NYSE:GHL

Stock Analysis Report

Executive Summary

Greenhill & Co., Inc., an independent investment bank, provides financial and strategic advisory services to corporations, partnerships, institutions, and governments worldwide.


Snowflake Analysis

Unattractive dividend payer with concerning outlook.


Similar Companies

Share Price & News

How has Greenhill's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GHL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.1%

GHL

0.4%

US Capital Markets

0.06%

US Market


1 Year Return

-29.8%

GHL

17.9%

US Capital Markets

19.3%

US Market

Return vs Industry: GHL underperformed the US Capital Markets industry which returned 17.9% over the past year.

Return vs Market: GHL underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

GHLIndustryMarket
7 Day-6.1%0.4%0.06%
30 Day-4.1%0.7%1.7%
90 Day-2.4%6.9%9.0%
1 Year-28.9%-29.8%20.2%17.9%21.8%19.3%
3 Year-36.9%-42.4%40.2%32.4%49.5%39.9%
5 Year-45.4%-56.3%84.5%67.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Greenhill's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Greenhill undervalued compared to its fair value and its price relative to the market?

37.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GHL ($16.92) is trading above our estimate of fair value ($5.47)

Significantly Below Fair Value: GHL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GHL is poor value based on its PE Ratio (37x) compared to the Capital Markets industry average (35.3x).

PE vs Market: GHL is poor value based on its PE Ratio (37x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GHL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GHL is overvalued based on its PB Ratio (11.8x) compared to the US Capital Markets industry average (6.8x).


Next Steps

Future Growth

How is Greenhill forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GHL's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if GHL's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GHL's revenue (9.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: GHL's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GHL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Greenhill performed over the past 5 years?

-34.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GHL has high quality earnings.

Growing Profit Margin: GHL's current net profit margins (4%) are lower than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: GHL's earnings have declined by -34.6% per year over the past 5 years.

Accelerating Growth: GHL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GHL had negative earnings growth (-72%) over the past year, making it difficult to compare to the Capital Markets industry average (8.4%).


Return on Equity

High ROE: Whilst GHL's Return on Equity (38.72%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Greenhill's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GHL has a low level of unsold assets or inventory.

Debt Coverage by Assets: GHL's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: GHL's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if GHL has a sufficient allowance for bad loans.

Low Risk Liabilities: GHL reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GHL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GHL has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GHL has an appropriate level of bad loans.


Next Steps

Dividend

What is Greenhill's current dividend yield, its reliability and sustainability?

1.18%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Greenhill before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: GHL's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: GHL's dividend (1.18%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: GHL's dividend payments have been volatile in the past 10 years.

Growing Dividend: GHL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.8%), GHL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GHL's dividends in 3 years are forecast to be well covered by earnings (15.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Scott Bok (59yo)

12.3yrs

Tenure

US$116,277

Compensation

Mr. Scott Lee Bok, J.D. is Chairman & CEO of Greenhill & Co., LLC (the "Company"). He previously served as Co-Chief Executive Officer and earlier as Co-President since prior to the Company's incorporation  ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD116.28K) is below average for companies of similar size in the US market ($USD1.66M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Bok
Chairman & CEO12.3yrsUS$116.28k9.17% $28.9m
David Wyles
President4.6yrsUS$5.74m0.28% $888.4k
Kevin Costantino
President & Co-Head of U.S. M&A4.6yrsUS$2.50m0.22% $694.1k
Harold Rodriguez
MD, COO & CFO3.5yrsUS$1.42m0.81% $2.6m
Robert Greenhill
Founder & Chairman Emeritus0yrsno data7.78% $24.5m
Richard Jacobsen
MD & Head of Healthcare Services0yrsno datano data
Patrick Suehnholz
MD, Director of Investor Relations & COO of Investment Banking2.4yrsno datano data
John Shaffer
Chief Information Officer19.1yrsno datano data
Gitanjali Faleiro
MD, General Counsel & Corporate Secretary0.4yrsno datano data
James Babski
Co-Head of Financial Technology Corporate Advisory- New York & MD of New York6.1yrsno datano data

4.6yrs

Average Tenure

58.5yo

Average Age

Experienced Management: GHL's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Bok
Chairman & CEO12.3yrsUS$116.28k9.17% $28.9m
Robert Greenhill
Founder & Chairman Emeritus0yrsno data7.78% $24.5m
Steven Goldstone
Lead Independent Director4.1yrsUS$125.00k0.25% $789.6k
Stephen Key
Independent Director15.8yrsUS$140.00k0.15% $478.8k
Meryl Hartzband
Independent Director1.6yrsUS$54.49k0.057% $178.2k
John Liu
Independent Director2.7yrsUS$125.00k0.079% $250.7k
Karen Robards
Independent Director6.8yrsUS$125.00k0.11% $334.8k

3.4yrs

Average Tenure

69yo

Average Age

Experienced Board: GHL's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Greenhill & Co., Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Greenhill & Co., Inc.
  • Ticker: GHL
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Implied Market Cap: US$315.343m
  • Market Cap: US$307.705m
  • Shares outstanding: 18.19m
  • Website: https://www.greenhill.com

Number of Employees


Location

  • Greenhill & Co., Inc.
  • 300 Park Avenue
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GHLNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2004
GH3DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2004

Biography

Greenhill & Co., Inc., an independent investment bank, provides financial and strategic advisory services to corporations, partnerships, institutions, and governments worldwide. The company offers advisory services to clients in relation to mergers, acquisitions, divestitures, spin-offs, and other strategic transactions, as well as various stages of a transaction’s life cycle ranging from initial structuring and negotiation to final execution. It also advises clients on strategic matters, including activist response, defensive tactics, special committee projects, licensing deals, and joint ventures; and valuation, negotiation tactics, industry dynamics, structuring alternatives, and timing and pricing of transactions, as well as financing alternatives. In addition, the company provides debt restructuring advisory services to debtors, creditors, governments, pension funds and other stakeholders, and acquirers of distressed companies and assets; and advice on restructuring alternatives, capital structures, and sales or recapitalizations. Further, it assists clients in identifying and capitalizing on incremental sources of value; and who seek court-assisted reorganizations by developing and seeking approval for plans of reorganization, as well as the implementation of such plans. Additionally, the company advises on other financing matters, including debt issuances, equity financings, and exchange offers; and initial public offerings and other equity capital market transactions. It also offers financial advisory services to pension funds, endowments, and other institutional investors on transactions involving alternative assets; and advice to alternative asset fund sponsors for capital raising, financing, liquidity options, and related services. Greenhill & Co., Inc. was founded in 1996 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:53
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.