Westwood Holdings Group (WHG) AI Stock Analysis

• Market Cap: $170.48M
• Dividend Yield: 3.25%
• Average Volume (3M): 14.63K
• Price to Earnings (P/E): 44.2
• Beta (1Y): 0.73
• Revenue Growth: 0.24%
• EPS Growth: -49.87%
• Country: US
• Employees: 151
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): 0.12
• Shares Outstanding: 9,408,130
• 10 Day Avg. Volume: 12,213
• 30 Day Avg. Volume: 14,634
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 3.49
• Enterprise Value/Ebitda: 12.18
• 1Y Price Target: $20.00
• Price Target Upside: 10.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $20.00 ▲(10.38% Upside)

Westwood Holdings Group's strong financial performance and positive earnings call are the most significant factors driving the score. The technical analysis supports a positive outlook, although the valuation suggests caution due to a high P/E ratio. Overall, the company is well-positioned with growth potential, but investors should be mindful of valuation risks.

Westwood Holdings Group Business Overview & Revenue Model

Company Description

Westwood Holdings Group (WHG) is a diversified investment management firm based in the United States, specializing in providing investment advisory and asset management services. The company operates primarily in the wealth management sector, catering to a diverse clientele that includes institutional investors, financial advisors, and high-net-worth individuals. WHG offers a range of core services including equity and fixed income investment strategies, alternative investments, and customized portfolio management solutions.

How the Company Makes Money

Westwood Holdings Group generates revenue primarily through its investment management fees, which are charged as a percentage of assets under management (AUM). These fees are tiered based on the size of the investment, with larger accounts typically benefiting from lower percentage rates. Additionally, WHG earns performance fees based on the investment returns generated above certain benchmarks, incentivizing the firm to maximize client investment performance. The company also benefits from ancillary services, such as financial planning and consulting, which provide additional revenue streams. Strategic partnerships with institutional investors and financial advisors further enhance WHG's reach and client base, contributing to its overall earnings.

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	95.67M	94.72M	89.78M	68.68M	73.05M	65.11M
Gross Profit	38.55M	38.71M	36.86M	28.56M	30.52M	22.97M
EBITDA	11.05M	10.46M	8.27M	4.80M	8.33M	1.41M
Net Income	3.75M	2.21M	10.57M	-4.63M	9.76M	-8.95M
Balance Sheet
Total Assets	146.28M	149.99M	155.17M	146.33M	139.60M	149.15M
Cash, Cash Equivalents and Short-Term Investments	33.23M	46.54M	53.10M	39.20M	80.23M	82.56M
Total Debt	10.47M	3.20M	4.55M	6.06M	6.13M	7.84M
Total Liabilities	23.92M	27.66M	32.72M	35.68M	21.70M	18.44M
Stockholders Equity	120.31M	120.29M	120.40M	110.65M	117.91M	130.71M
Cash Flow
Free Cash Flow	23.68M	21.01M	-1.33M	51.55M	19.21M	-9.86M
Operating Cash Flow	23.27M	21.12M	-1.19M	51.87M	19.39M	-9.77M
Investing Cash Flow	-15.97M	-4.61M	4.11M	-34.12M	9.57M	-4.00K
Financing Cash Flow	-15.66M	-18.08M	-6.36M	-9.10M	-26.81M	-25.81M

Westwood Holdings Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.12
• 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 18.12 is above the 20-day moving average (MA) of 17.69, above the 50-day MA of 16.95, and above the 200-day MA of 15.72, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 55.36 is Neutral, neither overbought nor oversold. The STOCH value of 70.87 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
SF	74 Outperform	$11.85B	22.26	11.11%	1.52%	8.76%	10.32%
WHG	73 Outperform	$170.48M	44.25	3.06%	3.25%	0.24%	-49.87%
OPY	70 Outperform	$743.11M	9.24	10.25%	1.01%	13.84%	42.61%
Sector *	68 Neutral	$17.82B	11.90	10.30%	3.72%	9.69%	0.80%
AMRK	68 Neutral	$576.96M	16.01	5.81%	3.41%	6.41%	-54.25%
PJT	64 Neutral	$6.33B	30.57	106.47%	0.55%	18.40%	54.77%
SIEB	62 Neutral	$117.04M	12.19	11.37%	―	9.24%	-2.06%

Westwood Holdings Group Corporate Events

Westwood Holdings Reports Q2 Growth and Dividend Announcement

Westwood Holdings Group reported its second quarter 2025 results, highlighting a growth in assets under management to $18.3 billion and a net income of $1.0 million, a significant improvement from a loss in the same quarter last year. The company also announced a quarterly cash dividend of $0.15 per share, payable on October 1, 2025, and celebrated its inclusion in the Russell 2000 Index, which enhances its institutional accessibility. These achievements, alongside strong performance in various investment strategies, underscore Westwood’s continued momentum and strong positioning in the asset management industry.