PJT Partners (PJT) AI Stock Analysis

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PJT Partners

(NYSE:PJT)

Rating:74Outperform

Price Target:

$175.00

▲(11.46%Upside)

PJT Partners demonstrates strong financial performance with robust revenue growth and cash flow management. The stock shows positive technical momentum, and the earnings call highlighted strategic growth despite some challenges. Valuation indicates moderate pricing with a focus on future growth potential rather than immediate income.

PJT Partners (PJT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$5.46B

Dividend Yield0.64%

Average Volume (3M)230.44K

Price to Earnings (P/E)27.5

Beta (1Y)1.15

Revenue Growth16.04%

EPS Growth60.32%

CountryUS

Employees1,143

SectorFinancial

Sector Strength79

IndustryFinancial - Capital Markets

Share Statistics

EPS (TTM)1.05

Shares Outstanding24,430,628

10 Day Avg. Volume189,820

30 Day Avg. Volume230,443

Financial Highlights & Ratios

PEG Ratio-0.82

Price to Book (P/B)9.98

Price to Sales (P/S)0.00

P/FCF Ratio7.72

Enterprise Value/Market Cap0.33

Enterprise Value/Revenue0.32

Enterprise Value/Gross Profit4.01

Enterprise Value/Ebitda1.61

Forecast

1Y Price Target

$161.00

Price Target Upside2.55% Upside

Rating ConsensusHold

Number of Analyst Covering2

PJT Partners Business Overview & Revenue Model

Company DescriptionPJT Partners Inc., an investment bank, provides various strategic and capital markets advisory, restructuring and special situations, and shareholder advisory services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers advisory services to clients on various transactions, including mergers and acquisitions (M&A), spin-offs, activism defense, contested M&A, joint ventures, minority investments, and divestitures. The company also advises private and public company boards and management teams on strategies for building productive investor relationships with a focus on shareholder engagement; and strategic investor relations; environmental, social, and governance matters; and other investor-related matters. In addition, it provides advisory services related to debt and acquisition financings; structured product offerings; public equity raises, including initial public offering and SPAC offerings; and private capital raises for early and later stage companies, as well as other capital structure related matters. Further, the company offers advisory services in restructurings and recapitalizations; and serving a range of companies, creditors, and financial sponsors on liability management and related capital raise transactions, including exchanges, recapitalizations, reorganizations, debt repurchases, and distressed mergers and acquisitions. Additionally, it provides private fund advisory and fundraising services for a range of investment strategies; and advisory services to GPs and LPs on liquidity and other structured solutions in the secondary market. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. was incorporated in 2014 and is headquartered in New York, New York.

How the Company Makes MoneyPJT Partners generates revenue primarily through advisory fees and commissions. The Strategic Advisory segment earns fees from advising clients on mergers and acquisitions, divestitures, spin-offs, and other strategic transactions. The Restructuring and Special Situations segment provides financial restructuring advice to companies, creditors, and other stakeholders, generating fees based on the complexity and size of the transaction. PJT Park Hill, the fund placement segment, earns fees by helping investment managers raise capital from institutional investors. The firm benefits from strong client relationships and its reputation for delivering tailored and expert advice, which contribute significantly to its earnings. Additionally, PJT leverages its extensive network and industry expertise to maintain a robust pipeline of advisory engagements.

PJT Partners Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 16.18%|

Next Earnings Date:Jul 29, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a balanced outlook with record-breaking net income and EPS, an improved pre-tax margin, and strategic advisory growth prospects. However, challenges include a slight decline in total revenues, increased expenses, and subdued M&A and fundraising activities.

Q1-2025 Updates

Positive Updates

Record Q1 Adjusted Net Income and EPS

PJT Partners reported record Q1 adjusted net income and record Q1 adjusted EPS, with revenues nearly equal to last year's record Q1 levels.

Improved Adjusted Pre-Tax Margin

The adjusted pre-tax margin increased to 17.3% from 16.8% in the same period last year.

Record Adjusted Converted Earnings Per Share

The adjusted converted earnings per share for Q1 was a record $1.05, compared with $0.98 per share in the first quarter last year.

Strong Strategic Advisory Revenue Outlook

Strategic advisory revenues increased in Q1, and full-year 2025 strategic advisory revenues are expected to be up strongly from 2024 levels.

Significant Buyback Activity

PJT Partners repurchased the equivalent of approximately 1.5 million shares, primarily through open market repurchases.

Negative Updates

Total Revenues Slightly Declined

Total revenues for the first quarter were $325 million, 1% below the same period last year.

Increased Non-Compensation Expenses

Adjusted non-compensation expenses rose to $49 million in Q1, up from $45 million last year, a 9% increase primarily due to travel, occupancy costs, and investment in technology.

Subdued M&A and IPO Activity

Subdued levels of IPO and M&A activity are impacting capital return in the alternative space, making primary fundraising challenging.

Challenges in Restructuring and PJT Park Hill

Revenues in restructuring and PJT Park Hill decreased modestly year-over-year.

Company Guidance

During the PJT Partners First Quarter 2025 Earnings Conference Call, the company reported first quarter revenues of $325 million, which were slightly below the previous year's record Q1 levels. Adjusted pre-tax income was $56 million, and adjusted earnings per share (EPS) were $1.05, with the adjusted pre-tax margin increasing to 17.3% from 16.8% last year. The company accrued compensation expenses at 67.5% of revenues, down from 69.5% in the first quarter of 2024. Adjusted non-compensation expenses rose by 9% year-over-year to $49 million, and the effective tax rate was 16.5%. The weighted average share count was 44.46 million shares, reflecting a 2% increase from the previous year. PJT Partners repurchased approximately 1.5 million shares and committed a record dollar amount to share buybacks during the quarter. The board approved a dividend of $0.25 per share, payable on June 18, 2025. Despite a challenging economic environment and subdued M&A activity, the firm's full-year outlook remains unchanged, with expectations for strong growth in strategic advisory revenues compared to 2024 levels.

PJT Partners Financial Statement Overview

Summary

PJT Partners presents a strong financial profile with impressive revenue growth and profitability. The company benefits from zero debt, enhancing its financial stability, although there is a slight decline in equity ratio. Cash flows are particularly strong, suggesting effective management of operations and investments.

Income Statement

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.49B	1.49B	1.15B	1.03B	991.95M	1.05B
	Gross Profit
451.07M	461.11M	347.80M	356.36M	351.90M	368.91M
	EBIT
315.37M	302.94M	274.30M	236.34M	247.13M	274.54M
	EBITDA
310.27M	299.24M	214.27M	251.82M	262.88M	289.60M
	Net Income Common Stockholders
155.79M	134.39M	81.80M	164.77M	189.96M	212.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	483.88M	355.54M	173.24M	200.48M	299.51M
	Total Assets
0.00	1.64B	1.43B	1.05B	987.63M	1.17B
	Total Debt
0.00	354.52M	330.60M	135.63M	157.01M	172.29M
	Net Debt
0.00	-129.36M	-24.94M	-37.61M	-43.47M	-127.22M
	Total Liabilities
572.39M	733.69M	573.81M	291.09M	350.05M	483.76M
	Stockholders Equity
148.83M	187.01M	244.67M	185.11M	120.23M	154.26M
Cash Flow		Free Cash Flow
566.87M	527.65M	437.61M	239.30M	117.69M	460.73M
	Operating Cash Flow
493.79M	530.95M	441.53M	242.73M	124.16M	469.59M
	Investing Cash Flow
-51.72M	8.06M	-34.35M	-53.23M	131.35M	-145.75M
	Financing Cash Flow
-250.33M	-408.68M	-228.08M	-210.02M	-353.38M	-244.42M

PJT Partners Technical Analysis

Technical Analysis Sentiment

Positive

Last Price157.00

Price Trends

50DMA

141.86

Positive

100DMA

149.44

Positive

200DMA

147.43

Positive

Market Momentum

MACD

3.00

Negative

RSI

64.08

Neutral

STOCH

81.79

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PJT, the sentiment is Positive. The current price of 157 is above the 20-day moving average (MA) of 150.60, above the 50-day MA of 141.86, and above the 200-day MA of 147.43, indicating a bullish trend. The MACD of 3.00 indicates Negative momentum. The RSI at 64.08 is Neutral, neither overbought nor oversold. The STOCH value of 81.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLI	79 Outperform	$12.20B	30.02	19.93%	1.37%	24.88%	39.55%
MKTX	75 Outperform	$8.42B	38.98	16.25%	1.35%	7.22%	-15.53%
PJT	74 Outperform	$5.46B	27.49	96.33%	0.64%	16.04%	60.32%
EVR	74 Outperform	$9.45B	23.42	29.73%	1.36%	26.88%	68.65%
LAZ	74 Outperform	$4.02B	14.90	59.68%	4.68%	9.54%	―
MC	67 Neutral	$4.66B	26.47	39.98%	4.50%	45.14%	―
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%

* Financial Sector Average

Performance Comparison

PJT

PJT Partners

157.00

56.54

56.28%

EVR

Evercore Partners

247.18

52.43

26.92%

LAZ

Lazard

44.20

9.04

25.71%

MKTX

Marketaxess Holdings

226.89

29.32

14.84%

Moelis

58.91

8.52

16.91%

HLI

Houlihan Lokey

175.44

48.39

38.09%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.