Northwest Bancshares Profitability Analysis

NWBI
 Stock
  

USD 14.86  0.21  1.43%   

For Northwest Bancshares profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Northwest Bancshares to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Northwest Bancshares utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Northwest Bancshares's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Northwest Bancshares over time as well as its relative position and ranking within its peers. Additionally, see Stocks Correlation.
  
The current Price to Sales Ratio is estimated to increase to 3.73, while Return on Sales is projected to decrease to 0.36. Northwest Bancshares Net Income is most likely to increase significantly in the upcoming years. The last year's value of Net Income was reported at 154.32 Million. The current Net Income Per Employee is estimated to increase to about 69 K, while Accumulated Other Comprehensive Income is projected to decrease to (35.9 M).

Northwest Bancshares Revenues

485.17 Million

Is Northwest Bancshares' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Northwest Bancshares. If investors know Northwest will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Northwest Bancshares listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.32
Market Capitalization
1.9 B
Quarterly Revenue Growth YOY
-0.15
Return On Assets
0.0089
Return On Equity
0.0826
The market value of Northwest Bancshares is measured differently than its book value, which is the value of Northwest that is recorded on the company's balance sheet. Investors also form their own opinion of Northwest Bancshares' value that differs from its market value or its book value, called intrinsic value, which is Northwest Bancshares' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Northwest Bancshares' market value can be influenced by many factors that don't directly affect Northwest Bancshares' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Northwest Bancshares' value and its price as these two are different measures arrived at by different means. Investors typically determine Northwest Bancshares value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northwest Bancshares' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Northwest Bancshares Earnings Per Share vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Northwest Bancshares's current stock value. Our valuation model uses many indicators to compare Northwest Bancshares value to that of its competitors to determine the firm's financial worth.
Northwest Bancshares is considered to be number one stock in return on equity category among related companies. It is considered to be number one stock in earnings per share category among related companies creating about  0.15  of Earnings Per Share per Return On Equity. The ratio of Return On Equity to Earnings Per Share for Northwest Bancshares is roughly  6.66 . The current Earnings Before Interest Taxes and Depreciation Amortization EBITDA is estimated to decrease to about 152 M. The current Earnings before Tax is estimated to decrease to about 143.8 M. Comparative valuation analysis is a catch-all model that can be used if you cannot value Northwest Bancshares by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Northwest Bancshares' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Northwest Bancshares' earnings, one of the primary drivers of an investment's value.

Northwest Earnings Per Share vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Northwest Bancshares 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
8.26 %
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Northwest Bancshares 
Earnings per Share 
 = 
Earnings 
Average Shares 
1.24 X
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.

Northwest Bancshares Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Northwest Bancshares, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Northwest Bancshares will eventually generate negative long term returns. The profitability progress is the general direction of Northwest Bancshares' change in net profit over the period of time. It can combine multiple indicators of Northwest Bancshares, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-33.2 M-35.9 M
Consolidated Income127 M109.3 M
Net Income154.3 M166.5 M
Net Income Common Stock127 M109.3 M
Operating Income162.3 M146 M
Income Tax Expense35.3 M34.5 M
Net Income Per Employee64 K69 K
Northwest Bancshares, Inc. operates as the holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Columbus, Ohio. Northwest Bancshares operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 2188 people.

Northwest Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Northwest Bancshares. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Northwest Bancshares position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Northwest Bancshares' important profitability drivers and their relationship over time.

Northwest Bancshares Profitability Trends

Northwest Bancshares profitability trend refers to the progression of profit or loss within a business. An upward trend means that Northwest Bancshares' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Northwest Bancshares' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Northwest Bancshares Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Northwest Bancshares different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Northwest Bancshares in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Northwest Bancshares' future profitability.

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Our tools can tell you how much better you can do entering a position in Northwest Bancshares without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your Northwest Bancshares position

In addition to having Northwest Bancshares in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Additionally, see Stocks Correlation. Note that the Northwest Bancshares information on this page should be used as a complementary analysis to other Northwest Bancshares' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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When running Northwest Bancshares price analysis, check to measure Northwest Bancshares' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Northwest Bancshares is operating at the current time. Most of Northwest Bancshares' value examination focuses on studying past and present price action to predict the probability of Northwest Bancshares' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Northwest Bancshares' price. Additionally, you may evaluate how the addition of Northwest Bancshares to your portfolios can decrease your overall portfolio volatility.
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To fully project Northwest Bancshares' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Northwest Bancshares at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Northwest Bancshares' income statement, its balance sheet, and the statement of cash flows.
Potential Northwest Bancshares investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Northwest Bancshares investors may work on each financial statement separately, they are all related. The changes in Northwest Bancshares's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Northwest Bancshares's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.