Company Overview
First Western Financial, Inc. operates as a financial holding company that delivers a comprehensive suite of services including wealth advisory, private banking, personal trust, investment management, mortgage lending, and institutional asset management to both individual and corporate clients. The company is situated within the Financial Services sector and specifically functions in the Banks - Regional industry, positioning it as a localized provider focused on regional banking needs rather than national or international scope. Its total market capitalization stands at $237.83M, supported by an annual revenue of $96.91M and a workforce of 320 employees. These financial dimensions indicate that the company maintains a mid-cap profile typical of regional banks, suggesting a business model reliant on deep community integration and specialized local relationships rather than the broad diversification found in larger financial institutions.
Financial Health
The company reported a trailing twelve-month revenue of $96.91M and a net income of $13.19M, while EBITDA data is not available in the current reporting period. The significant difference between the total revenue figure and the net income highlights a cost structure where approximately 86.4% of revenue is consumed by operating expenses, taxes, and interest, leaving a substantial margin for profitability after all costs are deducted. Although specific free cash flow figures are not disclosed in the available data, the company holds a cash balance of $201.98M, which provides a substantial liquidity buffer independent of immediate cash flow generation metrics. Analyzing the margin structure reveals a gross margin of 0.0%, which is standard for financial institutions where revenue is net of funding costs, an operating margin of 17.4% that reflects efficiency in managing core banking operations, and a profit margin of 13.6% that demonstrates the company's ability to retain earnings relative to top-line activity. Regarding leverage, the company possesses $201.98M in cash against $133.20M in debt, creating a net cash position, while the debt-to-equity ratio is not applicable or disclosed; this balance sheet composition suggests a conservative stance where liquid assets exceed liabilities. The current ratio is not provided in the facts, so specific liquidity coverage relative to short-term obligations cannot be quantified here. Return on Equity stands at 5.1% and Return on Assets is 0.4%, metrics that reveal the company generates modest returns on its asset base typical for the regional banking sector and indicates that equity holders are earning a moderate return on their capital investment.
Valuation Assessment
The stock carries a P/E Ratio (TTM) of 18.23 and a Forward P/E of 9.82, a disparity that implies the market expects earnings growth to significantly outpace current levels in the coming year. The price-to-book ratio is 0.89, indicating that the company is trading below its book value, which suggests the market prices the stock conservatively or anticipates that the asset base may not fully translate to future earnings. Alternative valuation metrics include a price-to-sales ratio of 2.45 and an EV/EBITDA of N/A, with the P/S ratio suggesting the market values the company based on a significant multiple of its sales volume rather than earnings multiples alone. The stock has traded between a 52-Week High of $28.00 and a 52-Week Low of $17.52, and without the specific current price, the exact percentage deviation cannot be calculated, but the range establishes the volatility band within which the stock has moved over the last year. The Beta is 0.66, which indicates that the stock's price volatility is historically lower than the broader market, offering a profile that may be less sensitive to general market swings compared to large-cap financial peers.
Growth & Income
Revenue growth over the last year stands at 5.8%, while earnings growth has accelerated to 21.5%, indicating that the company's profitability is expanding at a rate much faster than its top line. This divergence implies that the business is likely benefiting from operational efficiencies, fee mix improvements, or a rising interest rate environment that boosts net interest margins without a proportional increase in loan volume. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning it retains all of its earnings to fund internal growth initiatives or strengthen its capital base. Consequently, the overall growth and income profile is characterized by capital retention and earnings expansion rather than income generation through shareholder distributions.