NYSE:MC

Stock Analysis Report

Executive Summary

Moelis & Company, an investment bank, provides strategic and financial advisory services in the United States and internationally.

Snowflake

Fundamentals

Undervalued with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

MC

0.8%

US Capital Markets

0.07%

US Market


1 Year Return

-21.1%

MC

5.3%

US Capital Markets

8.9%

US Market

Return vs Industry: MC underperformed the US Capital Markets industry which returned 5.3% over the past year.

Return vs Market: MC underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

MCIndustryMarket
7 Day0.8%0.8%0.07%
30 Day-3.5%-2.4%-0.3%
90 Day-9.4%-3.1%-1.6%
1 Year-14.6%-21.1%7.6%5.3%11.3%8.9%
3 Year68.0%28.5%52.4%43.8%46.3%36.8%
5 Year53.4%2.1%74.1%58.2%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MC ($32) is trading below our estimate of fair value ($66.44)

Significantly Below Fair Value: MC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MC is good value based on its PE Ratio (13.7x) compared to the Capital Markets industry average (32x).

PE vs Market: MC is good value based on its PE Ratio (13.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: MC is good value based on its PB Ratio (4.3x) compared to the US Capital Markets industry average (6.3x).


Next Steps

Future Growth

How is Moelis forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MC's forecast earnings growth (10.9% per year) is above the savings rate (2.7%).

Earnings vs Market: MC's earnings (10.9% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: MC's earnings are forecast to grow, but not significantly.

Revenue vs Market: MC's revenue (12.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MC's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MC's Return on Equity is forecast to be very high in 3 years time (51.5%).


Next Steps

Past Performance

How has Moelis performed over the past 5 years?

39.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MC's earnings have grown significantly by 39.7% per year over the past 5 years.

Accelerating Growth: MC's earnings growth over the past year (80.9%) exceeds its 5-year average (39.7% per year).

Earnings vs Industry: MC earnings growth over the past year (80.9%) exceeded the Capital Markets industry 29.3%.


Return on Equity

High ROE: MC's Return on Equity (49.5%) is considered outstanding.


Return on Assets

ROA vs Industry: MC has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate MC's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Moelis'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: MC has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MC's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: MC's level of assets compared to its equity is low.

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

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

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

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

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


Next Steps

Dividend

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

10.16%

Current Dividend Yield


Dividend Yield vs Market

company10.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years8.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MC's dividend (10.16%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MC's dividend (10.16%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: MC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MC's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.6%), MC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MC's dividends in 3 years are not forecast to be well covered by earnings (105.6% payout ratio).


Next Steps

Management

What is the CEO of Moelis's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Ken Moelis (60yo)

12.8yrs

Tenure

US$8,800,528

Compensation

Mr. Kenneth David Moelis, also known as Ken, is Founder, Chairman and Chief Executive Officer of Moelis & Company, a global independent investment bank that provides innovative strategic advice and solutio ...


CEO Compensation Analysis

Compensation vs. Market: Ken's total compensation ($USD8.80M) is about average for companies of similar size in the US market ($USD4.07M).

Compensation vs Earnings: Ken's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.8yrs

Average Tenure

53yo

Average Age

Experienced Management: MC's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

58yo

Average Age

Experienced Board: MC's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$321,89605 Jun 19
Elizabeth Crain
EntityIndividual
Role
Member of the Board of Directors
Founding Partner
Shares10,000
Max PriceUS$32.19

Ownership Breakdown


Management Team

  • Elizabeth Crain (54yo)

    Founding Partner

    • Tenure: 1.3yrs
    • Compensation: US$2.47m
  • John Momtazee

    Founding Partner & MD of Los Angeles

    • Tenure: 0yrs
  • Ken Moelis (60yo)

    Chairman & CEO

    • Tenure: 12.8yrs
    • Compensation: US$8.80m
  • Navid Mahmoodzadegan (50yo)

    Co-Founder

    • Tenure: 5.5yrs
    • Compensation: US$8.81m
  • Jeff Raich (52yo)

    Co-Founder

    • Tenure: 5.5yrs
    • Compensation: US$6.85m
  • Joe Simon (60yo)

    Chief Financial Officer

    • Tenure: 9.8yrs
    • Compensation: US$2.16m
  • Eric Cantor (56yo)

    Vice Chairman

    • Tenure: 5.1yrs
  • Michele Miyakawa (49yo)

    Managing Director

    • Tenure: 4.8yrs
  • Kate Ciafone

    MD & COO of Investment Banking

    • Tenure: 0.8yrs
  • Christopher Callesano (46yo)

    Principal Accounting Officer

    • Tenure: 3.2yrs

Board Members

  • Elizabeth Crain (54yo)

    Founding Partner

    • Tenure: 1.3yrs
    • Compensation: US$2.47m
  • John Allison (71yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$119.73k
  • Ken Moelis (60yo)

    Chairman & CEO

    • Tenure: 12.8yrs
    • Compensation: US$8.80m
  • Ken Shropshire (64yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$119.80k
  • Navid Mahmoodzadegan (50yo)

    Co-Founder

    • Tenure: 5.5yrs
    • Compensation: US$8.81m
  • Jeff Raich (52yo)

    Co-Founder

    • Tenure: 5.5yrs
    • Compensation: US$6.85m
  • Eric Cantor (56yo)

    Vice Chairman

    • Tenure: 5.1yrs
  • Charles Allen

    Advisory Chairman

    • Tenure: 0yrs
  • Yolonda Richardson (60yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Moelis & Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Moelis & Company
  • Ticker: MC
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Implied Market Cap: US$2.037b
  • Market Cap: US$1.575b
  • Shares outstanding: 62.27m
  • Website: https://www.moelis.com

Number of Employees


Location

  • Moelis & Company
  • 399 Park Avenue
  • 5th Floor
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCNYSE (New York Stock Exchange)YesClass A Common StockUSUSDApr 2014
17MDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2014

Biography

Moelis & Company, an investment bank, provides strategic and financial advisory services in the United States and internationally. It advises clients in the areas of mergers and acquisitions, recapitalizat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:36
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.