Westwood Holdings Group (WHG) AI Stock Analysis

• Market Cap: $164.61M
• Dividend Yield: 3.43%
• Average Volume (3M): 48.42K
• Price to Earnings (P/E): 611.5
• Beta (1Y): 0.77
• Revenue Growth: 0.52%
• EPS Growth: -96.93%
• Country: US
• Employees: 151
• Sector: Financial
• Sector Strength: 67
• Industry: Financial - Capital Markets
• EPS (TTM): 0.05
• Shares Outstanding: 9,379,680
• 10 Day Avg. Volume: 12,070
• 30 Day Avg. Volume: 48,422
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: 12.32
• 1Y Price Target: $20.00
• Price Target Upside: 14.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 70 Neutral
• Price Target: $20.00 ▲(14.48% Upside)

Westwood Holdings Group's overall stock score reflects a stable financial position supported by strong cash flows and a solid balance sheet, significant strategic achievements, and bullish technical indicators. However, the stock's high valuation and declining profitability metrics are key concerns that weigh down the score, highlighting the need for improved operational efficiency and profitability.

Westwood Holdings Group Business Overview & Revenue Model

Company Description

Westwood Holdings Group (WHG) is an investment management firm that provides a range of investment solutions to institutional investors, private wealth clients, and financial intermediaries. The company offers a diverse suite of investment services, including equity and fixed income strategies, as well as alternative investments. WHG aims to deliver superior long-term performance through disciplined, value-oriented investment processes.

How the Company Makes Money

Westwood Holdings Group generates revenue primarily through management fees charged on the assets it manages for clients. These fees are typically based on a percentage of the assets under management (AUM) and may vary depending on the type of investment product or account. Additionally, the company may earn performance-based fees if certain investment benchmarks are met or exceeded. WHG's revenue is also influenced by market conditions, as fluctuations in the financial markets can impact the value of the assets it manages. Significant partnerships with institutional investors and financial intermediaries help to expand the company's client base and increase assets under management, further contributing to its earnings.

Westwood Holdings Group Financial Statement Overview

Summary

Westwood Holdings Group shows a stable financial position with strong cash flow and a robust balance sheet characterized by low leverage. However, profitability metrics have weakened, with declines in net profit margin and return on equity, reflecting operational efficiency challenges.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	95.47M	94.72M	89.78M	68.68M	73.05M	65.11M
Gross Profit	49.81M	38.71M	36.86M	28.56M	30.52M	22.97M
EBITDA	11.18M	11.46M	8.27M	13.12M	5.96M	1.41M
Net Income	492.00K	2.21M	10.57M	-4.63M	9.76M	-8.95M
Balance Sheet
Total Assets	149.15M	149.99M	155.17M	146.33M	139.60M	149.15M
Cash, Cash Equivalents and Short-Term Investments	82.56M	46.54M	53.10M	39.20M	80.23M	82.56M
Total Debt	7.84M	3.20M	4.55M	6.06M	6.13M	7.84M
Total Liabilities	18.44M	27.66M	32.72M	35.68M	21.70M	18.44M
Stockholders Equity	130.71M	120.29M	120.40M	110.65M	117.91M	130.71M
Cash Flow
Free Cash Flow	19.38M	21.01M	-1.33M	51.55M	19.21M	-9.86M
Operating Cash Flow	20.49M	21.12M	-1.19M	51.87M	19.39M	-9.77M
Investing Cash Flow	-18.43M	-4.61M	4.11M	-34.12M	9.57M	-4.00K
Financing Cash Flow	-18.53M	-18.08M	-6.36M	-9.10M	-26.81M	-25.81M

Westwood Holdings Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 17.47 is above the 20-day moving average (MA) of 17.22, above the 50-day MA of 16.24, and above the 200-day MA of 15.54, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 56.05 is Neutral, neither overbought nor oversold. The STOCH value of 38.35 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
PJT	76 Outperform	$6.30B	31.07	106.47%	0.56%	18.40%	54.77%
SF	75 Outperform	$11.53B	21.69	11.11%	1.60%	8.75%	10.32%
SIEB	71 Outperform	$161.24M	8.58	21.85%	―	21.85%	111.42%
WHG	70 Neutral	$164.61M	611.50	0.33%	3.43%	0.52%	-96.93%
OPY	68 Neutral	$767.71M	9.51	10.25%	1.01%	13.84%	42.61%
AMRK	68 Neutral	$548.64M	14.98	5.81%	3.61%	5.48%	-54.25%
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.61%	2.06%

Westwood Holdings Group Corporate Events

Westwood Holdings Group Annual Meeting Approvals Impact

At the recent Annual Meeting of Westwood Holdings Group, stockholders approved four key proposals. These included the election of directors to serve until the next annual meeting, the ratification of BDO USA, P.C. as independent auditors for 2025, the approval of the Eleventh Amended and Restated Stock Incentive Plan, and a non-binding advisory approval of executive compensation. The outcomes of these votes are expected to influence the company’s governance and operational strategies moving forward.