Moelis (MC) AI Stock Analysis

• Market Cap: $4.68B
• Dividend Yield: 4.48%
• Average Volume (3M): 803.75K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.49
• Revenue Growth: 45.14%
• EPS Growth: N/A
• Country: US
• Employees: 1,308
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Capital Markets
• EPS (TTM): 0.64
• Shares Outstanding: 74,183,426
• 10 Day Avg. Volume: 765,820
• 30 Day Avg. Volume: 803,749
• PEG Ratio: -0.62
• Price to Book (P/B): 3.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.93
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 4.03
• Enterprise Value/Ebitda: 3.67
• 1Y Price Target: $52.50
• Price Target Upside: -6.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: $61.00 ▲(8.95%Upside)

Moelis & Company's strong financial performance and strategic growth initiatives are offset by market volatility affecting M&A activities and a cautious outlook from the earnings call. Technical indicators suggest a bearish trend, while valuation appears reasonable but not compelling.

Positive Factors

Financial Performance

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

Leadership Transition

Ken Moelis passes the CEO torch to Co-Founder and Co-President Navid Mahmoodzadegan; a smooth and well-planned transition is expected.

Strategic Investments

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

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.

Valuation

The current valuation is already reasonably reflecting the normalized potential in the business under current estimates, suggesting the risk/reward in the stock is relatively balanced versus peers.

Moelis Business Overview & Revenue Model

Company Description

Moelis & Company (MC) is a leading global independent investment bank that provides strategic and financial advisory services to a diverse client base, including corporations, governments, and financial sponsors. Founded in 2007 and headquartered in New York City, Moelis operates across various sectors such as mergers and acquisitions, recapitalizations and restructurings, and other corporate finance matters. The firm is renowned for its client-focused approach, leveraging its deep industry knowledge and extensive experience to deliver tailored solutions.

How the Company Makes Money

Moelis & Company generates revenue primarily through advisory fees for providing strategic and financial advisory services to its clients. These fees are typically structured as retainers, success fees, or a combination of both, depending on the nature and complexity of the transaction. The firm's key revenue streams include fees from mergers and acquisitions advisory, capital markets advisory, and restructuring and recapitalization advisory. Moelis's earnings are significantly influenced by the volume and size of transactions it advises on, as well as its ability to maintain strong client relationships and its reputation in the investment banking industry. Additionally, strategic partnerships and a strong global presence contribute to the firm's revenue by enabling it to access a broad client base and participate in high-profile deals.

Moelis Financial Statement Overview

Summary

Moelis demonstrates strong financial health with significant revenue and profitability improvements. The company shows robust operational efficiency and effective cash flow management. However, potential revenue volatility and reduced liquidity suggest 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.28B	1.19B	854.75M	985.30M	1.54B	943.28M
	Gross Profit
406.43M	364.39M	140.00M	367.10M	626.70M	382.47M
	EBIT
204.06M	172.94M	-40.35M	216.10M	495.92M	265.71M
	EBITDA
214.90M	183.39M	-32.03M	224.07M	503.16M	270.42M
	Net Income Common Stockholders
169.72M	136.02M	-24.70M	150.34M	365.21M	178.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
184.53M	412.47M	186.42M	206.79M	520.21M	202.48M
	Total Assets
1.21B	1.38B	1.18B	1.22B	1.56B	1.20B
	Total Debt
220.07M	223.24M	215.68M	192.76M	191.89M	196.61M
	Net Debt
35.55M	-189.23M	29.27M	-14.03M	-328.32M	-5.86M
	Total Liabilities
640.46M	899.55M	817.30M	757.93M	1.08B	751.97M
	Stockholders Equity
484.53M	441.61M	352.14M	444.50M	489.07M	479.95M
Cash Flow		Free Cash Flow
417.17M	415.39M	141.78M	27.04M	920.55M	388.56M
	Operating Cash Flow
427.00M	427.49M	158.47M	32.99M	936.98M	429.21M
	Investing Cash Flow
-119.25M	17.11M	48.57M	-11.18M	-17.01M	-39.95M
	Financing Cash Flow
-224.18M	-215.10M	-229.17M	-326.90M	-602.54M	-351.79M

Moelis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.99
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MC, the sentiment is Positive. The current price of 55.99 is below the 20-day moving average (MA) of 58.24, above the 50-day MA of 55.08, and below the 200-day MA of 65.63, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 71.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MC.

Moelis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PJT	74 Outperform	$5.48B	26.54	96.33%	0.64%	16.04%	60.32%
EVR	74 Outperform	$9.57B	23.71	29.73%	1.36%	26.88%	68.65%
PIPR	71 Outperform	$4.61B	22.71	17.59%	1.00%	10.27%	88.77%
LAZ	71 Outperform	$4.12B	15.28	59.68%	4.52%	9.54%	―
MC	66 Neutral	$4.68B	26.57	39.98%	4.48%	45.14%	―
Sector *	64 Neutral	$12.93B	9.70	7.85%	78.03%	12.07%	-7.83%
PWP	62 Neutral	$1.65B	―	46.63%	1.50%	59.48%	72.23%

Moelis Corporate Events

Moelis Announces Leadership Changes Effective October 2025

On June 9, 2025, Moelis & Company announced significant leadership changes effective October 1, 2025, as part of its long-term transition planning. Ken Moelis, the founder and CEO since 2007, will become Executive Chairman, while Navid Mahmoodzadegan, Co-Founder and Co-President, will succeed him as CEO and join the Board of Directors. Jeff Raich, also a Co-Founder and Co-President, will take on the role of Executive Vice Chairman. These changes are aimed at fostering internal growth and maintaining the firm’s strong client service and innovation focus. In conjunction with these appointments, the Compensation Committee granted Navid Mahmoodzadegan 450,000 long-term performance units to align his interests with shareholders and promote long-term value creation.

The most recent analyst rating on (MC) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Moelis stock, see the MC Stock Forecast page.

Moelis Holds Annual Stockholders Meeting, Elects Directors

On June 6, 2024, Moelis & Company held its Annual Meeting of Stockholders, where key proposals were voted on. Stockholders elected five directors to the board, approved the compensation of named executive officers, and ratified Deloitte & Touche LLP as the independent public accounting firm for the fiscal year ending December 31, 2025. These decisions reinforce the company’s governance structure and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (MC) stock is a Hold with a $51.00 price target. To see the full list of analyst forecasts on Moelis stock, see the MC Stock Forecast page.

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.