NasdaqGS:NWBI

Stock Analysis Report

Executive Summary

Northwest Bancshares, Inc. operates as a holding company for Northwest Bank that offers various personal and business banking solutions.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Northwest Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.9%

NasdaqGS:NWBI

-1.2%

US Mortgage

-1.6%

US Market


1 Year Return

-13.9%

NasdaqGS:NWBI

-2.8%

US Mortgage

-3.0%

US Market

NWBI underperformed the Mortgage industry which returned -2.8% over the past year.

NWBI underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

NWBIIndustryMarket
7 Day-4.9%-1.2%-1.6%
30 Day-6.9%-2.7%-5.7%
90 Day-7.6%-1.6%0.2%
1 Year-10.2%-13.9%-0.8%-2.8%-0.8%-3.0%
3 Year16.1%3.0%29.8%21.1%38.1%29.1%
5 Year54.3%25.3%55.3%39.0%50.8%34.1%

Price Volatility Vs. Market

How volatile is Northwest Bancshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Northwest Bancshares undervalued based on future cash flows and its price relative to the stock market?

15.45x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Northwest Bancshares's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Northwest Bancshares's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Northwest Bancshares is overvalued based on earnings compared to the US Mortgage industry average.

Northwest Bancshares is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Northwest Bancshares is poor value based on expected growth next year.


Price Based on Value of Assets

Northwest Bancshares is overvalued based on assets compared to the US Mortgage industry average.


Next Steps

Future Growth

How is Northwest Bancshares expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Northwest Bancshares's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).

Northwest Bancshares's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

Northwest Bancshares's revenue growth is positive but not above the United States of America market average.

Northwest Bancshares's earnings growth is positive but not above the United States of America market average.

Northwest Bancshares's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Northwest Bancshares is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Northwest Bancshares performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Northwest Bancshares's year on year earnings growth rate has been positive over the past 5 years.

Northwest Bancshares's 1-year earnings growth is less than its 5-year average (8.9% vs 14.5%)

Northwest Bancshares's earnings growth has not exceeded the US Mortgage industry average in the past year (8.9% vs 32.9%).


Return on Equity

Northwest Bancshares has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Northwest Bancshares used its assets more efficiently than the US Mortgage industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Northwest Bancshares improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Information is not available.

Information is not available.


Financial Institutions Analysis

Northwest Bancshares has an acceptable proportion of non-loan assets held.

Northwest Bancshares has a low allowance for bad loans.

Northwest Bancshares's liabilities are made up of primarily low risk sources of funding.

Northwest Bancshares's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Northwest Bancshares are broadly funded by customer deposits.

Northwest Bancshares has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Northwest Bancshares's current dividend yield, its reliability and sustainability?

4.67%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Northwest Bancshares's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Northwest Bancshares's dividend is above the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

What is the CEO of Northwest Bancshares's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Ron Seiffert (62yo)

1.2yrs

Tenure

US$1,032,672

Compensation

Mr. Ronald J. Seiffert, also known as Ron, has been the President of Northwest Bancshares Inc. and Northwest Bank since November 2017, and has been its Chief Executive Officer since June 22, 2018. Mr. Seif ...


CEO Compensation Analysis

Ron's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Ron to compare compensation growth.


Management Age and Tenure

1.2yrs

Average Tenure

56yo

Average Age

The average tenure for the Northwest Bancshares management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.3yrs

Average Tenure

60.5yo

Average Age

The tenure for the Northwest Bancshares board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$68,60017 May 19
Timothy Hunter
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max PriceUS$17.15
SellUS$10,53008 May 19
Sonia Probst
EntityIndividual
Role
Member of the Board of Directors
Director
Shares600
Max PriceUS$17.55
SellUS$187,36124 Apr 19
Robert Campana
EntityIndividual
Role
Member of the Board of Directors
Director
Shares11,000
Max PriceUS$17.03
SellUS$57,69311 Feb 19
Philip Tredway
EntityIndividual
Role
Lead Director
Lead Director
Shares3,210
Max PriceUS$17.97

Ownership Breakdown


Management Team

  • Ron Seiffert (62yo)

    Chairman

    • Tenure: 1.2yrs
    • Compensation: US$1.03m
  • William Harvey (53yo)

    Senior EVP & CFO

    • Tenure: 0.0yrs
    • Compensation: US$691.42k
  • Steven Fisher (62yo)

    Senior EVP and Chief Digital & Innovation Officer

    • Tenure: 0.0yrs
    • Compensation: US$698.11k
  • Mike Smelko (51yo)

    Executive VP & Chief Credit Officer

    • Tenure: 0.0yrs
    • Compensation: US$498.70k
  • Michael Bickerton (59yo)

    Executive VP of Commercial Lending

    • Tenure: 4.0yrs
    • Compensation: US$518.70k
  • Richard Laws

    Executive VP

    • Tenure: 0.0yrs
  • Ronald Andzelik

    Senior VP & Chief Compliance Officer

    • Tenure: 0.0yrs
  • Drew Young

    Executive VP & Chief Information Officer

    • Tenure: 0.0yrs
  • Eric Stoever

    Senior VP & CTO

    • Tenure: 0.0yrs
  • Jeffrey White (34yo)

    Principal Accounting Officer

    • Tenure: 0.4yrs

Board Members

  • Ron Seiffert (62yo)

    Chairman

    • Tenure: 1.2yrs
    • Compensation: US$1.03m
  • Bob Campana (59yo)

    Director

    • Tenure: 4.0yrs
    • Compensation: US$127.86k
  • Phil Tredway (70yo)

    Lead Director

    • Tenure: 5.3yrs
    • Compensation: US$151.39k
  • John Meegan (60yo)

    Director

    • Tenure: 9.3yrs
    • Compensation: US$137.53k
  • Sonia Probst (60yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$136.19k
  • Deborah Chadsey (61yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$123.55k
  • Timothy Hunter (56yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$128.52k
  • Timothy Fannin (65yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$137.90k
  • William McKnight (67yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$139.12k
  • Mark Paup (53yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$129.92k

Company Information

Northwest Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Northwest Bancshares, Inc.
  • Ticker: NWBI
  • Exchange: NasdaqGS
  • Founded: 1896
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$1.685b
  • Shares outstanding: 106.64m
  • Website: https://www.northwest.com

Number of Employees


Location

  • Northwest Bancshares, Inc.
  • 100 Liberty Street
  • Warren
  • Pennsylvania
  • 16365
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWBINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1994
NHSDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1994

Biography

Northwest Bancshares, Inc. operates as a holding company for Northwest Bank that offers various personal and business banking solutions. The company accepts various deposits, such as checking, savings, mon ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:40
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.