Moelis & Company
Moelis & Company Fundamental Analysis
Moelis & Company (MC) shows strong financial fundamentals with a PE ratio of 20.27, profit margin of 15.36%, and ROE of 43.27%. The company generates $1.5B in annual revenue with strong year-over-year growth of 39.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MC's fundamental strength across five key dimensions:
Efficiency Score
WeakMC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMC trades at attractive valuation levels.
Growth Score
ModerateMC shows steady but slowing expansion.
Financial Health Score
ModerateMC shows balanced financial health with some risks.
Profitability Score
ExcellentMC achieves industry-leading margins.
Key Financial Metrics
Is MC Expensive or Cheap?
P/E Ratio
MC trades at 20.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MC's PEG of -9.21 indicates potential undervaluation.
Price to Book
The market values Moelis & Company at 7.64 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.72 times EBITDA. This signals the market has high growth expectations.
How Well Does MC Make Money?
Net Profit Margin
For every $100 in sales, Moelis & Company keeps $15.36 as profit after all expenses.
Operating Margin
Core operations generate 18.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $43.27 in profit for every $100 of shareholder equity.
ROA
Moelis & Company generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Moelis & Company produces operating cash flow of $234.08M, showing steady but balanced cash generation.
Free Cash Flow
Moelis & Company generates strong free cash flow of $207.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.80 in free cash annually.
FCF Yield
MC converts 4.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-9.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.43
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How MC Stacks Against Its Sector Peers
| Metric | MC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.27 | 18.86 | Neutral |
| ROE | 43.27% | 847.00% | Weak |
| Net Margin | 15.36% | 4202.00% | Weak |
| Debt/Equity | 0.00 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 0.00% | -21543.00% (disorted) | Weak |
MC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Moelis & Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.14%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-9.29%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
43.14%
Industry Style: Value, Dividend, Cyclical
High Growth