📊 MC Key Takeaways
Is Moelis & Co (MC) a Good Investment?
Moelis demonstrates strong revenue growth (+27% YoY) but exhibits critical operational deterioration with net income declining 10.2% YoY, indicating margin compression and expense control issues. Most concerning is the massive disconnect between reported profitability ($38.4M net income) and negative operating cash flow (-$278.8M), suggesting severely poor earnings quality and unsustainable working capital dynamics.
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 demonstrating market demand and business momentum
- Conservative balance sheet with zero debt and $152.9M cash position providing financial flexibility
- Reasonable profitability margins at 12.7% operating margin and 12.0% net margin for financial services sector
- 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
- Net income declining 10.2% YoY despite 27% revenue growth indicates deteriorating profitability and failed operating leverage
- Severe negative operating cash flow of -$278.8M with massive disconnection from net income suggests poor earnings quality and critical working capital issues
- Weak returns on equity (7.9%) and assets (3.0%) indicate inefficient capital deployment and poor capital allocation
- 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 cash flow and working capital components - the -$278.8M burn is unsustainable
- Net income margin trend and expense-to-revenue ratio - need to reverse deteriorating profitability despite revenue growth
- Return on equity and return on assets - critical to improve from current weak 7.9% ROE and 3.0% ROA levels
- Operating and net margin progression
- Revenue growth and free cash flow conversion
Moelis & Co (MC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
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 has mixed fundamental signals 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 HOLD from Claude (SELL) and ChatGPT (BUY) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MC's key strengths?
Claude: Strong revenue growth of 27% YoY demonstrating market demand and business momentum. Conservative balance sheet with zero debt and $152.9M cash position providing financial flexibility. 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: Net income declining 10.2% YoY despite 27% revenue growth indicates deteriorating profitability and failed operating leverage. Severe negative operating cash flow of -$278.8M with massive disconnection from net income suggests poor earnings quality and critical working capital issues. 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 $319.8M.
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 May 2026, Moelis & Co has a HOLD rating with 77% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MC stock overvalued or undervalued?
Valuation metrics for MC: ROE of 7.9% (sector avg: 15%), net margin of 12.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy MC stock in 2026?
Our dual AI analysis gives Moelis & Co a combined HOLD 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 $-278.8M, with capital expenditures of $12.8M. FCF margin is -91.2%.
How does MC compare to other Market stocks?
Vs Default sector averages: Net margin 12.0% (avg: 12%), ROE 7.9% (avg: 15%), current ratio N/A (avg: 1.8).