MeritValue

First Western Financial Inc

MYFWdata completeness 88%9 fiscal years on file
The thesis, from the filings

First Western Financial Inc earns about 203% on invested capital, but has diluted owners by 19% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $13.9 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$95.4M1$107.9M2$82.7M3$90.1M4$96.9M4
Net income$20.6M5$21.7M6$5.23M7$8.47M8$13.2M8
Operating cash flow$162.5M9$48.3M10$21.9M11$606,00012−$1.8M12
Capital expenditure$2.11M13$2.97M14$2.35M15$1.21M16$3.97M16
Free cash flow (derived)$160.4M9$45.3M10$19.5M11−$607,00012−$5.77M12
Total debt———$017—
Cash & equivalents$387M18$196.5M19$255.2M20$237.9M20$200.3M20
Diluted shares8.2M9.7M9.7M9.8M9.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$270.15
your share of equity
Profit it earned you last year
$13.42
Free cash flow it threw off
−$5.87
Debt you’d be carrying
—

10 shares is a claim on $270.15 of net worth that earned you $13.42 and generated −$5.87 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
203% avg · 5y
FY21 —FY22 78%FY23 —FY24 508%FY25 23%

It earned an average 203% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+19% shares · 5y

Share count is up 19% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$13.9
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$13.2M
  • growthAssumed0.0%
Graham Number
$28.54
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001327607-23-000023 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001327607-24-000058 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001327607-25-000020 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001628280-26-012825 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001327607-23-000023 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001327607-24-000058 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001327607-25-000020 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001628280-26-012825 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001327607-23-000023 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001327607-24-000058 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001327607-25-000020 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001628280-26-012825 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001327607-23-000023 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001327607-24-000058 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001327607-25-000020 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001628280-26-012825 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2024-12-31 · accession 0001327607-25-000020 (LongTermDebt)
  18. 10-K · period ending 2021-12-31 · accession 0001327607-24-000058 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  19. 10-K · period ending 2022-12-31 · accession 0001327607-25-000020 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  20. 10-K · period ending 2023-12-31 · accession 0001628280-26-012825 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)