EVERCORE INC - A (NYSE:EVR) stands out as an affordable growth stock based on our screening criteria. The company combines solid growth with reasonable valuation, while maintaining strong financial health and profitability. Below, we break down why EVR fits this profile.
Growth Prospects
EVR demonstrates strong growth metrics, earning a Growth Rating of 8/10. Key highlights include:
Revenue Growth: Revenue increased by 22.67% over the past year, well above industry standards.
Earnings Expansion: EPS grew by 67.71% in the last year, with expectations of 30.07% annual growth in the coming years.
Accelerating Trends: Both revenue and earnings growth rates are projected to outpace recent historical performance.
Valuation Considerations
With a Valuation Rating of 5/10, EVR is reasonably priced relative to its growth potential:
P/E Ratio: At 20.98, it aligns with the industry average and trades below the S&P 500 average of 25.91.
Forward P/E: The ratio of 14.44 suggests a more attractive valuation compared to the broader market.
Price/Free Cash Flow: EVR trades at a discount to 77.83% of its industry peers, indicating potential undervaluation.
Financial Health & Profitability
EVR’s fundamentals are further supported by:
Health Rating (8/10): Strong liquidity (Current Ratio of 2.43) and low debt (Debt/Equity of 0.20) reflect financial stability.
Profitability (7/10): High Return on Equity (22.15%) and Return on Invested Capital (14.18%) outperform most industry peers.
This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.