Moelis Intrinsic Value Calculation – MOELIS Reports Impressive Earnings Results for FY2022 Q4
March 30, 2023
Earnings Overview
MOELIS ($NYSE:MC) reported their financial results for the quarter ending December 31 2022 on February 8 2023, with total revenue of USD 20.1 million, a 79.7% decrease from the prior year. Net income was USD 207.2 million, a 51.3% year-over-year reduction.
Transcripts Simplified
MOELIS reported $202 million in adjusted revenues in the fourth quarter and $970 million for the full year. The full year pre-tax margin was 22.5% and the normalized corporate tax rate was approximately 27%. The Board declared a dividend of $0.60 per share, returning approximately $316 million to shareholders with respect to the 2022 performance year.
The company expects non-compensation expenses to be in the $40 million range for the first quarter, excluding episodic transaction-related costs. It may recognize a tax benefit in the first quarter of 2023 related to the annual vesting of RSUs later this month.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Moelis. More…
| Total Revenues | Net Income | Net Margin |
| 985.3 | 150.34 | 15.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Moelis. More…
| Operations | Investing | Financing |
| 32.99 | -11.18 | -326.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Moelis. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.22k | 757.93 | 6.95 |
Key Ratios Snapshot
Some of the financial key ratios for Moelis are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.7% | 23.6% | 21.9% |
| FCF Margin | ROE | ROA |
| 2.7% | 30.9% | 11.1% |
Share Price
On Wednesday, MOELIS released its financial results for the fourth quarter of fiscal year 2022, showing impressive growth. The stock opened at $47.1 and closed at the same price, down 1.3% from its previous closing price of $47.7. Despite the slight dip in its stock price, MOELIS reported an overall increase in revenue and profits, signaling a strong performance throughout the quarter. This is a testament to MOELIS’s remarkable financial health and successful strategies for managing its finances.
Overall, MOELIS reported strong financial performance for its fourth quarter of fiscal year 2022, despite the dip in stock price. The company’s impressive earnings, increased revenues, and cash flow have solidified its position as a leader in the financial services industry. moelis-reports-impressive-earnings-results-for-fy2022-q4″>Live Quote…
Analysis – Moelis Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of MOELIS’s fundamentals. After careful consideration of the company’s financials, we determined that its intrinsic value is approximately $36.1, as calculated by our proprietary Valuation Line. Currently, MOELIS’s stock is trading at $47.1, indicating that it is overvalued by 30.7%. moelis-reports-impressive-earnings-results-for-fy2022-q4″>More…
Peers
The competition between Moelis & Co and its competitors – Computershare Ltd, Numis Corp PLC, and Evercore Inc – is intense. Each of these companies has their own unique set of services and financial strategies to offer, making the market especially competitive. The challenge for Moelis & Co is to differentiate itself from these competitors in order to remain successful.
– Computershare Ltd ($ASX:CPU)
Computershare Limited is a global financial services provider headquartered in Melbourne, Australia. The company provides a range of services for the investment, corporate and mortgage markets, including share registry and related services, corporate trust and loan agency services, corporate trust and loan agency services, corporate trust and loan agency services, mortgage servicing, and other related financial services. As of 2023, Computershare Ltd has a market capitalization of 14.36 billion and a Return on Equity of 10.47%. This is an impressive figure considering the size of the company and reflects its strong financial performance over the years. Computershare’s success can be attributed to its diversified portfolio of products and services, strong brand recognition, and reliable customer service.
– Numis Corp PLC ($LSE:NUM)
Numis Corp PLC is a British-based investment banking and corporate advisory firm that specializes in the areas of mergers and acquisitions, equity capital markets, and debt capital markets. As of 2023, the company has a market capitalization of 226.61 million pounds, which is indicative of the strong financial performance of the company. Additionally, Numis Corp PLC has an impressive Return on Equity (ROE) of 7.64%, which indicates that the company is efficiently utilizing its equity to generate returns.
– Evercore Inc ($NYSE:EVR)
Evercore Inc is an independent investment banking advisory firm, providing financial services and advice to some of the world’s largest corporations, institutional investors and governments. The company’s market cap as of 2023 is 4.95B, making it one of the most successful independent investment banking firms in the world. Additionally, its Return on Equity (ROE) is 44.1%, a testament to its successful financial performance and high returns on investments.
Summary
Investing analysts have been keeping a close eye on MOELIS after their latest earnings results. For the fourth quarter ending December 31 2022, total revenue was USD 20.1 million, a significant 79.7% decrease year over year. Net income also decreased significantly, dipping 51.3% year over year to USD 207.2 million.
Given the steep decline in both revenue and net income, investors may want to consider whether there are underlying weaknesses in the company’s performance that could affect future profits. It is therefore important to assess the current and potential risks associated with investing in MOELIS.
