Perella Weinberg Partners (NASDAQ: PWP)

Sector: Financial Services Industry: Capital Markets CIK: 0001777835
Market Cap 1.02 Bn
P/B -3.37
P/E 21.75
P/S 1.35
ROIC (Qtr) -26.95
Div Yield % 2.01
Rev 1y % (Qtr) -40.83
Total Debt (Qtr) 184.82 Mn
Debt/Equity (Qtr) -0.61

About

Perella Weinberg Partners (PWP), a prominent player in the financial services industry, operates as a leading global independent advisory firm. The company's main business activities revolve around providing strategic and financial advice to clients across various sectors and geographic markets. Since its inception in 2006, Perella Weinberg Partners has established itself as a trusted advisor, known for its unbiased and expert advice. The company has a presence in multiple countries and regions, demonstrating its global reach and expertise. Perella...

Read more

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 78.19M provides robust 0.42x coverage of total debt 184.82M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 608.18M provides 3.29x coverage of total debt 184.82M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 78.19M provides 3.98x coverage of SG&A expenses 19.63M, showing efficient operational cost management.
  • Robust free cash flow of 74.19M exceeds capital expenditure of 4.01M by 18.51x, indicating strong organic growth funding capability.
  • Retained earnings of (161.91M) represent substantial 0.54x of equity (302.40M), indicating strong internal capital generation.

Bear case

  • Operating cash flow of 78.19M provides thin coverage of dividend payments of (32.64M) with a -2.40 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of 78.19M shows concerning coverage of stock compensation expenses of 105.28M, with a 0.74 ratio indicating potential earnings quality issues.
  • Operating cash flow of 78.19M provides minimal -8.37x coverage of tax expenses of (9.34M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 37.51M show weak coverage of depreciation charges of 30.43M, with a 1.23 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 78.19M barely covers operating expenses of 119.88M with a 0.65 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Capital Markets
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GS Goldman Sachs Group Inc 284.23 Bn 17.94 4.84 911.32 Bn
2 MS Morgan Stanley 279.63 Bn 17.97 4.05 353.12 Bn
3 SCHW Schwab Charles Corp 179.33 Bn 23.09 7.83 27.59 Bn
4 HOOD Robinhood Markets, Inc. 106.92 Bn 48.73 25.43 0.00 Bn
5 CRCL Circle Internet Group, Inc. 40.97 Bn 261.00 24.22 0.15 Bn
6 IBKR Interactive Brokers Group, Inc. 28.23 Bn 30.79 4.75 28.43 Bn
7 LPLA LPL Financial Holdings Inc. 27.60 Bn 33.13 1.77 7.52 Bn
8 FUTU Futu Holdings Ltd 22.89 Bn 18.13 8.54 1.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.63 1.07
EV to Cash from Ops. EV/CFO 13.53 15.33
EV to Debt EV to Debt 5.72 21.89
EV to EBIT EV/EBIT 28.20 -0.80
EV to EBITDA EV/EBITDA 13.02 11.20
EV to Free Cash Flow [EV/FCF] EV/FCF 14.26 43.08
EV to Market Cap EV to Market Cap 1.04 -0.05
EV to Revenue EV/Rev 1.40 12.82
Price to Book Value [P/B] P/B -3.37 3.09
Price to Earnings [P/E] P/E 21.75 6.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.44 4.22
Dividend Payout Ratio % Div Payout % (Qtr) 35.00 10.37
Dividend per Basic Share Div per Share (Qtr) 0.28 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 24.18 -8.68
Interest Coverage Int. cover (Qtr) 0.00 37.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 85.59 -12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -28.61 1,588.78
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 148.85 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 171.44 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) 152.48 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) 152.48 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) 142.33 24.25
FCF Growth (1y) % FCF 1y % (Qtr) -65.41 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 945.70 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.16 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.40 -0.08
Cash Ratio Cash Ratio (Qtr) 0.00 2.01
Current Ratio Curr Ratio (Qtr) 0.00 3.47
Debt to Equity Ratio Debt/Equity (Qtr) -0.61 1.46
Interest Cover Ratio Int Coverage (Qtr) 0.00 37.53
Times Interest Earned Times Interest Earned (Qtr) 0.00 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.00 76.68
EBIT Margin % EBIT Margin % (Qtr) 4.95 46.81
EBT Margin % EBT Margin % (Qtr) 4.95 58.57
Gross Margin % Gross Margin % (Qtr) 30.00 53.60
Net Profit Margin % Net Margin % (Qtr) 6.20 29.41