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Evercore Inc Class A EVR

Morningstar Rating
$146.52 −0.83 (0.56%)
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Company Report

Evercore Earnings: Earnings Currently Weak but Should Have a Strong Recovery in Next 1 to 2 Years

As expected, Evercore had another relatively weak quarter, but we continue to believe that earnings will stage a strong recovery in the next 1 to 2 years. The company reported earnings to common shareholders of $52 million, or $1.30 per diluted share, on $570 million of net revenue. Net revenue was down 1% from the previous year, 14% higher from the previous quarter but about 20% lower than the trailing three-year average. Economic uncertainty and higher interest rates have weighed on revenue. While the management teams of investment banks seemed more optimistic the previous quarter before the “higher for longer” interest rate outlook emerged and the recent Israel-Hamas war, U.S. economic indicators are still fairly healthy, which should support a recovery in mergers and acquisitions advisory revenue in the next year or so. We don’t anticipate making a material change to our $171 fair value estimate for Evercore and assess shares are modestly undervalued.

Price vs Fair Value

EVR is trading at a 14% discount.
Price
$146.51
Fair Value
$596.00
Uncertainty
High
1-Star Price
$463.87
5-Star Price
$799.50
Economic Moat
Fhkfgs
Capital Allocation
Ysnyzszg

Bulls Say, Bears Say

Bulls

Evercore has historically been able to increase advisory revenue faster than peers, and its revenue productivity per senior managing director often surprises to the upside.

Bears

An uncertain global economic environment can keep revenue and earnings far below the record 2021 level for years.

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News

Trading Information

Previous Close Price
$147.35
Day Range
$146.02147.71
52-Week Range
$104.36148.00
Bid/Ask
$58.67 / $234.65
Market Cap
$5.52 Bil
Volume/Avg
249,977 / 275,846

Key Statistics

Price/Earnings (Normalized)
16.61
Price/Sales
2.38
Dividend Yield
2.05%
Dividend Yield (Forward)
2.07%
Total Yield
10.05%

Company Profile

Evercore is an independent investment bank that derives the majority of its revenue from financial advisory, including merger, acquisition, and restructuring advisory. It also has institutional equities trading, equity underwriting, and investment management businesses that account for around 20% of net revenue. The company was founded in 1996 and went public in 2006. Evercore had approximately 1,800 employees at the end of 2022, and about 75% of its revenue is derived from the United States.
Sector
Financial Services
Industry
Capital Markets
Stock Style Box
Small Core
Total Number of Employees
2,230

Competitors

Valuation

Metric
EVR
LAZ
MS
Price/Earnings (Normalized)
16.6137.5113.05
Price/Book Value
3.956.991.40
Price/Sales
2.381.062.52
Price/Cash Flow
6.447.308.08
Price/Earnings
EVR
LAZ
MS

Financial Strength

Metric
EVR
LAZ
MS
Quick Ratio
2.76
Current Ratio
2.82
Interest Coverage
−0.67
Quick Ratio
EVR
LAZ
MS

Profitability

Metric
EVR
LAZ
MS
Return on Assets (Normalized)
12.23%1.51%0.83%
Return on Equity (Normalized)
26.92%16.84%10.67%
Return on Invested Capital (Normalized)
3.37%
Return on Assets
EVR
LAZ
MS

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