PJT Partners Inc.
PJT Partners Inc. Fundamental Analysis
PJT Partners Inc. (PJT) shows strong financial fundamentals with a PE ratio of 22.29, profit margin of 10.32%, and ROE of 76.40%. The company generates $1.8B in annual revenue with strong year-over-year growth of 14.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.1/100 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 PJT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPJT demonstrates superior asset utilization.
Valuation Score
ExcellentPJT trades at attractive valuation levels.
Growth Score
ExcellentPJT delivers strong and consistent growth momentum.
Financial Health Score
ModeratePJT shows balanced financial health with some risks.
Profitability Score
ModeratePJT maintains healthy but balanced margins.
Key Financial Metrics
Is PJT Expensive or Cheap?
P/E Ratio
PJT trades at 22.29 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PJT's PEG of -0.81 indicates potential undervaluation.
Price to Book
The market values PJT Partners Inc. at 15.25 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.66 times EBITDA. This is generally considered low.
How Well Does PJT Make Money?
Net Profit Margin
For every $100 in sales, PJT Partners Inc. keeps $10.32 as profit after all expenses.
Operating Margin
Core operations generate 21.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $76.40 in profit for every $100 of shareholder equity.
ROA
PJT Partners Inc. generates $11.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PJT Partners Inc. generates strong operating cash flow of $656.15M, reflecting robust business health.
Free Cash Flow
PJT Partners Inc. generates strong free cash flow of $604.82M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $23.42 in free cash annually.
FCF Yield
PJT converts 15.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.76
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How PJT Stacks Against Its Sector Peers
| Metric | PJT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.29 | 18.85 | Worse (Expensive) |
| ROE | 76.40% | 820.00% | Weak |
| Net Margin | 10.32% | 1999.00% | Weak |
| Debt/Equity | 1.55 | 1.01 | Weak (High Leverage) |
| Current Ratio | 8.14 | 673.75 | Strong Liquidity |
| ROA | 11.93% | -23583.00% (disorted) | Strong |
PJT outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PJT Partners Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.08%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
45.91%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
6.76%
Industry Style: Value, Dividend, Cyclical
Growing