MeritValue

WESTWOOD HOLDINGS GROUP INC

WHGdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

WESTWOOD HOLDINGS GROUP INC earns about 5% on invested capital, below its ~9% cost of capital, but has diluted owners by 12% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $8.25 and $33.24 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$73.1M1$68.7M2$89.8M3$94.7M3$97.8M3
Net income$9.76M4−$4.63M5$10.6M6$2.21M6$7.08M6
Operating cash flow$19.4M7$51.5M8−$1.19M9$21.1M9$18.9M9
Capital expenditure$178,00010$320,00011$147,00012$109,00012$86,00012
Free cash flow (derived)$19.2M7$51.2M8−$1.33M9$21M9$18.8M9
Total debt—————
Cash & equivalents$15.2M13$23.9M14$20.4M14$18.8M14$26.2M14
Diluted shares7.9M7.8M8.1M8.5M8.9M

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
$141.37
your share of equity
Profit it earned you last year
$7.96
Free cash flow it threw off
$21.2
Debt you’d be carrying
—

10 shares is a claim on $141.37 of net worth that earned you $7.96 and generated $21.2 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
5% avg · 5y
FY21 10%FY22 -5%FY23 11%FY24 2%FY25 7%

It earned about 5% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+12% shares · 5y

Share count is up 12% 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

The 3 estimate methods that apply put fair value between $8.25 and $33.24 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$30.96
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$18.8M
DCF · Growth Exit 5Y
$33.24
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$18.8M
Earnings Power Value
$8.25
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$7.08M
  • growthAssumed0.0%
Graham Number
$15.85
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $33.24
The three cases
Bear0.0%$33.24
Base0.0%$33.24
Bull5.0%$40.57

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001165002-24-000022 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001165002-25-000022 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001165002-26-000020 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001165002-24-000022 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001165002-25-000022 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001165002-26-000020 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001165002-24-000022 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001165002-25-000022 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001165002-26-000020 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001165002-24-000022 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001165002-25-000022 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001165002-26-000020 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001165002-25-000022 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001165002-26-000020 (CashAndCashEquivalentsAtCarryingValue)