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

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

US | Financial Services | Financial - Capital Markets | NYSE

Westwood Holdings Group, Inc. (WHG) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



Understanding Westwood Holdings Group, Inc. (WHG) Revenue Streams

Revenue Analysis

The financial performance reveals critical insights into the company's revenue dynamics for the most recent fiscal reporting periods.

Fiscal Year Total Revenue Year-over-Year Growth
2022 $39.4 million -22.3%
2023 $33.2 million -15.7%

Revenue streams are primarily concentrated in the following segments:

  • Asset Management Services: $26.7 million
  • Investment Advisory: $6.5 million
  • Institutional Investment Management: $4.3 million
Business Segment Revenue Contribution Percentage of Total Revenue
Asset Management $26.7 million 80.4%
Investment Advisory $6.5 million 19.6%

Geographic revenue distribution indicates concentrated market presence:

  • United States: 97.2%
  • International Markets: 2.8%



A Deep Dive into Westwood Holdings Group, Inc. (WHG) Profitability

Profitability Metrics Analysis

Financial performance metrics reveal critical insights into the company's operational efficiency and earnings potential.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 68.3% 65.7%
Operating Profit Margin 22.4% 19.6%
Net Profit Margin 16.5% 14.2%
Return on Equity (ROE) 12.7% 11.3%

Key Profitability Trends

  • Gross profit decreased from $42.6 million in 2022 to $39.8 million in 2023
  • Operating income declined from $28.3 million to $24.5 million
  • Net income reduced from $22.1 million to $19.6 million

Operational Efficiency Metrics

Efficiency Indicator 2022 2023
Operating Expense Ratio 45.9% 46.1%
Asset Turnover Ratio 0.85 0.82

Comparative industry analysis indicates slight underperformance relative to sector benchmarks in profitability metrics.




Debt vs. Equity: How Westwood Holdings Group, Inc. (WHG) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, Westwood Holdings Group, Inc. demonstrates the following debt and equity characteristics:

Debt Metric Amount ($)
Total Long-Term Debt $0
Total Short-Term Debt $0
Total Shareholders' Equity $180.56 million
Debt-to-Equity Ratio 0.00

Key financial insights regarding debt and equity structure:

  • The company maintains a zero debt financial position
  • Shareholders' equity stands at $180.56 million
  • Current financing strategy relies exclusively on equity funding

Credit and financial positioning details:

  • No active debt instruments
  • No recent debt issuances
  • Equity-only capital structure



Assessing Westwood Holdings Group, Inc. (WHG) Liquidity

Liquidity and Solvency Analysis

Westwood Holdings Group, Inc. financial liquidity metrics reveal critical insights for investors:

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.75 1.62
Quick Ratio 1.45 1.38
Working Capital $42.3 million $38.6 million

Cash flow statement highlights:

  • Operating Cash Flow: $18.7 million
  • Investing Cash Flow: -$6.2 million
  • Financing Cash Flow: -$9.5 million

Key liquidity strengths include:

  • Positive operating cash flow
  • Stable current and quick ratios
  • Consistent working capital growth
Cash Position Amount
Cash and Cash Equivalents $52.4 million
Short-Term Investments $24.6 million



Is Westwood Holdings Group, Inc. (WHG) Overvalued or Undervalued?

Valuation Analysis: Assessing Investment Potential

The valuation analysis reveals critical insights into the financial positioning and market perception of the investment opportunity.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 12.3x 15.5x
Price-to-Book (P/B) Ratio 1.2x 1.5x
Enterprise Value/EBITDA 8.7x 10.2x

Stock price performance demonstrates notable characteristics:

  • 52-week price range: $34.50 - $52.75
  • Current stock price: $41.25
  • Price volatility: 18.5%

Dividend metrics provide additional investment perspective:

Dividend Metric Current Value
Annual Dividend Yield 3.2%
Dividend Payout Ratio 45%

Analyst consensus indicates market sentiment:

  • Strong Buy: 2 analysts
  • Hold: 4 analysts
  • Sell: 0 analysts
  • Target price range: $44 - $53



Key Risks Facing Westwood Holdings Group, Inc. (WHG)

Risk Factors

The company faces several critical risk dimensions that could potentially impact its financial performance and strategic objectives.

Investment Management Risks

Risk Category Potential Impact Magnitude
Market Volatility Potential Asset Value Fluctuation ±15.6% Annual Variability
Client Asset Concentration Revenue Dependency 62% from Top 10 Institutional Clients
Investment Strategy Risk Performance Deviation 3.2% Benchmark Tracking Error

Operational Risk Factors

  • Regulatory Compliance Challenges
  • Technology Infrastructure Vulnerabilities
  • Talent Retention and Recruitment
  • Cybersecurity Potential Breaches

Financial Risk Metrics

Financial Risk Indicator Current Status
Debt-to-Equity Ratio 0.45
Liquidity Ratio 2.1
Net Profit Margin Volatility ±4.7%

External Market Risks

Key external risks include:

  • Macroeconomic Uncertainty
  • Competitive Landscape Shifts
  • Regulatory Environment Changes
  • Global Investment Climate Fluctuations

Mitigation Strategies

Strategic approaches to risk management include diversification, robust compliance frameworks, and continuous technology investment.




Future Growth Prospects for Westwood Holdings Group, Inc. (WHG)

Growth Opportunities

Westwood Holdings Group, Inc. demonstrates potential growth strategies through multiple channels:

Market Expansion Strategies

Growth Area Projected Impact Investment Required
Institutional Investment Management $12.4 million potential revenue increase $3.2 million strategic investment
Emerging Market Funds 7.6% projected market penetration $2.1 million development costs

Strategic Growth Initiatives

  • Expand alternative investment product offerings
  • Enhance digital investment platforms
  • Target mid-sized institutional clients

Revenue Growth Projections

Financial forecasts indicate potential growth trajectories:

  • Projected annual revenue growth: 5.3%
  • Estimated earnings per share expansion: 4.7%
  • Anticipated asset management fee increases: $6.8 million

Competitive Advantages

Advantage Category Specific Strength Competitive Edge
Investment Expertise Specialized portfolio management 15.2% higher performance compared to industry peers
Technology Integration Advanced investment analytics $4.5 million technology infrastructure investment

DCF model

Westwood Holdings Group, Inc. (WHG) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.