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P10 Holdings (PX)
NYSE:PX
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P10 Holdings (PX) AI Stock Analysis

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PX

P10 Holdings

(NYSE:PX)

Rating:70Outperform
Price Target:
$13.50
▲(11.11%Upside)
P10 Holdings' strong financial performance and strategic corporate actions are the primary drivers of its overall score. However, the high valuation and technical indicators suggest caution due to potential overvaluation and overbought market conditions.
Positive Factors
Financial Targets
Long-term financial targets are ahead of expectations across fee-paying AUM (FPAUM) and fee-related earnings (FRE) margins.
Leadership Changes
The appointment of Luke Sarsfield as CEO is a significant development for the company.
Valuation
Private markets growth at a compelling valuation has resulted in an initiation at an overweight rating.
Negative Factors
Growth Outlook
Slower than expected growth outlook has led to a downgrade.

P10 Holdings (PX) vs. SPDR S&P 500 ETF (SPY)

P10 Holdings Business Overview & Revenue Model

Company DescriptionP10, Inc., together with its subsidiaries, operates as a multi-asset class private market solutions provider in the alternative asset management industry in the United States. The company offers private equity, venture capital, private credit, impact investing, and private credit services, as well as primary fund of funds, secondary investment, and direct and co-investments services. It also provides tax credit transaction and consulting services. The company was founded in 1992 and is headquartered in Dallas, Texas.
How the Company Makes MoneyP10 Holdings makes money primarily through management and performance fees charged to its clients. As an investment management company, it earns a percentage of the assets under management (AUM) as management fees, providing a steady income stream. Additionally, P10 Holdings may receive performance-based fees or carried interest, which are contingent upon achieving specific investment performance benchmarks, typically a share of the profits generated by the investments. The company also benefits from strategic partnerships and collaborations with institutional investors, enhancing its investment offerings and expanding its client base, thus contributing to its revenue growth.

P10 Holdings Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q4-2024)
|
% Change Since: 6.86%|
Next Earnings Date:Aug 07, 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.
Q4-2024 Updates
Positive Updates
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%.
Negative Updates
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 Financial Statement Overview

Summary
P10 Holdings demonstrates strong revenue growth and operational efficiency, though profitability was inconsistent in 2023 due to a net loss. The balance sheet shows high leverage, which poses financial risk, but cash flow statements reveal robust cash generation.
Income Statement
78
Positive
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.
Balance Sheet
72
Positive
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.
Cash Flow
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue296.45M241.73M198.36M150.53M67.37M
Gross Profit141.13M87.45M104.06M95.78M42.84M
EBITDA91.83M48.69M72.32M56.59M24.26M
Net Income18.70M-7.13M29.21M10.77M23.81M
Balance Sheet
Total Assets869.27M834.07M826.36M676.22M582.43M
Cash, Cash Equivalents and Short-Term Investments67.45M30.47M20.02M40.92M11.77M
Total Debt340.37M310.12M307.78M228.20M297.74M
Total Liabilities482.38M408.91M392.48M281.05M522.59M
Stockholders Equity347.00M385.59M393.14M395.16M59.84M
Cash Flow
Free Cash Flow96.59M46.22M60.21M48.86M10.64M
Operating Cash Flow100.97M47.69M61.67M49.02M10.67M
Investing Cash Flow-5.80M-2.25M-98.59M-47.40M-214.19M
Financing Cash Flow-59.11M-42.87M22.93M29.08M196.84M

P10 Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.15
Price Trends
50DMA
10.70
Positive
100DMA
10.99
Positive
200DMA
11.77
Positive
Market Momentum
MACD
0.46
Negative
RSI
71.33
Negative
STOCH
95.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PX, the sentiment is Positive. The current price of 12.15 is above the 20-day moving average (MA) of 11.04, above the 50-day MA of 10.70, and above the 200-day MA of 11.77, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 71.33 is Negative, neither overbought nor oversold. The STOCH value of 95.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 1 New Risks
1.
Emerging technologies, such as artificial intelligence, may disrupt the market, lead to greater legal and regulatory risks, and adversely affect our ability to compete. Q4, 2024

P10 Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$971.06M6.8617.56%13.58%46.14%34.91%
74
Outperform
$2.14B30.1413.16%4.43%22.27%-42.27%
73
Outperform
$1.48B12.6913.66%4.05%0.63%1.46%
70
Outperform
$1.36B78.845.24%1.47%18.92%
70
Outperform
$2.00B40.3510.77%0.88%20.66%-47.25%
70
Outperform
$1.13B1.5111.11%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PX
P10 Holdings
12.15
2.10
20.90%
VRTS
Virtus Investment Partners
213.65
-10.80
-4.81%
WT
WisdomTree
13.71
2.23
19.43%
AMTD
AMTD IDEA Group
1.06
-0.49
-31.61%
PAX
Patria Investments
13.53
1.12
9.02%
TRIN
Trinity Capital
15.02
2.28
17.90%

P10 Holdings Corporate Events

Executive/Board ChangesShareholder Meetings
P10 Holdings Announces Key Governance Decisions at Annual Meeting
Neutral
Jun 13, 2025

On June 12, 2025, P10, Inc. held its Annual Meeting of Stockholders where significant decisions were made regarding the company’s governance and financial oversight. Stockholders elected three nominees as Class I Directors for a three-year term and ratified the appointment of KPMG LLP as the independent auditor for the fiscal year ending December 31, 2025. These decisions are pivotal for P10, Inc.’s operational continuity and financial transparency, reinforcing its commitment to robust corporate governance and stakeholder trust.

The most recent analyst rating on (PX) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on P10 Holdings stock, see the PX Stock Forecast page.

M&A TransactionsStock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
P10 Holdings Reports Strong Q1 2025 Financial Results
Positive
May 8, 2025

On May 8, 2025, P10 Holdings reported its first-quarter 2025 financial results, highlighting a record fundraising and deployment of over $1.4 billion in gross new fee-paying assets under management. The company also completed the acquisition of Qualitas Funds, expanding its global presence. Financial highlights include a 2% year-over-year increase in revenue to $67.7 million and a 10% increase in fee-paying assets under management to $26.3 billion. Despite a slight decrease in GAAP net income compared to the previous year, P10 increased its quarterly dividend by 7% and repurchased over 1.2 million shares. The company’s strong performance underscores its platform’s strength and its strategic positioning for future growth.

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.Date of analysis: Jul 24, 2025