TWFG, Inc. (TWFG) AI Stock Analysis

TWFG, Inc. operates an independent distribution platform for personal and commercial insurance products in the United States. Founded in 2001 and based in The Woodlands, Texas, the company employs 400 people. Its product catalog includes personal lines such as auto, home, renters, life, health, motorcycle, umbrella, boat, recreational vehicle, flood, wind, event, and luxury item coverage. On the commercial side, TWFG provides general liability, property, business auto, workers' compensation, business owner policies, professional liability insurance, commercial bonds, and group benefits.

Between FY2022 and FY2025, revenue grew at a 3-year CAGR of 16.5%, increasing from $147.8M in FY2022 to $167.0M in FY2023, $193.7M in FY2024, and $234.0M in FY2025. Gross margin expanded from 20.7% in FY2022 to 26.8% in FY2025, while operating margin shifted from 16.0% in FY2022 to 10.2% in FY2025. Net income was $8.0M in FY2025 with a net margin of 3.4% and an EPS of $0.89. For the latest quarter ended June 30, 2026, quarterly revenue growth was 45.1% and quarterly earnings growth was 38.1% year-over-year. Trailing twelve months revenue totaled $294.7M with an operating margin of 20.1% and EPS of $0.59.

As of June 30, 2026, TWFG held $73.7M in cash and short-term investments against total debt of $7.6M, resulting in net cash of $66.1M. Shareholders' equity stood at $46.2M on total assets of $358.4M, with a current ratio of 2.56 and a debt-to-equity ratio of 0.17. In FY2025, the business produced $53.5M in operating cash flow and $53.1M in free cash flow, while spending $356,000 on capital expenditures and $15.9M on dividends paid.

TWFG trades at a trailing P/E of 43.0x and a forward P/E of 20.2x, compared to the median of its US-listed Financial Services peers of 12.1x and 10.8x, respectively. Its enterprise value to EBITDA ratio of 3.0x sits below the peer group median of 11.7x, and its price-to-sales multiple of 1.1x is below the peer median of 3.2x. The stock closed at $25.37 on October 16, 2026, down 1.4% over the trailing year and 11.8% year-to-date, trailing the S&P 500 (SPY) 1-year return of 16.8%.

Wall Street coverage consists of 3 Strong Buy, 3 Buy, and 2 Hold recommendations, with zero Sell or Strong Sell ratings. The mean price target is $30.57, which is 20.5% above the last close of $25.37. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $315.0M and EPS of $1.16, reflecting 31.8% earnings growth. TWFG has beaten EPS estimates in 4 of its last 4 quarters, and its next earnings date is November 11, 2026.

This page is an AI-written research summary of TWFG, Inc. (TWFG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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