Evercore Partners (EVR) AI Stock Analysis

509 Followers

Top Page

Evercore Partners

(NYSE:EVR)

78Outperform

Evercore Partners exhibits strong financial performance with solid revenue and profit growth, supported by effective cash flow management. The technical analysis suggests potential downward pressure, while the valuation indicates a fair price. The positive earnings call outlook is tempered by geopolitical and expense-related concerns.

Positive Factors

Investment Banking Revenue

EVR beat consensus EPS by 4c, driven by a 29% y/y increase in Investment Banking revenue, above consensus of 22% y/y.

Pipeline and Market Position

Evercore is exceedingly well positioned for a capital markets recovery owing to its premier M&A franchise and fast-growing equity capital market (ECM) business.

Negative Factors

Stock Valuation

EVR's multiple on one-year forward estimates has risen to the mid-teens, well above the stock's 5-yr average of 10.6x.

Evercore Partners (EVR) vs. S&P 500 (SPY)

Market Cap

$6.80B

Dividend Yield1.84%

Average Volume (3M)969.53K

Price to Earnings (P/E)19.1

Beta (1Y)1.63

Revenue Growth22.67%

EPS Growth47.20%

CountryUS

Employees2,380

SectorFinancial

Sector Strength86

IndustryFinancial - Capital Markets

Share Statistics

EPS (TTM)9.05

Shares Outstanding39,121,690

10 Day Avg. Volume1,309,262

30 Day Avg. Volume969,528

Financial Highlights & Ratios

PEG Ratio0.41

Price to Book (P/B)N/A

Price to Sales (P/S)2.72

Price to Cash Flow (P/CF)3.00

P/FCF Ratio2.90

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$227.40

Price Target Upside30.83% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

Evercore Partners Business Overview & Revenue Model

Company DescriptionEvercore Inc., together with its subsidiaries, operates as an independent investment banking advisory firm in the United States, Europe, Latin America, and internationally. It operates through two segments, Investment Banking and Investment Management. The Investment Banking segment offers strategic advisory services, such as mergers and acquisitions, strategic, defense, and shareholder advisory, special committee assignments, and transaction structuring; Capital Markets Advisory, including equity capital markets, restructuring, debt advisory, private placement advisory, market risk management and hedging, private capital advisory, and private funds; and research, sales, and trading professionals services on a content-led platform to its institutional investor clients. The Investment Management segment provides wealth management services to high-net-worth individuals, foundations, and endowments; and manages financial assets for institutional investors. The company was formerly known as Evercore Partners Inc. and changed its name to Evercore Inc. in August 2017. Evercore Inc. was founded in 1995 and is headquartered in New York, New York.

How the Company Makes MoneyEvercore Partners generates revenue primarily through fees for advisory services related to mergers and acquisitions, strategic transactions, and capital raising. The company earns fees based on the size and complexity of the transactions it advises on, with significant revenue coming from successful deal completions. Additionally, Evercore provides restructuring advisory services, assisting clients in distressed situations to optimize their financial positions and operational structures, which also contributes to its revenue streams. The firm's strong reputation, coupled with long-standing client relationships and partnerships, plays a crucial role in its ability to secure high-profile assignments and drive earnings.

Evercore Partners Financial Statement Overview

Summary

Evercore Partners has delivered robust financial performance with notable revenue and profit growth, supported by efficient cash flow management and a solid balance sheet. The company is well-positioned in the capital markets industry, though it must monitor its rising liabilities to maintain financial stability.

Income Statement

Very Positive

Evercore Partners has demonstrated strong revenue growth, with a significant increase of 23.5% from 2023 to 2024. The gross profit margin stands at approximately 34.1% in 2024, showing solid profitability. The net profit margin improved to 12.6%, reflecting efficiency in operations. However, the EBITDA margin decreased slightly, indicating some pressure on operating efficiencies.

Balance Sheet

Positive

The company's balance sheet shows a healthy debt-to-equity ratio of 0.54, indicating a moderate level of leverage. The equity ratio is at 40.9%, suggesting a stable capital structure. Return on Equity (ROE) is robust at 22.2%, highlighting strong profitability relative to equity. However, the increase in total liabilities over the years suggests potential risks if not managed carefully.

Cash Flow

Very Positive

Evercore Partners exhibits excellent cash flow management, with free cash flow growth of 118.8% from 2023 to 2024. The operating cash flow to net income ratio is 2.61, indicating strong cash generation relative to net income. The free cash flow to net income ratio is a healthy 2.53, showcasing efficient utilization of cash flows.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.00B	2.43B	2.76B	3.29B	2.26B
	Gross Profit
1.02B	2.36B	958.34M	1.33B	774.52M
	EBIT
807.05M	575.94M	666.93M	988.14M	478.73M
	EBITDA
543.29M	445.27M	0.00	0.00	0.00
	Net Income Common Stockholders
378.28M	255.48M	476.52M	740.12M	350.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.39B	2.03B	786.29M	719.53M	829.60M
	Total Assets
4.17B	3.70B	3.62B	3.80B	3.37B
	Total Debt
923.32M	844.39M	687.82M	721.04M	719.64M
	Net Debt
50.27M	247.51M	-98.47M	1.50M	-109.96M
	Total Liabilities
2.23B	1.92B	1.89B	2.17B	1.88B
	Stockholders Equity
1.71B	1.58B	1.54B	1.32B	1.23B
Cash Flow		Free Cash Flow
958.05M	437.91M	508.19M	1.36B	925.04M
	Operating Cash Flow
988.15M	457.95M	531.38M	1.38B	978.37M
	Investing Cash Flow
-67.43M	15.62M	313.30M	-705.89M	-483.87M
	Financing Cash Flow
-628.55M	-557.23M	-735.57M	-925.32M	-307.79M

Evercore Partners Technical Analysis

Technical Analysis Sentiment

Negative

Last Price173.81

Price Trends

50DMA

225.08

Negative

100DMA

256.16

Negative

200DMA

251.38

Negative

Market Momentum

MACD

-10.10

Negative

RSI

35.98

Neutral

STOCH

22.50

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVR, the sentiment is Negative. The current price of 173.81 is below the 20-day moving average (MA) of 194.53, below the 50-day MA of 225.08, and below the 200-day MA of 251.38, indicating a bearish trend. The MACD of -10.10 indicates Negative momentum. The RSI at 35.98 is Neutral, neither overbought nor oversold. The STOCH value of 22.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVR.

Evercore Partners Risk Analysis

Evercore Partners disclosed 39 risk factors in its most recent earnings report. Evercore Partners reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Evercore Partners Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVR	78 Outperform	$6.80B	19.14	23.03%	1.84%	22.67%	47.20%
HLI	77 Outperform	$10.61B	28.88	18.64%	1.51%	22.09%	28.37%
PJT	76 Outperform	$5.03B	26.33	62.26%	0.77%	29.48%	63.03%
LAZ	72 Outperform	$3.12B	12.94	51.51%	5.77%	23.88%	―
PIPR	72 Outperform	$3.92B	21.57	15.66%	1.15%	12.29%	99.57%
MC	70 Outperform	$3.88B	28.50	34.27%	4.84%	39.75%	―
Sector *	64 Neutral	$13.37B	9.30	9.39%	4.85%	16.11%	-8.85%

* Financial Sector Average

Performance Comparison

EVR

Evercore Partners

173.81

-9.61

-5.24%

LAZ

Lazard

34.67

-1.36

-3.77%

PIPR

Piper Sandler

220.81

37.41

20.40%

Moelis

50.60

0.85

1.71%

HLI

Houlihan Lokey

151.20

29.06

23.79%

PJT

PJT Partners

129.60

38.14

41.70%

Evercore Partners Earnings Call Summary

Earnings Call Date: Feb 5, 2025 | % Change Since: -38.34% | Next Earnings Date: Apr 23, 2025

Earnings Call Sentiment Positive

The earnings call reflects a generally positive outlook for Evercore Inc., with strong revenue growth, significant advisory fee increases, and successful talent acquisition. However, there are concerns regarding geopolitical and macroeconomic uncertainties and increased non-compensation expenses.

Highlights

Second-Best Year for Revenue

2024 was Evercore Inc.'s second-best year ever for revenue with firm-wide adjusted net revenues of just over $3 billion.

Significant Increase in Advisory Fees

Fourth quarter adjusted advisory fees of $850 million increased 29% year over year. Full-year adjusted advisory fees were $2.4 billion, up 24% compared to 2023.

Strong Performance in Private Capital Advisory

The industry-leading private capital advisory and private funds group achieved record years, with strong performance driven by record volumes.

Improved Operating Margins

Adjusted operating margin improved by 280 basis points compared to 2023, with a full-year adjusted operating margin of 18.6%.

Recruitment and Talent Acquisition

2024 marked the second-largest class of investment banking senior managing director new hires, with a strong pipeline of external recruits.

Lowlights

Geopolitical and Macroeconomic Uncertainties

Despite optimism, some geopolitical and macroeconomic uncertainties persist, which could impact the deal-making environment.

Increased Non-Compensation Expenses

Fourth quarter and full-year non-compensation expenses increased 16% from the previous year, driven by higher client-related expenses and increased travel.

Company Guidance

During the call, Evercore Inc. provided guidance for the fiscal year 2025, highlighting a strong performance in 2024 with revenues over $3 billion, marking it as their second-best year ever. They advised on three of the seven largest global M&A deals and expanded their market share in advisory fees. Over the past five years, more than 40% of their revenues were from non-M&A sources. The firm experienced its strongest revenue quarter since late 2021, with adjusted net revenues for the fourth quarter at $981 million, a 24% increase from 2023. For 2024, adjusted operating income and EPS rose by 45% and 46%, respectively, compared to the previous year. The adjusted operating margin improved by 280 basis points to 18.6%. The company also emphasized their robust recruitment efforts, hiring nearly 30 senior managing directors and senior advisers externally, and promoting over 30 internally in the last three years, which positions them well for continued growth. Looking ahead, Evercore is optimistic about 2025, anticipating further improvement in the deal-making environment and planning to maintain a focus on strategic investments and expense management to enhance shareholder value.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.