Evercore Partners (EVR) AI Stock Analysis

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Evercore Partners

(NYSE:EVR)

78Outperform

Evercore Partners shows strong financial performance with robust revenue and cash flow growth. The stock's technicals are mixed, with neutral momentum but potential downward pressure. Valuation is fair, offering moderate income potential. The earnings call was positive overall, but highlighted concerns about market volatility and some revenue declines. These factors suggest a reliable, though not exceptional, stock performance.

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

$8.36B

Dividend Yield1.5%

Average Volume (3M)890.08K

Price to Earnings (P/E)20.5

Beta (1Y)1.65

Revenue Growth26.88%

EPS Growth68.65%

CountryUS

Employees2,395

SectorFinancial

Sector Strength85

IndustryFinancial - Capital Markets

Share Statistics

EPS (TTM)10.45

Shares Outstanding39,121,690

10 Day Avg. Volume809,350

30 Day Avg. Volume890,080

Financial Highlights & Ratios

PEG Ratio0.30

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.98

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit8.04

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$228.50

Price Target Upside6.96% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

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

Neutral

Last Price213.63

Price Trends

50DMA

202.19

Positive

100DMA

240.58

Negative

200DMA

249.82

Negative

Market Momentum

MACD

1.31

Negative

RSI

61.85

Neutral

STOCH

88.55

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVR, the sentiment is Neutral. The current price of 213.63 is above the 20-day moving average (MA) of 185.91, above the 50-day MA of 202.19, and below the 200-day MA of 249.82, indicating a neutral trend. The MACD of 1.31 indicates Negative momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 88.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
HLI	80 Outperform	$11.68B	31.81	18.64%	1.37%	22.09%	28.37%
EVR	78 Outperform	$8.36B	20.45	23.03%	1.50%	26.88%	68.65%
PJT	75 Outperform	$5.01B	25.27	62.26%	0.70%	16.04%	60.32%
PIPR	71 Outperform	$4.48B	24.61	15.66%	1.01%	12.29%	99.57%
LAZ	70 Outperform	$3.72B	14.43	59.68%	5.07%	9.54%	―
MC	66 Neutral	$4.42B	25.10	39.98%	4.47%	45.14%	―
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%

* Financial Sector Average

Performance Comparison

EVR

Evercore Partners

213.63

22.94

12.03%

LAZ

Lazard

41.39

2.72

7.03%

PIPR

Piper Sandler

251.87

46.08

22.39%

Moelis

54.81

3.83

7.51%

HLI

Houlihan Lokey

166.51

34.27

25.92%

PJT

PJT Partners

143.51

44.91

45.55%

Evercore Partners Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 7.35%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Neutral

Evercore's earnings call reflected a balanced view, with strong revenue growth and record performance in certain segments tempered by concerns over global market volatility and specific revenue declines.

Q1-2025 Updates

Positive Updates

Strong Year-Over-Year Revenue Growth

Evercore's first quarter 2025 adjusted net revenues were $700 million, a 19% increase compared to the first quarter of 2024.

Record Performance in Private Capital Advisory

The Private Capital Advisory group had a record first quarter, with GP-led continuation vehicles being a primary revenue driver.

Increase in Advisory Fees

First quarter adjusted advisory fees were $557 million, representing a 29% year-over-year increase.

Equities Franchise Performance

The equities franchise had its strongest first quarter since 2020, driven by market volatility and increased trading volumes.

Net Tax Benefit

The adjusted tax rate for the quarter was negative 39.7% due to a $78 million benefit related to the vesting of RSUs.

Negative Updates

Volatility and Uncertainty in Global Markets

Heightened geopolitical and trade tensions have increased volatility in global financial and asset markets, affecting transaction levels.

Underwriting Revenue Decline

First quarter underwriting revenues were $54 million, down 2% from the previous year, due to lower levels of follow-on activity.

Decrease in Other Revenue

First quarter adjusted other revenue net was approximately $11 million, down from $33 million a year ago, primarily due to lower performance of the DCCP hedge.

Potential Comp Ratio Challenges

The adjusted compensation ratio for the first quarter was 65.7%, with challenges anticipated in improving this ratio amid current market uncertainties.

Company Guidance

During the Evercore First Quarter 2025 Earnings Conference Call, the company provided various metrics indicating a robust performance in a challenging market environment. Evercore reported first-quarter adjusted net revenues of $700 million, marking a 19% increase from the same period in 2024. Adjusted operating income rose by 28% year-over-year to $116 million, while adjusted earnings per share surged by 64% to $3.49. The adjusted operating margin improved to 16.6% from 15.4% in the previous year. Notably, more than 50% of revenues came from non-M&A sources, illustrating the strength of Evercore's diversified revenue base. Advisory fees saw a 29% increase to $557 million, driven by both M&A and non-M&A activities. Underwriting revenues, however, experienced a slight drop, decreasing by 2% to $54 million. Commissions and related revenue rose by 14% to $55 million, and asset management and administration fees increased by 8% to $22 million. Despite the volatility, Evercore's backlogs reached record levels, and engagement letters continued at a strong pace, suggesting a resilient outlook amid ongoing uncertainty in global financial markets.

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.