Westwood Holdings Group (WHG) AI Stock Analysis

• Market Cap: $149.19M
• Dividend Yield: 3.32%
• Average Volume (3M): 12.79K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.58
• Revenue Growth: 4.03%
• EPS Growth: 151.19%
• Country: US
• Employees: 151
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.21
• Shares Outstanding: 9,484,473
• 10 Day Avg. Volume: 22,890
• 30 Day Avg. Volume: 12,791
• PEG Ratio: 0.10
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.47
• P/FCF Ratio: 8.06
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: 9.33
• 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: 70 Outperform
• Price Target: $17.50 ▲(3.43% Upside)
• Action: Reiterated Date: 02/16/26
• Date: Action: Reiterated 02/16/26

The score is primarily supported by improved profitability and a conservatively positioned, debt-free balance sheet, alongside constructive earnings-call highlights on product and distribution momentum. Offsetting this are historically volatile earnings/cash flows, meaningful net outflows, and only mixed near-term technical momentum; valuation is reasonable with dividend support but not notably cheap.

Positive Factors

Balance Sheet Strength

A debt-free balance sheet with meaningful cash and a stable equity base provides long-term financial flexibility. It lets management fund product launches, support distribution efforts, sustain the dividend, and absorb AUM shocks without tapping external debt, reducing solvency and refinancing risk over the medium term.

Profitability Recovery

The company returned to consistent positive economic earnings and materially higher GAAP income in 2025 versus 2024, signaling operational stabilization. Sustained profits improve internal funding for growth, support dividends and compensation, and indicate the business model can generate recurring shareholder value if performance holds.

Product & Distribution Momentum

ETF scale, successful private fundraises and a 20% rise in gross sales (institutional +36%, intermediary +32%) show durable franchise building. Expanding ETF and private fund offerings diversifies fee streams and strengthens distribution relationships, which can raise recurring revenues and reduce single-product dependency over time.

Negative Factors

Net AUM Outflows

Net outflows equal to roughly 5.7% of firm AUM materially reduce fee-bearing assets and revenue leverage. If outflows persist or recur, the firm must generate higher gross sales to replace lost fees, pressuring margins and forcing greater investment in sales and distribution to sustain organic growth over the medium term.

Client/Product Concentration Risk

Outflows concentrated in a single product and largely driven by one sub-advisory client highlight client concentration risk. Reliance on a few large relationships can produce sharp revenue cliffs and unpredictability in AUM, complicating planning and increasing the importance of client retention and diversification efforts.

Earnings & Cash-Flow Volatility

Historic swings in operating and free cash flow, including negative periods, reduce predictability for dividends, reinvestment, and product investment. Even with recent improvement, cyclical volatility in cash generation makes capital allocation and long-term planning harder and raises sensitivity to market-driven AUM moves.

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

WHG primarily makes money by charging fees for managing client assets and providing advisory services. The company’s core revenue stream is asset-based management fees (typically calculated as a percentage of assets under management) earned from institutional investment management mandates and from wealth management relationships. These fees generally fluctuate with (a) net client inflows/outflows and (b) market performance that changes the value of assets managed. WHG may also earn performance-based fees on certain strategies or accounts when applicable; if specific performance-fee arrangements are not disclosed for a given period, return null for that detail. Additional revenue can come from ancillary client service fees (e.g., financial planning or administrative-related fees) and, where applicable, other operating income; if not disclosed, return null. Key factors influencing earnings include asset levels, fee rates by product/strategy, client retention, investment performance versus benchmarks, and operating leverage (the extent to which costs are fixed versus variable). Significant partnerships: null.

Westwood Holdings Group Financial Statement Overview

Summary

Strong balance sheet strength (low leverage/debt-free) and a clear recovery to solid profitability in 2023–2025 support the score. Offsetting this, both earnings and cash flows have been volatile across the cycle, including periods of negative operating/free cash flow.

Income Statement

Revenue has expanded meaningfully over the cycle, with strong growth in 2023 and a sharp acceleration in 2025, and profitability has recovered from losses in 2020–2022 to solidly positive earnings in 2023–2025. Margins strengthened notably in 2025 versus 2024 (higher operating and net profitability), but results have been volatile historically (loss years and wide swings in net margin), which tempers confidence in durability.

Balance Sheet

The balance sheet is conservatively positioned with low leverage throughout the period (debt-to-equity staying modest) and a sizable equity base that has remained relatively stable. Returns on equity have improved from negative levels in 2020–2022 to positive in 2023–2025, though the return profile is still uneven year-to-year, reflecting earnings volatility rather than balance sheet stress.

Cash Flow

Cash generation is generally strong in the most recent years, with robust operating cash flow and free cash flow in 2024–2025 and cash conversion close to reported earnings. However, cash flow has been inconsistent across the cycle (notably negative operating/free cash flow in 2020 and 2023), and free cash flow growth turned negative in 2025 after a strong 2024, highlighting variability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	97.76M	94.72M	89.78M	68.68M	73.05M
Gross Profit	84.61M	38.71M	36.86M	28.56M	30.52M
EBITDA	14.12M	10.46M	8.27M	4.80M	8.33M
Net Income	7.08M	2.21M	10.57M	-4.63M	9.76M
Balance Sheet
Total Assets	163.25M	149.99M	155.17M	146.43M	139.60M
Cash, Cash Equivalents and Short-Term Investments	47.68M	46.54M	53.10M	39.20M	80.23M
Total Debt	10.17M	3.20M	9.10M	6.07M	6.13M
Total Liabilities	35.58M	27.66M	32.72M	35.78M	21.70M
Stockholders Equity	125.61M	120.29M	120.40M	110.65M	117.91M
Cash Flow
Free Cash Flow	17.88M	21.01M	-1.33M	51.55M	19.21M
Operating Cash Flow	17.97M	21.12M	-1.19M	51.87M	19.39M
Investing Cash Flow	-3.67M	-4.61M	4.11M	-34.12M	9.57M
Financing Cash Flow	-6.90M	-18.08M	-6.36M	-9.10M	-26.81M

Westwood Holdings Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 16.92 is above the 20-day moving average (MA) of 16.37, below the 50-day MA of 17.18, and above the 200-day MA of 16.62, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 29.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WHG.

Westwood Holdings Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPY	76 Outperform	$875.34M	2.55	9.64%	0.99%	12.52%	16.53%
SIEB	72 Outperform	$85.71M	18.19	8.17%	―	8.47%	-32.22%
WHG	70 Outperform	$149.19M	19.44	5.77%	3.32%	4.03%	151.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DOMH	61 Neutral	$49.80M	0.22	116.21%	―	―	―
PWP	50 Neutral	$1.48B	31.31	―	1.62%	-12.44%	―

Westwood Holdings Group Corporate Events

Westwood Holdings Reports Strong Q4 Results, Raises Dividend

Westwood Holdings Group, Inc., a boutique asset manager offering actively managed strategies and white-glove wealth services to institutional, intermediary and private clients, reported firmwide assets under management and advisement of $17.4 billion as of December 31, 2025. The company maintains a debt-free balance sheet, ending the year with $44.1 million in cash and liquid investments and $125.6 million in stockholders’ equity, and its strategies such as Income Opportunity and Total Return delivered top-tier peer rankings in the fourth quarter.

On February 13, 2026, Westwood announced fourth quarter 2025 revenue of $27.1 million, up from both the prior quarter and a year earlier, with quarterly income of $1.9 million and non-GAAP Economic Earnings of $3.3 million reflecting higher revenues but also increased performance-related compensation. For full-year 2025, income rose to $7.1 million from $2.2 million in 2024 and diluted EPS tripled to $0.79, driven by stronger revenues, ETF and private energy secondaries growth, and unrealized gains on strategic private investments, and the board approved a quarterly dividend of $0.15 per share payable on April 1, 2026, underscoring improving profitability and shareholder returns.

The firm highlighted strategic milestones in 2025, including expanding its ETF platform beyond $200 million in assets with the launch of the Enhanced Income Opportunity ETF, closing its second flagship energy secondaries fund and two co-investment vehicles with more than $300 million in commitments, and securing the first institutional client for its Managed Investment Solutions business. These developments, coupled with increased investor interest in ETFs and private energy secondaries, strengthened Westwood’s competitive positioning and support management’s view that the company is well placed to leverage these initiatives in the evolving asset management landscape.

The most recent analyst rating on (WHG) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Westwood Holdings Group stock, see the WHG Stock Forecast page.