MeritValue

NORWOOD FINANCIAL CORP

NWFLdata completeness 100%17 fiscal years on file
The thesis, from the filings

NORWOOD FINANCIAL CORP earns about 30% on invested capital, far above its ~9% cost of capital, but has diluted owners by 13% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $27.96 and $48.27 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$7.02M1$8.76M2$7.14M3$7.4M4$8M4
Net income$24.9M5$29.2M6$16.8M7−$160,0008$27.8M8
Operating cash flow$29.2M9$30.7M10$29.8M11$22.8M12$34M12
Capital expenditure$1.26M13$2.15M14$1.41M15$3.13M16$4.72M16
Free cash flow (derived)$27.9M9$28.6M10$28.4M11$19.7M12$29.2M12
Total debt$60.8M17$93.2M18$74.1M19$113.1M20$14.7M20
Cash & equivalents$206.7M21$31.9M22$66.1M23$72.3M23$44.4M23
Diluted shares8.2M8.2M8.1M8.1M9.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$262.22
your share of equity
Profit it earned you last year
$30.05
Free cash flow it threw off
$31.67
Debt you’d be carrying
$15.93

10 shares is a claim on $262.22 of net worth that earned you $30.05 and generated $31.67 of cash last year, against $15.93 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
30% avg · 5y
FY21 50%FY22 15%FY23 23%FY24 19%FY25 42%

It earned about 30% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+13% shares · 5y

Share count is up 13% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 76% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $27.96 and $48.27 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$45.6
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.6%
  • fcfBase$28.4M
DCF · Growth Exit 5Y
$48.27
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.6%
  • fcfBase$28.4M
Earnings Power Value
$27.96
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$24.9M
  • growthAssumed0.0%
Graham Number
$42.14
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.6%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $48.27
The three cases
Bear0.0%$47.18
Base0.6%$48.27
Bull5.6%$59.13

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.6%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001562762-23-000122 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001562762-24-000057 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001562762-25-000042 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001013272-26-000003 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001562762-23-000122 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001562762-24-000057 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001562762-25-000042 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001013272-26-000003 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001562762-23-000122 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001562762-24-000057 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001562762-25-000042 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001013272-26-000003 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001562762-23-000122 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001562762-24-000057 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001562762-25-000042 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001013272-26-000003 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001562762-23-000122 (ShortTermBorrowings)
  18. 10-K · period ending 2022-12-31 · accession 0001562762-24-000057 (ShortTermBorrowings)
  19. 10-K · period ending 2023-12-31 · accession 0001562762-25-000042 (ShortTermBorrowings)
  20. 10-K · period ending 2024-12-31 · accession 0001013272-26-000003 (ShortTermBorrowings)
  21. 10-K · period ending 2021-12-31 · accession 0001562762-24-000057 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  22. 10-K · period ending 2022-12-31 · accession 0001562762-25-000042 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  23. 10-K · period ending 2023-12-31 · accession 0001013272-26-000003 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)