Norwood Financial (NWFL) AI Stock Analysis

• Market Cap: $318.62M
• Dividend Yield: 4.21%
• Average Volume (3M): 34.23K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.60
• Revenue Growth: -4.66%
• EPS Growth: -58.94%
• Country: US
• Employees: 264
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.84
• Shares Outstanding: 10,934,200
• 10 Day Avg. Volume: 30,681
• 30 Day Avg. Volume: 34,230
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: 8.86
• 1Y Price Target: $33.00
• Price Target Upside: 8.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.5
• Revenue Forecast (FY): $113.80M

• Rating: 70 Outperform
• Price Target: $32.00 ▲(5.51% Upside)
• Action: Upgraded Date: 01/22/26
• Date: Action: Upgraded 01/22/26

The score is driven primarily by improving financial quality (notably strong cash flow and better leverage) and a supportive earnings outlook tied to acquisition-driven scale and improved profitability/credit trends. These positives are tempered by a high P/E valuation and only moderately strong technical momentum.

Positive Factors

Acquisition Approval

The acquisition approval represents a strategic expansion, potentially enhancing product offerings and market reach, which can drive long-term growth.

Strong Cash Flow

Robust cash flow generation indicates strong operational efficiency and financial health, providing flexibility for future investments and growth.

Dividend Increase

Increasing dividends reflect a commitment to shareholder value and confidence in ongoing financial strength, supporting long-term investor trust.

Negative Factors

Revenue Growth Challenges

Ongoing challenges in revenue growth could limit the company's ability to scale and compete effectively, impacting long-term profitability.

Increased Expenses

Rising expenses can erode profit margins and reduce financial flexibility, potentially hindering future investments and growth initiatives.

Profitability Metrics Weakness

Weak profitability metrics indicate challenges in generating returns on investments, which could affect long-term financial performance and investor confidence.

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, 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

Overall fundamentals are mixed but improving: cash flow is a clear strength (strong free cash flow growth and efficient cash conversion), the balance sheet shows better leverage management, while the income statement remains the main drag due to weak/declining revenue growth and margin volatility despite a recovering net profit margin.

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	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	0.00	19.68M	28.41M	28.58M	27.94M
Operating Cash Flow	0.00	22.81M	29.82M	30.73M	29.20M
Investing Cash Flow	0.00	-115.20M	-116.57M	-207.99M	-130.96M
Financing Cash Flow	0.00	98.62M	121.00M	2.44M	196.75M

Norwood Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 30.33 is below the 20-day moving average (MA) of 30.80, above the 50-day MA of 29.33, and above the 200-day MA of 26.40, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 51.27 is Neutral, neither overbought nor oversold. The STOCH value of 19.60 is Positive, 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	75 Outperform	$276.31M	11.44	12.29%	1.99%	5.50%	-5.19%
FUNC	73 Outperform	$232.78M	9.50	13.36%	2.38%	11.72%	55.87%
WNEB	72 Outperform	$271.93M	17.66	5.51%	2.18%	7.37%	27.35%
NWFL	70 Outperform	$318.62M	9.68	12.18%	4.21%	-4.66%	-58.94%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FVCB	61 Neutral	$277.81M	12.70	8.87%	0.87%	16.68%	322.32%

Norwood Financial Corporate Events

Norwood Financial Posts Strong 2025 Results, Closes Acquisition

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, an increase in net interest margin of 58 basis points, loan growth of 8.2%, deposit growth of 11.8%, a 10% rise in non-interest-bearing demand deposits, and a 15.4% increase in tangible book value per share. Fourth-quarter net income rebounded strongly from a loss a year earlier, and returns on assets and tangible equity improved sharply, signaling a recovery from prior-period pressures. Management emphasized disciplined growth, operational efficiency and momentum entering 2026, underpinned by the January 5, 2026 closing of the Presence Bank acquisition, which expands the bank’s geographic reach, asset base and talent pool and is expected to strengthen its competitive position and long-term value proposition for customers and shareholders.

The most recent analyst rating on (NWFL) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Norwood Financial stock, see the NWFL Stock Forecast page.

Norwood Financial Completes PB Bankshares Acquisition and Integration

On January 5, 2026, Norwood Financial Corp completed its acquisition of PB Bankshares, Inc. and its subsidiary Presence Bank, a deal originally agreed in July 2025 that added roughly $456 million in assets and expanded Norwood’s footprint into Chester and Lancaster Counties in Pennsylvania. The transaction, structured as a mix of cash and stock valued at $19.75 per PB Bankshares share or 0.7850 Norwood shares, resulted in an estimated $10.5 million in cash and about 1.67 million Norwood shares being issued, bringing the combined company to approximately $2.9 billion in assets and 33 offices and underscoring Norwood’s strategy to scale its community banking franchise. Governance and leadership were reshaped as former PB Bankshares directors Joseph W. Carroll and Spencer J. Andress joined the boards of Norwood and Wayne Bank, while PB Bankshares CEO Janak M. Amin became Executive Vice President and Chief Operating Officer under a detailed three-year employment, non-compete, and supplemental retirement package, designed to retain his more than 25 years of regional banking experience and support integration and growth in Central Pennsylvania. Additional senior PB Bankshares executives, including Larry W. Witt as Chief Information Officer and Douglas L. Byers as Market President for Central Pennsylvania, also joined Norwood, signaling a broader management integration aimed at leveraging PB Bankshares’ community-banking culture and client relationships to enhance Norwood’s competitive position and service capabilities in its expanded markets.

The most recent analyst rating on (NWFL) stock is a Buy with a $34.00 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 December 17, 2025, Norwood Financial Corp announced a quarterly cash dividend of $0.32 per share, payable on February 2, 2026, marking a $0.01 increase from the fourth quarter of 2024. The dividend highlights the company’s strong financial and capital positions, reflecting its solid performance and commitment to providing value to shareholders.

The most recent analyst rating on (NWFL) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Norwood Financial stock, see the NWFL Stock Forecast page.

Norwood Financial Receives Approval for PB Bankshares Acquisition

On December 12, 2025, Norwood Financial Corp announced it received final regulatory approvals for its acquisition of PB Bankshares, Inc. and its subsidiary, Presence Bank. The acquisition, expected to close around January 5, 2026, aims to expand Norwood’s product offerings and market reach, enhancing value for stakeholders. However, potential challenges include integration costs and achieving anticipated synergies.

The most recent analyst rating on (NWFL) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Norwood Financial stock, see the NWFL Stock Forecast page.

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.