Moelis (MC) AI Stock Analysis

• Market Cap: $5.87B
• Dividend Yield: 3.52%
• Average Volume (3M): 613.32K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.45
• Revenue Growth: 42.85%
• EPS Growth: 1398.33%
• Country: US
• Employees: 1,308
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.53
• Shares Outstanding: 74,178,030
• 10 Day Avg. Volume: 691,207
• 30 Day Avg. Volume: 613,316
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 3.60
• Enterprise Value/Gross Profit: 11.20
• Enterprise Value/Ebitda: 19.59
• 1Y Price Target: $76.33
• Price Target Upside: 6.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 80 Outperform
• Price Target: $82.00 ▲(14.27% Upside)

Moelis & Company exhibits strong financial performance and positive earnings call sentiment, leading to a high overall score. The technical analysis supports a bullish outlook, although the valuation suggests the stock may be slightly overvalued. The company's strategic initiatives and robust balance sheet further enhance its growth prospects.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective business strategies and market demand, positioning Moelis for sustained expansion in its advisory services.

Strong Balance Sheet

A robust balance sheet with significant cash reserves and no debt enhances financial flexibility and supports strategic investments.

Leadership Transition

Leadership changes are aligned with long-term growth strategies, ensuring continuity and potentially fostering innovation and client focus.

Negative Factors

Volatility in Cash Levels

Decreased cash reserves could limit operational flexibility and impact the company's ability to respond to market changes or invest in growth.

Restructuring Activity

A decline in restructuring activity may reduce revenue opportunities in this segment, affecting overall growth if not offset by other areas.

Past Margin Volatility

Volatile margins can lead to unpredictable earnings, challenging the company's ability to maintain stable profitability over time.

Moelis Business Overview & Revenue Model

Company Description

Moelis & Company (MC) is a global investment banking firm that provides financial advisory services to a diverse range of clients, including corporations, governments, and financial sponsors. The company specializes in mergers and acquisitions, restructuring, and capital markets advisory, offering insights and strategic advice across various sectors including technology, healthcare, energy, and consumer products.

How the Company Makes Money

Moelis generates revenue primarily through advisory fees earned from its investment banking services. The company charges clients for its expertise in mergers and acquisitions, restructuring advisory, and other financial consulting services. Key revenue streams include success fees that are contingent on the completion of transactions, retainer fees for ongoing advisory services, and fees for capital raising activities. Additionally, Moelis may benefit from strategic partnerships with other financial institutions, which can enhance its service offerings and client reach, contributing to its overall earnings.

Moelis Financial Statement Overview

Summary

Moelis demonstrates strong financial health with solid revenue growth, efficient operations, and robust cash flow generation. The company maintains a stable balance sheet with manageable leverage. However, attention should be given to past volatility in margins and cash levels to ensure continued financial stability.

Income Statement

The company's income statement shows strong revenue growth with a 15.9% increase in TTM (Trailing-Twelve-Months) compared to the previous annual report. Gross profit margin is healthy at 32.1% TTM, indicating efficient cost management. EBIT and EBITDA margins are robust at 17.7% and 18.3% respectively, reflecting operational efficiency. The net profit margin improved to 14.3% TTM, showcasing profitability. However, there was volatility in past EBIT margins, which should be monitored.

Balance Sheet

The balance sheet presents a solid equity ratio of 38.4% TTM, indicating a stable capital structure. The debt-to-equity ratio is manageable at 0.42 TTM, suggesting moderate leverage. ROE is a strong 38.4% TTM, showcasing effective use of equity to generate profits. However, there has been a significant decrease in cash and cash equivalents over the last two years, which might affect liquidity.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio of 2.48 TTM, indicating robust cash generation relative to profits. Free cash flow grew by 15.3% TTM, reflecting strong cash management. The free cash flow to net income ratio is impressive at 2.42 TTM, highlighting substantial free cash relative to net income. Despite this strength, past fluctuations in investing cash flow may pose future challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.38B	1.19B	854.75M	985.30M	1.54B	943.28M
Gross Profit	444.25M	364.39M	140.00M	367.10M	626.70M	382.47M
EBITDA	254.08M	183.39M	-32.03M	224.07M	503.16M	270.42M
Net Income	198.10M	136.02M	-24.70M	150.34M	365.21M	178.83M
Balance Sheet
Total Assets	1.34B	1.38B	1.18B	1.22B	1.56B	1.20B
Cash, Cash Equivalents and Short-Term Investments	222.52M	412.47M	186.42M	206.79M	520.21M	202.48M
Total Debt	218.82M	223.24M	215.68M	192.76M	191.89M	196.61M
Total Liabilities	746.52M	899.55M	817.30M	757.93M	1.08B	751.97M
Stockholders Equity	515.98M	441.61M	352.14M	444.50M	489.07M	479.95M
Cash Flow
Free Cash Flow	478.96M	415.39M	141.78M	27.04M	920.55M	388.56M
Operating Cash Flow	491.21M	427.49M	158.47M	32.99M	936.98M	429.21M
Investing Cash Flow	-204.71M	17.11M	48.57M	-11.18M	-17.01M	-39.95M
Financing Cash Flow	-213.35M	-215.10M	-229.17M	-326.90M	-602.54M	-351.79M

Moelis Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 71.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 71.76 is below the 20-day moving average (MA) of 73.56, below the 50-day MA of 72.00, and above the 200-day MA of 65.58, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 7.41 is Positive, 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
MC	80 Outperform	$5.87B	28.66	45.36%	3.52%	42.85%	1398.33%
EVR	79 Outperform	13.14B	30.97	27.93%	0.97%	23.24%	55.76%
LAZ	73 Outperform	5.19B	18.98	41.80%	3.72%	10.40%	91.75%
PIPR	73 Outperform	6.23B	29.71	14.75%	1.62%	10.46%	50.47%
PJT	64 Neutral	6.34B	31.27	95.78%	0.55%	18.40%	54.77%
PWP	52 Neutral	1.89B	26.74	-17.97%	1.32%	20.01%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Moelis Corporate Events

Moelis Reports Strong Q2 2025 Financial Growth

On July 24, 2025, Moelis & Company reported significant financial growth for the second quarter and first half of 2025, with revenues increasing by 38% and 39% respectively compared to the previous year. The company also declared a regular quarterly dividend of $0.65 per share, reflecting its strong financial position and strategic growth initiatives, including the addition of new managing directors to enhance its advisory capabilities.

Moelis Appoints Thorold Barker to Board of Directors

On July 1, 2025, Moelis & Company announced the appointment of Thorold Barker as an independent member of its Board of Directors. Mr. Barker, who brings over 30 years of experience in journalism, finance, and geopolitics, will serve alongside other board members, contributing his unique perspective shaped by his global experience. His past roles include serving as The Wall Street Journal’s Editor for Europe, Middle East, and Africa, and as a Senior Adviser at AlixPartners. This appointment is expected to enhance Moelis’s strategic direction and industry positioning.

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.

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.