Moelis & Company Class A Common Stock (MC)

FairStock Score: 54/100 — MIXED

Key Financials

Strengths

• Strong Piotroski F-Score of 9/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 44.8% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.39, providing financial flexibility
• Attractive 3.9% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($23) with negative 193% margin of safety—limited downside protection

AI Analysis

Moelis & Company Class A Common Stock is a small-cap financial services company valued at $4.9 billion. The business generates $1.5 billion in annual revenue with a 5.8% net margin. From a quality standpoint, Moelis shows near-perfect Piotroski F-Score of 9/9 indicating exceptional financial health and Altman Z-Score of 2.5 in the grey zone. On valuation, the stock is reasonably priced at 22.9x earnings, with trades far above its Graham Number ($23) with no margin of safety. Growth dynamics show revenue growing at 11.2% and profit growth of -1.7%. The 3.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 54/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer