Northwest BancsharesFRA:NHS +2.46%55 Return-on-Tangible-Equity is 14.38% as of Mar. 2026, which is 27% above its 10-year median of 11.31. GuruFocus rates FRA:NHS with a GF Score™ of 55/100 and a GF Value™ of €10.41 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,521 Banks companies, Northwest Bancshares ranks worse than 57.92% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Northwest Bancshares's annualized net income for the quarter that ended in Mar. 2026 was €174.9 Mil. Northwest Bancshares's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,215.8 Mil. Therefore, Northwest Bancshares's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.38%.
The historical rank and industry rank for Northwest Bancshares's Return-on-Tangible-Equity or its related term are showing as below:
FRA:NHS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.76 Med: 11.31 Max: 13.27
Current: 9.93
During the past 13 years, Northwest Bancshares's highest Return-on-Tangible-Equity was 13.27%. The lowest was 5.76%. And the median was 11.31%.
FRA:NHS's Return-on-Tangible-Equity is ranked worse than 57.92% of 1521
companies
in the Banks industry
Industry Median: 11.19
vs FRA:NHS: 9.93
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Northwest Bancshares Return-on-Tangible-Equity Related Terms
Northwest Bancshares Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Northwest Bancshares's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:NHS vs SYBT, CLBK, MBIN: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Northwest Bancshares's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Northwest Bancshares Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Northwest Bancshares's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Northwest Bancshares's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.38% mean?
Northwest Bancshares (FRA:NHS) has a Return-on-Tangible-Equity of 14.38% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Northwest Bancshares and its competitors. This is 27% above median its historical median of 11.31. Over the past decade, Northwest Bancshares' Return-on-Tangible-Equity has ranged from 5.76 to 13.27. According to the industry distribution chart, Northwest Bancshares ranks #881 out of 1521 companies in the Banks industry, placing it in the top 57.9%.
Is Northwest Bancshares' Return-on-Tangible-Equity too high?
Northwest Bancshares' current Return-on-Tangible-Equity of 14.38% is 27% above median its 10-year median of 11.31. Over the past 10 years, this metric has ranged from a low of 5.76 to a high of 13.27. The Banks industry median Return-on-Tangible-Equity is 11.19. Northwest Bancshares' value of 14.38% is 28.5% above this industry median. Based on the distribution chart, Northwest Bancshares ranks #881 out of 1521 companies in the Banks industry, which is below the industry midpoint. Overall, Northwest Bancshares has a GF Score™ of 55/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Northwest Bancshares' Return-on-Tangible-Equity compare to SYBT and CLBK?
According to the Banks industry distribution chart, Northwest Bancshares ranks #881 out of 1521 companies for Return-on-Tangible-Equity. This places Northwest Bancshares in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.19. Northwest Bancshares' value of 14.38% is 28.5% above this benchmark. Historically, Northwest Bancshares' own Return-on-Tangible-Equity has ranged from 5.76 to 13.27 over the past decade. While the company's 10-year median is 11.31 vs. the industry median of 11.19, Northwest Bancshares has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.19, based on 1,521 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northwest Bancshares's current Return-on-Tangible-Equity of 14.38% is 28.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Northwest Bancshares and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northwest Bancshares's current Return-on-Tangible-Equity is 14.38%, which is 27% above median its own 10-year median of 11.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northwest Bancshares stock overvalued right now?
Based on GuruFocus' analysis, Northwest Bancshares (FRA:NHS) is currently considered Modestly Overvalued. The stock's GF Value™ is €10.41, compared to a current price of €12.50 — trading 20.1% above its estimated fair value. The current Return-on-Tangible-Equity is 14.38%, which is 27% above median its 10-year median of 11.31 and 28.5% above the Banks industry median of 11.19. Northwest Bancshares' overall GF Score™ is 55/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Northwest Bancshares (FRA:NHS), the current Return-on-Tangible-Equity is 14.38% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Northwest Bancshares (FRA:NHS) Overvalued in 2026?
Based on GuruFocus' analysis, Northwest Bancshares stock appears to be overvalued.
The current stock price of €12.50 is trading 20.1% above its estimated GF Value™ of €10.41.
GuruFocus considers Northwest Bancshares to be Modestly Overvalued.
Key valuation signals for FRA:NHS:
Return-on-Tangible-Equity: 14.38% (27% above median its 10-year median of 11.31)
GF Value™: €10.41 vs. price of €12.50 (20.1% above fair value)
Industry Position: 28.5% above the Banks median (#881 of 1521)
No single metric tells the full story. See the FRA:NHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northwest Bancshares Inc is a stockholding company for Northwest Bank. Northwest Bank is a stock savings bank and a community-oriented financial institution, offering personal and commercial banking solutions, business services, investment management, trust services, and insurance products. It also offers consumer finance loans through a wholly-owned subsidiary. The bank's loan portfolio segment consists of personal banking and Commercial Banking loans. Personal banking includes residential mortgages, home equity loans, and other consumer loans. Commercial Banking loans consist of commercial real estate loans and commercial loans. Net interest income is the company's primary contributor to revenue.
55GF Score
Get the complete analysis for FRA:NHS
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:NHS has been successfully added to your 
