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Evercore Partners Inc (EVR)
NYSE:EVR
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Evercore Partners
(NYSE:EVR)
73Outperform
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
$7.71B
Dividend Yield1.61%
Average Volume (3M)721.85K
Price to Earnings (P/E)21.7
Beta (1Y)1.60
Revenue Growth22.67%
EPS Growth47.20%
CountryUS
Employees2,380
SectorFinancial
Sector Strength81
IndustryCapital Markets
Share Statistics
EPS (TTM)9.05
Shares Outstanding39,121,690
10 Day Avg. Volume1,059,777
30 Day Avg. Volume721,849
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)N/A
Price to Sales (P/S)98.27
Price to Cash Flow (P/CF)2.80
P/FCF Ratio2.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$297.40Price Target Upside53.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Evercore Partners Business Overview & Revenue Model
Company DescriptionEvercore, Inc. operates as an independent investment banking advisory company. It operates through the Investment Banking and Investment Management business segments. The Investment Banking segment includes the global advisory business of the company through, which the firm deliver strategic corporate advisory, capital markets advisory and institutional equities services. The Investment Management segment is comprised of wealth management and trust services through Evercore Wealth Management L.L.C. and investment management in Mexico through Evercore Casa de Bolsa, S.A. de C.V., as well as private equity through investments in entities that manage private equity funds. The company was founded by Roger C. Altman in 1995 and is headquartered in New York, NY.
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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.90
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Negative
193.85
Price Trends
259.90
Negative
274.09
Negative
251.54
Negative
Market Momentum
-20.17
Positive
23.86
Positive
18.77
Positive
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 193.85 is below the 20-day moving average (MA) of 233.23, below the 50-day MA of 259.90, and below the 200-day MA of 251.54, indicating a bearish trend. The MACD of -20.17 indicates Positive momentum. The RSI at 23.86 is Positive, neither overbought nor oversold. The STOCH value of 18.77 is Positive, 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 40 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $28.63B | 13.64 | 19.07% | 1.31% | 13.79% | 28.57% | |
74 Outperform | $4.12B | 17.11 | 51.51% | 4.36% | 23.88% | ― | |
74 Outperform | $4.61B | 33.85 | 34.27% | 4.08% | 39.75% | ― | |
74 Outperform | $5.50B | 28.78 | 62.26% | 0.70% | 29.48% | 63.03% | |
73 Outperform | $7.71B | 21.69 | 23.03% | 1.61% | 22.67% | 47.20% | |
71 Outperform | $3.52B | 98.41 | 1.79% | 0.72% | 29.12% | ― | |
63 Neutral | $13.85B | 10.47 | 9.22% | 4.23% | 17.31% | -7.79% |
* Financial Sector Average
Performance Comparison
EVR
Evercore Partners
193.85
7.06
3.78%
HL
Hecla Mining Company
5.77
1.44
33.26%
LAZ
Lazard
44.93
7.56
20.23%
RJF
Raymond James Financial
139.81
20.74
17.42%
MC
Moelis
58.55
6.95
13.47%
PJT
PJT Partners
139.91
44.02
45.91%
Evercore Partners Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -31.23% | 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.