Skip to Content

Evercore Inc EVR

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Evercore Reports Strong Investment Banking Revenue in Q1 That's Likely to Continue

Michael Wong, CFA, CPA Sector Director

Analyst Note

| Michael Wong, CFA, CPA |

Similar to other investment banks, Evercore reported strong first-quarter results. The company reported net income to common shareholders of $144 million, or $3.25 per diluted share, on $662 million of net revenue. Net revenue was 55% higher than a year ago and about 25% higher than the trailing 12-quarter average. CEO confidence has significantly improved since the start of the COVID-19 crisis and financing markets remain accommodative, leading to strong activity in the company’s financial advisory business, which is over 75% of net revenue. Given the expected further opening up of economies from quarantine, economic growth, and demand from special-purpose acquisition companies and private equity funds to do acquisition deals, mergers and acquisitions advisory should remain strong for an extended period. We don’t anticipate making a material change to our $122 fair value estimate for narrow-moat Evercore, and we assess the shares as fairly valued.

Read Full Analysis

Company Profile

Business Description

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 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 2020, and about 75% of the company's revenue is derived from the United States.

Contact
55 East 52nd Street
New York, NY, 10055
T +1 212 857-3100
Sector Financial Services
Industry Capital Markets
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 1,800

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.