TWFG, Inc. Class A (TWFG) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: N/A
• Average Volume (3M): 87.68K
• Price to Earnings (P/E): 40.7
• Beta (1Y): 0.28
• Revenue Growth: 18.54%
• EPS Growth: -67.02%
• Country: US
• Employees: 293
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): N/A
• Shares Outstanding: 15,028,681
• 10 Day Avg. Volume: 73,283
• 30 Day Avg. Volume: 87,679
• PEG Ratio: 0.31
• Price to Book (P/B): 5.20
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 8.13
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 0.53
• Enterprise Value/Ebitda: 2.39
• 1Y Price Target: $26.38
• Price Target Upside: 32.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $22.00 ▲(10.55% Upside)
• Action: Downgraded Date: 03/10/26
• Date: Action: Downgraded 03/10/26

The score is driven primarily by solid financial performance (growth, operating profitability, and strong cash generation) and a positive earnings outlook with margin expansion and active M&A. These strengths are tempered by weak technical trend signals and a premium P/E valuation, while recent corporate actions (buyback and acquisition activity) add a modest positive.

Positive Factors

Sustained Revenue Growth

Consistent double-digit top-line growth driven by both organic expansion and M&A indicates durable demand and scalable distribution. A mix of 10%+ organic growth plus acquisitions reduces reliance on single channels and supports revenue visibility over the next 2–6 months.

Margin Expansion and EBITDA Strength

Significant EBITDA growth and a >400bp margin improvement reflect operating leverage and higher-margin business mix (MGA operations). Sustained margin expansion supports free cash flow, reinvestment capacity, and resilience against modest top-line softness.

Strong Cash Generation

Robust and rising operating and free cash flow provide durable internal funding for acquisitions, organic investment, and shareholder returns. Cash conversion exceeding net income improves financial flexibility and lowers refinancing risk for medium-term strategic initiatives.

Negative Factors

Low Net Margin Conversion

Despite healthy operating margins, weak net margin and episodic zero net income periods show profit conversion issues from non-operating costs, taxes, or one-offs. This caps sustainable earnings power and constrains long-term EPS reliability even if operating profits persist.

Historical Capital Structure Volatility

Large year-to-year swings in leverage and reported asset base signal structural volatility in financing or acquisitions. Such shifts raise uncertainty about recurring risk levels and make stress-testing capital flexibility and covenant exposure more important for multi-quarter planning.

Rising Expenses & Market Softening

Material increases in commission and labor costs, combined with a shift from hard to soft market conditions and regional carrier constraints (California), create structural pressure on retention and margins. These trends can persist and limit margin carry-through.

TWFG, Inc. Class A Business Overview & Revenue Model

Company Description

TWFG, Inc. operates an independent distribution platform for personal and commercial insurance products in the United States. Its personal and commercial insurance products include auto, home, renters, life, health, motorcycle, umbrella, boat, recreational vehicle, flood, wind, event, luxury item, general liability, property, business auto, workers' compensation, business owner policy, and professional liability insurance products, as well as commercial bonds and group benefits. The company was founded in 2001 and is based in The Woodlands, Texas. TWFG, Inc. operates as a subsidiary of Bunch Family Holdings, LLC.

How the Company Makes Money

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TWFG, Inc. Class A Financial Statement Overview

Summary

Strong top-line growth and durable operating profitability (healthy EBIT/EBITDA margins) supported by rising operating and free cash flow. Offsetting this, net margins remain low and there is historical earnings/statement volatility (including prior zero net income periods and a sharp balance-sheet shift), which reduces confidence in consistency.

Income Statement

Growth and operating profitability are solid, with revenue up 15.44% in TTM (Trailing-Twelve-Months) following ~13–16% growth in 2023–2024. Operating margins are consistently healthy (EBIT margin ~15–17% and EBITDA margin ~18–25%). The key weakness is bottom-line conversion: net margin remains low (TTM ~3.1%, 2024 ~1.4%) and profits were flat at zero in 2022–2023, suggesting either elevated non-operating costs, interest/tax effects, or one-time items that cap net income despite good operating performance.

Balance Sheet

Leverage is currently conservative, with low debt relative to equity in TTM and 2024 (~0.13–0.14), supporting balance-sheet flexibility. Returns on equity improved meaningfully to ~9.7% in TTM from ~3.7% in 2024 (and 0% in 2022–2023). The main concern is historical volatility: 2023 showed much higher leverage (debt-to-equity ~1.67) and a much smaller asset base, indicating a major shift in capital structure and/or reporting footprint year-to-year that investors should normalize when assessing risk.

Cash Flow

Cash generation is a clear positive: operating cash flow and free cash flow are strong and rising (TTM operating cash flow ~$53.5M; free cash flow ~$46.1M; free cash flow growth ~11.7%). Cash flow supports earnings quality, with operating cash flow exceeding net income in TTM (coverage ~1.18) and 2024 (~1.02). A watch item is that free cash flow relative to net income dipped in TTM versus 2024, implying more cash reinvestment or working-capital usage recently even as cash generation remains healthy.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	247.08M	193.72M	166.99M	147.78M
Gross Profit	76.86M	46.57M	36.17M	30.63M
EBITDA	61.66M	44.33M	31.13M	27.05M
Net Income	7.67M	2.75M	0.00	0.00
Balance Sheet
Total Assets	370.91M	323.43M	115.44M	114.15M
Cash, Cash Equivalents and Short-Term Investments	155.93M	195.77M	39.30M	22.33M
Total Debt	11.12M	10.30M	51.76M	13.31M
Total Liabilities	55.59M	48.14M	84.39M	56.37M
Stockholders Equity	83.09M	73.88M	31.05M	57.79M
Cash Flow
Free Cash Flow	53.15M	37.28M	14.51M	13.48M
Operating Cash Flow	53.50M	40.48M	30.15M	25.75M
Investing Cash Flow	-70.38M	-25.05M	-14.65M	-14.50M
Financing Cash Flow	-20.55M	143.43M	-9.70M	-15.26M

TWFG, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWFG, the sentiment is Neutral. The current price of 19.9 is above the 20-day moving average (MA) of 19.21, below the 50-day MA of 22.76, and below the 200-day MA of 27.46, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 39.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TWFG.

TWFG, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TWFG	69 Neutral	$1.09B	40.69	8.79%	―	18.54%	-67.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CRD.A	58 Neutral	$453.88M	28.40	11.25%	2.47%	4.39%	61.61%
CRD.B	56 Neutral	$453.88M	28.40	11.25%	2.47%	4.39%	61.61%
SLQT	56 Neutral	$107.54M	0.95	13.52%	―	13.16%	―
EHTH	55 Neutral	$47.54M	3.50	4.33%	―	16.79%	―
GOCO	44 Neutral	$24.62M	-0.09	-142.05%	―	7.56%	-344.04%

TWFG, Inc. Class A Corporate Events

TWFG Announces Buyback Program Amid Strong 2025 Results

TWFG, Inc. reported strong fourth-quarter and full-year 2025 results on February 25, 2026, with quarterly revenue up 33% to $68.8 million and net income rising to $14.4 million, while full-year revenue climbed 21.3% to $247.1 million and net income reached $39.8 million. The company delivered double-digit organic revenue growth, significant margin expansion driven by higher-margin MGA operations and acquisitions, robust cash generation, and ended 2025 with $155.9 million in cash and no revolver borrowings.

On February 23, 2026, TWFG’s board approved a share repurchase program authorizing buybacks of up to $50 million of Class A common stock over the following year, underscoring confidence in its long-term growth and capital allocation strategy. The company also advanced its expansion plans with a definitive agreement to acquire Loften Wells Insurance in Memphis, Tennessee, adding scale to its regional operations as it continues balancing acquisitions, organic growth investments, and returns to shareholders.

The most recent analyst rating on (TWFG) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on TWFG, Inc. Class A stock, see the TWFG Stock Forecast page.