| 2013 | 2014 | 2015 | 2018 | 2019 (projected) | Northwest Bancshares Share Based Compensation | 5,083,000 | 5,711,000 | 5,570,000 | 5,013,000 | 3,999,036 | Northwest Bancshares Net Cash Flow from Operations | 130,207,000 | 90,572,000 | 113,202,000 | 101,881,800 | 135,570,000 |
Northwest Bancshares boosts to 0.64 percent in spite of modest market drop
 | By Rifka Kats | Macroaxis Story |
This feature is directed to investors considering a position in Northwest Bancshares. I will examine why in spite of recurring disturbance, the long-run fundamental indicators of the entity are still stable. The company Piotroski F Score is 6 - Healthy. Given the investment horizon of 30 days, Northwest Bancshares is expected to generate 1.66 times more return on investment than the market. However, the company is 1.66 times more volatile than its market benchmark. It trades about 0.04 of its potential returns per unit of risk. The market is currently generating roughly 0.04 per unit of risk. We consider Northwest Bancshares not too volatile. Northwest Bancshares has Sharpe Ratio of 0.0372 which conveys that the firm had 0.0372% of return per unit of risk over the last 1 month. Our philosophy towards estimating volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Northwest Bancshares which you can use to evaluate future volatility of the firm. Please verify Northwest Bancshares Mean Deviation of 0.9546 and Risk Adjusted Performance of (0.005181) to check out if risk estimate we provide are consistent with the epected return of 0.0414%.
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Reviewed by Raphi Shpitalnik
Northwest Bancsha currently holds roughly 103.46M in cash with 135.57M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.97. This firm dividends can provide a clue to current valuation of the stock. Northwest Bancshares one year expected dividend income is about $0.33 per share. Let me now analyze Northwest Bancshares Current Valuation. In accordance with recently published financial statements Northwest Bancshares has Current Valuation of 2B. This is 93.91% lower than that of the Financial Services sector, and 29.41% lower than that of Savings & Cooperative Banks industry, The Current Valuation for all stocks is 87.97% higher than Northwest Bancshares.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Northwest Bancshares. Your research has to be compared to or analyzed against Northwest Bancshares' peers to derive any actionable benefits. When done correctly, Northwest Bancshares' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Northwest Bancshares.
Investing in Northwest Bancshares, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Northwest Bancshares along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Northwest Bancshares' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Northwest Bancshares's Liquidity
Northwest Bancshares financial leverage refers to using borrowed capital as a funding source to finance Northwest Bancshares ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Northwest Bancshares financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Northwest Bancshares' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Northwest Bancshares' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Northwest Bancshares's total debt and its cash.
Northwest Bancshares Gross Profit
Northwest Bancshares Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Northwest Bancshares previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Northwest Bancshares Gross Profit growth over the last 10 years. Please check Northwest Bancshares' gross profit and other fundamental indicators for more details.
Northwest Bancshares Correlation with Peers
Investors in Northwest can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Northwest Bancshares. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Northwest Bancshares and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Northwest is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Northwest for more details
Breaking down Northwest Bancshares Further
The current investor indifference towards the small price fluctuations of Northwest Bancshares may encourage investors to take a closer look at the firm as it closed today at a share price of 16.83 on 471000 in trading volume. The company directors and management did not add any value to Northwest Bancshares investors in April. However, most investors can still diversify their portfolios with Northwest Bancshares to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.1116. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Northwest Bancshares preserves 3.98% of five year return. Northwest Bancshares is selling for under 17.24. That is 0.64% increase. Opened at 17.24. Northwest Bancshares Deposit Liabilities is increasing over the last 5 years. Northwest Bancshares Earnings per Diluted Share is increasing over the last 5 years. The previous year value of Northwest Bancshares Earnings per Diluted Share was 1.02. Additionally, Northwest Bancshares Long Term Debt is increasing over the last 5 years. The previous year value of Northwest Bancshares Long Term Debt was 805,014,526.
The bottom line, we see that Northwest Bancshares Moves slightly opposite to market. The entity is overvalued with low odds of financial distress within the next 24 months. Our overall buy-hold-sell recommendation on the entity is Sell.
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