Moelis (MC) AI Stock Analysis

• Market Cap: $4.61B
• Dividend Yield: 4.08%
• Average Volume (3M): 984.32K
• Price to Earnings (P/E): 33.8
• Beta (1Y): 1.62
• Revenue Growth: 39.75%
• EPS Growth: N/A
• Country: US
• Employees: 1,161
• Sector: Financial
• Sector Strength: 81
• Industry: Capital Markets
• EPS (TTM): 1.76
• Shares Outstanding: 70,609,985
• 10 Day Avg. Volume: 1,148,910
• 30 Day Avg. Volume: 984,318
• PEG Ratio: 0.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.77
• Price to Cash Flow (P/CF): 3.60
• P/FCF Ratio: 3.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $76.50
• Price Target Upside: 30.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

Moelis & Company is well-positioned with strong financial performance and an optimistic outlook for 2025. While its valuation appears high, the company's strategic initiatives and leadership changes support future growth. Technical indicators suggest some caution in the short term, but the overall long-term prospects remain strong.

Positive Factors

Revenue Growth

Moelis closed the year on a great note with 4Q24 revenues increased ~104% over 4Q23, materially pulling up full-year revenue growth to 40%.

Strategic Investments

Moelis made strategic investments in key sectors such as technology, industrials, and energy that are driving results for the firm.

Negative Factors

Earnings Per Share

Lowering 4Q24 EPS by 12% to $0.29 on lower revenues and a higher 75% comp ratio.

Moelis Business Overview & Revenue Model

Company Description

Moelis & Co. operates as a holding company. It engages in the provision of financial advisory, capital raising, and asset management services to a client base including corporations, governments, and financial sponsors. It focuses on clients from large public multinational corporations to middle market private companies to individual entrepreneurs. The company was founded by Kenneth David Moelis, Navid Mahmoodzadegan, Jeffrey Raich, and Elizabeth Ann Crain in July 2007 and is headquartered in New York, NY.

How the Company Makes Money

Moelis & Company generates revenue primarily through advisory fees collected for its financial advisory services. The company's key revenue streams include fees from mergers and acquisitions advisory, where they guide clients through the buying, selling, and merging of businesses; capital markets advisory, assisting clients with raising capital through equity or debt markets; and restructuring advisory, helping clients navigate financial distress situations. Moelis & Company's earnings are significantly influenced by the volume and size of the transactions they advise on, as well as the overall health of the global financial markets. The firm does not engage in proprietary trading or lending, maintaining a focus solely on client advisory, which differentiates it from many traditional investment banks. Strategic partnerships and a strong global network further contribute to the firm's ability to secure high-profile advisory roles, enhancing its revenue potential.

Moelis Financial Statement Overview

Summary

Moelis demonstrated impressive financial recovery in 2024 with a 39.76% revenue growth, improved margins, and a debt-free balance sheet. Strong cash flow management and profitability indicate a solid financial foundation for future growth.

Income Statement

Moelis showed a strong recovery in its financial performance over the past year. The company experienced a significant revenue growth of 39.76% in 2024 compared to the previous year. The gross profit margin improved substantially to 28.0%, demonstrating effective cost management. Net profit margin also rebounded to 11.39%, a notable improvement from the previous year's negative margin. EBIT and EBITDA margins turned positive, reflecting strong operational efficiency. These factors indicate robust profitability and efficiency improvements.

Balance Sheet

Moelis has a solid balance sheet with no total debt, resulting in a debt-free status for 2024. The equity ratio improved to 32.02%, indicating a solid capital structure. Return on equity (ROE) increased to 30.8%, showcasing the company's ability to generate profits from shareholders' equity. The strong equity position and lack of debt highlight financial stability and reduced risk.

Cash Flow

The company demonstrated strong cash flow management with a substantial increase in operating cash flow to $427.5M in 2024. Free cash flow grew significantly by 192.96%, indicating improved cash generation capabilities. The free cash flow to net income ratio was strong at 3.05, illustrating efficient conversion of earnings into cash flow. The operating cash flow to net income ratio was particularly high at 3.14, highlighting robust liquidity and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.19B	854.75M	985.30M	1.54B	943.28M
	Gross Profit
334.49M	140.00M	367.10M	626.70M	382.47M
	EBIT
172.94M	-40.35M	216.10M	495.92M	265.71M
	EBITDA
183.39M	-32.03M	224.07M	503.16M	270.42M
	Net Income Common Stockholders
136.02M	-24.70M	150.34M	365.21M	178.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
412.47M	186.42M	206.79M	520.21M	202.48M
	Total Assets
1.38B	1.18B	1.22B	1.56B	1.20B
	Total Debt
223.24M	215.68M	192.76M	191.89M	196.61M
	Net Debt
-189.23M	29.27M	-14.03M	-328.32M	-5.86M
	Total Liabilities
899.55M	817.30M	757.93M	1.08B	751.97M
	Stockholders Equity
441.61M	352.14M	444.50M	489.07M	479.95M
Cash Flow		Free Cash Flow
415.39M	141.78M	27.04M	920.55M	388.56M
	Operating Cash Flow
427.49M	158.47M	32.99M	936.98M	429.21M
	Investing Cash Flow
17.11M	48.57M	-11.18M	-17.01M	-39.95M
	Financing Cash Flow
-215.10M	-229.17M	-326.90M	-602.54M	-351.79M

Moelis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MC, the sentiment is Negative. The current price of 58.55 is below the 20-day moving average (MA) of 67.98, below the 50-day MA of 72.66, and below the 200-day MA of 66.89, indicating a bearish trend. The MACD of -4.23 indicates Positive momentum. The RSI at 23.23 is Positive, neither overbought nor oversold. The STOCH value of 7.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MC.

Moelis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MS	77 Outperform	$183.87B	14.35	13.16%	3.18%	7.16%	53.77%
MC	74 Outperform	$4.61B	33.85	34.27%	4.08%	39.75%	―
LAZ	74 Outperform	$4.12B	17.11	51.51%	4.36%	23.88%	―
GS	74 Outperform	$167.16B	13.21	11.95%	2.19%	14.80%	77.97%
PJT	74 Outperform	$5.50B	28.78	62.26%	0.70%	29.48%	63.03%
EVR	73 Outperform	$7.76B	21.85	23.03%	1.61%	22.67%	47.20%
Sector *	63 Neutral	$13.85B	10.47	9.22%	4.23%	17.31%	-7.79%

Moelis Corporate Events

Moelis Appoints Christopher Callesano as New CFO

On February 27, 2025, Moelis & Company announced the appointment of Christopher Callesano as Chief Financial Officer, effective March 31, 2025, succeeding Joseph Simon, who will leave after a 15-year tenure. Callesano, with extensive experience in finance and accounting, has been with Moelis since 2010 and will continue to support the firm’s growth strategy. His appointment reflects Moelis’s commitment to maintaining its robust financial operations and strategic growth, benefiting clients and shareholders.

Moelis Grants $25M Retention Award to CEO

On February 4, 2025, the Compensation Committee of Moelis & Company approved a retention grant valued at $25,000,000 in profits interest limited partnership units for Ken Moelis, the Chairman and CEO. This decision aims to ensure leadership stability and acknowledges Mr. Moelis’ contributions to the company’s strategy and shareholder value. The award will fully vest by February 13, 2029, contingent on Mr. Moelis’ continued employment with the company, with restrictions on selling the units until one year post-vesting.

Moelis Reports Strong Revenue Growth and Leadership Changes

Moelis & Company has reported significant financial growth for the fourth quarter and full year of 2024, with a 104% increase in quarterly revenues to $438.7 million and a 40% rise in full year revenues to $1,201.5 million compared to the previous year. The firm has also increased its quarterly dividend by 8% to $0.65 per share and strengthened its leadership team by promoting and hiring several managing directors, reflecting its strong operational momentum and commitment to growth strategies.