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Perella Weinberg Partners (PWP)
:PWP
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Perella Weinberg Partners
(NASDAQ:PWP)
42Neutral
Perella Weinberg Partners (PWP) vs. S&P 500 (SPY)
Market Cap
$1.61B
Dividend Yield1.52%
Average Volume (3M)764.30K
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth35.36%
EPS Growth-227.77%
CountryUS
Employees691
SectorFinancial
Sector Strength82
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-1.59
Shares Outstanding59,532,352
10 Day Avg. Volume678,006
30 Day Avg. Volume764,297
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.94
Price to Cash Flow (P/CF)3.10
P/FCF Ratio3.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.50Price Target Upside54.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Perella Weinberg Partners Business Overview & Revenue Model
Company DescriptionPerella Weinberg Partners, an independent investment banking company, provides strategic and financial advice services in the United States and internationally. The company offers advice services related to mission-critical strategic and financial decisions, mergers and acquisition execution, shareholder and defense advisory, capital raising, structure and restructuring, capital markets advisory, energy underwriting, and equity research. It serves public multinational corporations, mid-sized public and private companies, individual entrepreneurs, private and institutional investors, creditor committees, and government institutions in various industries comprising consumer and retail; energy; financial institutions; healthcare; industrials; and technology, media, and telecommunications. The company was founded in 2006 and is based in New York, New York.
How the Company Makes MoneyPerella Weinberg Partners generates revenue primarily through advisory fees from its clients. These fees are associated with the firm's core advisory services, including mergers and acquisitions, capital markets advisory, and restructuring services. The firm's earnings are highly contingent on its ability to secure advisory mandates and successfully execute transactions on behalf of its clients. Key revenue streams include engagement and success fees, which are paid upon the successful completion of a deal. Additionally, PWP may earn retainer fees for ongoing advisory services. Significant factors contributing to its earnings include its reputation for expertise, a strong track record in high-profile transactions, and strategic partnerships that enhance its service offerings.
Perella Weinberg Partners Financial Statement Overview
Summary
Perella Weinberg Partners exhibits strong revenue growth and solid cash flow generation. However, persistent net losses and negative margins weigh heavily on profitability. The balance sheet's negative equity poses significant financial risk, necessitating improvements in cost management and capital structure.Income Statement
Perella Weinberg Partners has shown a volatile revenue trajectory with a recent increase to $878M in 2024 from $649M in 2023, marking a revenue growth rate of 35.3%. However, profitability remains a significant challenge. The net profit margin is negative at -7.4% due to a net loss of $65M. The gross profit margin is relatively stable at 40.1%, but negative EBIT and EBITDA margins highlight operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reveals high financial risk with negative stockholders' equity of $421M, indicating potential insolvency issues. Despite a strong cash position of $407M and no total debt, the equity ratio is negative, and the return on equity is impossible to calculate due to negative equity. The company needs to improve its capital structure for better financial health.30
Negative
Cash Flow
The cash flow statement shows strength in operating cash flow, which increased to $223M in 2024. Free cash flow improved significantly to $207M, translating to a robust growth rate of 234.5% from 2023. The operating cash flow to net income ratio is favorable, indicating strong cash generation relative to net losses, although sustainability remains a concern given the persistent net losses.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 878.04M | 648.65M | 631.51M | 801.66M | 518.99M | Gross Profit |
| 352.10M | 222.08M | 86.02M | 200.97M | 119.84M | EBIT |
| -78.53M | -115.10M | -47.73M | 66.58M | -5.15M | EBITDA |
| -58.15M | -97.86M | 5.50M | 62.41M | 10.38M | Net Income Common Stockholders |
| -64.73M | -17.22M | -31.75M | 4.02M | -24.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 407.39M | 338.35M | 311.68M | 502.77M | 329.06M | Total Assets |
| 876.75M | 761.11M | 717.09M | 718.33M | 542.95M | Total Debt |
| 187.35M | 175.90M | 165.60M | 43.45M | 205.19M | Net Debt |
| -144.21M | -71.27M | -5.97M | -459.32M | -123.87M | Total Liabilities |
| 646.99M | 492.86M | 456.95M | 446.98M | 468.77M | Stockholders Equity |
| -421.38M | 152.66M | 137.46M | 126.32M | 74.18M |
| Cash Flow | Free Cash Flow | |||
| 206.98M | 88.28M | -44.33M | 233.45M | 80.39M | Operating Cash Flow |
| 223.36M | 145.88M | -17.77M | 234.91M | 85.91M | Investing Cash Flow |
| -98.00K | -5.82M | -166.23M | -2.44M | -5.52M | Financing Cash Flow |
| -137.25M | -67.02M | -136.77M | -55.02M | -21.99M |
Perella Weinberg Partners Technical Analysis
Negative
18.45
Price Trends
22.65
Negative
23.44
Negative
20.86
Negative
Market Momentum
-0.89
Negative
33.87
Neutral
28.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PWP, the sentiment is Negative. The current price of 18.45 is below the 20-day moving average (MA) of 19.86, below the 50-day MA of 22.65, and below the 200-day MA of 20.86, indicating a bearish trend. The MACD of -0.89 indicates Negative momentum. The RSI at 33.87 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PWP.
Perella Weinberg Partners Risk Analysis
Perella Weinberg Partners disclosed 39 risk factors in its most recent earnings report. Perella Weinberg 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
Perella Weinberg 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.88B | 16.12 | 51.51% | 4.63% | 23.88% | ― | |
73 Outperform | $7.81B | 21.97 | 23.03% | 1.60% | 22.67% | 47.20% | |
71 Outperform | $9.74B | 15.01 | 13.32% | 1.79% | 15.33% | 46.64% | |
70 Outperform | $4.44B | 32.62 | 34.27% | 4.23% | 39.75% | ― | |
69 Neutral | $28.48B | 13.58 | 19.07% | 1.33% | 13.79% | 28.57% | |
64 Neutral | $14.25B | 10.26 | 8.97% | 4.33% | 16.33% | -11.91% | |
42 Neutral | $1.61B | ― | 46.63% | 1.52% | 35.36% | -227.77% |
* Financial Sector Average
Performance Comparison
PWP
Perella Weinberg Partners
18.45
4.45
31.79%
EVR
Evercore Partners
199.52
12.75
6.83%
LAZ
Lazard
43.17
3.97
10.13%
RJF
Raymond James Financial
139.01
11.84
9.31%
SF
Stifel Financial
93.87
17.96
23.66%
MC
Moelis
57.91
3.89
7.20%
Perella Weinberg Partners Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: -29.26% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance year for Perella Weinberg Partners with record-breaking revenues and significant returns to shareholders. The firm demonstrated leadership in its M&A and restructuring segments, and maintained a solid financial position with no debt. However, there were challenges such as increased non-compensation expenses, recruitment issues, and a cautious outlook on interest rates which balanced the overall sentiment.Highlights
Record-Breaking Revenue
Perella Weinberg Partners reported full year 2024 revenues of $878 million, the highest in the firm's history, up 35% year over year and up 10% from the previous record.
Achievement in M&A and Restructuring
The firm earned its single largest fees in both M&A and restructuring businesses, and was ranked number four boutique by global deal volume by DealLogic, and number one in announced restructurings by Debtwire.
Significant Return to Shareholders
In 2024, Perella Weinberg Partners returned a record $282 million to equity holders, more than double the previous annual high, and declared a quarterly dividend of seven cents per share.
Strong Performance in U.S. Business
U.S. business led the results, with increased activity also noted in Europe in early 2025.
No Debt and Strong Cash Position
The firm ended the year with $407 million in cash and short-term investments, with no debt.
Lowlights
Increased Non-Compensation Expenses
Adjusted non-compensation expense was $162 million for the full year 2024, up 13% from the previous year, primarily due to higher litigation costs and additional professional fees.
Challenges with Recruitment
The firm faced challenges with recruiting, running below trend due to some candidates deciding to stay at their incumbent firms.
Moderate Outlook for Rate Environment
The firm does not foresee significant rate cuts coming into 2025, expecting a continued elevated rate environment.
Company Guidance
During the earnings call, Perella Weinberg Partners provided several key metrics and insights into their performance and future expectations. The firm reported record full-year 2024 revenues of $878 million, a 35% increase year over year, and a 10% rise from their previous record, driven by strong contributions across all business lines, particularly in the U.S. They achieved a $20 stock price and exceeded a $2 billion market cap. The adjusted compensation margin was 67% for 2024, down from 70% in 2023, while adjusted non-compensation expenses rose to $162 million, a 13% increase. The company returned a record $282 million to equity holders in 2024. Looking ahead to 2025, they anticipate continued growth in the M&A market, supported by increased activity in Europe, despite potential volatility from U.S. policy decisions. Additionally, they expect non-compensation expenses to moderate to single-digit growth, with a focus on expanding senior talent to maintain productivity and scale their business further.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.