First Western Financial (MYFW) AI Stock Analysis

• Market Cap: $201.79M
• Dividend Yield: N/A
• Average Volume (3M): 46.55K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.18
• Revenue Growth: 3.14%
• EPS Growth: 35.67%
• Country: US
• Employees: 321
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 9,715,432
• 10 Day Avg. Volume: 40,246
• 30 Day Avg. Volume: 46,553
• PEG Ratio: 1.06
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 282.06
• Enterprise Value/Market Cap: -0.31
• Enterprise Value/Revenue: -0.10
• Enterprise Value/Gross Profit: -0.41
• Enterprise Value/Ebitda: -1.39
• 1Y Price Target: $24.25
• Price Target Upside: 16.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: ―

First Western Financial shows strong potential due to significant revenue growth and effective cost management. However, liquidity issues and a mixed technical outlook present challenges. The company's valuation appears fair, but the absence of a dividend yield and bearish technical signals are notable concerns. Optimism from the earnings call about profitability and strategic initiatives supports the overall score.

First Western Financial Business Overview & Revenue Model

Company Description

First Western Financial, Inc., a financial holding company, provides wealth management, private banking, personal trust, investment management, mortgage lending, and institutional asset management services. The company operates through two segments: Wealth Management and Mortgage. The Wealth Management segment provides deposit, loan, insurance, and trust and investment management advisory products and services. The Mortgage segment engages in soliciting, originating, and selling mortgage loans into the secondary market. It serves entrepreneurs, professionals, high-net worth individuals or families, and philanthropic and business organizations. The company operates 18 profit centers, including 14 boutique private trust bank offices with 2 locations in Arizona, 9 locations in Colorado, and 3 location in Wyoming; 2 loan production offices with 1 location in Ft. Collins, Colorado, and 1 location in Greenwood Village, Colorado; and 2 trust offices with 1 location in Laramie, Wyoming, and 1 location in Century City, California. First Western Financial, Inc. was incorporated in 2002 and is headquartered in Denver, Colorado.

How the Company Makes Money

First Western Financial generates revenue primarily through interest income from its lending activities and non-interest income from wealth management services. The company's key revenue streams include interest earned on loans and securities, fees from trust and investment management services, and mortgage banking income. Additionally, its private banking services provide revenue through service fees and transaction charges. Strategic partnerships and a strong focus on client relationships enhance its ability to attract and retain high-net-worth clients, further contributing to its earnings.

First Western Financial Financial Statement Overview

Summary

First Western Financial exhibits strong revenue growth and effective cost management, with substantial improvements in EBIT margin. However, low net profit margin and negative cash flows indicate challenges in profitability and liquidity.

Income Statement

The income statement shows a significant increase in total revenue from $82.7M in 2023 to $152.7M in 2024, indicating a strong revenue growth rate of 84.6%. Gross profit margin is robust at 100% due to the nature of banking. However, the net profit margin is relatively low at 5.55%, suggesting limited profitability. EBIT margin improved substantially to 99.2% in 2024, reflecting effective cost management.

Balance Sheet

The balance sheet is characterized by a strong equity base with stockholders' equity at $252.3M. The debt-to-equity ratio is 0, indicating no debt leverage, which is positive for financial stability. However, the equity ratio is relatively low at 8.64%, implying that the company relies heavily on liabilities to finance its assets. Return on equity is modest at 3.36%, reflecting moderate efficiency in generating profit from shareholders' funds.

Cash Flow

The cash flow statement reveals challenges in cash management, with negative operating cash flow of -$0.54M in 2024. There is a negative free cash flow growth rate due to significant negative free cash flow, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting net income into cash. The free cash flow to net income ratio is also negative, underscoring cash flow constraints.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
152.65M	82.70M	1.45M	96.66M	97.28M
	Gross Profit
89.44M	82.70M	1.45M	96.66M	97.28M
	EBIT
151.44M	7.06M	47.80M	27.28M	33.06M
	EBITDA
0.00	0.00	30.84M	28.54M	34.18M
	Net Income Common Stockholders
8.47M	5.22M	21.70M	20.61M	24.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.77M	254.44M	196.51M	441.70M	192.66M
	Total Assets
2.92B	2.98B	2.87B	2.53B	1.97B
	Total Debt
109.60M	178.05M	199.02M	77.66M	173.85M
	Net Debt
-126.44M	-76.39M	2.51M	-307.83M	17.86M
	Total Liabilities
2.67B	2.73B	2.63B	2.31B	1.82B
	Stockholders Equity
252.32M	242.74M	240.86M	219.04M	154.96M
Cash Flow		Free Cash Flow
-1.76M	19.53M	45.31M	163.74M	-94.54M
	Operating Cash Flow
-544.00K	21.88M	48.28M	165.85M	-93.33M
	Investing Cash Flow
66.44M	-66.39M	-558.80M	-46.36M	-456.02M
	Financing Cash Flow
-84.30M	102.44M	320.05M	111.50M	626.70M

First Western Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYFW, the sentiment is Neutral. The current price of 20.9 is below the 20-day moving average (MA) of 21.64, above the 50-day MA of 20.26, and above the 200-day MA of 19.94, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 20.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MYFW.

First Western Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFFI	70 Outperform	$214.22M	9.90	9.67%	2.69%	10.36%	10.16%
ESSA	68 Neutral	$184.21M	11.71	6.43%	3.22%	5.57%	-16.40%
EFSI	67 Neutral	$165.17M	14.79	4.10%	4.02%	-2.87%	-21.25%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.30%	-7.71%
MYFW	63 Neutral	$201.79M	20.16	4.04%	―	3.14%	35.67%
FUNC	62 Neutral	$191.12M	8.45	12.99%	2.92%	13.41%	62.51%
FINW	62 Neutral	$192.54M	15.76	7.16%	―	10.74%	-26.67%

First Western Financial Corporate Events

First Western Financial Appoints New Accounting Officer

On April 23, 2025, First Western Financial, Inc. appointed David R. Weber as the Principal Accounting Officer, effective immediately. Mr. Weber, who has been with the company since 2018 and has held various finance roles, will take over from Jesica J. Montgomery as she moves to other functions within the company.

Spark’s Take on MYFW Stock

According to Spark, TipRanks’ AI Analyst, MYFW is a Neutral.

First Western Financial shows strong potential due to significant revenue growth and effective cost management. However, liquidity issues and a mixed technical outlook present challenges. The company’s valuation appears fair, but the absence of a dividend yield and bearish technical signals are notable concerns. Optimism from the earnings call about profitability and strategic initiatives supports the overall score.

To see Spark’s full report on MYFW stock, click here.

First Western Financial Reports Q1 2025 Profit Surge

First Western Financial reported a significant improvement in profitability for the first quarter of 2025, with net income rising to $4.2 million from $2.7 million in the previous quarter. The company saw positive trends in net interest margin, non-interest income, and deposit growth, alongside a reduction in nonperforming assets due to the sale of two major properties. This performance reflects a strategic focus on enhancing financial stability and shareholder value, with expectations of continued positive trends throughout the year.

Spark’s Take on MYFW Stock

According to Spark, TipRanks’ AI Analyst, MYFW is a Neutral.

First Western Financial exhibits strong revenue growth and effective cost management, bolstering its financial performance score. Technical indicators suggest potential undervaluation, but bearish momentum remains a concern. The valuation score reflects a moderately priced stock with a P/E ratio in line with industry standards, though the absence of dividend yield is a drawback. The earnings call provides an optimistic outlook, emphasizing improvements in net interest margin and loan production, though challenges remain with asset management and noninterest income. Overall, the company has significant growth potential but must navigate liquidity issues and market conditions carefully.

To see Spark’s full report on MYFW stock, click here.