Norwood Financial (NWFL) AI Stock Analysis

• Market Cap: $228.72M
• Dividend Yield: 5.09%
• Average Volume (3M): 23.39K
• Price to Earnings (P/E): 103.1
• Beta (1Y): 0.83
• Revenue Growth: -4.78%
• EPS Growth: -85.63%
• Country: US
• Employees: 264
• Sector: Financial
• Sector Strength: 67
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 9,490,505
• 10 Day Avg. Volume: 19,124
• 30 Day Avg. Volume: 23,386
• 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: 1.39
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 6.32
• Enterprise Value/Ebitda: 114.79
• 1Y Price Target: $26.00
• Price Target Upside: 8.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: $26.00 ▲(8.65% Upside)

Norwood Financial's overall score is buoyed by its strategic merger and solid financial performance, despite technical analysis indicating a bearish trend and valuation concerns due to an excessively high P/E ratio. The attractive dividend yield and positive corporate events contribute positively, offsetting some of the technical and valuation risks.

Positive Factors

Capital Management

A recent ~$30M follow-on offering to reposition low yielding AFS portfolio into higher yielding securities is expected to enhance profitability metrics and EPS levels.

Dividend Sustainability

The company's strong dividend history and current ~5.0% yield is seen as sustainable, even with lower profitability metrics compared to peers.

Management Strategy

A relatively new pro-growth management team is positioning the bank for margin EPS and profitability improvement.

Negative Factors

Financial Performance

The forecasted ROA of 1.05% in 2026 is below peers, contributing to the Equal-Weight rating and a $25.50 price target.

Growth Projections

Despite the expectation of mid-single-digit organic growth in 2025, the anticipated growth may not be sufficient to overcome the current lower profitability metrics.

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 Corp. generates revenue primarily through its subsidiary, Wayne Bank, which earns money from interest income, fees, and service charges. The bank's primary source of income is interest accrued from loans, including commercial, residential, and consumer loans, which are offered to various customers. Additionally, Wayne Bank generates non-interest income through fees associated with account maintenance, overdrafts, and transaction services, as well as wealth management services. The company's earnings are also influenced by its investment portfolio, comprising securities and other financial instruments that yield interest income. Norwood Financial benefits from its regional presence and relationships with local businesses and individuals, which contribute to its stable deposit base and loan demand.

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	104.92M	101.43M	103.66M	85.60M	79.43M	66.23M
Gross Profit	50.38M	48.37M	64.64M	77.43M	69.47M	52.81M
EBITDA	2.77M	1.12M	22.61M	37.96M	32.46M	19.80M
Net Income	1.18M	-160.00K	16.76M	29.23M	24.91M	15.08M
Balance Sheet
Total Assets	2.38B	2.32B	2.20B	2.05B	2.07B	1.85B
Cash, Cash Equivalents and Short-Term Investments	378.94M	470.19M	472.38M	450.79M	613.46M	338.28M
Total Debt	118.59M	194.86M	168.31M	173.22M	90.82M	105.76M
Total Liabilities	2.16B	2.10B	2.02B	1.88B	1.86B	1.66B
Stockholders Equity	220.71M	213.51M	181.07M	167.09M	205.26M	194.78M
Cash Flow
Free Cash Flow	24.15M	19.68M	28.41M	28.58M	27.94M	13.05M
Operating Cash Flow	27.65M	22.81M	29.82M	30.73M	29.20M	13.80M
Investing Cash Flow	-154.29M	-115.20M	-116.57M	-207.99M	-130.96M	-61.36M
Financing Cash Flow	90.08M	98.62M	121.00M	2.44M	196.75M	143.84M

Norwood Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 23.93 is below the 20-day moving average (MA) of 24.48, below the 50-day MA of 25.03, and below the 200-day MA of 25.71, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 31.55 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
PKBK	81 Outperform	$244.92M	8.06	10.24%	3.50%	11.26%	42.81%
JMSB	77 Outperform	$267.29M	14.10	7.73%	1.63%	23.76%	683.10%
MVBF	76 Outperform	$299.40M	17.80	5.71%	2.94%	-10.47%	-16.98%
OVLY	72 Outperform	$221.03M	9.02	13.54%	2.27%	0.40%	-10.62%
Sector *	67 Neutral	$17.04B	11.59	9.79%	3.95%	10.64%	1.81%
NWFL	59 Neutral	$228.72M	103.08	1.56%	5.09%	-4.78%	-85.63%
FFNW	55 Neutral	$208.18M	194.65	0.66%	―	2.28%	-83.17%

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.