee income from account maintenance, transaction fees, and service charges associated with various banking products. The company also benefits from its wealth management services, earning management fees and commissions on investment products sold to clients. Strategic partnerships with local businesses and financial institutions further enhance its offerings and help drive customer acquisition, contributing significantly to its overall earnings.

Norwood Financial Financial Statement Overview

Summary

Norwood Financial demonstrates strong revenue growth and efficient cost management, with potential areas for improvement in operational efficiency and leverage. The company's cash flow management is generally solid, though some fluctuations in free cash flow growth suggest room for refinement.

Income Statement

Norwood Financial shows a robust revenue growth trend, with a noticeable increase in total revenue over the past years. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has experienced volatility, and the recent decline in EBIT margin is concerning, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet demonstrates a stable equity ratio, reflecting a sound financial structure with adequate equity backing the assets. The debt-to-equity ratio has increased, raising potential leverage concerns, but remains manageable. Return on Equity has shown fluctuations, highlighting variability in profitability relative to shareholder investment.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio, illustrating effective cash conversion from profits. Free cash flow has grown, enhancing financial flexibility. However, the variability in free cash flow growth rate indicates some instability in cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	108.50M	101.43M	103.66M	85.60M	79.43M	66.23M
Gross Profit	53.96M	48.37M	64.64M	77.43M	69.47M	52.81M
EBITDA	5.28M	1.12M	22.61M	37.96M	32.46M	19.80M
Net Income	3.17M	-160.00K	16.76M	29.23M	24.91M	15.08M
Balance Sheet
Total Assets	2.37B	2.32B	2.20B	2.05B	2.07B	1.85B
Cash, Cash Equivalents and Short-Term Investments	434.51M	470.19M	472.38M	450.79M	613.46M	338.28M
Total Debt	111.85M	194.86M	168.31M	173.22M	90.82M	105.76M
Total Liabilities	2.14B	2.10B	2.02B	1.88B	1.86B	1.66B
Stockholders Equity	225.43M	213.51M	181.07M	167.09M	205.26M	194.78M
Cash Flow
Free Cash Flow	20.66M	19.68M	28.41M	28.58M	27.94M	13.05M
Operating Cash Flow	25.30M	22.81M	29.82M	30.73M	29.20M	13.80M
Investing Cash Flow	-147.16M	-115.20M	-116.57M	-207.99M	-130.96M	-61.36M
Financing Cash Flow	105.50M	98.62M	121.00M	2.44M	196.75M	143.84M

Norwood Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWFL, the sentiment is Positive. The current price of 24.79 is below the 20-day moving average (MA) of 25.41, below the 50-day MA of 25.72, and below the 200-day MA of 24.79, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 59.12 is Neutral, neither overbought nor oversold. The STOCH value of 83.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWFL.

Norwood Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OVLY	―	$230.51M	9.49	12.29%	2.18%	1.80%	-5.19%
FUNC	―	$226.34M	9.13	13.36%	2.63%	11.73%	55.87%
WNEB	―	$234.22M	17.34	5.51%	2.47%	7.37%	27.35%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NWFL	―	$246.10M	40.33	3.56%	4.67%	-4.66%	-59.22%
FVCB	―	$222.94M	10.31	8.87%	0.97%	16.68%	322.32%

Norwood Financial Corporate Events

Norwood Financial’s Earnings Call Highlights Growth and Optimism

Norwood Financial’s recent earnings call painted a picture of a company in a strong financial position, showcasing significant asset growth, an improved net interest margin, and increased noninterest income. Despite facing some challenges such as merger charges and rising expenses, the overall sentiment was positive, indicating that the company is well-positioned for future growth.

Norwood Financial Corp Reports Strong Q3 2025 Results

Norwood Financial Corp, the parent company of Wayne Bank, operates in the banking sector with a focus on community banking services across Northeastern Pennsylvania and parts of New York. The company is publicly traded on the Nasdaq Global Market under the symbol NWFL.

Norwood Financial Reports Strong Q3 2025 Earnings Growth

On October 22, 2025, Norwood Financial Corp announced its financial results for the third quarter and year-to-date 2025, highlighting significant growth in earnings and improved financial metrics. The company reported an 85% increase in fully diluted EPS compared to the same period in 2024, with a notable rise in return on assets and net interest margin. The announcement underscores Norwood’s successful strategy in enhancing profitability and efficiency, supported by a disciplined approach to growth and credit management. The company’s rebranding initiative, ‘Every Day Better,’ has been well-received, further strengthening its market position and company culture.

The most recent analyst rating on (NWFL) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Norwood Financial stock, see the NWFL Stock Forecast page.

Norwood Financial Announces Leadership Changes and Dividend

On September 16, 2025, Lewis J. Critelli retired as Chairman of the Board and Director of Norwood Financial Corp and its subsidiary, Wayne Bank. Dr. Andrew A. Forte was appointed as the new Chairman of the Board, with Kevin Lamont named Vice Chairman. Additionally, James Shook and Marissa S. Nacinovich joined the Boards of Directors, bringing extensive professional and community service experience. The company also announced a quarterly cash dividend of $0.31 per share, payable on November 3, 2025, to stockholders of record as of October 15, 2025. These changes signal a strategic leadership transition aimed at continuing the company’s growth and community engagement.

The most recent analyst rating on (NWFL) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Norwood Financial stock, see the NWFL Stock Forecast page.