Norwood Financial (NWFL) AI Stock Analysis

• Market Cap: $276.07M
• Dividend Yield: 4.16%
• Average Volume (3M): 26.64K
• Price to Earnings (P/E): 45.5
• Beta (1Y): 0.63
• 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: 24,736
• 30 Day Avg. Volume: 26,639
• 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: 0.94
• 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: 72 Outperform
• Price Target: $32.00 ▲(12.48% Upside)

Norwood Financial's overall stock score reflects a combination of strong technical momentum and positive corporate events, offset by valuation concerns. The company's robust cash flow and strategic growth initiatives are significant strengths, while the high P/E ratio suggests potential overvaluation. Earnings call insights and leadership changes further support a positive outlook, despite challenges in revenue growth and profitability.

Positive Factors

Asset Growth

Strong asset growth indicates effective business expansion and increased market penetration, supporting long-term financial stability.

Leadership Changes

Strategic leadership changes can drive new growth initiatives and enhance corporate governance, positively impacting long-term performance.

Net Interest Margin Improvement

Improved net interest margin enhances profitability, indicating better asset-liability management and potential for sustained earnings growth.

Negative Factors

Revenue Growth Challenges

Challenges in revenue growth can hinder long-term profitability and market competitiveness, necessitating strategic adjustments.

Merger Charges

Merger-related expenses can temporarily strain financial performance, impacting short-term profitability and operational efficiency.

Increased Expenses

Rising expenses can pressure margins and reduce profitability, requiring cost management strategies to maintain financial health.

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: Neutral

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 below the 20-day moving average (MA) of 28.64, above the 50-day MA of 27.06, and above the 200-day MA of 25.27, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 68.74 is Neutral, neither overbought nor oversold. The STOCH value of 68.80 is Neutral, 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
FVCB	75 Outperform	$253.05M	12.05	8.87%	0.86%	16.68%	322.32%
OVLY	72 Outperform	$258.36M	10.82	12.29%	1.95%	5.50%	-5.19%
NWFL	72 Outperform	$276.07M	45.52	3.56%	4.16%	-4.66%	-58.94%
FUNC	71 Outperform	$265.66M	10.66	13.36%	2.38%	11.72%	55.87%
WNEB	69 Neutral	$272.13M	20.32	5.51%	2.11%	7.37%	27.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Norwood Financial Corporate Events

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.

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.

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.