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

• Market Cap: $957.65M
• Dividend Yield: N/A
• Average Volume (3M): 87.68K
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.31
• 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: -4.28
• Price to Book (P/B): 6.16
• Price to Sales (P/S): 2.35
• P/FCF Ratio: 12.21
• Enterprise Value/Market Cap: 0.13
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: 2.26
• 1Y Price Target: $28.67
• Price Target Upside: 59.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $30.00 ▲(67.32% Upside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

TWFG, Inc. demonstrates strong financial performance and positive earnings call sentiment, which are the most significant factors driving its stock score. The company's robust revenue growth, improved margins, and strategic M&A activities highlight its growth potential. However, the high P/E ratio and technical indicators suggest caution, as the stock may be overvalued and facing resistance in the longer term.

Positive Factors

Revenue Growth

TWFG's strong revenue growth indicates effective market expansion and product adoption, supporting long-term business sustainability.

Margin Expansion

Improved margins reflect efficient cost management and operational effectiveness, enhancing profitability and competitive positioning.

Cash Position

A strong cash position provides TWFG with flexibility for strategic investments and resilience against market fluctuations.

Negative Factors

Increased Expenses

Rising expenses can pressure margins and profitability, potentially limiting reinvestment opportunities and affecting long-term growth.

Softening Market Conditions

Softening market conditions could lead to reduced pricing power and lower revenue growth, challenging TWFG's market strategy.

Challenges in California

Persistent challenges in key markets like California may hinder growth and require strategic adjustments to maintain market share.

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 policies, which include premiums collected from customers for property, casualty, and life insurance products. The company's revenue model is structured around underwriting insurance, where it assesses risk and prices policies accordingly. Key revenue streams include policy premiums, investment income from managing reserves, and fees from ancillary services such as risk management consulting. Additionally, TWFG may engage in strategic partnerships with other financial institutions and insurance providers, enhancing its distribution capabilities and expanding its market reach. These collaborations can lead to increased policy sales and improved customer acquisition, thereby contributing positively to the company's overall earnings.

TWFG, Inc. Class A Financial Statement Overview

Summary

TWFG, Inc. exhibits strong financial performance with significant revenue and cash flow growth, improved profitability margins, and reduced leverage. The company has effectively managed its costs and capital structure, enhancing its financial stability. While past leverage levels were high, recent improvements indicate a positive trajectory.

Income Statement

TWFG, Inc. shows strong revenue growth with a TTM increase of 6.27% and a previous annual growth of 16.01%. The gross profit margin improved significantly to 40.91% TTM from 24.04% in 2024, indicating better cost management. However, the net profit margin remains modest at 6.59% TTM, though it has improved from 1.42% in 2024. EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.08 TTM from 0.14 in 2024, indicating reduced leverage and better financial stability. Return on equity is strong at 18.89% TTM, showcasing effective use of equity. The equity ratio is stable, reflecting a solid capital structure. However, past high leverage in 2023 poses a potential risk.

Cash Flow

TWFG, Inc. demonstrates robust cash flow management with a TTM free cash flow growth of 7.92% and a strong operating cash flow to net income ratio of 1.15. The free cash flow to net income ratio is high at 93.23% TTM, indicating efficient cash conversion. Consistent growth in free cash flow highlights strong operational cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	217.88M	193.72M	166.99M	147.78M
Gross Profit	53.09M	46.57M	36.17M	30.63M
EBITDA	52.90M	44.33M	31.13M	27.05M
Net Income	6.61M	2.75M	0.00	0.00
Balance Sheet
Total Assets	349.17M	323.43M	115.44M	114.15M
Cash, Cash Equivalents and Short-Term Investments	150.99M	195.77M	39.30M	22.33M
Total Debt	9.02M	10.30M	51.76M	13.31M
Total Liabilities	53.43M	48.14M	84.39M	56.37M
Stockholders Equity	79.36M	73.88M	31.05M	57.79M
Cash Flow
Free Cash Flow	41.29M	37.28M	14.51M	13.48M
Operating Cash Flow	51.81M	40.48M	30.15M	25.75M
Investing Cash Flow	-67.21M	-25.05M	-14.65M	-14.50M
Financing Cash Flow	-22.96M	143.43M	-9.70M	-15.26M

TWFG, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 17.93 is below the 20-day moving average (MA) of 21.53, below the 50-day MA of 25.20, and below the 200-day MA of 28.45, indicating a bearish trend. The MACD of -2.45 indicates Positive momentum. The RSI at 25.33 is Positive, neither overbought nor oversold. The STOCH value of 15.83 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
TWFG	72 Outperform	$957.65M	40.55	8.79%	―	18.54%	-67.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CRD.B	67 Neutral	$500.10M	14.88	18.72%	2.47%	4.39%	61.61%
CRD.A	67 Neutral	$500.10M	16.01	18.72%	2.47%	4.39%	61.61%
SLQT	55 Neutral	$155.54M	-14.07	16.44%	―	13.16%	―
EHTH	53 Neutral	$53.53M	50.94	5.88%	―	16.79%	―
GOCO	44 Neutral	$23.50M	-0.09	-142.05%	―	7.56%	-344.04%