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Westwood Holdings Group Inc (WHG)
NYSE:WHG
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Westwood Holdings Group
(NYSE:WHG)
64Neutral
Westwood Holdings Group (WHG) vs. S&P 500 (SPY)
Market Cap
$146.60M
Dividend Yield3.84%
Average Volume (3M)19.65K
Price to Earnings (P/E)60.1
Beta (1Y)0.73
Revenue Growth-0.31%
EPS Growth-79.42%
CountryUS
Employees151
SectorFinancial
Sector Strength85
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.25
Shares Outstanding9,379,675
10 Day Avg. Volume15,486
30 Day Avg. Volume19,650
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.58
Price to Cash Flow (P/CF)1.10
P/FCF Ratio1.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Westwood Holdings Group Business Overview & Revenue Model
Company DescriptionWestwood Holdings Group (WHG) is an investment management firm that offers a wide range of services including equity, fixed income, and alternative investment strategies. The company primarily serves institutions, private wealth clients, and financial intermediaries. With a focus on delivering consistent, long-term results, WHG leverages its expertise in asset management and financial advisory to meet the diverse needs of its clientele.
How the Company Makes MoneyWestwood Holdings Group makes money through management fees and advisory fees charged for managing client assets. These fees are typically based on a percentage of the assets under management (AUM). The company also earns performance-based fees, which are contingent on achieving certain investment benchmarks. Additionally, WHG may generate revenue through its subsidiary operations and through strategic partnerships that enhance its investment offerings and distribution channels.
Westwood Holdings Group Financial Statement Overview
Summary
Westwood Holdings Group presents a stable financial position with strong cash flow management and a solid balance sheet characterized by low leverage. However, profitability metrics have shown weaknesses, including declines in net profit margin and return on equity.Income Statement
Westwood Holdings Group experienced a moderate revenue growth rate of 5.5% in the latest year, supported by a gross profit margin of 35.1%. However, the net profit margin has decreased significantly to 2.3% from the previous year's 11.8%, indicating increased costs or reduced efficiency. The EBIT and EBITDA margins are relatively low at 0.9% and 0.9%, respectively, suggesting operating challenges.65
Positive
Balance Sheet
The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.03, reflecting minimal leverage and financial risk. The equity ratio stands at a strong 80.2%, highlighting a solid capital structure. However, the return on equity has decreased to 1.8%, pointing to subdued profitability.75
Positive
Cash Flow
Westwood Holdings Group has demonstrated a strong cash flow position with a substantial free cash flow of $21 million in the latest year, marking a significant turnaround from the negative free cash flow the previous year. The operating cash flow to net income ratio is notably high at 9.6, underscoring strong cash generation capabilities.83
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 94.72M | 89.78M | 68.68M | 73.05M | 65.11M | Gross Profit |
| 38.71M | 36.86M | 28.56M | 30.52M | 22.97M | EBIT |
| 830.00K | 6.00M | 10.54M | -1.48M | 5.27M | EBITDA |
| 10.46M | 8.27M | 13.12M | 5.96M | 1.41M | Net Income Common Stockholders |
| 2.21M | 10.57M | -4.63M | 9.76M | -8.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 46.54M | 53.10M | 39.20M | 80.23M | 82.56M | Total Assets |
| 149.99M | 155.17M | 146.33M | 139.60M | 149.15M | Total Debt |
| 3.20M | 4.55M | 6.06M | 6.13M | 7.84M | Net Debt |
| -15.65M | -15.87M | -17.80M | -9.07M | -5.18M | Total Liabilities |
| 27.66M | 32.72M | 35.68M | 21.70M | 18.44M | Stockholders Equity |
| 120.29M | 120.40M | 110.65M | 117.91M | 130.71M |
| Cash Flow | Free Cash Flow | |||
| 21.01M | -1.33M | 51.55M | 19.21M | -9.86M | Operating Cash Flow |
| 21.12M | -1.19M | 51.87M | 19.39M | -9.77M | Investing Cash Flow |
| -4.61M | 4.11M | -34.12M | 9.57M | -4.00K | Financing Cash Flow |
| -18.08M | -6.36M | -9.10M | -26.81M | -25.81M |
Westwood Holdings Group Technical Analysis
Negative
14.92
Price Trends
15.74
Negative
15.43
Positive
14.25
Positive
Market Momentum
0.19
Negative
51.60
Neutral
58.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHG, the sentiment is Negative. The current price of 14.92 is below the 20-day moving average (MA) of 15.80, below the 50-day MA of 15.74, and above the 200-day MA of 14.25, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 58.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WHG.
Westwood Holdings Group Risk Analysis
Westwood Holdings Group disclosed 26 risk factors in its most recent earnings report. Westwood Holdings Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Westwood Holdings Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.16B | 12.79 | 8.74% | 4.76% | 18.85% | 7.96% | |
71 Outperform | $6.19B | 11.75 | 5.31% | 5.93% | 3.97% | ― | |
70 Outperform | $19.16B | 9.42 | 20.60% | 5.79% | 9.80% | 17.87% | |
66 Neutral | $9.43B | 27.53 | 2.76% | 7.02% | 9.48% | -65.57% | |
64 Neutral | $146.60M | 60.09 | 1.84% | 3.84% | -0.31% | -79.42% | |
63 Neutral | $14.39B | 9.81 | 8.95% | 4.37% | 16.38% | -11.64% | |
63 Neutral | $4.62B | 10.46 | 14.75% | 0.03% | -6.77% | -14.55% |
* Financial Sector Average
Performance Comparison
WHG
Westwood Holdings Group
14.92
2.46
19.74%
AMG
Affiliated Managers
148.80
-17.04
-10.27%
BEN
Franklin Resources
17.51
-7.93
-31.17%
IVZ
Invesco
12.81
-3.05
-19.23%
TROW
T Rowe Price
82.60
-28.71
-25.79%
JHG
Janus Henderson Group
30.20
-1.01
-3.24%
Westwood Holdings Group Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -8.07% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong institutional growth, successful entry into the ETF market, and increased revenues and comprehensive income. However, there were notable challenges with net outflows in assets under management and a decrease in economic earnings year-over-year.Highlights
Institutional Growth Achievement
The institutional team won and funded eight mandates totaling over $600 million, a 100% increase over the prior year.
ETF Market Entry Success
Launched two active ETFs, reaching $73 million in assets by year-end, and expanded the ETF platform with new products.
Strong Revenue Increase
Fourth quarter revenues increased to $25.6 million from $23.7 million in the third quarter and $23.2 million in the prior year's fourth quarter.
Comprehensive Income Growth
Fourth quarter comprehensive income of $2.1 million, or $0.24 per share, compared to the prior year's fourth quarter net loss of $2.6 million.
Strategic Growth Initiatives
Completed build-out for managed investment solutions platform and promising client conversations are underway.
Lowlights
Net Outflows in Assets Under Management
Firmwide assets under management experienced net outflows of $0.8 billion over the year.
Decreased Economic Earnings for the Year
Economic earnings for 2024 were $7 million, or $0.82 per share, compared with $18.3 million, or $2.26 per share, in 2023.
Net Outflows in Intermediary Channel
Despite some bright spots, there were net outflows of $229 million in the intermediary channel.
Company Guidance
During the 4Q 2024 earnings call for Westwood Holdings Group Inc., the company shared various metrics and strategic initiatives. The company reported total revenues of $25.6 million for the fourth quarter, an increase from $23.7 million in the third quarter and $23.2 million in the prior year's fourth quarter. Fiscal year 2024 revenues reached $94.7 million, up from $89.8 million in 2023, driven by higher average assets under management. Comprehensive income for the quarter was $2.1 million, or $0.24 per share, compared to a net loss of $2.6 million, or $0.32 per share, in the previous year's fourth quarter. Firmwide assets under management and advisement totaled $17.6 billion at the end of the quarter, with institutional assets comprising 50% of the total. Westwood also highlighted the successful launch of its ETF platform, with the Westwood Salient Enhanced Midstream Income ETF reaching $73 million in assets by year-end. The company's board approved a regular cash dividend of $0.15 per share, to be paid on April 1, 2025.Westwood Holdings Group Corporate Events
Product-Related AnnouncementsStock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Westwood Holdings Reports Strong 2024 Financial Results
Positive
Feb 12, 2025
Westwood Holdings Group reported its fourth quarter and full year 2024 results, highlighting a significant increase in revenues and comprehensive income compared to the previous quarter. The company successfully launched two innovative ETFs and exceeded performance benchmarks in several investment strategies, contributing to a positive financial outcome. Westwood also declared a quarterly cash dividend and authorized a significant share repurchase program, indicating strong financial health and commitment to shareholder value. The firm’s enhanced capabilities in energy and real estate income strategies following the Salient acquisition have broadened its product reach and improved its average fee rate.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.