Northwest Bancshares, Inc. Fundamental Analysis (NASDAQ: NWBI)
Northwest Bancshares, Inc. Fundamental Analysis (NASDAQ: NWBI)
Northwest Bancshares, Inc. (NASDAQ: NWBI) shows moderate financial fundamentals with a PE ratio of 14.55, profit margin of 18.13%, and ROE of 8.07%. The company generates $0.8B in annual revenue with strong year-over-year growth of 16.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NWBI's fundamental strength across five key dimensions:
Efficiency Score
WeakNWBI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNWBI trades at attractive valuation levels.
Growth Score
ExcellentNWBI delivers strong and consistent growth momentum.
Financial Health Score
ModerateNWBI shows balanced financial health with some risks.
Profitability Score
ModerateNWBI maintains healthy but balanced margins.
Key Financial Metrics
Is NWBI Expensive or Cheap?
P/E Ratio
NWBI trades at 14.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NWBI's PEG of -2.33 indicates potential undervaluation.
Price to Book
The market values Northwest Bancshares, Inc. at 1.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.28 times EBITDA. This signals the market has high growth expectations.
How Well Does NWBI Make Money?
Net Profit Margin
For every $100 in sales, Northwest Bancshares, Inc. keeps $18.13 as profit after all expenses.
Operating Margin
Core operations generate 15.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.07 in profit for every $100 of shareholder equity.
ROA
Northwest Bancshares, Inc. generates $0.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Northwest Bancshares, Inc. produces operating cash flow of $152.92M, showing steady but balanced cash generation.
Free Cash Flow
Northwest Bancshares, Inc. generates strong free cash flow of $136.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.94 in free cash annually.
FCF Yield
NWBI converts 6.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How NWBI Stacks Against Its Sector Peers
| Metric | NWBI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.55 | 21.11 | Better (Cheaper) |
| ROE | 8.07% | 655.00% | Weak |
| Net Margin | 18.13% | -1594.00% (disorted) | Strong |
| Debt/Equity | 0.44 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.93 | 910.44 | Weak Liquidity |
| ROA | 0.89% | 4469138.00% | Weak |
NWBI outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Northwest Bancshares, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.66%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
37.98%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-10.46%
Industry Style: Value, Dividend, Cyclical
Declining