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

• Market Cap: $1.42B
• Dividend Yield: N/A
• Average Volume (3M): 97.23K
• Price to Earnings (P/E): 45.6
• Beta (1Y): 0.25
• Revenue Growth: 19.11%
• EPS Growth: -58.54%
• Country: US
• Employees: 293
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Brokers
• EPS (TTM): 0.16
• Shares Outstanding: 14,904,083
• 10 Day Avg. Volume: 144,071
• 30 Day Avg. Volume: 97,233
• PEG Ratio: 0.00
• Price to Book (P/B): 240.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.03K
• Enterprise Value/Market Cap: 9.81
• Enterprise Value/Revenue: 19.40
• Enterprise Value/Gross Profit: 173.44
• Enterprise Value/Ebitda: 96.21
• 1Y Price Target: $35.67
• Price Target Upside: 5.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 63 Neutral
• Price Target: $36.00 ▲(6.41%Upside)

TWFG's overall score is bolstered by strong financial performance and positive corporate events, but is tempered by technical indicators suggesting neutral to slightly bearish sentiment and a high P/E ratio indicating potential overvaluation. The absence of dividend yield further impacts its valuation attractiveness.

Positive Factors

Financial Performance

Commission income rose approximately 15% year-over-year and came in above consensus.

Market Share

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

Negative Factors

Guidance

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

Product Availability

Investors will be looking for clues on how growth in California, TWFG's second largest state, could play out given a likely lack of product availability post-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

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TWFG, Inc. Class A Financial Statement Overview

Summary

TWFG shows strong financial health with significant improvements across revenue, profitability, and cash flow metrics. Enhanced efficiency and reduced leverage contribute to a positive financial outlook, though impressive growth rates may reflect past underperformance.

Income Statement

TWFG demonstrated strong revenue growth of 22% year-over-year, moving from $166.99M to $203.76M. The gross profit margin improved significantly, indicating enhanced efficiency in managing costs, moving from 18.87% to 85.74%. Net profit margin also increased markedly from 2.47% to 14.03%, reflecting improved profitability. Both EBIT and EBITDA margins showed healthy improvements, underscoring operational efficiency. However, the prior year had a lower base, which might have contributed to the impressive growth percentage.

Balance Sheet

TWFG's balance sheet shows a solid equity ratio of 22.84%, suggesting a stable financial position with a manageable level of liabilities. The debt-to-equity ratio decreased significantly from 1.67 to 0.09, indicating reduced leverage. Return on equity improved from 13.31% to 38.71%, demonstrating an enhanced ability to generate returns from shareholder investments. However, the reduced debt levels might limit leverage benefits in certain growth scenarios.

Cash Flow

TWFG's free cash flow increased from $14.51M to $37.28M, indicating robust cash generation capabilities. The operating cash flow to net income ratio was strong at 1.42, reflecting efficient cash conversion. The free cash flow to net income ratio was 1.30, highlighting effective free cash flow generation relative to net income. The significant improvement in free cash flow growth and cash flow ratios suggests a strong operational cash generation capacity, though capital expenditures did see a decline.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	202.77M	193.72M	166.99M	147.78M
Gross Profit	80.12M	46.57M	31.51M	30.23M
EBITDA	44.80M	44.33M	26.46M	27.05M
Net Income	16.52M	2.75M	4.13M	20.61M
Balance Sheet
Total Assets	330.53M	323.43M	115.44M	114.15M
Cash, Cash Equivalents and Short-Term Investments	196.42M	195.77M	39.30M	22.33M
Total Debt	6.17M	10.30M	51.76M	13.31M
Total Liabilities	50.47M	48.14M	84.39M	56.37M
Stockholders Equity	75.21M	73.88M	31.05M	57.79M
Cash Flow
Free Cash Flow	42.28M	37.28M	14.51M	13.48M
Operating Cash Flow	46.37M	40.48M	30.15M	25.75M
Investing Cash Flow	-15.24M	-25.05M	-14.65M	-14.50M
Financing Cash Flow	145.73M	143.43M	-9.70M	-15.26M

TWFG, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 33.83 is below the 20-day moving average (MA) of 34.87, below the 50-day MA of 34.29, and above the 200-day MA of 31.46, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.29 is Neutral, neither overbought nor oversold. The STOCH value of 17.30 is Positive, 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
Sector *	67 Neutral	$16.86B	11.90	9.77%	3.76%	12.07%	-8.35%
TWFG	63 Neutral	$1.42B	45.58	15.66%	―	19.11%	-58.54%
EHTH	59 Neutral	$126.16M	―	3.19%	―	17.04%	74.07%
RELI	55 Neutral	$4.96M	―	-238.61%	―	2.40%	94.65%
ZBAO	55 Neutral	$31.84M	10.97	48.31%	―	80.80%	―
HUIZ	48 Neutral	$21.79M	11.44	-3.92%	―	0.48%	-127.19%
TIRX	45 Neutral	$12.11M	―	-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.