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 Analysis

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

Stable Share Price: NWBI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.0%

NWBI

6.9%

US Mortgage

10.5%

US Market


1 Year Return

-33.1%

NWBI

-23.6%

US Mortgage

-11.5%

US Market

Return vs Industry: NWBI underperformed the US Mortgage industry which returned -23.6% over the past year.

Return vs Market: NWBI underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

NWBIIndustryMarket
7 Day6.0%6.9%10.5%
30 Day-21.3%-26.5%-15.4%
90 Day-31.5%-32.8%-21.4%
1 Year-30.1%-33.1%-21.7%-23.6%-9.6%-11.5%
3 Year-23.7%-32.6%-16.5%-22.5%12.6%5.4%
5 Year17.0%-5.0%5.1%-6.7%32.8%18.1%

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 compared to its fair value and its price relative to the market?

13.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWBI ($11.35) is trading below our estimate of fair value ($13.08)

Significantly Below Fair Value: NWBI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NWBI is poor value based on its PE Ratio (10.8x) compared to the Mortgage industry average (10.7x).

PE vs Market: NWBI is good value based on its PE Ratio (10.8x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: NWBI is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: NWBI is overvalued based on its PB Ratio (0.9x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

How is Northwest Bancshares forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWBI's forecast earnings growth (6.8% per year) is above the savings rate (1.7%).

Earnings vs Market: NWBI's earnings (6.8% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: NWBI's earnings are forecast to grow, but not significantly.

Revenue vs Market: NWBI's revenue (12% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NWBI's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWBI's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Northwest Bancshares performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWBI has high quality earnings.

Growing Profit Margin: NWBI's current net profit margins (25.3%) are lower than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: NWBI's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: NWBI's earnings growth over the past year (4.7%) is below its 5-year average (16.6% per year).

Earnings vs Industry: NWBI earnings growth over the past year (4.7%) underperformed the Mortgage industry 8.7%.


Return on Equity

High ROE: NWBI's Return on Equity (8.2%) is considered low.


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

Inventory Level: NWBI has a low level of unsold assets or inventory.

Debt Coverage by Assets: NWBI's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: NWBI's level of assets compared to its equity is low.

Allowance for Bad Loans: NWBI has a low allowance for bad loans.

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

Loan Level: NWBI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NWBI's loans are broadly funded by customer deposits.

Level of Bad Loans: NWBI has an appropriate level of bad loans (0.76%)


Next Steps

Dividend

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

6.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWBI's dividend (6.7%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: NWBI's dividend (6.7%) is in the top 25% of dividend payers in the US market (5.45%)


Stability and Growth of Payments

Stable Dividend: NWBI's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.4%), NWBI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWBI's dividends in 3 years are forecast to be covered by earnings (84.2% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Ron Seiffert (62yo)

1.75s

Tenure

US$1,282,464

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

Compensation vs Market: Ron's total compensation ($USD1.28M) is below average for companies of similar size in the US market ($USD4.54M).

Compensation vs Earnings: Ron's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ronald Seiffert
Chairman1.75yrsUS$1.28m0.031% $374.4k
William Harvey
Senior EVP & CFOno dataUS$1.09m0.18% $2.2m
Steven Fisher
Senior EVP & Chief Innovation Officerno dataUS$1.23m0.32% $3.9m
John Golding
Executive Vice President of Consumer & Business Bankingno dataUS$530.68k0.019% $225.6k
Louis Torchio
Executive VP of Retail Lending2.17yrsUS$539.57k0.012% $144.7k
Jeffrey White
Principal Accounting Officer1yrno data0.0018% $22.0k
Eric Stoever
Senior VP & CTOno datano datano data
Andrew Young
Executive VP & Chief Information Officerno datano data0.079% $958.7k
Richard Laws
Executive VPno datano data0.033% $400.9k
Ronald Andzelik
Senior VP & Chief Compliance Officerno datano data0.097% $1.2m

1.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: NWBI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ronald Seiffert
Chairman1.75yrsUS$1.28m0.031% $374.4k
Robert Campana
Independent Director4.58yrsUS$139.49k0.036% $436.7k
Philip Tredway
Lead Independent Director5.92yrsUS$179.44k0.018% $215.2k
John Meegan
Independent Director9.92yrsUS$158.02k0.074% $900.6k
Sonia Probst
Independent Director8.92yrsUS$159.71k0.038% $462.5k
Deborah Chadsey
Independent Director7.92yrsUS$143.58k0.024% $285.5k
Timothy Hunter
Independent Director4.92yrsUS$140.11k0.042% $505.0k
Timothy Fannin
Independent Director6.92yrsUS$150.75k0.019% $230.8k
William McKnight
Independent Director6.92yrsUS$152.06k0.038% $459.9k
Mark Paup
Independent Director3.92yrsUS$131.82k0.010% $124.4k

6.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: NWBI's board of directors are considered experienced (6.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NWBI 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 2.7%.


Top Shareholders

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$1.214b
  • Shares outstanding: 106.93m
  • 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, money market deposit, term certificate, and individual retirement accounts. Its loan products include one-to-four family residential real estate, short-term consumer, multi-family residential and commercial real estate, commercial business, and residential mortgage loans; home equity lines of credit; and consumer loans comprising automobile, sales finance, unsecured personal, and credit card loans, as well as loans secured by deposit accounts. The company also offers employee benefit, property, and casualty insurance services; and brokerage, investment management, and trust services. As of January 22, 2019, it operated 162 full-service community-banking offices and 10 freestanding drive-through facilities in Pennsylvania, New York, and Ohio. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Warren, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 01:44
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.