TWFG, Inc. Common Stock
TWFG, Inc. Common Stock Fundamental Analysis
TWFG, Inc. Common Stock (TWFG) shows weak financial fundamentals with a PE ratio of 39.51, profit margin of 3.03%, and ROE of 8.61%. The company generates $0.2B in annual revenue with strong year-over-year growth of 16.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TWFG's fundamental strength across five key dimensions:
Efficiency Score
WeakTWFG struggles to generate sufficient returns from assets.
Valuation Score
WeakTWFG trades at a premium to fair value.
Growth Score
ModerateTWFG shows steady but slowing expansion.
Financial Health Score
ExcellentTWFG maintains a strong and stable balance sheet.
Profitability Score
WeakTWFG struggles to sustain strong margins.
Key Financial Metrics
Is TWFG Expensive or Cheap?
P/E Ratio
TWFG trades at 39.51 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TWFG's PEG of 10.14 indicates potential overvaluation.
Price to Book
The market values TWFG, Inc. Common Stock at 3.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.63 times EBITDA. This is generally considered low.
How Well Does TWFG Make Money?
Net Profit Margin
For every $100 in sales, TWFG, Inc. Common Stock keeps $3.03 as profit after all expenses.
Operating Margin
Core operations generate 12.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.61 in profit for every $100 of shareholder equity.
ROA
TWFG, Inc. Common Stock generates $1.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TWFG, Inc. Common Stock produces operating cash flow of $51.89M, showing steady but balanced cash generation.
Free Cash Flow
TWFG, Inc. Common Stock generates strong free cash flow of $41.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.75 in free cash annually.
FCF Yield
TWFG converts 15.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How TWFG Stacks Against Its Sector Peers
| Metric | TWFG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.51 | 18.86 | Worse (Expensive) |
| ROE | 8.61% | 847.00% | Weak |
| Net Margin | 3.03% | 4202.00% | Weak |
| Debt/Equity | 0.11 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 4.68 | 667.17 | Strong Liquidity |
| ROA | 1.89% | -21543.00% (disorted) | Weak |
TWFG outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TWFG, Inc. Common Stock's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5505.96%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
469.49%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
6621.57%
Industry Style: Value, Dividend, Cyclical
High Growth