📊 MC Key Takeaways
Is Moelis & Co (MC) a Good Investment?
Moelis & Co demonstrates strong fundamental performance with exceptional profitability metrics (15.4% net margin, 41% ROE) and robust revenue growth of 27% YoY, driven by its investment advisory business model. The company exhibits excellent financial health with zero leverage, substantial free cash flow generation ($540M FCF at 35.6% margin), and strong cash reserves relative to assets, providing operational flexibility.
Moelis shows strong core fundamentals, with 27.0% revenue growth, an 18.1% operating margin, and very strong free cash flow generation equal to 35.6% of revenue. The balance sheet is clean with substantial cash and no meaningful leverage, though the decline in net income despite higher revenue suggests some earnings volatility that warrants monitoring.
Why Buy Moelis & Co Stock? MC Key Strengths
- Strong revenue growth of 27% YoY indicating robust market demand for advisory services
- Exceptional profitability metrics with 18.1% operating margin and 15.4% net margin typical of high-quality advisory firms
- Outstanding return on equity of 41% and ROA of 13.4% demonstrating efficient capital deployment
- Zero debt-to-equity ratio providing financial stability and strategic flexibility with no leverage risk
- Exceptional free cash flow generation of $540M with 35.6% FCF margin, enabling shareholder distributions and investments
- Strong cash position of $508.6M representing 30% of total assets, providing liquidity buffer
- Strong revenue growth supported by solid operating profitability
- Excellent cash generation with free cash flow of $539.97M and a high FCF margin
- Healthy financial position with $508.60M in cash and effectively no debt
MC Stock Risks: Moelis & Co Investment Risks
- Significant net income decline of 10.2% YoY despite 27% revenue growth suggests rising costs or one-time charges pressuring profitability
- Investment advisory industry is cyclical and highly dependent on M&A activity, IPO markets, and capital markets volatility
- Concentrated business model as advisory services revenue stream is vulnerable to economic downturns and market disruptions
- High insider trading activity (21 Form 4 filings in 90 days) may indicate opportunistic selling or confidence signals requiring monitoring
- Asset-light business model means future growth highly dependent on talent retention and market conditions
- Net income fell 10.2% year over year despite strong revenue growth, indicating margin or expense pressure
- Advisory-driven revenue can be cyclical and sensitive to capital markets and M&A activity
- High ROE is partly influenced by a relatively small equity base, which can overstate underlying returns
Key Metrics to Watch
- Operating margin trends and cost control to reconcile revenue growth with net income decline
- Free cash flow sustainability and capital allocation decisions between distributions and growth investments
- M&A transaction volume and advisory fee rates as leading indicators of revenue momentum
- Client concentration and advisory pipeline health as indicators of future revenue visibility
- Compensation ratios as percentage of revenue to monitor profitability sustainability
- Operating and net margin progression
- Revenue growth and free cash flow conversion
Moelis & Co (MC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 35.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
MC Profit Margin, ROE & Profitability Analysis
MC vs Market Sector: How Moelis & Co Compares
How Moelis & Co compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Moelis & Co Stock Overvalued? MC Valuation Analysis 2026
Based on fundamental analysis, Moelis & Co appears fundamentally strong relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Moelis & Co Balance Sheet: MC Debt, Cash & Liquidity
MC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Moelis & Co's revenue has remained relatively flat over the 5-year period, with a 0% decline.
MC Revenue Growth, EPS Growth & YoY Performance
Moelis & Co Dividends, Buybacks & Capital Allocation
MC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Moelis & Co (CIK: 0001596967)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MC
What is the AI rating for MC?
Moelis & Co (MC) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MC's key strengths?
Claude: Strong revenue growth of 27% YoY indicating robust market demand for advisory services. Exceptional profitability metrics with 18.1% operating margin and 15.4% net margin typical of high-quality advisory firms. ChatGPT: Strong revenue growth supported by solid operating profitability. Excellent cash generation with free cash flow of $539.97M and a high FCF margin.
What are the risks of investing in MC?
Claude: Significant net income decline of 10.2% YoY despite 27% revenue growth suggests rising costs or one-time charges pressuring profitability. Investment advisory industry is cyclical and highly dependent on M&A activity, IPO markets, and capital markets volatility. ChatGPT: Net income fell 10.2% year over year despite strong revenue growth, indicating margin or expense pressure. Advisory-driven revenue can be cyclical and sensitive to capital markets and M&A activity.
What is MC's revenue and growth?
Moelis & Co reported revenue of $1.5B.
Does MC pay dividends?
Moelis & Co pays dividends, with $104.2M distributed to shareholders in the trailing twelve months.
Where can I find MC SEC filings?
Official SEC filings for Moelis & Co (CIK: 0001596967) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MC's EPS?
Moelis & Co has a diluted EPS of $0.75.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Moelis & Co has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is MC stock overvalued or undervalued?
Valuation metrics for MC: ROE of 41.0% (sector avg: 15%), net margin of 15.4% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy MC stock in 2026?
Our dual AI analysis gives Moelis & Co a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MC's free cash flow?
Moelis & Co's operating cash flow is $576.3M, with capital expenditures of $36.3M. FCF margin is 35.6%.
How does MC compare to other Market stocks?
Vs Default sector averages: Net margin 15.4% (avg: 12%), ROE 41.0% (avg: 15%), current ratio N/A (avg: 1.8).
Why is MC's return on equity (ROE) so high?
Moelis & Co has a return on equity of 41.0%, significantly above the Market sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 15.4% net margin.