TWFG INC(NASDAQ:TWFG) stock Fundamental Analysis

Fundamental Rating

Overall TWFG gets a fundamental rating of 5 out of 10. We evaluated TWFG against 143 industry peers in the Insurance industry. While TWFG has a great health rating, its profitability is only average at the moment. TWFG does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

In the past year TWFG was profitable.

TWFG had a positive operating cash flow in the past year.

1.2 Ratios

TWFG's Return On Assets of 2.90% is fine compared to the rest of the industry. TWFG outperforms 69.23% of its industry peers.

TWFG has a Return On Equity of 12.69%. This is comparable to the rest of the industry: TWFG outperforms 59.44% of its industry peers.

The Return On Invested Capital of TWFG (9.85%) is better than 95.10% of its industry peers.

The Average Return On Invested Capital over the past 3 years for TWFG is significantly above the industry average of 4.23%.

The last Return On Invested Capital (9.85%) for TWFG is well below the 3 year average (20.41%), which needs to be investigated, but indicates that TWFG had better years and this may not be a problem.

		Industry Rank	Sector Rank
ROA	2.9%
ROE	12.69%
ROIC	9.85%

ROA(3y)13.84%

ROA(5y)N/A

ROE(3y)41.14%

ROE(5y)N/A

ROIC(3y)20.41%

ROIC(5y)N/A

1.3 Margins

TWFG's Profit Margin of 3.75% is on the low side compared to the rest of the industry. TWFG is outperformed by 74.13% of its industry peers.

TWFG's Operating Margin of 14.16% is fine compared to the rest of the industry. TWFG outperforms 62.94% of its industry peers.

TWFG's Gross Margin of 42.21% is amongst the best of the industry. TWFG outperforms 92.31% of its industry peers.

		Industry Rank	Sector Rank
OM	14.16%
PM (TTM)	3.75%
GM	42.21%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TWFG is creating value.

Compared to 1 year ago, TWFG has more shares outstanding

TWFG has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.11 indicates that TWFG is not in any danger for bankruptcy at the moment.

TWFG's Altman-Z score of 3.11 is amongst the best of the industry. TWFG outperforms 96.50% of its industry peers.

The Debt to FCF ratio of TWFG is 0.38, which is an excellent value as it means it would take TWFG, only 0.38 years of fcf income to pay off all of its debts.

TWFG has a better Debt to FCF ratio (0.38) than 83.92% of its industry peers.

TWFG has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.

TWFG has a better Debt to Equity ratio (0.05) than 85.31% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.05
Debt/FCF	0.38
Altman-Z	3.11

ROIC/WACC1.1

WACC8.96%

2.3 Liquidity

A Current Ratio of 6.10 indicates that TWFG has no problem at all paying its short term obligations.

With an excellent Current ratio value of 6.10, TWFG belongs to the best of the industry, outperforming 99.30% of the companies in the same industry.

A Quick Ratio of 6.10 indicates that TWFG has no problem at all paying its short term obligations.

TWFG has a Quick ratio of 6.10. This is amongst the best in the industry. TWFG outperforms 99.30% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	6.1
Quick Ratio	6.1

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for TWFG have decreased strongly by -90.75% in the last year.

TWFG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.83%.

EPS 1Y (TTM)-90.75%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-94.73%

Revenue 1Y (TTM)17.83%

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%-70.08%

3.2 Future

Based on estimates for the next years, TWFG will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.02% on average per year.

The Revenue is expected to grow by 16.70% on average over the next years. This is quite good.

EPS Next Y17.13%

EPS Next 2Y20.48%

EPS Next 3Y16.02%

EPS Next 5YN/A

Revenue Next Year20.25%

Revenue Next 2Y20.34%

Revenue Next 3Y16.7%

Revenue Next 5YN/A

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

TWFG is valuated quite expensively with a Price/Earnings ratio of 49.26.

TWFG's Price/Earnings ratio is rather expensive when compared to the industry. TWFG is more expensive than 81.82% of the companies in the same industry.

TWFG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.85.

With a Price/Forward Earnings ratio of 50.20, TWFG can be considered very expensive at the moment.

79.72% of the companies in the same industry are cheaper than TWFG, based on the Price/Forward Earnings ratio.

Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, TWFG is valued quite expensively.

		Industry Rank	Sector Rank
PE	49.26
Fwd PE	50.2

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TWFG is valued a bit cheaper than the industry average as 74.13% of the companies are valued more expensively.

TWFG's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TWFG is more expensive than 67.83% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	32.84
EV/EBITDA	6.13

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

TWFG's earnings are expected to grow with 16.02% in the coming years. This may justify a more expensive valuation.

PEG (NY)2.88

PEG (5Y)N/A

EPS Next 2Y20.48%

EPS Next 3Y16.02%

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5. Dividend

5.1 Amount

TWFG does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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TWFG INC

NASDAQ:TWFG (5/15/2025, 4:05:48 PM)

After market: 33.99 0 (0%)

33.99

+1.73 (+5.36%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupInsurance

GICS IndustryInsurance

Earnings (Last)05-13 2025-05-13/amc

Earnings (Next)N/A N/A

Inst Owners87.65%

Inst Owner Change-0.64%

Ins Owners3.91%

Ins Owner Change1.43%

Market Cap506.45M

Analysts77.14

Price Target33.46 (-1.56%)

Short Float %1.84%

Short Ratio2.49

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)31.09%

Min EPS beat(2)-5.46%

Max EPS beat(2)67.65%

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)2

Avg Revenue beat(2)1.95%

Min Revenue beat(2)0.81%

Max Revenue beat(2)3.09%

Revenue beat(4)N/A

Avg Revenue beat(4)N/A

Min Revenue beat(4)N/A

Max Revenue beat(4)N/A

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)-3.53%

PT rev (3m)-4%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-3.75%

EPS NY rev (1m)2.29%

EPS NY rev (3m)3%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-6.28%

Revenue NY rev (1m)0%

Revenue NY rev (3m)1.1%

Valuation

		Industry Rank	Sector Rank
PE	49.26
Fwd PE	50.2
P/S	2.03
P/FCF	32.84
P/OCF	12.51
P/B	6.85
P/tB	559
EV/EBITDA	6.13

EPS(TTM)0.69

EY2.03%

EPS(NY)0.68

Fwd EY1.99%

FCF(TTM)1.04

FCFY3.05%

OCF(TTM)2.72

OCFY7.99%

SpS16.78

BVpS4.96

TBVpS0.06

PEG (NY)2.88

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	2.9%
ROE	12.69%
ROCE	12.47%
ROIC	9.85%
ROICexc	31.76%
ROICexgc	185.67%
OM	14.16%
PM (TTM)	3.75%
GM	42.21%
FCFM	6.17%

ROA(3y)13.84%

ROA(5y)N/A

ROE(3y)41.14%

ROE(5y)N/A

ROIC(3y)20.41%

ROIC(5y)N/A

ROICexc(3y)38.9%

ROICexc(5y)N/A

ROICexgc(3y)219.18%

ROICexgc(5y)N/A

ROCE(3y)25.84%

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

F-Score6

Asset Turnover0.77

Health

		Industry Rank	Sector Rank
Debt/Equity	0.05
Debt/FCF	0.38
Debt/EBITDA	0.08
Cap/Depr	208.44%
Cap/Sales	10.02%
Interest Coverage	15.4
Cash Conversion	85.37%
Profit Quality	164.54%
Current Ratio	6.1
Quick Ratio	6.1
Altman-Z	3.11

F-Score6

WACC8.96%

ROIC/WACC1.1

Cap/Depr(3y)300.71%

Cap/Depr(5y)N/A

Cap/Sales(3y)9.77%

Cap/Sales(5y)N/A

Profit Quality(3y)227.62%

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-90.75%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-94.73%

EPS Next Y17.13%

EPS Next 2Y20.48%

EPS Next 3Y16.02%

EPS Next 5YN/A

Revenue 1Y (TTM)17.83%

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%-70.08%

Revenue Next Year20.25%

Revenue Next 2Y20.34%

Revenue Next 3Y16.7%

Revenue Next 5YN/A

EBIT growth 1Y6.25%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year70.95%

EBIT Next 3Y38.3%

EBIT Next 5YN/A

FCF growth 1Y6.32%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y34.24%

OCF growth 3YN/A

OCF growth 5YN/A

TWFG INC (TWFG) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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