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Perella Weinberg Partners (PWP)
:PWP
US Market

Perella Weinberg Partners (PWP) AI Stock Analysis

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Perella Weinberg Partners

(NASDAQ:PWP)

Rating:62Neutral
Price Target:
$20.00
▲(5.32%Upside)
Perella Weinberg Partners' overall score reflects strong revenue growth and effective cash flow management, which are offset by profitability challenges and balance sheet risks. The technical analysis suggests moderate momentum, while the valuation is negatively impacted by negative earnings. Despite record revenues, the earnings call also highlighted significant risks, including high litigation costs and policy uncertainties affecting future deals.

Perella Weinberg Partners (PWP) vs. SPDR S&P 500 ETF (SPY)

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 (PWP) generates revenue primarily through fees charged for its advisory services. The firm's key revenue streams include M&A advisory fees, which are typically a percentage of the transaction value, and restructuring advisory fees, which are often based on the complexity and success of the restructuring process. Additionally, PWP earns fees from capital markets advisory services, where it assists clients in raising capital through equity or debt offerings. The firm's earnings are significantly influenced by its reputation and relationships with clients, as well as its ability to successfully execute high-profile transactions.

Perella Weinberg Partners Earnings Call Summary

Earnings Call Date:May 02, 2025
(Q1-2025)
|
% Change Since: 10.47%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong financial performance with record-breaking revenues and significant client engagement. However, the decline in backlog and high litigation costs present challenges. The firm is optimistic about future growth, driven by strong recruitment and restructuring demand, but is cautious due to policy uncertainties affecting deal announcements.
Q1-2025 Updates
Positive Updates
Record First Quarter Revenue
First quarter revenues of $212 million, up more than 100% year-over-year, marking the highest first quarter revenue in company history.
Strong Performance Across Regions
Revenue in both the US and Europe doubled, driven by larger fees per transaction and a continued focus on client coverage and business selection.
Increasing Client Engagement
Client engagement dashboard stats, which include new business reviews, client calls, and meeting requests, are at all-time highs, indicating strong client interest.
Recruitment and Expansion
Addition of a Managing Director focused on transportation, leasing, and logistics, as well as upcoming hires in healthcare, software, financials, and industrial sectors.
Restructuring and Liability Management Growth
Significant uptick in demand for restructuring liability management and financing advisory services starting from April.
Negative Updates
Decline in Announced and Pending Backlog
While client engagement is high, the announced and pending backlog has declined from record levels, indicating potential future revenue challenges.
Impact of Policy Uncertainty
Policy actions from the US government have slowed deal announcements as clients await clarity on tariff and trade policy.
High Litigation Costs
Adjusted non-compensation expense included over $10 million of litigation-related costs, which significantly increased year-over-year expenses.
Company Guidance
During the Perella Weinberg Partners First Quarter 2025 Earnings Conference Call, guidance was provided on several key metrics. The company reported first-quarter revenues of $212 million, representing an increase of more than 100% year-over-year, marking the highest first-quarter revenue in the company's history. The adjusted compensation margin was noted at 67% of revenues, in line with the full-year 2024 accrual. Adjusted non-compensation expenses for the quarter amounted to $49 million, with over $10 million attributed to litigation-related costs. The firm's adjusted tax rate was 29.5%, excluding stock compensation impacts. Capital management included returning $121 million to equity holders, with $14 million in open market repurchases and $29 million related to unit exchanges. The company ended the quarter with $111 million in cash and declared a quarterly dividend of $0.07 per share. The call highlighted a strong pipeline despite a slowdown in announced and pending backlogs, with significant growth in restructuring liability management and advisory services.

Perella Weinberg Partners Financial Statement Overview

Summary
Perella Weinberg Partners shows strong revenue growth and a robust cash flow position. However, persistent net losses and negative margins present significant challenges. The balance sheet indicates financial instability due to negative equity, which poses risks to long-term viability.
Income Statement
45
Neutral
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.
Balance Sheet
30
Negative
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.
Cash Flow
70
Positive
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
878.04M648.65M631.51M801.66M518.99M
Gross Profit
352.10M222.08M86.02M200.97M119.84M
EBIT
-78.53M-115.10M-47.73M66.58M-5.15M
EBITDA
-58.15M-97.86M5.50M62.41M10.38M
Net Income Common Stockholders
-64.73M-17.22M-31.75M4.02M-24.34M
Balance SheetCash, Cash Equivalents and Short-Term Investments
408.60M338.35M311.68M502.77M329.06M
Total Assets
876.75M761.11M717.09M718.33M542.95M
Total Debt
187.35M175.90M165.60M43.45M205.19M
Net Debt
-145.42M-71.27M-5.97M-459.32M-123.87M
Total Liabilities
646.99M492.86M456.95M446.98M468.77M
Stockholders Equity
-421.38M152.66M137.46M126.32M74.18M
Cash FlowFree Cash Flow
206.98M88.28M-44.33M233.45M80.39M
Operating Cash Flow
223.36M145.88M-17.77M234.91M85.91M
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

Technical Analysis Sentiment
Positive
Last Price18.99
Price Trends
50DMA
17.36
Positive
100DMA
20.03
Negative
200DMA
20.93
Negative
Market Momentum
MACD
0.13
Negative
RSI
61.53
Neutral
STOCH
81.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PWP, the sentiment is Positive. The current price of 18.99 is above the 20-day moving average (MA) of 18.23, above the 50-day MA of 17.36, and below the 200-day MA of 20.93, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 81.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
80
Outperform
$31.11B26.9240.36%0.31%26.32%8.63%
PJPJT
75
Outperform
$5.39B27.1496.33%0.65%16.04%60.32%
EVEVR
74
Outperform
$9.49B23.5129.73%1.32%26.88%68.65%
71
Outperform
$4.69B23.0717.59%0.98%10.27%88.77%
MCMC
67
Neutral
$4.77B27.0539.98%4.23%45.14%
64
Neutral
$12.86B9.797.78%16985.65%12.28%-7.82%
PWPWP
62
Neutral
$1.65B46.63%1.50%59.48%72.23%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PWP
Perella Weinberg Partners
18.99
5.00
35.74%
EVR
Evercore Partners
247.66
57.10
29.96%
LPLA
LPL Financial
380.39
102.42
36.85%
PIPR
Piper Sandler
263.74
65.14
32.80%
MC
Moelis
58.47
8.17
16.24%
PJT
PJT Partners
155.18
53.37
52.42%

Perella Weinberg Partners Corporate Events

Executive/Board ChangesShareholder Meetings
Perella Weinberg Partners Elects Directors at Annual Meeting
Neutral
May 30, 2025

At the Annual Meeting of Stockholders on May 28, 2025, Perella Weinberg Partners‘ stockholders elected three Class I directors to serve until 2028. Additionally, the stockholders ratified Ernst & Young, LLP as the independent public accounting firm for 2025, approved executive compensation, and determined the frequency of future advisory votes on executive compensation.

The most recent analyst rating on (PWP) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Perella Weinberg Partners stock, see the PWP Stock Forecast page.

Private Placements and Financing
Perella Weinberg Partners Issues Over 1.2 Million Shares
Neutral
May 19, 2025

On May 16, 2025, Perella Weinberg Partners issued over 1.2 million shares of its Class A common stock in exchange for an equivalent number of Class A partnership units of PWP Holdings LP and Class B common stock held by certain limited partners. This transaction, conducted under the Amended and Restated Limited Partnership Agreement, allows holders of Class A partnership units to exchange them for Class A common stock or cash, enhancing liquidity and flexibility for stakeholders.

The most recent analyst rating on (PWP) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Perella Weinberg Partners stock, see the PWP Stock Forecast page.

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.