Moelis (MC) AI Stock Analysis

• Market Cap: $4.31B
• Dividend Yield: 4.57%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 1.46
• Revenue Growth: 45.14%
• EPS Growth: N/A
• Country: US
• Employees: 1,308
• Sector: Financial
• Sector Strength: 88
• Industry: Financial - Capital Markets
• EPS (TTM): 2.18
• Shares Outstanding: 74,183,426
• 10 Day Avg. Volume: 1,190,278
• 30 Day Avg. Volume: 1,258,540
• PEG Ratio: 0.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 14.05
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $60.33
• Price Target Upside: 12.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

Moelis & Company shows strong financial performance with significant revenue and profitability improvements, supported by effective cash flow management and operational efficiency. However, technical indicators signal bearish momentum, and the high P/E ratio raises valuation concerns. The earnings call and corporate events provide an optimistic outlook, despite challenges in M&A activities due to market volatility. Overall, the stock presents a moderately positive outlook with potential risks.

Positive Factors

Earnings

Moelis closed the year on a great note with fourth-quarter revenues increased approximately 104% over the previous year, materially pulling up full-year revenue growth to 40%.

Market Outlook

The pipeline remains at the 'highest level ever' and the M&A market is 'poised to benefit' from the new 'pro-growth' administration.

Negative Factors

M&A Pipeline

Moelis acknowledged that some deals are being shelved, with backlog down, although the vast majority of deals are just pushed back.

Moelis Business Overview & Revenue Model

Company Description

Moelis & Company operates as an investment banking advisory firm. It offers advisory services in the areas of mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, and other corporate finance matters. The company offers its services to public multinational corporations, middle market private companies, financial sponsors, entrepreneurs, governments, and sovereign wealth funds. The company serves its clients in North and South America, Europe, the Middle East, Asia, and Australia. It has strategic alliances in Mexico with Alfaro, Dávila y Scherer, S.C.; and in Australia with MA Moelis Australia. The company was founded in 2007 and is headquartered in New York, New York.

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 demonstrates strong financial health with significant revenue and profitability improvements in recent years. The company exhibits robust operational efficiency and effective cash flow management. However, potential volatility in revenue and reduced liquidity in recent periods suggest the need for careful monitoring of financial flexibility.

Income Statement

Moelis has shown a strong revenue growth trajectory, with a notable increase from $854.7 million in 2023 to $1.28 billion in TTM (Trailing-Twelve-Months) 2025, representing a growth rate of approximately 50.2%. The gross profit margin for TTM 2025 is approximately 31.7%, indicating efficient cost management. The net profit margin improved significantly to 13.2% in TTM 2025 from negative in 2023, showcasing a turnaround in profitability. EBIT and EBITDA margins have also improved markedly, reflecting enhanced operational efficiency. However, the company experienced a drop in revenue in 2022, indicating potential volatility.

Balance Sheet

The debt-to-equity ratio is relatively stable at approximately 0.45 in TTM 2025, suggesting moderate leverage. The return on equity (ROE) for TTM 2025 is approximately 35.0%, indicating strong profitability relative to shareholder equity. The equity ratio stands at 40.2%, reflecting a balanced capital structure. While the company has maintained a healthy balance sheet, the reduction in cash and short-term investments in TTM 2025 compared to 2021 could indicate a potential liquidity concern.

Cash Flow

Moelis exhibits robust cash flow management, with a consistent operating cash flow to net income ratio exceeding 2.5 in TTM 2025, signifying strong cash conversion. The free cash flow growth rate from 2024 to TTM 2025 is minimal, indicating stability. The operating cash flow remains strong over the years, supporting ongoing operations and strategic investments. However, the reduction in cash and short-term investments could constrain future liquidity.

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: Neutral
• Last Price: 53.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MC, the sentiment is Neutral. The current price of 53.41 is above the 20-day moving average (MA) of 51.82, below the 50-day MA of 58.67, and below the 200-day MA of 67.07, indicating a neutral trend. The MACD of -1.62 indicates Negative momentum. The RSI at 45.98 is Neutral, neither overbought nor oversold. The STOCH value of 71.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MC.

Moelis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVR	78 Outperform	$8.36B	20.45	23.03%	1.55%	26.88%	68.65%
PJT	75 Outperform	$4.73B	24.63	62.26%	0.71%	16.04%	60.32%
PIPR	69 Neutral	$4.31B	23.72	15.66%	1.06%	12.29%	99.57%
LAZ	67 Neutral	$3.54B	13.74	59.68%	5.14%	9.15%	―
MC	66 Neutral	$4.31B	24.46	39.98%	4.57%	45.14%	―
Sector *	63 Neutral	$12.46B	9.56	8.14%	17044.64%	12.63%	-4.25%
PWP	49 Neutral	$1.52B	―	46.63%	1.63%	35.36%	-227.77%

Moelis Corporate Events

Moelis Reports Strong Q1 2025 Financial Results

On April 23, 2025, Moelis & Company reported its financial results for the first quarter of 2025, showing a significant increase in revenue and net income compared to the previous year. The company’s revenue grew by 41% to $306.6 million, and net income rose to $53.8 million, driven by growth in M&A and capital markets. The firm continues to execute its growth strategy by expanding its team in Europe and maintains a strong balance sheet with no debt. The announcement highlights Moelis’ robust market positioning and its ability to navigate volatile markets, benefiting stakeholders with a declared regular quarterly dividend of $0.65 per share.

Spark’s Take on MC Stock

According to Spark, TipRanks’ AI Analyst, MC is a Outperform.

Moelis & Company exhibits strong financial performance with robust revenue and profit growth, a solid balance sheet, and effective cash flow management. However, technical indicators suggest bearish momentum, and the stock’s high P/E ratio raises valuation concerns. The optimistic outlook from the earnings call and recent corporate events support future growth prospects, resulting in a moderately positive overall stock score.

To see Spark’s full report on MC stock, click here.

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.