Norwood Financial (NWFL)
NASDAQ:NWFL
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Norwood Financial
(NASDAQ:NWFL)
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Rating:70Outperform
Price Target:
$34.00
â–²(9.25% Upside)
Action:ReiteratedDate:03/14/26
Score is driven primarily by strong 2025 financial rebound (profitability, improved leverage, and solid cash conversion) and favorable valuation (low P/E and high dividend yield). These positives are tempered by weak current technical momentum (price below key moving averages with negative MACD) and some execution/consistency risk highlighted by recent earnings volatility and integration-related costs.
Positive Factors
2025 revenue & margin rebound
A meaningful 2025 rebound in revenue and net margin reflects restored core profitability and improved net interest income dynamics. Sustained higher margins and revenue growth support durable earnings, better cash generation and give management scope to invest, pay dividends and absorb shocks over the next 2–6 months.
Negative Factors
Earnings and execution volatility
Material year‑to‑year swings in profitability and leverage highlight execution and cyclicality risks. Inconsistent results make forecasting and capital planning harder, increasing the chance that dividends, credit provisioning or growth initiatives could be constrained if momentum falters in the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
2025 revenue & margin rebound
A meaningful 2025 rebound in revenue and net margin reflects restored core profitability and improved net interest income dynamics. Sustained higher margins and revenue growth support durable earnings, better cash generation and give management scope to invest, pay dividends and absorb shocks over the next 2–6 months.
Read all positive factors
Norwood Financial (NWFL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$338.90M
Dividend Yield4.21%
Average Volume (3M)22.95K
Price to Earnings (P/E)9.3
Beta (1Y)0.61
Revenue Growth-4.66%
EPS Growth-58.94%
CountryUS
Employees264
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.84
Shares Outstanding10,890,166
10 Day Avg. Volume18,720
30 Day Avg. Volume22,950
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.06
Price to Sales (P/S)1.89
P/FCF Ratio8.89
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue2.42
Enterprise Value/Gross Profit3.80
Enterprise Value/Ebitda9.01
Forecast
1Y Price Target
$33.00Price Target Upside6.04% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.5
Revenue Forecast (FY)$113.50M
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 accou...
How the Company Makes Money
Norwood Financial primarily earns revenue through (1) net interest income and (2) noninterest income. Net interest income is generated by taking deposits and other funding (e.g., checking, savings, and time deposits) and using those funds to origi...
Norwood Financial Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call presented materially stronger operating performance in 2025 with major positives including a 62% increase in net interest income, adjusted net income and EPS more than doubling, a completed acquisition that grew assets by 20%, improved credit metrics, and strategic hires and AI initiatives. Countervailing items were modest: a 3 basis point margin decline sequentially, a 2% linked-quarter decline in pre-provision net revenue, rising short-term expenses (5% linked quarter), and ~$520k of merger charges. Overall, the positive operational and strategic developments and significant year-over-year income gains outweigh the manageable near-term costs and temporary pressures.Positive Updates
Large Increase in Net Interest Income and Spread
Net interest spread expanded by 62 basis points year-over-year, driving a 62% increase in net interest income compared with 2024.
Negative Updates
Quarterly Margin Compression
Net interest margin fell by 3 basis points on a linked-quarter basis, attributed to loan growth during the quarter and seasonal outflow of municipal deposits.
Read all updates
Q4-2025 Updates
Positive
Negative
Large Increase in Net Interest Income and Spread
Net interest spread expanded by 62 basis points year-over-year, driving a 62% increase in net interest income compared with 2024.
Read all positive updates
Company Guidance
Management’s guidance for 2026 centers on four priorities—fully integrating the Presence Bank acquisition, deploying AI to boost operational efficiency and speed underwriting, strengthening talent and the leadership bench, and driving shareholder value through disciplined deposit/asset growth, selective M&A and a capital framework that returns a reliable, growing dividend—and they said these actions should build on 2025 momentum that produced a 62‑basis‑point expansion in net interest spread, a 62% increase in net interest income vs. 2024 (net interest income up $5 million sequentially despite a 3‑bp margin decline), adjusted net income and EPS that more than doubled, a ~20% larger asset base and four added branches from the Jan. 5 Presence close, merger charges of ~ $520k in Q4, an unadjusted pre‑provision net revenue decline of 2% linked‑quarter, quarterly expenses +1.5% year‑over‑year and +5% linked‑quarter, and improving credit metrics (lower NPLs and higher reserves-to‑NPA), all of which management said should support continued profitable growth in 2026.Norwood Financial Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 136.14M | 101.43M | 103.66M | 85.60M | 79.43M |
| Gross Profit | 86.63M | 48.37M | 64.64M | 77.43M | 69.47M |
| EBITDA | 36.56M | 1.12M | 22.61M | 37.96M | 32.46M |
| Net Income | 27.75M | -160.00K | 16.76M | 29.23M | 24.91M |
Balance Sheet | |||||
| Total Assets | 2.42B | 2.32B | 2.20B | 2.05B | 2.07B |
| Cash, Cash Equivalents and Short-Term Investments | 440.90M | 470.19M | 472.38M | 450.79M | 613.46M |
| Total Debt | 74.13M | 194.86M | 168.31M | 173.22M | 90.82M |
| Total Liabilities | 2.18B | 2.10B | 2.02B | 1.88B | 1.86B |
| Stockholders Equity | 242.16M | 213.51M | 181.07M | 167.09M | 205.26M |
Cash Flow | |||||
| Free Cash Flow | 28.92M | 19.68M | 28.41M | 28.58M | 27.94M |
| Operating Cash Flow | 33.97M | 22.81M | 29.82M | 30.73M | 29.20M |
| Investing Cash Flow | -128.95M | -115.20M | -116.57M | -207.99M | -130.96M |
| Financing Cash Flow | 67.08M | 98.62M | 121.00M | 2.44M | 196.75M |
Norwood Financial Technical Analysis
Positive
31.12
Price Trends
30.03
Positive
29.18
Positive
27.15
Positive
Market Momentum
0.51
Negative
64.86
Neutral
87.72
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 31.12 is above the 20-day moving average (MA) of 29.77, above the 50-day MA of 30.03, and above the 200-day MA of 27.15, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 64.86 is Neutral, neither overbought nor oversold. The STOCH value of 87.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWFL.
Norwood Financial Risk Analysis
Norwood Financial disclosed 26 risk factors in its most recent earnings report. Norwood Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Norwood Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $292.12M | 9.79 | 12.74% | 1.99% | 5.50% | -5.19% | |
70 Outperform | $338.90M | 9.26 | 12.03% | 4.21% | -4.66% | -58.94% | |
69 Neutral | $250.30M | 9.91 | 12.61% | 2.38% | 11.72% | 55.87% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $281.62M | 12.15 | 5.51% | 2.18% | 7.37% | 27.35% | |
58 Neutral | $277.76M | 11.43 | 8.92% | 0.87% | 16.68% | 322.32% |
* Financial Sector Average
NWFL
Norwood Financial
31.12
9.46
43.67%
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Norwood Financial Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Norwood Financial Posts Strong 2025 Results, Closes Acquisition
Positive
Jan 22, 2026
On January 22, 2026, Norwood Financial Corp reported its fourth-quarter and full-year 2025 results, highlighting a year of improved profitability and balance sheet growth. For 2025, the company delivered fully diluted earnings per share of $3.01, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.