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MC Stock Analysis: Top Mid-Cap Reduce (Score 51.8/100) | Blank Capital Research | Blank Capital Research
MC
Moelis & Co
$62.31
-0.46 (-0.73%)
Score51.8
Data as of Apr 6, 2026
MC
Moelis & Co
FinancialsTrading
$62.31
-0.46 (-0.73%)
Open $62.72High $62.84Low $61.73Prev $62.77Vol ---52W: $47.00 – $78.22
Reduce
Composite score
01234567890123456789.0123456789
Global rank
#2,122
Percentile
Top 48%
Business quality
81st
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 81.1GRADE A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
26.4%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.58%
Trailing Yield
$3.58
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
84%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Moelis & Co (MC) receives a "Reduce" rating with a composite score of 51.8/100, ranked #2122 out of 4446 stocks. Key factor scores: Quality 81/100, Value 65/100, Momentum 33/100. This is quantitative analysis only — not investment advice.
Moelis & Co (MC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Moelis & Co Do?
Moelis & Company operates as an investment banking advisory firm in the United States, Europe, and internationally. It offers advisory services in the areas of mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, and other corporate finance matters. The company offers its services to public multinational corporations, middle market private companies, financial sponsors, entrepreneurs, governments, and sovereign wealth funds. It has strategic alliances with Sumitomo Mitsui Banking Corporation and SMBC Nikko Securities Inc.; and Alfaro, Dávila y Scherer, S.C. The company was founded in 2007 and is headquartered in New York, New York. Moelis & Co (MC) is classified as a mid-cap stock in the Financials sector, specifically within the Trading industry. The company is led by CEO Kenneth D. Moelis and employs approximately 1,110 people, headquartered in New York, New York. With a market capitalization of $4.2B, MC is one of the notable companies in the Financials sector.
Moelis & Co (MC) Stock Rating — Reduce (April 2026)
As of April 2026, Moelis & Co receives a Reduce rating with a composite score of 51.8/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.MC ranks #2,122 out of 4,446 stocks in our coverage universe. Within the Financials sector, Moelis & Co ranks #590 of 891 stocks, placing it in the lower half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MC Stock Price and 52-Week Range
Moelis & Co (MC) currently trades at $62.31. The stock lost $0.46 (0.7%) in the most recent trading session. The 52-week high for MC is $78.22, which means the stock is currently trading -20.3% from its annual peak. The 52-week low is $47.00, putting the stock 32.6% above its annual trough. Recent trading volume was 203K shares, suggesting relatively thin trading activity.
Is MC Overvalued or Undervalued? — Valuation Analysis
Moelis & Co (MC) carries a value factor score of 65/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 23.48x, compared to the Financials sector average of 14.88x — a premium of 58%. The price-to-book ratio stands at 6.21x, versus the sector average of 1.22x. The price-to-sales ratio is 3.24x, compared to 0.90x for the average Financials stock. On an enterprise value basis, MC trades at 24.45x EV/EBITDA, versus 3.26x for the sector.
Overall, MC's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Moelis & Co Profitability — ROE, Margins, and Quality Score
Moelis & Co (MC) earns a quality factor score of 81/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 26.4%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 10.3% versus the sector average of 1.2%.
On a margin basis, Moelis & Co reports gross margins of 100.0%. The operating margin is 12.0% (sector: 21.8%). Net profit margin stands at 13.6%, versus 17.7% for the average Financials stock. Revenue growth is running at 34.9% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
MC Debt, Balance Sheet, and Financial Health
Moelis & Co has a debt-to-equity ratio of 156.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.64x, suggesting adequate working capital coverage. Total debt on the balance sheet is $268M. Cash and equivalents stand at $282M.
MC has a beta of 1.46, meaning it is more volatile than the broader market — a $10,000 investment in MC would be expected to move 45.5% more than the S&P 500 on any given day. The stability factor score for Moelis & Co is 54/100, reflecting average volatility within the normal range for its sector.
Moelis & Co Revenue and Earnings History — Quarterly Trend
In TTM 2026, Moelis & Co reported revenue of $1.30B. Net income for the quarter was $180M. Gross margin was 100.0%. Operating income came in at $161M.
In FY 2025, Moelis & Co reported revenue of $1.52B. Net income for the quarter was $260M. Revenue grew 27.0% year-over-year compared to FY 2024. Operating income came in at $274M.
In Q3 2025, Moelis & Co reported revenue of $357M. Net income for the quarter was $60M. Revenue grew 30.4% year-over-year compared to Q3 2024. Operating income came in at $48M.
In Q2 2025, Moelis & Co reported revenue of $365M. Net income for the quarter was $47M. Revenue grew 38.1% year-over-year compared to Q2 2024. Operating income came in at $61M.
Over the past 8 quarters, Moelis & Co has demonstrated a growth trajectory, with revenue expanding from $265M to $1.30B. Investors analyzing MC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MC Dividend Yield and Income Analysis
Moelis & Co (MC) currently pays a dividend yield of 3.6%. At this yield, a $10,000 investment in MC stock would generate approximately $$358.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning MC offers above-average income for its sector. The net margin of 13.6% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
MC Momentum and Technical Analysis Profile
Moelis & Co (MC) has a momentum factor score of 33/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 18/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MC vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing MC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MC vs S&P 500 (SPY) comparison to assess how Moelis & Co stacks up against the broader market across all factor dimensions.
MC Next Earnings Date
No upcoming earnings date has been announced for Moelis & Co (MC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MC? — Investment Thesis Summary
The quantitative profile for Moelis & Co suggests caution. The quality score of 81/100 indicates above-average profitability and business fundamentals. The value score of 65/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 33/100, a headwind for near-term performance.
In summary, Moelis & Co (MC) earns a Reduce rating with a composite score of 51.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MC stock.
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Institutional Research Dossier
Moelis & Co (MC) Deep Dive Analysis
Published on March 24, 2026
Action RatingReduce
Sections
Executive Summary
We maintain our Hold rating on Moelis & Company (MC). While the firm exhibits strong profitability and revenue growth, particularly compared to the sector, its valuation appears stretched, and its momentum is weak. The current market price reflects much of the company's potential, leaving limited upside in our view.
Moelis's impressive ROE and recent revenue surge are counterbalanced by a higher P/E ratio than its peers and a volatile historical performance. The firm's reliance on advisory services, which are inherently cyclical, introduces uncertainty. Therefore, a Hold rating is warranted, acknowledging both the company's strengths and its vulnerabilities.
Business Strategy & Overview
Moelis & Company operates as a global investment bank, focusing primarily on advisory services. Unlike bulge-bracket banks, Moelis does not engage in lending or underwriting, concentrating instead on mergers and acquisitions (M&A), restructurings, and capital markets advisory. This specialization allows Moelis to avoid conflicts of interest and provide unbiased advice to its clients, which include public multinational corporations, middle-market private companies, financial sponsors, entrepreneurs, governments, and sovereign wealth funds.
The firm's revenue is directly tied to the volume and size of transactions it advises on. Moelis differentiates itself through its senior-level attention, with experienced partners actively involved in client engagements. This approach aims to deliver higher-quality advice and build long-term relationships. Strategic alliances, such as those with Sumitomo Mitsui Banking Corporation and Alfaro, Dávila y Scherer, S.C., extend Moelis's reach and capabilities in specific geographic regions and industries.
Moelis's strategic positioning emphasizes independence and expertise in complex situations. The firm often advises on large, intricate deals, including cross-border transactions and restructurings. This focus requires a deep understanding of various industries and financial markets. The company's ability to attract and retain top talent is crucial to its success, as its intellectual capital is its primary asset.
The investment banking advisory business is highly competitive, with firms vying for mandates on significant transactions. Moelis competes with both large, diversified investment banks and smaller, specialized boutiques. The firm's ability to win mandates depends on its reputation, track record, and the strength of its relationships with clients. Economic conditions and market sentiment significantly impact the demand for advisory services, making the business inherently cyclical.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
34.9%
Sector: 9.4%
+272% VS SCTR
Economic Moat Analysis
Moelis & Company possesses a narrow economic moat. Its competitive advantage stems primarily from its reputation and expertise in providing independent advisory services, particularly in complex situations like restructurings and M&A. The firm's focus on senior-level attention and its ability to attract and retain experienced bankers contribute to its reputation for high-quality advice.
The investment banking advisory industry is characterized by strong relationships and a 'reputation-based' selection process. Clients often choose advisors based on past successes and the perceived expertise of the team. Moelis has cultivated a strong brand name, particularly in certain niches, which provides a degree of pricing power and repeat business. However, this advantage is not insurmountable.
Switching costs in this industry are relatively low. While relationships are important, clients can easily switch advisors if they perceive better expertise or a more competitive fee structure elsewhere. The lack of significant switching costs limits the durability of Moelis's competitive advantage. Furthermore, the industry is highly fragmented, with numerous firms competing for mandates.
While Moelis benefits from intangible assets in the form of its reputation and the expertise of its bankers, these assets are not easily quantifiable or protected. Competitors can hire away key personnel, potentially eroding Moelis's competitive position. The firm's reliance on human capital makes it vulnerable to talent attrition.
Efficient scale is not a significant factor in this industry. While larger firms may have certain advantages in terms of resources and geographic reach, smaller boutiques can still compete effectively by focusing on specific niches or providing specialized expertise. Moelis's size does not necessarily translate into a cost advantage or a barrier to entry for competitors.
Network effects are also limited. While relationships are crucial, the value of Moelis's network does not increase exponentially with each new client. The firm's success depends more on the quality of its advice and its ability to execute transactions effectively than on the size of its network. Therefore, while Moelis has a recognizable brand and a solid reputation, the narrow moat reflects the ease with which competitors can emerge and the limited barriers to entry in the advisory business.
Financial Health & Profitability
Moelis & Company's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with a 34.9% increase compared to the sector average of 9.3%. This growth is evident in the quarterly financial history, with revenue increasing from $854.75 million in FY2023 to $1.52 billion in FY2025. Net income has also improved significantly, from a loss of $27.52 million in FY2023 to a profit of $259.62 million in FY2025.
Profitability metrics are generally positive. The company's ROE of 26.4% significantly exceeds the sector average of 8.5%, indicating efficient use of equity. However, the operating margin of 12.0% is lower than the sector average of 22.0%, suggesting potential inefficiencies in cost management. Similarly, the net margin of 13.6% is below the sector average of 17.8%.
The balance sheet shows a moderate level of leverage. The debt-to-equity ratio of 156.00 is higher than the sector average of 115.00, indicating a greater reliance on debt financing. However, the current ratio of 1.64 suggests adequate liquidity to meet short-term obligations. The company has a healthy cash balance of $281.58 million, which provides a buffer against economic downturns.
Free cash flow (FCF) generation has been volatile. In FY2024, FCF was $209.40 million, but the TTM FCF is significantly lower at $70.31 million. This variability reflects the cyclical nature of the advisory business, where transaction volumes can fluctuate significantly from quarter to quarter. The gross margin of 100.0% is somewhat misleading, as it reflects the nature of the business where the primary cost is compensation, which is accounted for differently than cost of goods sold in other industries.
The quarterly financial history reveals fluctuations in operating margin. For example, the operating margin in Q1 2024 was only 2.7%, while it reached 18.1% for FY2025. These fluctuations highlight the sensitivity of Moelis's profitability to changes in revenue and expenses. Overall, Moelis's financial health is solid, but the company's reliance on advisory services and its relatively high debt-to-equity ratio warrant careful monitoring.
Valuation Assessment
Moelis & Company's valuation presents a mixed picture. The company's P/E ratio of 22.0x is higher than the sector average of 15.5x, suggesting that the stock is relatively expensive compared to its peers. This premium may reflect the company's strong revenue growth and high ROE. However, it also implies that investors have high expectations for future performance.
The EV/EBITDA multiple of 3.5x is in line with the sector average, indicating that the company's enterprise value is reasonably valued relative to its earnings before interest, taxes, depreciation, and amortization. This metric suggests that the market is not overly optimistic or pessimistic about the company's long-term prospects.
Given the company's TTM free cash flow of $70.31 million and a market cap of $3.96 billion, the FCF yield is approximately 1.8%. This yield is relatively low, suggesting that the stock is not particularly attractive from a cash flow perspective. However, it is important to consider that FCF can be volatile in the advisory business, and the TTM figure may not be representative of the company's long-term potential.
Historically, Moelis's valuation has fluctuated significantly, reflecting changes in market sentiment and the company's financial performance. The recent surge in revenue and net income has likely contributed to the current premium valuation. However, it is important to remember that the advisory business is cyclical, and future performance may not be as strong as it has been in recent quarters.
Considering the company's high P/E ratio, moderate EV/EBITDA multiple, and low FCF yield, we believe that Moelis is fairly valued at its current market price. While the company has demonstrated strong growth and profitability, the valuation appears to reflect much of this potential. Therefore, we do not see significant upside in the stock at this time.
Risk & Uncertainty
Moelis & Company faces several specific risks that could impact its business and financial performance. The most significant risk is the cyclical nature of the investment banking advisory industry. Demand for advisory services is highly correlated with economic conditions and market sentiment. A downturn in the economy or a decline in M&A activity could significantly reduce the company's revenue and profitability.
Competition is another major risk. The investment banking advisory industry is highly competitive, with numerous firms vying for mandates. Moelis competes with both large, diversified investment banks and smaller, specialized boutiques. The company's ability to win mandates depends on its reputation, track record, and the strength of its relationships with clients. Increased competition could put pressure on fees and reduce the company's market share.
Talent attrition is a significant risk for Moelis. The company's success depends on its ability to attract and retain experienced bankers. The loss of key personnel could negatively impact the company's reputation and its ability to win mandates. Furthermore, the company's compensation structure, which is heavily weighted towards variable pay, could make it vulnerable to talent poaching by competitors.
Operational risks also exist. Moelis's business involves advising on complex transactions, which can expose the company to legal and regulatory risks. Errors or omissions in advice could result in lawsuits or regulatory sanctions. The company also faces risks related to cybersecurity and data privacy. A breach of security could damage the company's reputation and result in financial losses.
Bulls Say / Bears Say
The Bull Case
BULL VIEWMoelis's focus on high-value advisory services, particularly in restructuring, positions it to outperform during economic uncertainty as distressed companies seek expert guidance.
BULL VIEWThe firm's strong ROE and recent revenue growth demonstrate its ability to capitalize on market opportunities and generate superior returns for shareholders.
BULL VIEWMoelis's strategic alliances and global presence provide a competitive edge, allowing it to access a wider range of clients and transactions.
The Bear Case
BEAR VIEWMoelis's high P/E ratio relative to the sector suggests that the stock is overvalued, leaving limited room for appreciation and increasing the risk of a correction.
BEAR VIEWThe cyclical nature of the advisory business and the potential for a slowdown in M&A activity could significantly reduce Moelis's revenue and profitability.
BEAR VIEWThe company's reliance on key personnel and the risk of talent attrition pose a threat to its long-term competitive advantage and ability to maintain its market position.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MC and 4,400+ other equities.
Moelis & Co exhibits a 344% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
10.3%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
100.0%
Sector: 0.0%
Operating Margin
Core business profitability
12.0%
Sector: 21.8%
Net Margin
Bottom-line profitability
13.6%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+44%
Income Projection audit
A $10,000 investment would generate approximately $358 annually in dividends at the current trailing rate.
