Westwood Holdings Group, Inc.
Westwood Holdings Group, Inc. Fundamental Analysis
Westwood Holdings Group, Inc. (WHG) shows weak financial fundamentals with a PE ratio of 18.40, profit margin of 7.40%, and ROE of 5.95%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 3.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WHG's fundamental strength across five key dimensions:
Efficiency Score
WeakWHG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWHG trades at attractive valuation levels.
Growth Score
WeakWHG faces weak or negative growth trends.
Financial Health Score
ExcellentWHG maintains a strong and stable balance sheet.
Profitability Score
WeakWHG struggles to sustain strong margins.
Key Financial Metrics
Is WHG Expensive or Cheap?
P/E Ratio
WHG trades at 18.40 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WHG's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Westwood Holdings Group, Inc. at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.27 times EBITDA. This signals the market has high growth expectations.
How Well Does WHG Make Money?
Net Profit Margin
For every $100 in sales, Westwood Holdings Group, Inc. keeps $7.40 as profit after all expenses.
Operating Margin
Core operations generate 5.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.95 in profit for every $100 of shareholder equity.
ROA
Westwood Holdings Group, Inc. generates $4.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Westwood Holdings Group, Inc. produces operating cash flow of $22.66M, showing steady but balanced cash generation.
Free Cash Flow
Westwood Holdings Group, Inc. generates strong free cash flow of $22.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.35 in free cash annually.
FCF Yield
WHG converts 13.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
26.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How WHG Stacks Against Its Sector Peers
| Metric | WHG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.40 | 18.85 | Neutral |
| ROE | 5.95% | 820.00% | Weak |
| Net Margin | 7.40% | 1999.00% | Weak |
| Debt/Equity | 0.08 | 1.01 | Strong (Low Leverage) |
| Current Ratio | 26.35 | 673.75 | Strong Liquidity |
| ROA | 4.90% | -23583.00% (disorted) | Weak |
WHG outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Westwood Holdings Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.21%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
175.45%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
275.43%
Industry Style: Value, Dividend, Cyclical
High Growth