NasdaqGS:NWBI

Stock Analysis Report

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Market Cap

US$1.8b

Last Updated

2021/06/18 04:05 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Established dividend payer with adequate balance sheet.


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 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.


Market Performance


7 Day Return

-1.1%

NWBI

-1.7%

US Mortgage

-0.2%

US Market


1 Year Return

35.8%

NWBI

49.0%

US Mortgage

39.4%

US Market

Return vs Industry: NWBI underperformed the US Mortgage industry which returned 52.1% over the past year.

Return vs Market: NWBI underperformed the US Market which returned 39.7% over the past year.


Shareholder returns

NWBIIndustryMarket
7 Day-1.1%-1.7%-0.2%
30 Day-1.8%3.8%3.1%
90 Day-6.2%-6.1%5.6%
1 Year45.0%35.8%53.6%49.0%41.7%39.4%
3 Year-9.6%-22.8%26.6%16.2%59.7%49.9%
5 Year24.8%-1.5%75.4%49.6%122.6%97.6%

Long-Term 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?

27.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWBI ($14.32) is trading below our estimate of fair value ($19.18)

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


Price To Earnings Ratio

PE vs Industry: NWBI is poor value based on its PE Ratio (16.7x) compared to the US Mortgage industry average (13.1x).

PE vs Market: NWBI is good value based on its PE Ratio (16.7x) compared to the US market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: NWBI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NWBI's PB Ratio (1.2x) is in line with the US Mortgage industry average.


Future Growth

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

-3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWBI's earnings are forecast to decline over the next 3 years (-3.6% per year).

Earnings vs Market: NWBI's earnings are forecast to decline over the next 3 years (-3.6% per year).

High Growth Earnings: NWBI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NWBI's revenue (1.8% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: NWBI's revenue (1.8% 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 (8.4%).


Past Performance

How has Northwest Bancshares performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWBI has high quality earnings.

Growing Profit Margin: NWBI's current net profit margins (21.8%) are lower than last year (22.1%).


Past Earnings Growth Analysis

Earnings Trend: NWBI's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: NWBI's earnings growth over the past year (14.8%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: NWBI earnings growth over the past year (14.8%) underperformed the Mortgage industry 25.6%.


Return on Equity

High ROE: NWBI's Return on Equity (7%) is considered low.


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


Financial Institutions Analysis

Asset Level: NWBI's Assets to Equity ratio (9.3x) is low.

Allowance for Bad Loans: NWBI has a low allowance for bad loans (55%).

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 (84%) is appropriate.

Level of Bad Loans: NWBI has a high level of bad loans (2.2%).


Dividend

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

5.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWBI's dividend (5.59%) is higher than the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: NWBI's dividend (5.59%) is in the top 25% of dividend payers in the US market (3.36%)


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: At its current payout ratio (88.9%), NWBI's 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% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Ron Seiffert (63 yo)

3yrs

Tenure

US$1,558,296

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 ($USD1.56M) is below average for companies of similar size in the US market ($USD3.71M).

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


Leadership Team

Experienced Management: NWBI's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: NWBI's board of directors are considered experienced (6 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 not been meaningfully diluted in the past year.


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$1.780b
  • Shares outstanding: 127.25m
  • Website: https://www.northwest.bank

Number of Employees


Location

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

Listings


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 Analysis2021/06/18 04:05
End of Day Share Price2021/06/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.