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PJT Partners Inc (PJT)
NYSE:PJT
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PJT Partners
(NYSE:PJT)
74Outperform
PJT Partners (PJT) vs. S&P 500 (SPY)
Market Cap
$5.50B
Dividend Yield0.7%
Average Volume (3M)338.86K
Price to Earnings (P/E)28.8
Beta (1Y)1.25
Revenue Growth29.48%
EPS Growth63.03%
CountryUS
Employees1,012
SectorFinancial
Sector Strength81
IndustryCapital Markets
Share Statistics
EPS (TTM)4.91
Shares Outstanding23,297,894
10 Day Avg. Volume421,670
30 Day Avg. Volume338,859
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)N/A
Price to Sales (P/S)1.68
Price to Cash Flow (P/CF)4.20
P/FCF Ratio4.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$153.00Price Target Upside10.21% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
PJT Partners Business Overview & Revenue Model
Company DescriptionPJT Partners, Inc. is a holding company, which engages in the provision of advisory-investment solutions. It specializes in strategic advisory, shareholder engagement, restructuring and special situations and private fund advisory and placement services to corporations, financial sponsors, institutional investors, and governments. The company was founded on November 5, 2014 and is headquartered in New York, NY.
How the Company Makes MoneyPJT Partners generates revenue primarily through the fees it earns from its advisory services. The company's key revenue streams include mergers and acquisitions advisory fees, which are typically contingent upon the successful completion of a transaction, and restructuring and special situations advisory fees, which are often based on the size and complexity of the transaction. Additionally, PJT Partners derives income from its private fund advisory and fundraising services by assisting clients in raising capital and providing strategic advice on fund structure and marketing strategies. Significant factors contributing to PJT's earnings include its strong client relationships, deep industry expertise, and an extensive network of institutional investors and corporations. The company's ability to secure high-profile advisory roles and manage complex transactions further supports its revenue generation.
PJT Partners Financial Statement Overview
Summary
PJT Partners exhibits strong financial performance with notable revenue growth and profitability. The absence of debt enhances financial stability, and strong cash flows indicate effective management.Income Statement
PJT Partners has demonstrated strong revenue growth with a 29.5% increase in 2024 compared to 2023. The company shows robust profitability with a consistent gross profit margin around 30.9% and an improving net profit margin at 9.0% in 2024. The EBIT and EBITDA margins are solid, indicating efficient operations and good earnings before and after interest, tax, depreciation, and amortization.82
Very Positive
Balance Sheet
The balance sheet reflects a solid equity position with an equity ratio of 11.4% in 2024, though it represents a decrease from previous years. The company has no total debt in 2024, which reduces financial risk, but the lower return on equity of 71.9% shows a decline, indicating potential challenges in generating returns from shareholders' equity.76
Positive
Cash Flow
Cash flow analysis shows strong free cash flow generation with consistent growth, as seen with a 82.8% increase in operating cash flow in 2024. The operating cash flow to net income ratio is robust, and free cash flow to net income is significantly high, indicating effective cash management and strong liquidity.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.49B | 1.15B | 1.03B | 991.95M | 1.05B | Gross Profit |
| 461.11M | 347.80M | 356.36M | 351.90M | 368.91M | EBIT |
| 423.49M | 274.30M | 236.34M | 247.13M | 274.54M | EBITDA |
| 331.61M | 214.27M | 251.82M | 262.88M | 289.60M | Net Income Common Stockholders |
| 134.39M | 81.80M | 164.77M | 189.96M | 212.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 483.88M | 355.54M | 173.24M | 200.48M | 299.51M | Total Assets |
| 1.64B | 1.43B | 1.05B | 987.63M | 1.17B | Total Debt |
| 354.52M | 330.60M | 135.63M | 157.01M | 172.29M | Net Debt |
| -129.36M | -24.94M | -37.61M | -43.47M | -127.22M | Total Liabilities |
| 733.69M | 573.81M | 291.09M | 350.05M | 483.76M | Stockholders Equity |
| 187.01M | 244.67M | 185.11M | 120.23M | 154.26M |
| Cash Flow | Free Cash Flow | |||
| 437.61M | 437.61M | 239.30M | 117.69M | 460.73M | Operating Cash Flow |
| 441.53M | 441.53M | 242.73M | 124.16M | 469.59M | Investing Cash Flow |
| -34.35M | -34.35M | -53.23M | 131.35M | -145.75M | Financing Cash Flow |
| -228.08M | -228.08M | -210.02M | -353.38M | -244.42M |
PJT Partners Technical Analysis
Negative
138.83
Price Trends
160.76
Negative
157.87
Negative
138.80
Positive
Market Momentum
-6.38
Positive
26.75
Positive
9.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PJT, the sentiment is Negative. The current price of 138.83 is below the 20-day moving average (MA) of 157.26, below the 50-day MA of 160.76, and above the 200-day MA of 138.80, indicating a neutral trend. The MACD of -6.38 indicates Positive momentum. The RSI at 26.75 is Positive, neither overbought nor oversold. The STOCH value of 9.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PJT.
PJT Partners Risk Analysis
PJT Partners disclosed 33 risk factors in its most recent earnings report. PJT 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
PJT Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $28.63B | 13.64 | 19.07% | 1.32% | 13.79% | 28.57% | |
74 Outperform | $5.50B | 28.78 | 62.26% | 0.70% | 29.48% | 63.03% | |
74 Outperform | $4.12B | 17.11 | 51.51% | 4.36% | 23.88% | ― | |
74 Outperform | $4.61B | 33.85 | 34.27% | 4.08% | 39.75% | ― | |
73 Outperform | $7.76B | 21.85 | 23.03% | 1.65% | 22.67% | 47.20% | |
71 Outperform | $9.88B | 15.22 | 13.32% | 1.76% | 15.33% | 46.64% | |
63 Neutral | $13.85B | 10.47 | 9.22% | 4.23% | 17.31% | -7.79% |
* Financial Sector Average
Performance Comparison
PJT
PJT Partners
138.83
42.94
44.78%
EVR
Evercore Partners
193.85
7.06
3.78%
LAZ
Lazard
44.93
7.56
20.23%
RJF
Raymond James Financial
142.39
23.32
19.59%
SF
Stifel Financial
95.35
22.61
31.08%
MC
Moelis
59.55
7.95
15.41%
PJT Partners Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -15.89% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call reflects a predominantly positive outlook with record financial performance across multiple segments, significant cash flow, and strategic achievements. However, it acknowledges challenges such as increased expenses and a tough primary fundraising environment.Highlights
Record-Breaking Financial Performance
Full-year 2024 revenues reached $1.49 billion, up 29% year-on-year. Adjusted pre-tax income was $278 million, up 52% year-on-year. Adjusted EPS was $5.02 per share, up 54% year-on-year.
Strong Cash Flow and Share Repurchases
Generated substantial free cash flow, enabling $333 million in share repurchases and ending the year with a record cash balance of $547 million.
Restructuring Business Success
Global restructuring business ranked number one in announced restructurings globally and in the U.S., delivering record results surpassing prior performance.
Record Results in Strategic Advisory and PJT Park Hill
Strategic Advisory delivered record results in 2024, surpassing previous records. PJT Park Hill saw meaningful increases in capital raised and revenues despite declining global primary fundraising volumes.
Positive Outlook for 2025
Expectation of higher global M&A activity in 2025 with continued strong performance in restructuring and Private Capital Solutions.
Lowlights
Increased Expenses
Total adjusted non-compensation expense for the full year 2024 was $185 million, up 12% year-over-year, driven by higher occupancy costs and increased travel expenses.
Challenging Primary Fundraising Environment
Global primary fundraising volumes declined for the third straight year, presenting challenges for future growth.
Mixed Performance in IPOs
Mixed performance in IPOs created challenges for sponsors, impacting monetization options and strategic planning.
Company Guidance
During the PJT Partners Fourth Quarter 2024 Earnings Call, several key metrics highlighted the firm's record-setting performance. Full-year revenues reached $1.49 billion, marking a 29% increase from the previous year. Adjusted pre-tax income rose by 52% to $278 million, while adjusted EPS increased by 54% to $5.02 per share. The firm's cash flow generation enabled a $333 million share repurchase, concluding the year with a cash balance of $547 million. The adjusted compensation expense was $1.30 billion, with a compensation ratio of 69% for the year, slightly down from 69.8% in 2023. Their adjusted non-compensation expense rose by 12% to $185 million. The effective tax rate for the year was 20.6%, benefiting from the delivery of vested shares. PJT's restructuring business ranked number one globally, and the Strategic Advisory and PJT Park Hill segments achieved record revenues, showcasing broad-based success across all divisions.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.