Company Overview
Evercore Inc. operates as an independent investment banking firm serving clients across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region through two primary segments: Investment Banking & Equities and Investment Management. The company functions within the Financial Services sector, specifically the Capital Markets industry, where it provides advisory, capital markets, and investment management services to corporate and institutional clients. This entity maintains a significant market presence with a market capitalization of $11.05B and generates annual revenue of $3.86B, supported by an employee base of 2544. The combination of a market cap exceeding $11 billion and revenue approaching $4 billion indicates that Evercore is a substantial player in the global capital markets landscape, reflecting a scale that allows for diversified operations and significant resource allocation across international markets.
Financial Health
The company reported a revenue of $3.86B for the trailing twelve months, with a corresponding net income of $591.92M, while EBITDA figures are not disclosed in the available data. The substantial gap between the $3.86B revenue and the $591.92M net income reveals a cost structure where operating expenses, including salaries and overhead, consume approximately 84.7% of gross revenue, which is typical for professional service firms with high fixed labor costs. Regarding cash flow, the available facts do not provide a specific free cash flow figure, meaning direct analysis of operational cash generation relative to capital expenditures is not possible from the provided dataset. However, the balance sheet shows a robust cash position of $1.43B compared to total debt of $1.16B, resulting in a debt-to-equity ratio of 49.79, which suggests a leveraged balance sheet where liabilities approach the level of equity but are supported by significant liquid assets. The current ratio stands at 1.47, indicating that the company holds $1.43B in current assets for every $1 in current liabilities, which points to a conservative stance on short-term liquidity that ensures the ability to meet obligations without immediate refinancing risks. Furthermore, the Return on Equity is 30.1% and the Return on Assets is 13.4%, metrics that reveal highly effective management in generating returns on shareholder capital relative to the total asset base, highlighting strong operational efficiency in deploying equity to generate profit.
Valuation Assessment
The trailing twelve-month P/E ratio is 19.88, while the forward P/E is projected at 12.09, a significant difference that implies the market expects earnings to grow substantially in the future relative to current levels, as the forward multiple is less than half the trailing multiple. The price-to-book ratio is 5.29, indicating that the market values the company at more than five times its book value, which reflects a substantial premium assigned to its intangible assets, brand reputation, and future earnings potential rather than just its tangible net worth. Alternative valuation metrics include a price-to-sales ratio of 2.87 and an EV/EBITDA ratio that is not available in the provided facts; the price-to-sales figure suggests the market is willing to pay nearly three times revenue for the company, which is a high multiple often seen in high-growth financial advisory firms. The stock has traded between a 52-week low of $148.63 and a 52-week high of $388.71, meaning the current trading price sits significantly below the recent peak, suggesting a retracement from its highest valuation point within the last year. With a beta of 1.57, the stock exhibits price volatility that is more than 50% higher than the broader market, indicating that price swings in Evercore Inc. tend to be amplified relative to general market movements, which adds a layer of risk and reward volatility for holders.
Growth & Income
Revenue growth year-over-year is recorded at 32.2%, while earnings growth year-over-year is 44.8%, demonstrating that earnings are expanding at a significantly faster pace than revenue, which implies improved pricing power, margin expansion, or operational leverage within the business. The company offers a dividend yield of 1.2% with a payout ratio of 23.6%, a low payout ratio that suggests the company retains the majority of its earnings for reinvestment or debt repayment rather than distributing them all to shareholders. Given the payout ratio of 23.6%, the dividend is highly sustainable given the company's earnings growth, as it distributes less than a quarter of its profits while still maintaining a healthy cash buffer of $1.43B against $1.16B in debt. The overall growth and income profile is characterized by double-digit earnings expansion, a conservative dividend policy that prioritizes capital retention, and a balance sheet that supports continued investment in the Investment Banking & Equities and Investment Management segments.