Finward Bancorp (NasdaqCM:FNWD) - Share price, News & Analysis

FNWD fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	2/6
Financial Health	6/6
Dividends	4/6

FNWD Stock Overview

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services.

Rewards

Trading at 57.3% below our estimate of its fair value

Earnings are forecast to grow 26.06% per year

Pays a reliable dividend of 3.26%

Risk Analysis

Profit margins (19%) are lower than last year (29%)

Shareholders have been diluted in the past year

Finward Bancorp Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Finward Bancorp
Historical stock prices
Current Share Price	US$38.00
52 Week High	US$50.00
52 Week Low	US$37.16
Beta	0.56
1 Month Change	-16.30%
3 Month Change	-20.88%
1 Year Change	-13.14%
3 Year Change	-13.64%
5 Year Change	-6.17%
Change since IPO	85.37%

Recent News & Updates

Apr 30

Finward Bancorp Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for Finward Bancorp ( NASDAQ:FNWD ), which a week ago released some disappointing...

Shareholder Returns

	FNWD	US Banks	US Market
7D	-2.6%	-3.5%	0.7%
1Y	-13.1%	-20.8%	-10.8%

Return vs Industry: FNWD exceeded the US Banks industry which returned -19.6% over the past year.

Return vs Market: FNWD underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is FNWD's price volatile compared to industry and market?
FNWD volatility
FNWD Average Weekly Movement	4.0%
Banks Industry Average Movement	3.9%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: FNWD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FNWD's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1994	267	Ben Bochnowski	https://www.ibankpeoples.com

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company’s deposit products include non-interest and interest bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities.

Finward Bancorp Fundamentals Summary

How do Finward Bancorp's earnings and revenue compare to its market cap?
FNWD fundamental statistics
Market Cap	US$165.20m
Earnings (TTM)	US$12.56m
Revenue (TTM)	US$65.91m

13.0x

P/E Ratio

1.0x

P/B Ratio

Is FNWD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FNWD income statement (TTM)
Revenue	US$65.91m
Cost of Revenue	US$0
Gross Profit	US$65.91m
Other Expenses	US$53.36m
Earnings	US$12.56m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.92
Gross Margin	100.00%
Net Profit Margin	19.05%
Debt/Equity Ratio	14.7%

How did FNWD perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

36%

Payout Ratio

Valuation

Is Finward Bancorp undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: FNWD ($38) is trading below our estimate of fair value ($88.91)

Significantly Below Fair Value: FNWD is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: FNWD is poor value based on its PE Ratio (13x) compared to the US Banks industry average (9.7x).

PE vs Market: FNWD is good value based on its PE Ratio (13x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: FNWD is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: FNWD's PB Ratio (1x) is in line with the US Banks industry average.

Future Growth

How is Finward Bancorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FNWD's forecast earnings growth (26.1% per year) is above the savings rate (1.9%).

Earnings vs Market: FNWD's earnings (26.1% per year) are forecast to grow faster than the US market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FNWD's revenue (15.1% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: FNWD's revenue (15.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if FNWD's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Finward Bancorp performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

13.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FNWD has high quality earnings.

Growing Profit Margin: FNWD's current net profit margins (19%) are lower than last year (29%).

Past Earnings Growth Analysis

Earnings Trend: FNWD's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: FNWD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FNWD had negative earnings growth (-30.6%) over the past year, making it difficult to compare to the Banks industry average (20.9%).

Return on Equity

High ROE: FNWD's Return on Equity (8%) is considered low.

Financial Health

How is Finward Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: FNWD's Assets to Equity ratio (13.3x) is moderate.

Allowance for Bad Loans: FNWD has a sufficient allowance for bad loans (174%).

Low Risk Liabilities: 98% of FNWD's liabilities are made up of primarily low risk sources of funding.

Loan Level: FNWD has an appropriate level of Loans to Assets ratio (68%).

Low Risk Deposits: FNWD's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: FNWD has an appropriate level of bad loans (0.5%).

Dividend

What is Finward Bancorp current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FNWD's dividend (3.26%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: FNWD's dividend (3.26%) is low compared to the top 25% of dividend payers in the US market (4.05%).

Stability and Growth of Payments

Stable Dividend: FNWD's dividends per share have been stable in the past 10 years.

Growing Dividend: FNWD's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.7%), FNWD's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

Next Steps

Explore strong dividend paying companies in the Banks industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure

CEO

Ben Bochnowski (40 yo)

7.33yrs

Tenure

US$694,164

Compensation

Mr. Benjamin J. Bochnowski, also known as Ben, has been Chief Executive Officer of Finward Bancorp (formerly known as NorthWest Indiana Bancorp) since April 28, 2016, President since January 15, 2015 and D...

CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD694.16K) is below average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: Ben's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: FNWD's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: FNWD's board of directors are seasoned and experienced ( 17.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: FNWD insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31