NasdaqGM:NWFL

Stock Analysis Report

Executive Summary

Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Norwood Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

NWFL

4.1%

US Banks

1.0%

US Market


1 Year Return

-13.0%

NWFL

7.2%

US Banks

8.0%

US Market

Return vs Industry: NWFL underperformed the US Banks industry which returned 7.2% over the past year.

Return vs Market: NWFL underperformed the US Market which returned 8% over the past year.


Shareholder returns

NWFLIndustryMarket
7 Day2.1%4.1%1.0%
30 Day-4.3%2.8%-0.07%
90 Day-10.6%2.9%-1.0%
1 Year-10.4%-13.0%10.3%7.2%10.4%8.0%
3 Year73.4%58.5%53.9%43.3%46.2%36.7%
5 Year100.6%68.5%71.9%53.1%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Norwood Financial undervalued compared to its fair value and its price relative to the market?

14.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NWFL ($31.11) is trading above our estimate of fair value ($17.63)

Significantly Below Fair Value: NWFL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NWFL is poor value based on its PE Ratio (14.2x) compared to the Banks industry average (12.6x).

PE vs Market: NWFL is good value based on its PE Ratio (14.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NWFL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NWFL is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).


Next Steps

  • Explore potentially undervalued companies in the Banks industry.

Future Growth

How is Norwood Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWFL's forecast earnings growth (2.6% per year) is below the savings rate (2.7%).

Earnings vs Market: NWFL's earnings (2.6% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: Insufficient data to determine if NWFL's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if NWFL's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Norwood Financial performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NWFL's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: NWFL's earnings growth over the past year (40.9%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: NWFL earnings growth over the past year (40.9%) exceeded the Banks industry 30.1%.


Return on Equity

High ROE: NWFL's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: NWFL has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate NWFL's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Norwood Financial'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: NWFL has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

Allowance for Bad Loans: NWFL has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: NWFL has an appropriate level of bad loans (0.15%)


Next Steps

Dividend

What is Norwood Financial's current dividend yield, its reliability and sustainability?

3.09%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NWFL's dividend (3.09%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: NWFL's dividend (3.09%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.8%), NWFL'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 and that it will be covered by earnings.


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Lew Critelli (59yo)

9.8yrs

Tenure

US$581,879

Compensation

Mr. Lewis J. Critelli, also known as Lew, has been the Chief Executive Officer and President of Norwood Financial Corp. since January 1, 2010. Mr. Critelli has been the Chief Executive Officer and Presiden ...


CEO Compensation Analysis

Compensation vs. Market: Lew's total compensation ($USD581.88K) is below average for companies of similar size in the US market ($USD1.18M).

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


Management Age and Tenure

7.8yrs

Average Tenure

59yo

Average Age

Experienced Management: NWFL's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

8.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: NWFL's board of directors are considered experienced (8.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$16,18019 Aug 19
Kevin Lamont
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$32.36
BuyUS$5,64207 Aug 19
Joseph Adams
EntityIndividual
Role
Member of the Board of Directors
Director
Shares175
Max PriceUS$32.24
BuyUS$42,65225 Apr 19
Ralph Matergia
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,340
Max PriceUS$31.83
BuyUS$8,96111 Mar 19
Joseph Adams
EntityIndividual
Role
Member of the Board of Directors
Director
Shares300
Max PriceUS$29.87
BuyUS$11,79230 Jan 19
Andrew Forte
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares400
Max PriceUS$29.48
BuyUS$7,32525 Jan 19
Kevin Lamont
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceUS$29.30
BuyUS$30,22024 Jan 19
Joseph Adams
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,030
Max PriceUS$29.34
BuyUS$37,00019 Nov 18
Robert Mancuso
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares1,000
Max PriceUS$37.00
BuyUS$2,55308 Nov 18
Andrew Forte
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares69
Max PriceUS$37.00

Ownership Breakdown


Management Team

  • Lew Critelli (59yo)

    President

    • Tenure: 9.8yrs
    • Compensation: US$581.88k
  • John Sanders (62yo)

    Senior Vice President

    • Tenure: 0yrs
    • Compensation: US$109.12k
  • Bill Lance (59yo)

    Executive VP

    • Tenure: 9.6yrs
    • Compensation: US$319.03k
  • John Carmody (49yo)

    Executive VP & Chief Credit Officer

    • Tenure: 6yrs
    • Compensation: US$236.47k
  • Bob Mancuso (62yo)

    Executive VP & COO

    • Tenure: 2.8yrs
    • Compensation: US$276.13k
  • Jim Burke (50yo)

    Executive VP & Chief Lending Officer

    • Tenure: 0yrs
    • Compensation: US$310.34k

Board Members

  • Russell Ridd (90yo)

    Director Emeritus

    • Tenure: 0yrs
    • Compensation: US$27.91k
  • Bill Davis (75yo)

    Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$71.35k
  • Lew Critelli (59yo)

    President

    • Tenure: 9.8yrs
    • Compensation: US$581.88k
  • Kenneth Phillips (69yo)

    Independent Director

    • Tenure: 31.8yrs
    • Compensation: US$67.37k
  • Ralph Matergia (70yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$69.87k
  • Kevin Lamont (60yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$71.40k
  • Susan Campfield (62yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$68.40k
  • Andy Forte (61yo)

    Vice Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$69.90k
  • Joe Adams (56yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$69.90k
  • Meg Hungerford (42yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$68.93k

Company Information

Norwood Financial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Norwood Financial Corp.
  • Ticker: NWFL
  • Exchange: NasdaqGM
  • Founded: 1871
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$194.671m
  • Shares outstanding: 6.26m
  • Website: https://www.waynebank.com

Number of Employees


Location

  • Norwood Financial Corp.
  • 717 Main Street
  • Honesdale
  • Pennsylvania
  • 18431
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWFLNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 1990

Biography

Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:41
End of Day Share Price2019/10/21 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.