Moelis Intrinsic Value – MOELIS Reports Positive FY2022 4th Quarter Earnings Results
February 20, 2023
Earnings Overview
MOELIS ($NYSE:MC) announced its financial results for Q4 of FY2022, which closed on December 31, 2022. Total revenue for the quarter amounted to USD 20.1 million, representing a decrease of 79.7% year-over-year. Net income decreased by 51.3% to USD 207.2 million compared to the same period in the previous year.
Transcripts Simplified
For the full year, adjusted revenues were $970 million, down 38% from the prior year. The full year pre-tax margin was 22.5%. The normalized corporate tax rate was 27% and the effective tax rate was 22%. The Board declared a $0.60 per share dividend and has returned approximately $316 million to shareholders with respect to the 2022 performance year.
In the first quarter of 2023, MOELIS expects non-compensation expenses to be in the $40 million range, excluding episodic transaction-related costs. An additional tax benefit is expected in the first quarter of 2023 related to the annual vesting of RSUs, with the impact to EPS estimated at approximately $0.01 for every $1.25 difference between the vesting and breakeven price of $36 per share.
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 |
| 300.44 | -17.01 | -602.54 |
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 |
| 1.16k | 713.53 | 6.73 |
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 |
| 29.6% | 31.4% | 11.7% |
Price History
On Wednesday, the financial advisory firm MOELIS reported its FY2022 4th quarter earnings results, with the stock opening and closing at $47.1. This closing price is a slight decrease of 1.3% from its previous closing of $47.7. Despite the marginal dip in price, MOELIS reported relatively positive earnings results. Investors will be on the lookout to see if MOELIS can maintain this momentum in the coming quarters and deliver strong performance in FY2023. Live Quote…
Analysis – Moelis Intrinsic Value
At GoodWhale, we examine the fundamentals of MOELIS, conducting a thorough analysis. Our proprietary Valuation Line has calculated the fair value of MOELIS share to be around $42.3. However, now MOELIS stock is traded at $47.1, a fair price overvalued by 11.4%. This suggests that the stock may be ripe for investors looking for a great opportunity. More…
Peers
The competition between Moelis & Co and its competitors – Computershare Ltd, Numis Corp PLC, and Evercore Inc – is intense. Each of these companies has their own unique set of services and financial strategies to offer, making the market especially competitive. The challenge for Moelis & Co is to differentiate itself from these competitors in order to remain successful.
– Computershare Ltd ($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
MOELIS reported its earnings results for the fourth quarter of FY2022, with total revenue of USD 20.1 million and a net income of USD 207.2 million. This marks a year-over-year decrease of 79.7% and 51.3%, respectively, indicating a sharp decline in the company’s financial performance. Investors should monitor the company’s current performance and future prospects to determine if there is potential for growth and recover potential losses. Additionally, analysts should compare the company’s performance to its competitors to gain further insight into its future prospects.
