Norwood Financial Corp. (NWFL) AI Stock Analysis

Norwood Financial Corp. is a bank holding company overseeing Wayne Bank, providing banking products and services across Pennsylvania and New York. Established in 1870 and based in Honesdale, Pennsylvania, it offers deposit products such as transaction, savings, money market accounts, and certificates of deposit. Its lending services cover commercial loans, municipal finance lending, construction loans, consumer loans, and mortgage lending. Beyond traditional banking, the company provides investment securities, trust products, cash management, remote banking, annuity and mutual fund sales, discount brokerage services, and insurance agency activities through a network of offices and automated teller machines.

Norwood Financial delivered a 5-year revenue CAGR of 15.5% from FY2020 to FY2025. Annual revenue grew from $79.4M in FY2021 to $85.6M in FY2022 and $103.7M in FY2023. In FY2024, revenue fell 2.2% to $101.4M with operating margin declining to -0.3% and net income reaching -$160,000. Performance rebounded in FY2025 as revenue climbed 34.2% to $136.1M, operating margin recovered to 26.1%, and net income rose to $27.8M. Over the trailing twelve months, revenue totaled $99.7M with an operating margin of 44.9% and EPS of $2.89. In the latest quarter ended June 30, 2026, quarterly revenue grew 34.7% year-over-year while quarterly earnings expanded 28.4%.

As of June 30, 2026, Norwood Financial held $499.3M in cash and short-term investments against $65.5M in total debt, leaving net cash of $433.7M. Shareholders' equity was $289.6M and total assets reached $2.91B, alongside a current ratio of 1.09 and a debt-to-equity ratio of 0.23. In FY2025, operating cash flow stood at $34.0M and free cash flow reached $29.2M. Capital allocation in FY2025 included $4.7M in capital expenditures, $11.5M in dividends paid, and $361,000 in share buybacks.

At a last close of $33.60, Norwood Financial carries a market capitalization of $366.3M. The stock trades at a trailing P/E of 11.6x and a forward P/E of 10.3x, both lower than the median of its US-listed Financial Services peers at 12.1x and 10.8x, respectively. Its price-to-sales multiple is 3.7x compared to the peer median of 3.2x, while price-to-book stands at 1.3x. Over the past year, the stock returned 45.5%, outperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of 62.9% trailed the S&P 500 return of 83.0%.

Norwood Financial pays a quarterly dividend with an annual forward dividend of $1.28, representing a dividend yield of 3.82%. The company has paid dividends for 29 consecutive years and carries a 5-year annualized dividend growth rate of 4.4%. Its payout ratio stands at 38.7%, with the last ex-dividend date on October 15, 2026.

Wall Street coverage includes 1 Strong Buy and 1 Hold rating. The mean price target is $36.50, representing an 8.6% upside from the last close of $33.60. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $116.9M and EPS of $3.48, reflecting 11.7% EPS growth. Over the last 4 quarters, the company delivered 1 EPS beat. The next earnings date is October 27, 2026.

This page is an AI-written research summary of Norwood Financial Corp. (NWFL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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