OTCPK:NWYF

Stock Analysis Report

Executive Summary

Northway Financial, Inc. operates as the bank holding company for Northway Bank that provides various banking products and services to individuals, small businesses, and commercial customers in New Hampshire.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.

Risks

  • Northway Financial is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

OTCPK:NWYF

1.1%

US Banks

0.5%

US Market


1 Year Return

-4.0%

OTCPK:NWYF

-8.0%

US Banks

0.8%

US Market

NWYF outperformed the Banks industry which returned -8% over the past year.

NWYF underperformed the Market in United States of America which returned 0.8% over the past year.


Share holder returns

NWYFIndustryMarket
7 Day0.8%1.1%0.5%
30 Day0%-0.6%-0.06%
90 Day1.3%-2.8%1.0%
1 Year-1.8%-4.0%-5.5%-8.0%3.0%0.8%
3 Year50.1%39.8%57.1%46.4%47.3%37.5%
5 Year76.9%54.7%57.0%40.3%54.7%37.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

14.04x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Northway Financial is overvalued based on earnings compared to the US Banks industry average.

Northway Financial is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Northway Financial, we can't assess if its growth is good value.


Price Based on Value of Assets

Northway Financial is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Northway Financial is high growth as no revenue estimate data is available.

Northway Financial's earnings are expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).

Unable to compare Northway Financial's revenue growth to the United States of America market average as no estimate data is available.

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

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


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Northway Financial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Northway Financial performed over the past 5 years?

-6.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Northway Financial's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Northway Financial's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Northway Financial's 1-year earnings growth is negative, it can't be compared to the US Banks industry average.


Return on Equity

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


Return on Assets

Northway Financial used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Northway Financial 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 Northway 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


Financial Institutions Analysis

Northway Financial has an acceptable proportion of non-loan assets held.

Northway Financial has a sufficient allowance for bad loans.

Northway Financial's liabilities are made up of primarily low risk sources of funding.

Northway Financial's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Northway Financial are broadly funded by customer deposits.

Northway Financial has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

2.36%

Current Dividend Yield


Dividend Yield and Payments Analysis

Northway Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).

Northway Financial's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Northway Financial has been paying a dividend for less than 10 years.

Dividend payments have increased, but Northway Financial only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

14.8yrs

Average management tenure


CEO

Bill Woodward (72yo)

22.4yrs

Tenure

US$557,249

Compensation

Mr. William J. Woodward, also known as Bill, serves as President of Northway Bank. Mr. Woodward has been Chairman, President and Chief Executive Officer of Northway Financial Inc. since 1997. In addition,  ...


Management Age and Tenure

14.8yrs

Average Tenure

72yo

Average Age

The average tenure for the Northway Financial management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

20.4yrs

Average Tenure

65yo

Average Age

The average tenure for the Northway Financial board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Bill Woodward (72yo)

    Chairman

    • Tenure: 22.4yrs
    • Compensation: $557.25k
  • Gary Laurash (62yo)

    Senior VP & CFO

    • Tenure: 4.3yrs
  • John Gobel (73yo)

    CTO & Senior VP

    • Tenure: 14.8yrs
    • Compensation: $143.52k
  • Debra Blair

    Secretary


Board Members

  • Bill Woodward (72yo)

    Chairman

    • Tenure: 22.4yrs
    • Compensation: $557.25k
  • Brien Ward (65yo)

    Director

    • Tenure: 17.4yrs
    • Compensation: $14.00k
  • Randall Labnon (64yo)

    Director

    • Tenure: 22.4yrs
    • Compensation: $16.40k
  • Stephen Boucher (71yo)

    Director

    • Tenure: 20.4yrs
    • Compensation: $24.30k
  • Fletcher Adams (81yo)

    Vice Chairman of the Board

    • Tenure: 22.4yrs
    • Compensation: $57.20k
  • Barry Kelley (68yo)

    Director

    • Tenure: 22.4yrs
    • Compensation: $15.20k
  • Larry Haynes (53yo)

    Director

    • Tenure: 1.0yrs
  • Erick Stinson (48yo)

    Director

    • Tenure: 0.4yrs
  • Peter Clarke (39yo)

    Director

    • Tenure: 3.1yrs

Company Information

Northway Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Northway Financial, Inc.
  • Ticker: NWYF
  • Exchange: OTCPK
  • Founded: 1881
  • Industry: regional banks
  • Sector: banks
  • Market Cap: US$81.724m
  • Shares outstanding: 2.75m
  • Website: Click here

Location

  • Northway Financial, Inc.
  • 9 Main Street
  • Berlin
  • New Hampshire
  • 3570
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWYFOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1970

Biography

Northway Financial, Inc. operates as the bank holding company for Northway Bank that provides various banking products and services to individuals, small businesses, and commercial customers in New Hampshi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/16 00:18
End of Day Share Price2019/06/12 00:00
Earnings2019/03/31
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.