PJT Partners (PJT) AI Stock Analysis

• Market Cap: $5.69B
• Dividend Yield: 0.61%
• Average Volume (3M): 209.26K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 1.19
• Revenue Growth: 18.40%
• EPS Growth: 54.77%
• Country: US
• Employees: 1,143
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 1.85
• Shares Outstanding: 24,304,976
• 10 Day Avg. Volume: 229,200
• 30 Day Avg. Volume: 209,258
• PEG Ratio: 15.48
• Price to Book (P/B): 21.48
• Price to Sales (P/S): 2.69
• P/FCF Ratio: 7.61
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $192.50
• Price Target Upside: 17.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $178.00 ▲(8.92% Upside)

PJT Partners' overall stock score is driven by strong financial performance, particularly in revenue growth and cash flow generation. However, the stock faces headwinds from low profitability margins, increased leverage, and bearish technical indicators. The positive outlook from the recent earnings call provides some optimism, but valuation concerns and external risks temper the overall score.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong demand for PJT's advisory services, enhancing its market position and long-term earnings potential.

Cash Generation

Strong cash reserves and no funded debt improve financial flexibility, enabling strategic investments and resilience against economic downturns.

Strategic Advisory Success

Record performance in strategic advisory underscores PJT's competitive advantage and expertise, supporting sustained growth and client retention.

Negative Factors

Low Profitability Margins

Low profitability margins indicate operational inefficiencies, which could hinder long-term financial health and investor confidence.

Increased Leverage

Higher leverage poses financial risks, potentially limiting PJT's ability to invest in growth opportunities and manage economic volatility.

Higher Operating Expenses

Rising operating expenses could pressure margins and profitability, challenging PJT's ability to maintain cost efficiency and competitiveness.

PJT Partners Business Overview & Revenue Model

Company Description

PJT Partners Inc., an investment bank, provides various strategic and capital markets advisory, restructuring and special situations, and shareholder advisory services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers advisory services to clients on various transactions, including mergers and acquisitions (M&A), spin-offs, activism defense, contested M&A, joint ventures, minority investments, and divestitures. The company also advises private and public company boards and management teams on strategies for building productive investor relationships with a focus on shareholder engagement; and strategic investor relations; environmental, social, and governance matters; and other investor-related matters. In addition, it provides advisory services related to debt and acquisition financings; structured product offerings; public equity raises, including initial public offering and SPAC offerings; and private capital raises for early and later stage companies, as well as other capital structure related matters. Further, the company offers advisory services in restructurings and recapitalizations; and serving a range of companies, creditors, and financial sponsors on liability management and related capital raise transactions, including exchanges, recapitalizations, reorganizations, debt repurchases, and distressed mergers and acquisitions. Additionally, it provides private fund advisory and fundraising services for a range of investment strategies; and advisory services to GPs and LPs on liquidity and other structured solutions in the secondary market. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. was incorporated in 2014 and is headquartered in New York, New York.

How the Company Makes Money

PJT Partners generates revenue primarily through advisory fees from its investment banking services, which include mergers and acquisitions (M&A) advisory, restructuring advisory, and capital markets advisory. The company earns fees based on the size and complexity of transactions it facilitates, typically structured as a percentage of the deal value. Additionally, PJT may receive success fees upon the completion of transactions. The firm also derives income from strategic advisory services, engaging in long-term partnerships with clients to provide ongoing financial advice. Furthermore, PJT Partners' involvement in restructuring and distressed asset advisory can yield significant revenue, especially during periods of economic volatility when companies seek to reorganize or refinance. Significant partnerships with major corporations and private equity firms enhance its credibility and attract a steady flow of advisory mandates, contributing to its earnings.

PJT Partners Financial Statement Overview

Summary

PJT Partners shows strong revenue growth and robust cash flow generation. However, the company faces challenges with low profitability margins and increased leverage, which could pose financial risks if not managed effectively.

Income Statement

PJT Partners shows a strong revenue growth trajectory with a remarkable 49,097.83% increase in TTM, indicating robust expansion. However, the net profit margin is extremely low at 0.02% in TTM, suggesting profitability challenges. The gross profit margin of 31.92% in TTM is stable, but EBIT and EBITDA margins are significantly lower than industry averages, reflecting potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased to 2.48 in TTM, indicating higher leverage and potential financial risk. Return on equity is strong at 96.84% in TTM, showcasing effective use of equity. However, the equity ratio is not provided, which limits a full assessment of financial stability.

Cash Flow

Operating cash flow is robust with a high coverage ratio of 5.37 in TTM, indicating strong cash generation relative to net income. Despite a slight decline in free cash flow growth, the free cash flow to net income ratio remains healthy at 96.77%, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.54B	1.49B	1.15B	1.03B	991.95M	1.05B
Gross Profit	484.23M	461.11M	347.80M	356.36M	351.90M	368.91M
EBITDA	338.62M	331.61M	245.06M	267.35M	280.31M	310.90M
Net Income	160.37M	134.39M	81.80M	90.53M	106.17M	117.55M
Balance Sheet
Total Assets	1.51B	1.64B	1.43B	1.05B	987.63M	1.17B
Cash, Cash Equivalents and Short-Term Investments	214.62M	483.88M	355.54M	173.24M	200.48M	299.51M
Total Debt	414.66M	354.52M	330.60M	135.63M	157.01M	172.29M
Total Liabilities	662.80M	733.69M	573.81M	291.09M	350.05M	483.76M
Stockholders Equity	167.44M	187.01M	244.67M	185.11M	120.23M	154.26M
Cash Flow
Free Cash Flow	474.82M	527.65M	437.61M	239.30M	117.69M	460.59M
Operating Cash Flow	490.66M	530.95M	441.53M	242.73M	124.16M	469.44M
Investing Cash Flow	61.43M	8.06M	-34.35M	-53.23M	131.35M	-145.75M
Financing Cash Flow	-509.22M	-408.68M	-228.08M	-210.02M	-353.38M	-244.28M

PJT Partners Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 163.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PJT, the sentiment is Neutral. The current price of 163.42 is below the 20-day moving average (MA) of 173.49, below the 50-day MA of 177.77, and above the 200-day MA of 162.70, indicating a neutral trend. The MACD of -3.40 indicates Positive momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 19.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PJT.

PJT Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVR	73 Outperform	$11.49B	23.73	―	1.12%	27.00%	63.47%
PIPR	71 Outperform	$5.77B	24.59	19.30%	1.77%	12.49%	36.43%
MC	71 Outperform	$5.00B	20.80	51.98%	3.82%	51.19%	456.59%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LAZ	64 Neutral	$4.60B	19.23	36.41%	4.13%	1.58%	1.93%
PJT	61 Neutral	$5.69B	28.06	106.47%	0.61%	18.40%	54.77%
PWP	53 Neutral	$1.66B	23.13	―	1.50%	20.01%	―