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TWFG INC (TWFG) Stock Fundamental Analysis

NASDAQ:TWFG - Nasdaq - US87318A1016 - Common Stock - Currency: USD

28.815  -0.15 (-0.54%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to TWFG. TWFG was compared to 143 industry peers in the Insurance industry. TWFG has an excellent financial health rating, but there are some minor concerns on its profitability. TWFG has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

TWFG had positive earnings in the past year.
In the past year TWFG had a positive cash flow from operations.
TWFG Yearly Net Income VS EBIT VS OCF VS FCFTWFG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2022 2023 2024 10M 20M 30M 40M

1.2 Ratios

Looking at the Return On Assets, with a value of 1.24%, TWFG is in line with its industry, outperforming 45.45% of the companies in the same industry.
TWFG has a Return On Equity of 5.43%. This is in the lower half of the industry: TWFG underperforms 71.33% of its industry peers.
The Return On Invested Capital of TWFG (9.24%) is better than 94.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TWFG is significantly above the industry average of 4.05%.
The last Return On Invested Capital (9.24%) 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 RankSector Rank
ROA 1.24%
ROE 5.43%
ROIC 9.24%
ROA(3y)13.84%
ROA(5y)N/A
ROE(3y)41.14%
ROE(5y)N/A
ROIC(3y)20.41%
ROIC(5y)N/A
TWFG Yearly ROA, ROE, ROICTWFG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2022 2023 2024 20 40 60 80

1.3 Margins

TWFG has a worse Profit Margin (1.59%) than 76.92% of its industry peers.
TWFG's Operating Margin of 13.07% is fine compared to the rest of the industry. TWFG outperforms 62.24% of its industry peers.
TWFG has a better Gross Margin (41.81%) than 93.01% of its industry peers.
Industry RankSector Rank
OM 13.07%
PM (TTM) 1.59%
GM 41.81%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
TWFG Yearly Profit, Operating, Gross MarginsTWFG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2022 2023 2024 10 20 30 40

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8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TWFG is creating value.
Compared to 1 year ago, TWFG has more shares outstanding
Compared to 1 year ago, TWFG has an improved debt to assets ratio.
TWFG Yearly Shares OutstandingTWFG Yearly Shares OutstandingYearly Shares Outstanding 2022 2023 2024 5M 10M
TWFG Yearly Total Debt VS Total AssetsTWFG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2022 2023 2024 100M 200M 300M

2.2 Solvency

TWFG has an Altman-Z score of 2.92. This is not the best score and indicates that TWFG is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of TWFG (2.92) is better than 94.41% of its industry peers.
TWFG has a debt to FCF ratio of 0.17. This is a very positive value and a sign of high solvency as it would only need 0.17 years to pay back of all of its debts.
The Debt to FCF ratio of TWFG (0.17) is better than 90.91% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that TWFG is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.05, TWFG belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.17
Altman-Z 2.92
ROIC/WACC1.06
WACC8.72%
TWFG Yearly LT Debt VS Equity VS FCFTWFG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2022 2023 2024 20M 40M 60M

2.3 Liquidity

A Current Ratio of 5.63 indicates that TWFG has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.63, TWFG belongs to the best of the industry, outperforming 99.30% of the companies in the same industry.
A Quick Ratio of 5.63 indicates that TWFG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.63, TWFG belongs to the top of the industry, outperforming 99.30% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 5.63
Quick Ratio 5.63
TWFG Yearly Current Assets VS Current LiabilitesTWFG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2022 2023 2024 50M 100M 150M 200M

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4

3. Growth

3.1 Past

The earnings per share for TWFG have decreased strongly by -90.75% in the last year.
The Revenue has grown by 17.83% in the past year. This is quite good.
EPS 1Y (TTM)-90.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-82.19%
Revenue 1Y (TTM)17.83%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%16.22%

3.2 Future

The Earnings Per Share is expected to grow by 17.53% on average over the next years. This is quite good.
TWFG is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.63% yearly.
EPS Next Y20.76%
EPS Next 2Y21.13%
EPS Next 3Y17.53%
EPS Next 5YN/A
Revenue Next Year21.68%
Revenue Next 2Y21.82%
Revenue Next 3Y20.63%
Revenue Next 5YN/A

3.3 Evolution

TWFG Yearly Revenue VS EstimatesTWFG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2022 2023 2024 2025 2026 2027 100M 200M 300M
TWFG Yearly EPS VS EstimatesTWFG Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0.2 0.4 0.6 0.8

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5

4. Valuation

4.1 Price/Earnings Ratio

TWFG is valuated cheaply with a Price/Earnings ratio of 1.87.
90.91% of the companies in the same industry are more expensive than TWFG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.03, TWFG is valued rather cheaply.
TWFG is valuated quite expensively with a Price/Forward Earnings ratio of 33.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TWFG indicates a slightly more expensive valuation: TWFG is more expensive than 78.32% of the companies listed in the same industry.
TWFG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.28, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 1.87
Fwd PE 33.98
TWFG Price Earnings VS Forward Price EarningsTWFG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TWFG is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
TWFG's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 13.79
EV/EBITDA 5.23
TWFG Per share dataTWFG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TWFG's earnings are expected to grow with 17.53% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y21.13%
EPS Next 3Y17.53%

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0

5. Dividend

5.1 Amount

TWFG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TWFG INC

NASDAQ:TWFG (8/6/2025, 11:10:29 AM)

28.815

-0.15 (-0.54%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-13 2025-05-13/amc
Earnings (Next)08-12 2025-08-12
Inst Owners86.21%
Inst Owner Change0.09%
Ins Owners6.52%
Ins Owner Change35.33%
Market Cap429.34M
Analysts77.14
Price Target36.52 (26.74%)
Short Float %2.07%
Short Ratio3.09
Dividend
Industry RankSector 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)2
Avg EPS beat(2)35.68%
Min EPS beat(2)3.71%
Max EPS beat(2)67.65%
EPS beat(4)3
Avg EPS beat(4)2664.72%
Min EPS beat(4)-5.46%
Max EPS beat(4)10593%
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)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)3.09%
Revenue beat(4)2
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)3.09%
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)1.7%
PT rev (3m)9.15%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-6.12%
EPS NY rev (1m)0.42%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.19%
Valuation
Industry RankSector Rank
PE 1.87
Fwd PE 33.98
P/S 1.67
P/FCF 13.79
P/OCF 9.26
P/B 5.71
P/tB N/A
EV/EBITDA 5.23
EPS(TTM)15.39
EY53.41%
EPS(NY)0.85
Fwd EY2.94%
FCF(TTM)2.09
FCFY7.25%
OCF(TTM)3.11
OCFY10.8%
SpS17.29
BVpS5.05
TBVpS-0.38
PEG (NY)0.09
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.24%
ROE 5.43%
ROCE 11.7%
ROIC 9.24%
ROICexc 29.14%
ROICexgc 257.51%
OM 13.07%
PM (TTM) 1.59%
GM 41.81%
FCFM 12.09%
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 Turnover0.78
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.17
Debt/EBITDA 0.08
Cap/Depr 123.24%
Cap/Sales 5.92%
Interest Coverage 250
Cash Conversion 100.76%
Profit Quality 762.43%
Current Ratio 5.63
Quick Ratio 5.63
Altman-Z 2.92
F-Score6
WACC8.72%
ROIC/WACC1.06
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%-82.19%
EPS Next Y20.76%
EPS Next 2Y21.13%
EPS Next 3Y17.53%
EPS Next 5YN/A
Revenue 1Y (TTM)17.83%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%16.22%
Revenue Next Year21.68%
Revenue Next 2Y21.82%
Revenue Next 3Y20.63%
Revenue Next 5YN/A
EBIT growth 1Y6.25%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year77.15%
EBIT Next 3Y45.82%
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