Westwood Holdings Group (Westwood Holdings Group) Gross Margin %

: 46.76% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Westwood Holdings Group's Gross Profit for the three months ended in Dec. 2023 was $10.86 Mil. Westwood Holdings Group's Revenue for the three months ended in Dec. 2023 was $23.23 Mil. Therefore, Westwood Holdings Group's Gross Margin % for the quarter that ended in Dec. 2023 was 46.76%.

Warning Sign:

Westwood Holdings Group Inc gross margin has been in long-term decline. The average rate of decline per year is -2.3%.

The historical rank and industry rank for Westwood Holdings Group's Gross Margin % or its related term are showing as below:

WHG' s Gross Margin % Range Over the Past 10 Years
Min: 35.28 Med: 45.89 Max: 53.33
Current: 41.06

During the past 13 years, the highest Gross Margin % of Westwood Holdings Group was 53.33%. The lowest was 35.28%. And the median was 45.89%.

WHG's Gross Margin % is ranked worse than
59.85% of 533 companies
in the Asset Management industry
Industry Median: 50.22 vs WHG: 41.06

Westwood Holdings Group had a gross margin of 46.76% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Westwood Holdings Group was -2.30% per year.

Westwood Holdings Group Gross Margin % Historical Data

The historical data trend for Westwood Holdings Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Westwood Holdings Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

40.35

35.28

41.78

41.58

41.06

Westwood Holdings Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																45.59	37.51	37.63	42.13	46.76

Competitive Comparison

For the Asset Management subindustry, Westwood Holdings Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Westwood Holdings Group Gross Margin % Distribution

For the Asset Management industry and Financial Services sector, Westwood Holdings Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Westwood Holdings Group's Gross Margin % falls into.

Westwood Holdings Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Westwood Holdings Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	36.9	/	89.781
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(89.781 - 52.918)	/	89.781
	=	41.06 %

Westwood Holdings Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	10.9	/	23.229
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(23.229 - 12.367)	/	23.229
	=	46.76 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Westwood Holdings Group (NYSE:WHG) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Westwood Holdings Group had a gross margin of 46.76% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Westwood Holdings Group Gross Margin % Related Terms

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Westwood Holdings Group (Westwood Holdings Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Westwood Holdings Group Inc (NYSE:WHG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

200 Crescent Court, Suite 1200, Dallas, TX, USA, 75201

Website

https://www.westwoodgroup.com

Westwood Holdings Group Inc through its subsidiaries is engaged in managing investment assets and providing services for its clients. The company operates its business through the Advisory and Trust segments. Its advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals and the Westwood Funds, as well as investment sub-advisory services to mutual funds and its trust segment. The Trust segment offers trust and custodial services to its clients and to its advisory segment and sponsors common trust funds to institutions and high net worth individuals. It generates maximum revenue from the Advisory segment. Geographically, it derives a majority of revenue from the United States.

Executives

John Porter Montgomery	officer: COO	200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Leah Bennett	officer: President-Westwood Wealth Mgmt	200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Ehinger John Anthony Jr	officer: Head of Legal, CCO	279 BENSON LAN, COPPELL TX 75019
Matthew Lockridge	officer: Head, U.S. Value Inv.	200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Jcp Investment Management, Llc	10 percent owner	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Adrian Helfert	officer: CIO, Multi-Asset Inv.	200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Richard M Frank	director	4441 W AIRPORT FREEWAY, IRVING TX 75062
Brian O Casey	director, officer: President & CEO	200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Raymond E Wooldridge	director	200 CRESCENT COURT, STE 1200, DALLAS TX 75201
Fabian Gomez	officer: Chief Operating Officer	200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Randy A Bowman	director	200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Jcp Investment Holdings, Llc	10 percent owner, other: See Footnote 1	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partners, Lp	10 percent owner, other: See Footnote 1	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partnership, Lp	10 percent owner, other: See Footnote 1	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
James C Pappas	10 percent owner	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027