Breaking Down Westwood Holdings Group, Inc. (WHG) Financial Health: Key Insights for Investors

Are you looking for a comprehensive analysis of Westwood Holdings Group, Inc.'s (WHG) financial standing? Did you know that in 2024, Westwood Holdings Group reported total revenues of $74.1 million and assets under management (AUM) of $14.8 billion? Understanding these figures, along with key financial ratios and performance indicators, is crucial for making informed investment decisions. Keep reading to explore a detailed breakdown of WHG's financial health, providing you with the insights needed to navigate the complexities of investment.

Westwood Holdings Group, Inc. (WHG) Revenue Analysis

Understanding Westwood Holdings Group, Inc.'s (WHG) revenue streams is crucial for investors seeking to assess the company's financial health and stability. A detailed breakdown reveals the key sources of income and how they contribute to the overall financial performance.

Breakdown of Primary Revenue Sources:

Westwood Holdings Group, Inc. primarily generates revenue through investment advisory services. These services encompass:

• Managing assets for institutions, high-net-worth individuals, and retail clients.
• Providing investment strategies across various asset classes, including equities, fixed income, and real estate.

Year-over-Year Revenue Growth Rate:

Analyzing historical revenue trends provides insights into Westwood Holdings Group, Inc.'s growth trajectory. For example, examining the year-over-year revenue growth rate helps to identify periods of expansion or contraction. The specific percentage increase or decrease in revenue from one year to the next is a key indicator of the company's performance and market conditions.

Contribution of Different Business Segments to Overall Revenue:

To gain a comprehensive understanding of Westwood Holdings Group, Inc.'s revenue composition, it's essential to evaluate the contribution of different business segments. These segments may include institutional clients, private wealth management, and other related services. Understanding the revenue generated by each segment helps investors assess the diversification of Westwood Holdings Group, Inc.'s income streams and identify potential areas of strength or weakness.

The following table illustrates a hypothetical breakdown of revenue contribution by segment:

Analysis of Any Significant Changes in Revenue Streams:

Monitoring significant changes in Westwood Holdings Group, Inc.'s revenue streams is vital for investors. This includes assessing the impact of new product offerings, shifts in client demand, and changes in market dynamics. For instance, a notable increase in revenue from a specific asset class may indicate a successful investment strategy or a growing interest in that particular market segment.

For additional insights into Westwood Holdings Group, Inc.'s (WHG) financial health, you can explore: Breaking Down Westwood Holdings Group, Inc. (WHG) Financial Health: Key Insights for Investors

Westwood Holdings Group, Inc. (WHG) Profitability Metrics

Understanding Westwood Holdings Group, Inc.'s (WHG) profitability is crucial for investors seeking to evaluate the company's financial health and long-term sustainability. Profitability metrics provide insights into how efficiently a company generates profit from its revenue and assets.

Here's a breakdown of key profitability metrics for Westwood Holdings Group, Inc. (WHG):

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). It reflects the company's efficiency in managing production costs.
• Operating Profit Margin: This metric measures the percentage of revenue remaining after deducting both COGS and operating expenses. It reveals how well the company controls its operational costs.
• Net Profit Margin: Representing the percentage of revenue that translates into net income, this margin is a comprehensive measure of overall profitability, taking into account all expenses, including taxes and interest.

Analyzing trends in these profitability metrics over time can reveal whether Westwood Holdings Group, Inc. (WHG) is improving its efficiency and effectiveness in generating profits. A consistent increase in these margins suggests strong management and a healthy business model.

When evaluating Westwood Holdings Group, Inc.'s (WHG) profitability, it's essential to compare its ratios with industry averages. This benchmark helps determine whether the company is performing above or below its peers. Higher profitability ratios compared to the industry average may indicate a competitive advantage.

Operational efficiency plays a significant role in profitability. Effective cost management and favorable gross margin trends are indicators of a company's ability to control expenses and maximize profits. Monitoring these aspects provides valuable insights into the company's financial health.

For the fiscal year 2024, Westwood Holdings Group, Inc. (WHG) reported the following financial data:

As of December 31, 2024, Westwood Holdings Group, Inc. reported total assets under management (AUM) of $15.9 billion. The firm's investment strategies span across various asset classes, including U.S. equities, active ETFs, and real assets. For the year 2024, Westwood Holdings Group, Inc. reported total revenue of $87.83 million. The firm's net income for the year 2024 amounted to $2.69 million, which translates to $0.34 per diluted share.

The firm's financial performance is influenced by various factors, including investment performance, client flows, and market conditions. Westwood Holdings Group, Inc. continues to focus on delivering long-term value to its clients through its investment strategies and client-centric approach.

Here's a table summarizing key financial data for Westwood Holdings Group, Inc. (WHG) in 2024:

Explore more about Westwood Holdings Group, Inc. (WHG) Financial Health: Breaking Down Westwood Holdings Group, Inc. (WHG) Financial Health: Key Insights for Investors

Westwood Holdings Group, Inc. (WHG) Debt vs. Equity Structure

Understanding how Westwood Holdings Group, Inc. (WHG) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities.

Let's delve into the specifics of Westwood Holdings Group, Inc.'s (WHG) debt profile:

• Overview of Debt Levels: As of the fiscal year 2024, Westwood Holdings Group, Inc. (WHG) had a total debt of $22.729 million. Specifically, the short-term debt was $0.234 million, while the long-term debt amounted to $22.495 million.
• Debt-to-Equity Ratio: Evaluating the debt-to-equity ratio provides insights into the company's financial leverage. Unfortunately, the exact debt-to-equity ratio for 2024 is not available in the provided search results.
• Recent Debt Activity: Without specific details on recent debt issuances, credit ratings, or refinancing activities from the provided search results, a comprehensive analysis of Westwood Holdings Group, Inc.'s (WHG) recent debt management strategies remains incomplete.
• Balancing Debt and Equity: Westwood Holdings Group, Inc. (WHG) strategically balances debt and equity financing to optimize its capital structure. However, the specific details on how this balance is achieved and managed are not available in the provided search results.

Here's a summary of Westwood Holdings Group, Inc.'s (WHG) debt components based on available data:

For further insights into Westwood Holdings Group, Inc.'s (WHG) financial health, you can explore: Breaking Down Westwood Holdings Group, Inc. (WHG) Financial Health: Key Insights for Investors

Westwood Holdings Group, Inc. (WHG) Liquidity and Solvency

Understanding Westwood Holdings Group, Inc.'s (WHG) financial health requires a close look at its liquidity and solvency. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Assessing Westwood Holdings Group, Inc.'s Liquidity:

Liquidity ratios measure a company's ability to cover its short-term liabilities with its short-term assets. Key ratios include the current ratio and the quick ratio.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. It indicates whether a company has enough short-term assets to cover its short-term liabilities.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, excludes inventories from current assets to provide a more conservative measure of liquidity. It assesses whether a company can meet its short-term obligations with its most liquid assets.

Working Capital Trends:

Analyzing working capital trends involves monitoring the difference between a company's current assets and current liabilities over time. A positive working capital balance suggests that a company has enough liquid assets to cover its short-term liabilities. Consistent increases in working capital indicate improving liquidity, while decreases may signal potential challenges.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of a company's cash inflows and outflows, categorized into operating, investing, and financing activities.

• Operating Cash Flow: This reflects the cash generated or used from the company's core business operations. Positive operating cash flow indicates that a company is generating enough cash from its operations to cover its expenses and invest in growth.
• Investing Cash Flow: This includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E). Negative investing cash flow typically indicates investments in growth, while positive investing cash flow may suggest divestitures or asset sales.
• Financing Cash Flow: This involves cash flows related to debt, equity, and dividends. Positive financing cash flow may indicate that a company is raising capital through debt or equity issuances, while negative financing cash flow may suggest debt repayments or dividend payments.

By examining these cash flow trends, investors can gain valuable insights into Westwood Holdings Group, Inc.'s (WHG) ability to generate cash, manage its investments, and fund its operations.

Potential Liquidity Concerns or Strengths:

A thorough analysis of liquidity ratios, working capital trends, and cash flow statements can reveal potential liquidity concerns or strengths. For example, declining current and quick ratios, negative working capital, or reliance on external financing may signal liquidity risks. Conversely, strong operating cash flow, increasing working capital, and healthy liquidity ratios may indicate financial strength.

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Westwood Holdings Group, Inc. (WHG) Valuation Analysis

Analyzing whether Westwood Holdings Group, Inc. (WHG) is overvalued or undervalued requires a look at several key financial metrics and market data.

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: For 2024, the P/E ratio is reported at 53.74 [4]. Another source mentions a P/E ratio of 62.35 [1]. Yet another source states the P/E ratio as 65.22 [31] These varying P/E ratios suggest the valuation is relatively high compared to the market average.
• Price-to-Book (P/B) Ratio: The P/B ratio is approximately 0.98 [2]. Another source mentions a P/B ratio of 1.1x [9]. Yet another source mentions a P/B ratio of 1.21 [13]. This indicates that the market values the company's net assets closely to their book value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio for Westwood in 2024 peaked at 7.3x [3].

Stock Price Trends:

• Over the last year, Westwood Holdings Group Inc. has shown a 26.32% increase [1].
• The stock reached a 52-week high of $16.68 in October 2024 [9].
• The 52-week high/low range is $18.0266/$11.0101 [17].
• The all-time high was $71.00 on October 19, 2017, and the all-time low was $8.91 on October 18, 2023 [1].

Dividend Information:

• Dividend Yield: The dividend yield was 4.14% in 2024 [1]. As of April 2025, the dividend yield (TTM) is 3.69% [1]. Another source mentions a dividend yield of 3.56% [7].
• Payout Ratio: The payout ratio reached 230.68% in 2024 [1].
• The last dividend per share was $0.15 USD [1].
• Dividends are paid quarterly [1].

Analyst Consensus:

• The technical analysis shows a strong buy rating today, and its 1 week rating is strong buy [1].
• The 1 month rating shows a buy signal [1].

Additional Data:

In conclusion, assessing whether Westwood Holdings Group, Inc. is overvalued or undervalued presents a mixed picture. The high P/E ratio may suggest overvaluation, while other factors such as stock price increase and dividend yield indicate potential value. Analyst consensus leans towards a buy signal. To gain further insights, consider reading the full analysis: Breaking Down Westwood Holdings Group, Inc. (WHG) Financial Health: Key Insights for Investors

Westwood Holdings Group, Inc. (WHG) Risk Factors

Westwood Holdings Group, Inc. (WHG) faces a variety of risks that could significantly impact its financial health. These risks stem from both internal and external factors, including industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors assessing the company's stability and future prospects. For more insights, check out: Exploring Westwood Holdings Group, Inc. (WHG) Investor Profile: Who’s Buying and Why?

One of the primary risks Westwood Holdings Group faces is intense industry competition. The investment management industry is highly competitive, with numerous firms vying for clients and assets. This competition can put pressure on Westwood Holdings Group's fees and profitability.

Regulatory changes also pose a significant risk. The financial industry is heavily regulated, and changes in regulations can impact how Westwood Holdings Group operates and the products and services it can offer. Compliance with these regulations adds to the company's operational costs.

Market conditions are another critical factor. Fluctuations in the financial markets can affect the value of assets under management (AUM) and, consequently, the company's revenue. Economic downturns or periods of market volatility can lead to decreased AUM and reduced earnings.

Operational, financial, and strategic risks are often highlighted in Westwood Holdings Group's earnings reports and filings. These may include:

• Investment performance: Underperformance relative to benchmarks can lead to client attrition and reduced AUM.
• Key personnel: The loss of key investment professionals or senior management could disrupt operations and harm client relationships.
• Acquisition and integration: Risks associated with integrating acquired businesses, including cultural differences and operational challenges.

While specific mitigation strategies are not always detailed, Westwood Holdings Group likely employs several approaches to manage these risks:

• Diversification: Offering a range of investment products and services to appeal to a broader client base.
• Compliance programs: Implementing robust compliance programs to adhere to regulatory requirements.
• Risk management frameworks: Establishing frameworks to identify, assess, and manage various operational and financial risks.

Below is a hypothetical risk assessment table based on common financial risks:

Understanding these risks and how Westwood Holdings Group manages them is essential for investors evaluating the company's financial health and investment potential.

Westwood Holdings Group, Inc. (WHG) Growth Opportunities

For Westwood Holdings Group, Inc. (WHG), several factors could drive future expansion. These encompass new investment strategies, reaching into new markets, and potentially acquiring other businesses. To maintain a competitive edge, WHG must leverage its strengths and adapt to the changing financial landscape.

Future growth for Westwood Holdings Group, Inc. (WHG) will likely hinge on a few key elements:

• Product Innovation: Developing and launching new investment products that cater to evolving investor needs and preferences.
• Market Expansion: Extending the firm's reach into new geographic regions or client segments.
• Strategic Partnerships: Collaborating with other firms to broaden service offerings or distribution capabilities.
• Acquisitions: Acquiring complementary businesses to expand capabilities or market share.

While specific revenue growth projections and earnings estimates are subject to market conditions and internal strategies, analysts' estimates provide insight into potential performance. These estimates, combined with an understanding of WHG's strategic initiatives, offer a basis for evaluating the company's growth prospects.

Strategic initiatives and partnerships are also crucial for WHG's growth. These alliances can broaden service offerings, enhance distribution networks, and provide access to new markets. By carefully selecting partners and executing strategic initiatives, WHG can enhance its competitive position and drive long-term growth.

One of Westwood Holdings Group, Inc.'s (WHG) competitive advantages lies in its investment strategies and client relationships. These strengths enable WHG to attract and retain clients, even in a competitive market. By leveraging these advantages, WHG can capitalize on growth opportunities and deliver value to its stakeholders.

Here is a summary of Westwood Holdings Group, Inc.'s (WHG) recent financial data:

For more detailed insights into Westwood Holdings Group, Inc.'s (WHG) financial health, you can refer to this comprehensive analysis: Breaking Down Westwood Holdings Group, Inc. (WHG) Financial Health: Key Insights for Investors