Norwood Financial (NWFL) AI Stock Analysis

• Market Cap: $263.57M
• Dividend Yield: 4.36%
• Average Volume (3M): 28.42K
• Price to Earnings (P/E): 43.5
• Beta (1Y): 0.64
• Revenue Growth: -4.66%
• EPS Growth: -58.94%
• Country: US
• Employees: 264
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.89
• Shares Outstanding: 9,264,200
• 10 Day Avg. Volume: 29,731
• 30 Day Avg. Volume: 28,421
• 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: 0.98
• Enterprise Value/Revenue: 2.30
• Enterprise Value/Gross Profit: 4.27
• Enterprise Value/Ebitda: 23.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.92
• Revenue Forecast (FY): $85.80M

• Rating: 71 Outperform
• Price Target: $29.00 ▲(1.93% Upside)

Norwood Financial's overall stock score reflects a strong cash flow position and positive earnings call insights, which are the most significant factors. The technical analysis supports a positive trend, while the high P/E ratio suggests caution regarding valuation. The company's strategic positioning for future growth, despite some profitability challenges, contributes to a moderately positive outlook.

Positive Factors

Strong Asset Growth

The significant asset growth indicates strong demand for Norwood Financial's services, enhancing its ability to generate future revenue and support expansion.

Improved Net Interest Margin

An improved net interest margin enhances profitability by increasing the spread between interest income and expenses, supporting long-term financial health.

Noninterest Income Growth

Growth in noninterest income diversifies revenue streams, reducing reliance on interest income and enhancing financial stability.

Negative Factors

Declining Revenue Growth

Declining revenue growth can limit the company's ability to invest in new opportunities and maintain competitive positioning in the market.

Merger Charges

Merger-related charges can strain financial resources and impact short-term profitability, potentially affecting long-term strategic initiatives.

Increased Quarterly Expenses

Rising expenses can pressure profit margins, necessitating cost management to sustain profitability and competitive advantage.

Norwood Financial Business Overview & Revenue Model

Company Description

Norwood Financial (NWFL) is a diversified financial services company that operates primarily in the banking and investment sectors. Based in the United States, NWFL offers a range of financial products and services including personal and commercial banking, mortgages, investment advisory, and wealth management services. The company is committed to providing tailored financial solutions to its clients, leveraging technology and insights to enhance customer experience and drive growth.

How the Company Makes Money

Norwood Financial generates revenue through multiple streams, primarily from interest income on loans and mortgages, service fees from banking operations, and management fees from its investment advisory services. The company profits from the spread between interest earned on loans and interest paid on deposits. Additionally, NWFL earns commission and advisory fees from investment management, which are contingent on the performance of the funds it manages. Strategic partnerships with financial technology providers enhance operational efficiency and customer acquisition, further contributing to its overall revenue. Moreover, the company may also benefit from ancillary services such as insurance products and financial planning, which provide additional revenue opportunities.

Norwood Financial Financial Statement Overview

Summary

Norwood Financial shows a mixed financial performance. The income statement indicates challenges in revenue growth and profitability, but resilience in net income. The balance sheet reflects improved leverage management, though profitability metrics need attention. The cash flow statement is a strong point, indicating robust cash generation and management.

Income Statement

Norwood Financial's income statement shows a mixed performance. The TTM data indicates a negative gross profit margin and a declining revenue growth rate, which are concerning. However, the net profit margin has improved to 7.28% in the TTM, suggesting some profitability recovery. Historical data shows fluctuating revenue growth, with a significant decline in the most recent period. The EBIT and EBITDA margins have also shown volatility, with recent improvements in EBITDA margin. Overall, the income statement reflects challenges in revenue growth and profitability, but some resilience in net income.

Balance Sheet

The balance sheet of Norwood Financial indicates moderate stability. The debt-to-equity ratio has improved significantly in the TTM, suggesting better leverage management. Return on equity has seen a decline, reflecting reduced profitability. The equity ratio remains stable, indicating a solid capital structure. Overall, the balance sheet shows a positive trend in leverage reduction, but profitability metrics need attention.

Cash Flow

Norwood Financial's cash flow statement presents a strong position. The TTM data shows a significant growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is robust, suggesting efficient cash conversion. The free cash flow to net income ratio is also strong, highlighting effective cash management. Overall, the cash flow statement reflects a healthy cash position and strong cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	112.41M	101.43M	103.66M	85.60M	79.43M	66.23M
Gross Profit	60.54M	48.37M	64.64M	77.43M	69.47M	52.81M
EBITDA	10.98M	1.12M	22.61M	37.96M	32.46M	19.80M
Net Income	7.66M	-160.00K	16.76M	29.23M	24.91M	15.08M
Balance Sheet
Total Assets	2.41B	2.32B	2.20B	2.05B	2.07B	1.85B
Cash, Cash Equivalents and Short-Term Investments	215.92M	470.19M	472.38M	450.79M	613.46M	338.28M
Total Debt	72.07M	194.86M	168.31M	173.22M	90.82M	105.76M
Total Liabilities	2.18B	2.10B	2.02B	1.88B	1.86B	1.66B
Stockholders Equity	234.91M	213.51M	181.07M	167.09M	205.26M	194.78M
Cash Flow
Free Cash Flow	28.53M	19.68M	28.41M	28.58M	27.94M	13.05M
Operating Cash Flow	30.00M	22.81M	29.82M	30.73M	29.20M	13.80M
Investing Cash Flow	-148.41M	-115.20M	-116.57M	-207.99M	-130.96M	-61.36M
Financing Cash Flow	110.26M	98.62M	121.00M	2.44M	196.75M	143.84M

Norwood Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.45
• 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 28.45 is above the 20-day moving average (MA) of 27.12, above the 50-day MA of 26.11, and above the 200-day MA of 24.98, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 69.23 is Neutral, neither overbought nor oversold. The STOCH value of 91.24 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	72 Outperform	$230.09M	9.63	12.29%	2.13%	5.50%	-5.19%
NWFL	71 Outperform	$263.57M	43.46	3.56%	4.36%	-4.66%	-58.94%
WNEB	69 Neutral	$251.44M	18.78	5.51%	2.28%	7.37%	27.35%
FVCB	68 Neutral	$217.88M	10.39	8.87%	0.94%	16.68%	322.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FUNC	67 Neutral	$247.79M	9.94	13.36%	2.41%	11.72%	55.87%

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.