Norwood Financial logged a -1.0% change during today's morning session, and is now trading at a price of $30.74 per share.
Norwood Financial returned gains of 28.8% last year, with its stock price reaching a high of $34.75 and a low of $23.0. Over the same period, the stock outperformed the S&P 500 index by 12.0%. More recently, the company's 50-day average price was $26.84. Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. Based in Honesdale, PA, the small-cap Finance company has 274 full time employees. Norwood Financial has offered a 3.7% dividend yield over the last 12 months.
Overview of the Company's Finances:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (k) | $45,384 | $58,256 | $73,638 | $78,329 |
| Interest Income (k) | $38,606 | $50,476 | $65,313 | $68,397 |
| Net Margins | 31.32% | 25.89% | 33.83% | 37.32% |
| Net Income (k) | $14,215 | $15,080 | $24,915 | $29,233 |
| Depreciation & Amort. (k) | -$101 | -$114 | -$123 | -$1,571 |
| Earnings Per Share | $2.25 | $2.09 | $3.04 | $3.42 |
| EPS Growth | n/a | -7.11% | 45.45% | 12.5% |
| Diluted Shares (k) | 6,318 | 7,215 | 8,199 | 8,114 |
| Free Cash Flow (k) | $16,815 | $13,048 | $27,940 | $28,581 |
| Capital Expenditures | -$1,623 | -$749 | -$1,258 | -$2,153 |
| Long Term Debt (k) | $56,438 | $42,459 | $29,998 | $40,000 |
| Net Debt / EBITDA | 1.86 | -0.09 | -1.2 | 0.47 |
Norwood Financial benefits from growing revenues and increasing reinvestment in the business, low leverage, and consistent net margins with a stable trend. The company's financial statements show a strong EPS growth trend and consistent free cash flow.
The Market Is Undervaluing Norwood Financial:
Norwood Financial has a trailing twelve month P/E ratio of 7.8 compared to the Finance sector's average of 14.34. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 4 years of reported EPS is 11.0%. On this basis, Norwood Financial's PEG ratio is 0.71. Using instead the 8.7% weighted average of Norwood Financial's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 0.9, which implies that its shares may be underpriced. Additionally, the market is possibly undervaluing Norwood Financial in terms of its equity because its P/B ratio is 1.42 whereas the sector average is 1.57. The company's shares are currently trading -15.3% below their Graham number.
Overview of Norwood Financial's Market Factors:
Norwood Financial has a very low short interest because 0.6% of the company's shares are sold short. Institutions own 20.4% of the company's shares, and the insider ownership rate stands at 9.12%, suggesting a decent amount of insider shareholders. The largest shareholder is the Vanguard Group, Inc., whose 5% stake in the company is worth $13,103,693.
