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P10 Holdings (PX)
NYSE:PX
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P10 Holdings
(NYSE:PX)63Neutral
Positive Factors
Earnings Expectations
The price target has been raised, indicating positive expectations.
Leadership Changes
The appointment of Luke Sarsfield as CEO is a significant development for the company.
Negative Factors
Growth Outlook
Slower than expected growth outlook has led to a downgrade.
P10 Holdings (PX) vs. S&P 500 (SPY)
Market Cap
$1.18B
Dividend Yield1.16%
Average Volume (3M)638.45K
Price to Earnings (P/E)77.4
Beta (1Y)1.11
Revenue Growth22.63%
EPS GrowthN/A
CountryUS
Employees252
SectorFinancial
Sector Strength93
IndustryAsset Management Services
Share Statistics
EPS (TTM)0.15
Shares Outstanding54,850,580
10 Day Avg. Volume593,239
30 Day Avg. Volume638,448
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.39
Price to Cash Flow (P/CF)12.10
P/FCF Ratio10.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.50Price Target Upside28.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
P10 Holdings Business Overview & Revenue Model
Company DescriptionP10 Holdings (PX) is a diversified alternative asset management firm. The company focuses on managing a broad range of assets, including private equity, venture capital, private credit, and impact investing. P10 Holdings provides investment management and advisory services, aiming to deliver superior returns for its clients. The firm operates through various subsidiaries, leveraging their expertise to serve a global clientele of institutional investors, including endowments, foundations, family offices, and pension funds.
How the Company Makes MoneyP10 Holdings generates revenue primarily through management fees and performance fees associated with managing client assets. Management fees are typically charged as a percentage of the assets under management (AUM) and provide a steady income stream. Performance fees, on the other hand, are contingent on achieving specific investment performance benchmarks and are designed to align the company's interests with those of its clients. Additionally, P10 Holdings may earn revenue from advisory services and through strategic partnerships that expand its investment capabilities and market reach. Key factors contributing to its earnings include the growth of AUM, successful investment outcomes, and maintaining strong relationships with institutional clients.
P10 Holdings Financial Statement Overview
Summary
P10 Holdings shows strong revenue growth and efficient operational management, though profitability has been inconsistent, particularly in 2023. The balance sheet indicates significant leverage, requiring careful management to mitigate financial risks. Cash flow statements reveal solid cash generation capacity, supporting growth and operations.Income Statement
P10 Holdings has demonstrated a strong revenue growth trajectory over the years, with a significant increase in total revenue from 2020 to 2024. The gross profit margin has remained healthy, indicating efficient cost management. However, the net profit margin has been volatile, with a notable negative margin in 2023 due to a net loss, signaling some profitability challenges. EBIT and EBITDA margins are robust, showing good operational efficiency.78
Positive
Balance Sheet
The company maintains a high debt-to-equity ratio, reflecting significant leverage which could pose a risk if not managed carefully. However, the return on equity has been positive overall, indicating effective use of shareholder funds. The equity ratio has been stable, suggesting a balanced approach to financing assets with equity.72
Positive
Cash Flow
P10 Holdings has shown impressive free cash flow growth, with a substantial increase in free cash flow in 2024 compared to previous years. The operating cash flow to net income ratio indicates strong cash-generating ability relative to net income. The company has also managed to maintain a stable free cash flow to net income ratio, demonstrating effective cash management.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 296.45M | 241.73M | 198.36M | 150.53M | 67.37M | Gross Profit |
| 141.13M | 87.45M | 104.06M | 95.78M | 43.55M | EBIT |
| 60.62M | 20.92M | 43.42M | 40.35M | 8.69M | EBITDA |
| 91.83M | 48.69M | 76.37M | 74.67M | 24.26M | Net Income Common Stockholders |
| 18.70M | -7.13M | 29.21M | 10.77M | 23.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 67.45M | 30.47M | 20.02M | 40.92M | 11.77M | Total Assets |
| 869.27M | 834.07M | 826.36M | 676.22M | 582.43M | Total Debt |
| 340.37M | 310.12M | 307.78M | 228.20M | 297.74M | Net Debt |
| 272.92M | 279.65M | 287.76M | 187.28M | 285.96M | Total Liabilities |
| 482.39M | 408.91M | 392.48M | 281.05M | 522.59M | Stockholders Equity |
| 347.00M | 385.59M | 393.14M | 395.16M | 59.84M |
| Cash Flow | Free Cash Flow | |||
| 96.59M | 46.22M | 60.21M | 48.86M | 10.64M | Operating Cash Flow |
| 100.97M | 47.69M | 61.67M | 49.02M | 10.67M | Investing Cash Flow |
| -5.80M | -2.25M | -98.59M | -47.40M | -214.19M | Financing Cash Flow |
| -59.11M | -42.87M | 22.93M | 29.08M | 196.84M |
P10 Holdings Technical Analysis
Negative
12.08
Price Trends
13.05
Negative
12.63
Negative
10.97
Positive
Market Momentum
-0.25
Positive
36.03
Neutral
15.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PX, the sentiment is Negative. The current price of 12.08 is below the 20-day moving average (MA) of 12.91, below the 50-day MA of 13.05, and above the 200-day MA of 10.97, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 36.03 is Neutral, neither overbought nor oversold. The STOCH value of 15.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PX.
P10 Holdings Risk Analysis
P10 Holdings disclosed 61 risk factors in its most recent earnings report. P10 Holdings 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
P10 Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $78.68B | 19.24 | 28.29% | 1.34% | -20.40% | -13.30% | |
68 Neutral | $16.28B | 16.25 | 18.90% | 3.11% | 62.87% | ― | |
67 Neutral | $107.28B | 36.86 | 13.23% | 0.58% | 42.19% | -18.20% | |
66 Neutral | $51.10B | 77.73 | 15.93% | 2.31% | 6.12% | -15.84% | |
65 Neutral | $183.69B | 41.62 | 36.95% | 2.62% | 21.25% | 97.42% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
63 Neutral | $1.18B | 77.40 | 5.11% | 1.16% | 22.63% | ― |
* Financial Sector Average
Performance Comparison
PX
P10 Holdings
12.08
4.18
52.91%
APO
Apollo Global Management
140.53
31.15
28.48%
KKR
KKR & Co
123.03
25.61
26.29%
BX
Blackstone Group
152.04
30.47
25.06%
CG
Carlyle Group
46.16
-0.04
-0.09%
ARES
Ares Management
163.00
30.84
23.34%
P10 Holdings Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -9.85% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant achievements in fundraising, revenue growth, and strategic acquisitions, indicating strong momentum and a positive outlook for 2025. However, challenges regarding margin pressures and the non-recurring nature of recent catch-up fees present areas of concern.Highlights
Record Fundraising and Revenue Growth
P10 exceeded its financial and operating guidance with $3.8 billion in gross fundraising, a 23% increase in revenues, and a 17% rise in adjusted EBITDA for the full year 2024.
Successful Bonaccord Capital Partners Fund II Closing
Bonaccord Capital Partners closed Fund II with a record $1.6 billion, marking the first fund of P10 to attract more than $1 billion in capital.
Strategic Acquisitions and M&A Activity
Announced the acquisition of Qualitas Funds, a leading European private equity fund of funds manager, poised to expand P10's European investor base and product offerings.
Expanding Global LP Base
P10's global LP base grew to over 3,800 relationships, expected to increase to approximately 5,000 with the addition of Qualitas Funds.
Strong Financial Metrics
Fee-related revenue grew by 14%, and full year FRE margins were 48.8%. Adjusted EBITDA margin for the fourth quarter was 50.5%.
Lowlights
Pressure on FRE Margins
The ongoing mix shift within P10's portfolio, with newer and faster-growing strategies having lower core FRE margins, is expected to put downward pressure on margins.
Impact of Catch-Up Fees
Extraordinary catch-up fees, particularly from Bonaccord II, are not expected to be repeated, potentially affecting future fee rate stability.
Modest Downward Margin Pressure from Qualitas Funds
The acquisition of Qualitas Funds is expected to exert modest downward pressure on 2025 FRE margins, already factored into mid-40% guidance.
Company Guidance
In the fourth quarter of 2024, P10 demonstrated robust financial performance, surpassing its projected targets from early 2024. The company achieved $3.8 billion in gross fundraising, significantly exceeding the $2.5 billion guidance, and realized a 23% increase in revenue, as well as a 17% rise in adjusted EBITDA. Additionally, P10's fee-paying Assets Under Management (AUM) grew by 10%, with revenues from fee-related activities increasing by 14%, excluding direct and secondary catch-up fees. The firm reported a full-year fee-related earnings (FRE) margin of 48.8%. For 2025, P10 anticipates further growth, with expectations of at least $4 billion in gross fundraising and plans to have 19 commingled funds in the market. Furthermore, they project step downs and expirations to account for 5% to 7% of fee-paying AUM, with a core fee rate of 103 basis points, excluding catch-up fees.P10 Holdings Corporate Events
Executive/Board Changes
P10 Holdings Appoints New Chief Accounting Officer
Neutral
Jan 7, 2025
P10, Inc. has appointed Andrew Corsi as the new Chief Accounting Officer, effective January 1, 2025. This appointment comes as part of a leadership transition where Amanda Coussens will continue her role as Chief Financial Officer. Andrew Corsi, who has been with the company since April 2021 as Corporate Controller, brings experience from his previous roles at Goldman, Sachs & Co. and Ernst & Young, and holds a CPA license in Texas. This leadership change is expected to maintain stability in the company’s financial operations without any known implications or conflicts of interest.
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.