Westwood Holdings Group (WHG) AI Stock Analysis

• Market Cap: $160.88M
• Dividend Yield: 3.38%
• Average Volume (3M): 9.89K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.59
• Revenue Growth: 4.03%
• EPS Growth: 151.19%
• Country: US
• Employees: 151
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.64
• Shares Outstanding: 9,408,130
• 10 Day Avg. Volume: 12,405
• 30 Day Avg. Volume: 9,894
• PEG Ratio: -0.69
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 5.64
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 12.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $18.00 ▲(6.38% Upside)

Westwood Holdings Group's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the score. The company's robust revenue growth, solid balance sheet, and strategic expansion in ETFs support a stable outlook. Technical indicators suggest a neutral trend, while the valuation is fair with an attractive dividend yield. Overall, the stock presents a balanced investment opportunity with potential for growth.

Positive Factors

Revenue Growth

The robust revenue growth indicates successful business expansion and effective client acquisition strategies, enhancing long-term financial stability.

ETF Expansion

The strategic expansion into ETFs diversifies revenue streams and strengthens market positioning, supporting sustained growth and competitive advantage.

Balance Sheet Strength

A strong balance sheet with low leverage provides financial flexibility and resilience, enabling the company to invest in growth opportunities.

Negative Factors

Net Outflows

Significant net outflows could indicate client dissatisfaction or competitive pressures, potentially impacting future revenue and market share.

Market Concentration Risk

Reliance on a few large-cap stocks for gains poses a risk to portfolio diversification, potentially affecting performance if market conditions shift.

Operational Efficiency

Low operational efficiency, as indicated by the EBIT margin, suggests room for cost management improvements, which is crucial for enhancing profitability.

Westwood Holdings Group Business Overview & Revenue Model

Company Description

Westwood Holdings Group, Inc., through its subsidiaries, manages investment assets and provides services for its clients. The company operates in two segments, Advisory and Trust. The Advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals, and the Westwood Funds; and investment sub-advisory services to mutual funds, pooled investment vehicles, and its Trust segment. The Trust segment offers trust and custodial services; and participates in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Holdings Group, Inc. was founded in 1983 and is based in Dallas, Texas.

How the Company Makes Money

Westwood Holdings Group generates revenue primarily through management fees charged on assets under management (AUM) and performance fees linked to the investment returns of its funds. The company earns management fees as a percentage of the total AUM across its various investment strategies, which can fluctuate based on market conditions and client inflows or outflows. Performance fees are earned when investment returns exceed predetermined benchmarks, providing an additional revenue stream when portfolios perform well. Additionally, WHG may engage in strategic partnerships with other financial institutions and investment platforms, enhancing its distribution capabilities and potentially broadening its client base. Factors contributing to its earnings include market performance, asset allocation strategies, and the company’s reputation for delivering consistent investment results.

Westwood Holdings Group Financial Statement Overview

Summary

Westwood Holdings Group demonstrates strong revenue growth and a solid balance sheet with low leverage. Profitability metrics show improvement, though operational efficiency could be enhanced. Cash flow generation is robust, supporting potential growth and investment opportunities. Overall, the company is well-positioned financially, with a stable outlook.

Income Statement

Westwood Holdings Group shows strong revenue growth with a TTM increase of 45.4%, indicating robust business expansion. The gross profit margin remains healthy at around 40%, and the net profit margin has improved to 3.92% in the TTM, reflecting better cost management. However, the EBIT margin is relatively low at 6.65%, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.087, indicating conservative leverage. The return on equity is modest at 3.14% in the TTM, showing potential for higher profitability. The equity ratio is strong, reflecting a stable financial position with a high proportion of equity financing.

Cash Flow

Cash flow performance is positive, with a free cash flow growth rate of 22.18% in the TTM, indicating strong cash generation. The operating cash flow to net income ratio is close to 1, suggesting efficient conversion of earnings into cash. However, the free cash flow to net income ratio is slightly above 1, indicating potential reinvestment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.24M	94.72M	89.78M	68.68M	73.05M	65.11M
Gross Profit	40.89M	38.71M	36.86M	28.56M	30.52M	22.97M
EBITDA	11.51M	10.46M	8.27M	4.80M	8.33M	1.41M
Net Income	7.25M	2.21M	10.57M	-4.63M	9.76M	-8.95M
Balance Sheet
Total Assets	154.05M	149.99M	155.17M	146.43M	139.60M	149.15M
Cash, Cash Equivalents and Short-Term Investments	21.60M	46.54M	53.10M	39.20M	80.23M	82.56M
Total Debt	0.00	3.20M	9.10M	6.07M	6.13M	7.84M
Total Liabilities	28.07M	27.66M	32.72M	35.78M	21.70M	18.44M
Stockholders Equity	123.90M	120.29M	120.40M	110.65M	117.91M	130.71M
Cash Flow
Free Cash Flow	18.65M	21.01M	-1.33M	51.55M	19.21M	-9.86M
Operating Cash Flow	19.85M	21.12M	-1.19M	51.87M	19.39M	-9.77M
Investing Cash Flow	-5.61M	-4.61M	4.11M	-34.12M	9.57M	-4.00K
Financing Cash Flow	-15.43M	-18.08M	-6.36M	-9.10M	-26.81M	-25.81M

Westwood Holdings Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHG, the sentiment is Positive. The current price of 16.92 is above the 20-day moving average (MA) of 16.37, above the 50-day MA of 16.40, and above the 200-day MA of 16.10, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 68.25 is Neutral, neither overbought nor oversold. The STOCH value of 68.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WHG.

Westwood Holdings Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WHG	74 Outperform	$160.88M	20.89	5.99%	3.38%	4.03%	151.19%
OPY	73 Outperform	$750.10M	9.64	9.64%	0.99%	12.52%	16.53%
SIEB	72 Outperform	$133.41M	21.10	8.43%	―	8.47%	-32.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PWP	46 Neutral	$1.66B	23.13	―	1.57%	-12.44%	―
MFH	40 Underperform	―	―	―	―	125.92%	53.50%

Westwood Holdings Group Corporate Events

Westwood Holdings Reports Strong Q3 2025 Results

Westwood Holdings Group reported strong third quarter 2025 results, with revenues of $24.3 million, up from $23.1 million in the previous quarter, and net income of $3.7 million, significantly higher than the $1.0 million in the second quarter. The firm also declared a quarterly cash dividend of $0.15 per share, payable on January 2, 2026. The company’s diversified platform showed strength, with several investment strategies outperforming benchmarks and the MDST ETF capturing 30% of September’s midstream ETF flows. The partnership with WEBs launched eleven new sector ETFs, enhancing Westwood’s market positioning. The firm held $39.2 million in cash and liquid investments, with no debt, and assets under management and advisement totaled $18.3 billion.