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NWBI

Northwest Bancshares NasdaqGS:NWBI Stock Report

Last Price

US$14.16

Market Cap

US$1.8b

7D

-1.5%

1Y

7.4%

Updated

07 Aug, 2022

Data

Company Financials +
NWBI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends5/6

NWBI Stock Overview

Northwest Bancshares, Inc. operates as the holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions.

Northwest Bancshares Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Northwest Bancshares
Historical stock prices
Current Share PriceUS$14.16
52 Week HighUS$15.15
52 Week LowUS$12.04
Beta0.56
1 Month Change10.11%
3 Month Change14.47%
1 Year Change7.44%
3 Year Change-14.80%
5 Year Change-8.17%
Change since IPO608.00%

Recent News & Updates

Jul 28
Northwest Bancshares (NASDAQ:NWBI) Will Pay A Dividend Of $0.20

Northwest Bancshares (NASDAQ:NWBI) Will Pay A Dividend Of $0.20

The board of Northwest Bancshares, Inc. ( NASDAQ:NWBI ) has announced that it will pay a dividend of $0.20 per share on...

Jul 25

Northwest Bancshares declares $0.20 dividend

Northwest Bancshares (NASDAQ:NWBI) declares $0.20/share quarterly dividend, in line with previous. Forward yield 6.12% Payable Aug. 15; for shareholders of record Aug. 4; ex-div Aug. 3. See NWBI Dividend Scorecard, Yield Chart, & Dividend Growth.

Jun 15

Northwest Bancshares: A 6.6% Dividend Yield Doesn't Make The Stock Cheap

Northwest Bancshares operates branches in Pennsylvania, New York, Ohio and Indiana. The balance sheet appears to be quite robust, with plenty of attention for liquid securities and cash. The dividend is fully covered, but the payout ratio is 90% based on the Q1 results. A higher interest rate should improve the earnings profile of the bank. I'm on the sidelines for now, but will keep an eye on its performance.

Shareholder Returns

NWBIUS BanksUS Market
7D-1.5%0.3%1.0%
1Y7.4%-14.1%-12.9%

Return vs Industry: NWBI exceeded the US Banks industry which returned -14.1% over the past year.

Return vs Market: NWBI exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is NWBI's price volatile compared to industry and market?
NWBI volatility
NWBI Average Weekly Movement2.7%
Banks Industry Average Movement3.7%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

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

Volatility Over Time: NWBI's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18962,332Bill Harveyhttps://www.northwest.bank

Northwest Bancshares, Inc. operates as the holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts various deposits, including checking, savings, money market deposit, term certificate, and individual retirement accounts. It also offers loan products comprising one-to-four-family residential real estate loans and loans collateralized by multi-family residential and commercial real estate; commercial business loans; and consumer loans, including automobile loans, sales finance loans, unsecured personal loans, credit card loans, and loans secured by deposit accounts.

Northwest Bancshares Fundamentals Summary

How do Northwest Bancshares's earnings and revenue compare to its market cap?
NWBI fundamental statistics
Market CapUS$1.80b
Earnings (TTM)US$141.19m
Revenue (TTM)US$503.49m

12.7x

P/E Ratio

1.2x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NWBI income statement (TTM)
RevenueUS$503.49m
Cost of RevenueUS$0
Gross ProfitUS$503.49m
Other ExpensesUS$503.49m
EarningsUS$0

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.11
Gross Margin100.00%
Net Profit Margin28.04%
Debt/Equity Ratio26.6%

How did NWBI perform over the long term?

See historical performance and comparison

Dividends

5.6%

Current Dividend Yield

71%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NWBI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NWBI?

Other financial metrics that can be useful for relative valuation.

NWBI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio9.7x

Price to Earnings Ratio vs Peers

How does NWBI's PE Ratio compare to its peers?

NWBI PE Ratio vs Peers
The above table shows the PE ratio for NWBI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.5x
HTH Hilltop Holdings
8.7x-19.5%US$1.8b
HTLF Heartland Financial USA
10x12.1%US$1.9b
NBTB NBT Bancorp
11.4x-0.9%US$1.7b
HOPE Hope Bancorp
8x-2.9%US$1.8b
NWBI Northwest Bancshares
12.7x1.3%US$1.8b

Price-To-Earnings vs Peers: NWBI is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (9.5x).


Price to Earnings Ratio vs Industry

How does NWBI's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: NWBI is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the US Banks industry average (9.8x)


Price to Earnings Ratio vs Fair Ratio

What is NWBI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NWBI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.7x
Fair PE Ratio11.7x

Price-To-Earnings vs Fair Ratio: NWBI is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (11.7x).


Share Price vs Fair Value

What is the Fair Price of NWBI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NWBI ($14.16) is trading below our estimate of fair value ($25.14)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


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Future Growth

How is Northwest Bancshares forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


1.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWBI's forecast earnings growth (1.3% per year) is below the savings rate (1.9%).

Earnings vs Market: NWBI's earnings (1.3% per year) are forecast to grow slower than the US market (12.9% per year).

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

Revenue vs Market: NWBI's revenue (5% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: NWBI's revenue (5% 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 (8.7%).


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Past Performance

How has Northwest Bancshares performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


8.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NWBI has high quality earnings.

Growing Profit Margin: NWBI's current net profit margins (28%) are higher than last year (19.2%).


Past Earnings Growth Analysis

Earnings Trend: NWBI's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: NWBI's earnings growth over the past year (31.8%) exceeds its 5-year average (8.6% per year).

Earnings vs Industry: NWBI earnings growth over the past year (31.8%) exceeded the Banks industry 8.8%.


Return on Equity

High ROE: NWBI's Return on Equity (8.5%) is considered low.


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Financial Health

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

Financial Health Score

5/6

Financial Health Score 5/6

  • 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: NWBI's Assets to Equity ratio (9.5x) is low.

Allowance for Bad Loans: NWBI has a low allowance for bad loans (80%).

Low Risk Liabilities: 95% of NWBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: NWBI has an appropriate level of Loans to Assets ratio (71%).

Low Risk Deposits: NWBI's Loans to Deposits ratio (83%) is appropriate.

Level of Bad Loans: NWBI has an appropriate level of bad loans (1.2%).


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NWBI's dividend (5.65%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: NWBI's dividend (5.65%) is in the top 25% of dividend payers in the US market (4.09%)


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

Earnings Coverage: With its reasonable payout ratio (71.5%), 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 (75.1% payout ratio).


Discover strong dividend paying companies

Management

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

0.9yrs

Average management tenure


CEO

Bill Harvey (56 yo)

0.25

Tenure

US$864,872

Compensation

Mr. William W. Harvey, Jr., also known as Bill, is Chief Financial Officer of Northwest Bancshares, Inc. since 2022. He served as Senior Vice President at Northwest Bank since May 24, 2022 until 2022. He j...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD864.87K) is below average for companies of similar size in the US market ($USD5.42M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NWBI's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: NWBI's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NWBI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Northwest Bancshares, Inc.
  • Ticker: NWBI
  • Exchange: NasdaqGS
  • Founded: 1896
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$1.797b
  • Shares outstanding: 126.88m
  • Website: https://www.northwest.bank

Number of Employees


Location

  • Northwest Bancshares, Inc.
  • 3 Easton Oval
  • Suite 500
  • Columbus
  • Ohio
  • 43219
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.