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1. Company Snapshot

1.a. Company Description

Westwood Holdings Group, Inc., through its subsidiaries, manages investment assets and provides services for its clients.The company operates in two segments, Advisory and Trust.The Advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals, and the Westwood Funds; and investment sub-advisory services to mutual funds, pooled investment vehicles, and its Trust segment.


The Trust segment offers trust and custodial services; and participates in common trust funds that it sponsors to institutions and high net worth individuals.Westwood Holdings Group, Inc.was founded in 1983 and is based in Dallas, Texas.

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1.b. Last Insights on WHG

Westwood Holdings Group, Inc.'s recent performance was negatively impacted by persistent net outflows in its core segments, with asset under management (AUM) growth primarily driven by market appreciation rather than organic inflows. Despite growth in ETF platforms, particularly energy income and defined volatility ETFs, declines in mutual funds and institutional accounts offset these gains. The company's Q3 2025 earnings call highlighted these challenges, with net income boosted by a non-recurring, unrealized private-valuation update. Additionally, while new sector ETFs were launched, they did not suffice to counterbalance outflows.

1.c. Company Highlights

2. Westwood Holdings Group's Q3 2025 Earnings: A Strong Performance

Westwood Holdings Group reported total revenues of $24.3 million for the third quarter of 2025, a slight increase from $23.7 million in the prior year's third quarter. Non-GAAP economic earnings were $5.7 million or $0.64 per share, beating analyst estimates of $0.36 per share, with actual EPS coming in at $0.38. The company's financial performance was driven by its diverse range of investment strategies and asset classes, which delivered solid results across multiple areas.

Publication Date: Nov -23

📋 Highlights
  • MDST ETF Growth:: Enhanced midstream income ETF (MDST) AUM surpassed $150 million.
  • Private Fundraising Success:: Exceeded 2025 annual goal by 1.5x due to intermediary channel performance.
  • Year-to-Date Sales Growth:: Net sales rose 17% YoY (vs. 2024) and 57% YoY (vs. 2023) through September 30.
  • Q3 Financials:: Total revenues reached $24.3M; non-GAAP economic earnings at $5.7M ($0.64/share).
  • Strong AUM & Liquidity:: Firm-wide AUM/advisement totaled $18.3B; cash/liquid investments at $39.2M with a debt-free balance sheet.

Asset Under Management and Fundraising

The company's assets under management (AUM) and advisement totaled $18.3 billion at quarter-end, with the enhanced midstream income ETF, MDST, surpassing $150 million in AUM. Private fundraising exceeded the annual goal by a significant margin, with the intermediary channel having success with private fundraising, exceeding the 2025 annual goal by 1.5x. Year-to-date net sales through September 30 improved by 17% versus last year and 57% versus 2023.

Investment Performance

The company's long-term performance delivered solid results across multiple strategies and asset classes. The U.S. value strategies, particularly the SMidCap strategy, posted strong rankings, while the multi-asset strategies, including the Income Opportunity Fund, achieved top-third rankings for the trailing 3-year period. This strong investment performance was a key driver of the company's financial results.

Valuation and Dividend

With a P/E Ratio of 19.18 and a Dividend Yield of 3.62%, Westwood Holdings Group's valuation appears reasonable, especially considering its solid financial performance. The company's ROE of 6.02% and ROIC of 3.32% also indicate a decent return on equity and invested capital. A regular cash dividend of $0.15 per common share was approved, payable on January 2, 2026, demonstrating the company's commitment to returning value to shareholders.

Outlook and Growth Opportunities

The company is optimistic about its strategic positioning and growth opportunities, with a debt-free balance sheet and cash and liquid investments totaling $39.2 million. While analysts estimate next year's revenue growth at None%, the company's strong financial position and diverse range of investment strategies position it well for future growth.

3. NewsRoom

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Westwood One Scores Savanah Bananas' Broadcast Entertainer Drake C. Toll to Host Mornings on New 24/7 Sports Talk Lineup

Dec -03

Source: globenewswire.com

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Westwood Holdings Is Back To Net Outflows, And Remains Unattractive

Nov -05

Source: seekingalpha.com

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Westwood Holdings Group, Inc. (WHG) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Westwood Holdings Group, Inc. Reports Third Quarter 2025 Results

Oct -30

Source: globenewswire.com

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Westwood One Names Armen Williams Executive Director of 24/7 Sports Programming

Oct -29

Source: globenewswire.com

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WEBs Investments Announces Name Changes for Defined Volatility℠ ETFs

Oct -27

Source: globenewswire.com

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Westwood Holdings Group, Inc. to Host Third Quarter 2025 Conference Call/Webcast

Oct -17

Source: globenewswire.com

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Cumulus Media's Westwood One, Official Network Audio Partner of the NFL, Celebrates 39th Season and Announces 2025 NFL Lineup and Programming Highlights, From Opening Night Kickoff to Superbowl LX

Sep -03

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.57%)

6. Segments

Advisory

Expected Growth: 8.5%

Westwood Holdings Group's investment management services are poised for growth driven by increasing demand for diversified investment portfolios, rising adoption of ESG strategies, and expanding institutional and individual client bases.

Trust

Expected Growth: 10.2%

Westwood Holdings Group's diversified investment management services, strong brand reputation, and increasing demand for investment products drive growth, with a forecast CAGR of 10.2% from 2023 to 2028.

Eliminations

Expected Growth: 4.5%

Consolidation of financial statements through eliminations drives growth, as it provides a clearer picture of Westwood Holdings Group's financial performance, enhancing investor confidence and facilitating informed decision-making.

7. Detailed Products

Westwood Alternative Income Fund

A mutual fund that invests in a diversified portfolio of alternative income-generating securities

Westwood Global Convertible Securities Fund

A mutual fund that invests in convertible securities, providing a mix of income and capital appreciation potential

Westwood High Yield Fund

A mutual fund that invests in high-yield bonds, providing income generation and diversification

Westwood SmallCap Fund

A mutual fund that invests in small-cap equities, providing growth potential and diversification

Westwood SMidCap Fund

A mutual fund that invests in small- and mid-cap equities, providing growth potential and diversification

Institutional Investment Management

Customized investment management services for institutional clients

Sub-Advisory Services

Investment management services for other financial institutions and investment firms

8. Westwood Holdings Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Westwood Holdings Group, Inc. is medium due to the availability of alternative investment options for investors.

Bargaining Power Of Customers

The bargaining power of customers for Westwood Holdings Group, Inc. is low due to the company's diversified investment portfolio and lack of dependence on a single customer.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Westwood Holdings Group, Inc. is medium due to the company's reliance on a few key suppliers for its investment operations.

Threat Of New Entrants

The threat of new entrants for Westwood Holdings Group, Inc. is high due to the low barriers to entry in the investment industry and the increasing popularity of fintech companies.

Intensity Of Rivalry

The intensity of rivalry for Westwood Holdings Group, Inc. is high due to the highly competitive nature of the investment industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.64%
Debt Cost 3.95%
Equity Weight 96.36%
Equity Cost 10.03%
WACC 9.80%
Leverage 3.78%

11. Quality Control: Westwood Holdings Group, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Oppenheimer

A-Score: 6.6/10

Value: 8.3

Growth: 4.0

Quality: 6.8

Yield: 4.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Cohen & Company

A-Score: 6.1/10

Value: 7.5

Growth: 3.9

Quality: 3.2

Yield: 10.0

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Virtu Financial

A-Score: 5.9/10

Value: 5.4

Growth: 5.6

Quality: 4.8

Yield: 6.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Westwood Holdings

A-Score: 5.8/10

Value: 5.3

Growth: 2.6

Quality: 6.2

Yield: 9.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Perella Weinberg

A-Score: 4.7/10

Value: 5.3

Growth: 2.8

Quality: 6.6

Yield: 4.0

Momentum: 4.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Donnelley Financial Solutions

A-Score: 3.5/10

Value: 4.2

Growth: 4.6

Quality: 5.3

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.48$

Current Price

16.48$

Potential

-0.00%

Expected Cash-Flows