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PJT Partners Inc (PJT)
NYSE:PJT

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)

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
82
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
76
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
88
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.49B1.49B1.15B1.03B991.95M1.05B
Gross Profit
451.07M461.11M347.80M356.36M351.90M368.91M
EBIT
315.37M302.94M274.30M236.34M247.13M274.54M
EBITDA
310.27M299.24M214.27M251.82M262.88M289.60M
Net Income Common Stockholders
155.79M134.39M81.80M164.77M189.96M212.43M
Balance SheetCash, Cash Equivalents and Short-Term Investments
0.00483.88M355.54M173.24M200.48M299.51M
Total Assets
0.001.64B1.43B1.05B987.63M1.17B
Total Debt
0.00354.52M330.60M135.63M157.01M172.29M
Net Debt
0.00-129.36M-24.94M-37.61M-43.47M-127.22M
Total Liabilities
572.39M733.69M573.81M291.09M350.05M483.76M
Stockholders Equity
148.83M187.01M244.67M185.11M120.23M154.26M
Cash FlowFree Cash Flow
566.87M527.65M437.61M239.30M117.69M460.73M
Operating Cash Flow
493.79M530.95M441.53M242.73M124.16M469.59M
Investing Cash Flow
-51.72M8.06M-34.35M-53.23M131.35M-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
HLHLI
79
Outperform
$12.20B30.0219.93%1.37%24.88%39.55%
75
Outperform
$8.42B38.9816.25%1.35%7.22%-15.53%
PJPJT
74
Outperform
$5.46B27.4996.33%0.64%16.04%60.32%
EVEVR
74
Outperform
$9.45B23.4229.73%1.36%26.88%68.65%
LALAZ
74
Outperform
$4.02B14.9059.68%4.68%9.54%
MCMC
67
Neutral
$4.66B26.4739.98%4.50%45.14%
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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%
MC
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.