Greenhill & Co Inc (GHL) - Comprehensive Stock Analysis & Investment Research
Deep dive into Greenhill & Co Inc's business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
Greenhill & Co Inc Investment Summary
When evaluating whether Greenhill & Co Inc (GHL) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
Greenhill & Co Inc (GHL) operates within the Finance and Insurance sector, specifically in the Investment Banking and Securities Dealing industry. The company employs approximately 664 people and is led by CEO Scott Bok. With a market capitalization of $282 million, the company is a small-cap stock that may offer higher growth potential but also carries higher volatility.
Financial Performance Analysis
Greenhill & Co Inc generates annual revenues of approximately $106 million. The company currently reports a negative net margin of -25.4%, which investors should monitor closely.
From a profitability standpoint, the company delivers an outstanding Return on Equity (ROE) of 34.8%, demonstrating excellent shareholder value creation and management effectiveness. The Return on Assets (ROA) stands at 5.1%, showing reasonable asset productivity. The gross margin of 232.1% reflects strong pricing power and cost control.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 2.44x indicates excellent short-term liquidity, meaning the company can comfortably cover its near-term obligations. The debt-to-equity ratio of 4.49x indicates significant leverage, which investors should evaluate carefully in the context of the company's cash flow generation.
Cash Flow Generation
Greenhill & Co Inc generates $108 million in annual free cash flow, providing financial flexibility for dividends, share buybacks, debt reduction, or strategic investments. Operating cash flow stands at $110 million, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by 486.1%, showing strong cash flow momentum.
Valuation Analysis
The current P/E ratio of 85.0x suggests the market has high expectations for future earnings growth. This premium valuation means the stock is priced for perfection, and any earnings disappointments could lead to significant price corrections. The price-to-book ratio stands at 9.76x, reflecting significant intangible value and market expectations of future growth. For income-focused investors, the current dividend yield of 0.03% offers modest income, with the company likely retaining more earnings for growth.
AI-Powered Price Predictions
Our AI models continuously analyze Greenhill & Co Inc to identify potential price movements. Subscribe to Intratio Premium to unlock detailed AI-powered price predictions for 7, 30, and 90-day horizons.
Investment Considerations
When determining whether Greenhill & Co Inc is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a small-cap stock, Greenhill & Co Inc may offer higher growth potential but also carries elevated volatility and risk.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
Greenhill & Co Inc (Stock Symbol: GHL) is a prominent company operating within the Finance and Insurance sector, with a specific focus on the Investment Banking and Securities Dealing industry. The company's shares are publicly traded on the NEW YORK STOCK EXCHANGE INC. exchange.
Leadership & Workforce
Greenhill & Co Inc operates under the strategic leadership of CEO Scott Bok, who is responsible for guiding the company's vision, strategy, and overall direction. The organization employs approximately 664 professionals, which is characteristic of a lean, focused organization that may emphasize efficiency and specialized expertise.
Market Classification
With a market capitalization of $282 million, Greenhill & Co Inc is classified as a small-cap stock. Small-cap companies often represent emerging businesses with substantial growth potential. While these investments typically carry higher volatility, they can offer significant upside for investors willing to accept greater risk.
Sector & Industry Context
Operating within the Finance and Insurance sector, Greenhill & Co Inc is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.
Corporate Website
For official company information, investor relations materials, and the latest corporate announcements, visit Greenhill & Co Inc's official website at https://www.greenhill.com/.
Revenue & Growth Analysis
Greenhill & Co Inc generates annual revenues of $106 million , representing an emerging company in its growth phase. While smaller in scale, such companies often offer higher growth potential as they capture market share and expand their operations.
Profitability Analysis
The company achieves a -25.4% net profit margin, indicating the company is currently operating at a loss. This could reflect heavy growth investments, restructuring costs, or fundamental business challenges that require careful evaluation.
Gross profit margin stands at 232.1%, a premium margin typical of software, pharmaceuticals, or luxury goods companies with exceptional pricing power and low marginal costs of production.
Operating margin is -9.6%, suggesting high operating expenses relative to revenues, which may reflect growth investments or operational inefficiencies.
Market Valuation
Current market capitalization stands at $282 million . This small-cap classification typically represents higher-growth, higher-risk opportunities. Small-cap stocks can be more volatile but may offer substantial returns if the company successfully executes its growth strategy.
Return on Investment Metrics
Return on Equity (ROE) measures 34.8%, demonstrating exceptional efficiency in generating profits from shareholder equity. ROE at this level indicates excellent capital allocation and strong competitive positioning, making the company highly attractive to growth-focused investors.
Return on Assets (ROA) stands at 5.1%, showing moderate asset utilization common in capital-intensive industries like manufacturing or utilities.
Return on Invested Capital (ROIC) measures 7.8%, suggesting returns roughly in line with typical corporate cost of capital, indicating value maintenance but limited value creation.
Cash Flow Generation
Free cash flow generation of $108 million annually represents healthy cash conversion that supports ongoing operations and provides capital for growth initiatives or shareholder returns.
Operating cash flow reaches $110 million , with year-over-year growth of 486.1%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
Greenhill & Co Inc strategically competes in the highly dynamic Investment Banking and Securities Dealing marketplace. As a small-cap company, it represents an emerging market participant with potentially significant growth opportunities. Small-caps often offer greater growth potential as they capture market share and scale their operations, though this comes with higher risk and volatility. Success at this stage can lead to substantial returns for early investors who identify winning business models.
Industry Competitive Landscape
Greenhill & Co Inc competes within the Finance and Insurance sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $108 million annually , with year-over-year cash flow growth of 486.1%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Margin & Pricing Power Analysis
The company maintains a 232.1% gross margin which reflects exceptional pricing power and/or an asset-light business model. Gross margins at this level are typically seen in software, pharmaceuticals, or luxury goods companies where the cost of incremental production is minimal relative to selling prices. Such margins indicate significant competitive advantages protecting the company from price-based competition.
Operating margin of -9.6% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. Operating margin compression relative to gross margin suggests high operating expenses that may warrant efficiency improvements or reflect necessary growth investments.
Asset Utilization Efficiency
Asset turnover ratio of 0.54x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 2.44 demonstrates strong short-term liquidity with current assets significantly exceeding current liabilities. This provides a substantial buffer for meeting near-term obligations and handling unexpected financial needs.