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

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 96.98K
• Price to Earnings (P/E): 41.6
• Beta (1Y): 0.24
• Revenue Growth: 19.11%
• EPS Growth: -58.54%
• Country: US
• Employees: 293
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 0.16
• Shares Outstanding: 14,904,083
• 10 Day Avg. Volume: 68,963
• 30 Day Avg. Volume: 96,985
• PEG Ratio: -22.99
• Price to Book (P/B): 6.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.96
• Enterprise Value/Market Cap: 0.16
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 74.64
• Enterprise Value/Ebitda: 3.86
• 1Y Price Target: $35.83
• Price Target Upside: 18.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 55 Neutral
• Price Target: $32.00 ▲(5.58%Upside)

TWFG's overall stock score is primarily influenced by its strong financial performance, which provides a solid foundation. However, the bearish technical indicators and high valuation relative to earnings weigh down the score. The recent strategic acquisitions and leadership appointment are positive but do not directly impact the score due to the exclusion of corporate events in the weighted calculation.

Positive Factors

Earnings Growth

The stock is seen as a quality compounder with favorable tailwinds expected to drive earnings growth over the long term.

Market Share Gains

The company experiences market share gains due to its scale and differentiated technology in the fragmented personal lines market.

Negative Factors

Guidance Shortfall

Woodlands' 2025 guidance came in below expectations on adjusted EBITDA margins and more modestly below on organic growth and total revenue growth.

Product Availability Concerns

Investors are concerned about how growth in California might be affected by a likely lack of product availability after recent fires.

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

TWFG generates revenue primarily through the sale of insurance products, including premiums collected from policyholders. The company earns significant income from underwriting insurance policies, where it assesses risk and sets premiums accordingly. Additionally, TWFG benefits from investment income derived from the premiums it holds prior to claims being paid out. The company may also engage in partnerships with other financial institutions and service providers to enhance its product offerings, which can lead to additional revenue streams through collaborative service initiatives or cross-selling opportunities. Overall, TWFG's revenue model is built on a combination of policy premiums, underwriting profits, and investment returns.

TWFG, Inc. Class A Financial Statement Overview

Summary

TWFG exhibits strong financial performance with robust revenue growth and operational efficiency. The balance sheet is solid with low leverage, ensuring financial stability. Cash flow generation is impressive, supporting future growth opportunities. However, the decline in net profit margin and return on equity suggests areas for improvement in profitability.

Income Statement

TWFG has shown a solid revenue growth of 16.01% from 2023 to 2024, indicating a positive trajectory. The gross profit margin improved to 24.03% in 2024 from 18.88% in 2023, reflecting better cost management. However, the net profit margin decreased to 1.42% in 2024 from 2.47% in 2023, suggesting challenges in maintaining profitability despite higher revenues. EBIT and EBITDA margins are strong at 14.41% and 22.88% respectively, highlighting operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.14 in 2024, indicating low financial leverage and reduced risk. The equity ratio improved to 22.84% in 2024 from 26.89% in 2023, showing a solid equity base. Return on equity decreased to 3.71% in 2024 from 13.31% in 2023, which may suggest lower profitability relative to shareholders' equity. Overall, the company maintains a strong financial position with ample cash reserves.

Cash Flow

TWFG's cash flow is strong, with a significant increase in free cash flow by 156.99% from 2023 to 2024, driven by improved operating cash flow and reduced capital expenditures. The operating cash flow to net income ratio is high at 14.75, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 13.58, reflecting effective cash management. The company has demonstrated excellent cash flow stability and growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	193.72M	166.99M	147.78M
Gross Profit	46.57M	31.51M	30.23M
EBITDA	44.33M	26.46M	27.05M
Net Income	2.75M	4.13M	20.61M
Balance Sheet
Total Assets	323.43M	115.44M	114.15M
Cash, Cash Equivalents and Short-Term Investments	195.77M	39.30M	22.33M
Total Debt	10.30M	51.76M	13.31M
Total Liabilities	48.14M	84.39M	56.37M
Stockholders Equity	73.88M	31.05M	57.79M
Cash Flow
Free Cash Flow	37.28M	14.51M	13.48M
Operating Cash Flow	40.48M	30.15M	25.75M
Investing Cash Flow	-25.05M	-14.65M	-14.50M
Financing Cash Flow	143.43M	-9.70M	-15.26M

TWFG, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWFG, the sentiment is Negative. The current price of 30.31 is below the 20-day moving average (MA) of 32.71, below the 50-day MA of 34.12, and below the 200-day MA of 31.77, indicating a bearish trend. The MACD of -1.04 indicates Positive momentum. The RSI at 30.73 is Neutral, neither overbought nor oversold. The STOCH value of 12.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TWFG.

TWFG, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EHTH	59 Neutral	$110.09M	―	3.19%	―	17.04%	74.07%
Sector *	58 Neutral	HK$92.20B	5.61	-3.20%	4.95%	5.50%	-56.25%
TWFG	55 Neutral	$1.73B	41.59	15.66%	―	19.11%	-58.54%
ZBAO	54 Neutral	$27.43M	9.35	48.31%	―	80.80%	―
HUIZ	51 Neutral	$23.30M	11.44	-3.92%	―	0.48%	-127.19%
RELI	45 Neutral	$4.09M	―	-223.86%	―	1.07%	96.67%
TIRX	41 Neutral	$124.24M	―	-12.03%	―	158.74%	14.86%

TWFG, Inc. Class A Corporate Events

TWFG, Inc. Holds Annual Stockholders Meeting

On May 28, 2025, TWFG, Inc. held its Annual Meeting of Stockholders, where a quorum was present. During the meeting, several directors were elected to the Board, including Richard F. Bunch III and Michael Doak, among others. Additionally, the stockholders ratified the appointment of Deloitte & Touche LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (TWFG) stock is a Buy with a $26.50 price target. To see the full list of analyst forecasts on TWFG, Inc. Class A stock, see the TWFG Stock Forecast page.

TWFG, Inc. Expands with New Acquisitions and VP Appointment

On May 1, 2025, TWFG, Inc. announced the acquisition of two agencies, one in Texas and one in North Carolina, and the appointment of Denise Davis as Vice President of Retail Operations. This strategic move is expected to enhance TWFG’s operational scale and efficiency across its 500 locations in 33 states, with Denise Davis bringing her industry expertise to the role. The acquisition of Paul Mears Insurance Group, Inc. expands TWFG’s presence in North Carolina, increasing its locations in the state to nine, while the leadership team at Paul Mears will continue to focus on growth.