Norwood Financial (NWFL) AI Stock Analysis

• Market Cap: $236.08M
• Dividend Yield: 4.83%
• Average Volume (3M): 22.75K
• Price to Earnings (P/E): 107.3
• Beta (1Y): 0.75
• Revenue Growth: -4.78%
• EPS Growth: -85.40%
• Country: US
• Employees: 264
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 9,261,575
• 10 Day Avg. Volume: 26,588
• 30 Day Avg. Volume: 22,751
• 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: 1.34
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 5.88
• Enterprise Value/Ebitda: 60.09
• 1Y Price Target: $26.00
• Price Target Upside: 3.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $26.00 ▲(3.34% Upside)

Norwood Financial's overall score is primarily influenced by its strong financial performance, despite some operational efficiency concerns. Technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, though the dividend yield offers some appeal.

Positive Factors

Cash Flow Management

Effective cash conversion from profits indicates strong cash flow management, enhancing financial flexibility and supporting long-term growth.

Balance Sheet Stability

A stable equity ratio suggests a solid financial foundation, providing resilience against economic fluctuations and supporting future investments.

Board Leadership Change

Leadership changes can bring fresh perspectives and strategies, potentially driving long-term strategic growth and enhancing governance.

Negative Factors

Revenue Growth Decline

A decline in revenue growth suggests challenges in market expansion or product adoption, potentially impacting future profitability and market position.

Leverage Concerns

Increased leverage can strain financial resources, limiting flexibility and increasing risk during economic downturns or interest rate hikes.

Net Profit Margin Volatility

Volatility in net profit margins can indicate inconsistent cost management or pricing pressures, affecting long-term profitability and financial stability.

Norwood Financial Business Overview & Revenue Model

Company Description

Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest bearing transaction accounts, and statement savings and money market accounts, as well as certificate of deposits. It also provides various loans, such as commercial loans comprising lines of credit, revolving credit, term loans, mortgages, secured lending products, and letter of credit facilities; municipal finance lending; construction loans for commercial construction projects and single-family residences; land loans; consumer loans; mortgage lending to finance principal residences and second home dwellings; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles. In addition, the company offers investment securities services; trust and investment products; and cash management, direct deposit, remote deposit capture, mobile deposit capture, mobile payment, automated clearing house activity, real estate settlement, and Internet and mobile banking services. Further, it engages in the annuity and mutual fund sale, and discount brokerage activities, as well as insurance agency business. The company serves consumers, businesses, nonprofit organizations, and municipalities. It operates fourteen offices in Northeastern Pennsylvania; and sixteen offices in Delaware, Sullivan, Ontario, Otsego, and Yates Counties, New York, as well as thirty-one automated teller machines. Norwood Financial Corp. was founded in 1870 and is headquartered in Honesdale, Pennsylvania.

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: Negative
• Last Price: 25.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWFL, the sentiment is Negative. The current price of 25.16 is below the 20-day moving average (MA) of 25.91, below the 50-day MA of 25.68, and above the 200-day MA of 25.09, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 38.52 is Neutral, neither overbought nor oversold. The STOCH value of 30.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NWFL.

Norwood Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUNC	75 Outperform	$236.79M	9.97	13.37%	2.41%	11.42%	63.24%
WNEB	74 Outperform	$236.07M	19.59	5.08%	2.46%	6.82%	-6.56%
OVLY	72 Outperform	$225.98M	9.21	13.54%	2.25%	5.11%	-2.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FVCB	60 Neutral	$226.55M	11.32	8.69%	0.47%	17.89%	351.71%
NWFL	56 Neutral	$236.08M	107.33	1.56%	4.83%	-4.78%	-85.40%

Norwood Financial Corporate Events

Norwood Financial Announces Merger with PB Bankshares

On July 7, 2025, Norwood Financial and PB Bankshares announced the signing of a Merger Agreement, which is expected to expand Norwood’s footprint into Central and Southeastern Pennsylvania. This strategic acquisition aims to enhance product offerings, increase market share, and provide significant cross-selling opportunities, while also offering PB Bankshares additional resources and a higher lending limit to expand its existing loan relationships.

The most recent analyst rating on (NWFL) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Norwood Financial stock, see the NWFL Stock Forecast page.

Norwood Financial Announces Increased Quarterly Dividend

On June 18, 2025, Norwood Financial Corp announced a quarterly cash dividend of $0.31 per share, payable on August 1, 2025, to stockholders of record as of July 15, 2025. This dividend marks a $0.01 increase over the previous year’s second-quarter dividend, reflecting the company’s financial strength and solid performance.

The most recent analyst rating on (NWFL) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Norwood Financial stock, see the NWFL Stock Forecast page.