PJT PARTNERS INC - A (NYSE:PJT) – A Quality Investment Candidate in Financial Advisory

PJT PARTNERS INC - A (NYSE:PJT) stands out as a potential quality investment based on our Caviar Cruise screening criteria. The company, which specializes in advisory and investment solutions, demonstrates strong profitability, financial health, and growth prospects. Below, we examine why PJT meets the standards for quality investors.

Key Strengths of PJT Partners

• High Return on Invested Capital (ROIC): PJT’s ROIC (excluding cash and goodwill) is an impressive 236.10%, far exceeding the 15% threshold set in our screen. This indicates the company generates substantial returns from its capital investments.
• Strong Profitability: The firm has a solid EBIT growth rate of 22.77% over the past five years, reflecting efficient operations and potential pricing power.
• Exceptional Profit Quality: With a five-year average profit quality of 338.95%, PJT converts net income into free cash flow at an outstanding rate, suggesting reliable earnings.
• Zero Debt Burden: The company carries no debt, ensuring financial flexibility and stability. The Debt/Free Cash Flow ratio is 0, placing it among the best in its industry.
• Positive Growth Outlook: Analysts expect continued revenue growth, with projected annual increases of 10.87% in the coming years.

Fundamental Analysis Summary

PJT earns a fundamental rating of 6 out of 10, performing well in profitability and financial health. Key highlights include:

• Profitability: High ROIC (27.40%), strong ROE (71.86%), and consistent earnings growth.
• Valuation: While the P/E ratio (29.16) appears elevated, the Enterprise Value/EBITDA ratio suggests the stock is relatively cheap compared to peers.
• Growth: Revenue has grown at 15.78% annually over the past five years, with EPS expanding by 15.72% yearly.

Our Caviar Cruise screener lists more quality investment candidates and is updated regularly.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.