Westwood Holdings Group Inc

The company's capital structure is characterized by a low debt-to-equity ratio of 0.0, indicating a conservative leverage profile. Its liquidity position is assessed as low, with a price-to-book ratio of 2.11 and a price-to-tangible-book ratio of 2.11, suggesting that the market values the company's intangible assets at a premium. The company's free cash flow is negative at -2.81 million USD, and its operating cash flow is also negative at -2.57 million USD, indicating that the company is not generating sufficient cash from operations to fund its activities.

Profitability metrics show a return on equity of 0.63% and a return on assets of 0.52%, both of which are below the industry median for investment management firms. The company's net income of 782,000 USD in Q1 2026 contrasts with an operating loss of 1.5 million USD, highlighting the impact of non-operating income on its bottom line. The price-to-earnings ratio of 186.74 is significantly higher than the industry median, indicating that the company is currently overvalued relative to its earnings.

The company's revenue is primarily concentrated in its asset management and custody services, with a limited number of advisory clients and mutual fund offerings contributing performance-based fees. The company's geographic exposure is not disclosed in the available source documents, but its business model suggests a focus on domestic markets. The company's revenue concentration in a few key services and clients may expose it to higher risk if those relationships or market conditions change.

The company's growth trajectory is uncertain, with no specific revenue growth targets or projections provided in the available source documents. The company's operating income has declined in Q1 2026, and its free cash flow remains negative. The company's outlook for the current fiscal year is not explicitly stated, but the negative operating cash flow and free cash flow suggest that the company may face challenges in maintaining or growing its revenue in the near term.

The company's risk assessment indicates a medium level of dilution risk, with source documents mentioning the potential for dilution or offering risk. The company's liquidity risk is assessed as low, but its negative free cash flow and operating cash flow suggest that it may need to rely on external financing to fund its operations. The company's capital expenditure of 246,000 USD in Q1 2026 is relatively small, indicating a low level of investment in physical assets.

Recent events include the adoption of ASU 2025-06 and ASU 2025-11, which are intended to simplify and clarify accounting guidance for software development and interim reporting, respectively. The company also disclosed that a limited number of its advisory clients and mutual fund offerings have performance-based fee components, which could impact its revenue if market conditions change. The company's portfolio managers consider economic conditions, equity markets, and interest rates as key risk factors for midstream energy infrastructure companies, which may be relevant to its investment strategies.

Westwood Holdings generated $18.8 million in free cash flow for fiscal year 2025, demonstrating strong cash generation capabilities.

The company maintains a low leverage band with a debt-to-equity ratio of 0.28, indicating a conservative capital structure.

Fiscal year 2025 revenue reached $97.8 million, showing top-line scale despite significant year-over-year volatility in reported figures.

Net income improved to $7.1 million in fiscal year 2025, reflecting a return to profitability from prior periods.

Liquidity risk is assessed as low, suggesting the company has sufficient short-term assets to meet immediate obligations.

Return on equity of 0.63% trails the cohort median of 5.14%, highlighting weak returns generated for shareholders.

Cash conversion is in the bottom quartile of its cohort at -3.28, suggesting difficulties in turning earnings into cash.

The company faces medium dilution risk, which could negatively impact existing shareholder value and earnings per share.

Revenue $25.0M; Operating income -$1.5M.

• ▍Revenue $25.0M
• ▍Operating income -$1.5M
• ▍Net margin 3.1%

Revenue $70.7M; Operating income $2.8M.

• ▍Revenue $70.7M
• ▍Operating income $2.8M
• ▍Net margin 7.4%

Revenue $46.4M; Operating income $800.0k.

• ▍Revenue $46.4M
• ▍Operating income $800.0k
• ▍Net margin 3.2%

Revenue $97.8M; Operating income $5.0M.

• ▍Revenue $97.8M
• ▍Operating income $5.0M
• ▍Net margin 7.2%

Revenue $94.7M; Operating income $830.0k.

• ▍Revenue $94.7M
• ▍Operating income $830.0k
• ▍Net margin 2.3%

Revenue $94.7M; Operating income $830.0k.

• ▍Revenue $94.7M
• ▍Operating income $830.0k
• ▍Net margin 2.3%

Revenue $15.4M; Net margin -7.6%.

• ▍Revenue $15.4M
• ▍Net margin -7.6%

Revenue $15.4M; Net margin -7.6%.

• ▍Revenue $15.4M
• ▍Net margin -7.6%