GHL Investment Analysis Report & Stock Research, Greenhill & Co Inc

Greenhill & Co Inc (GHL)

GHL Stock Report

2-Year Price History

View Larger GHL Chart
NYSE:GHL
$75.69
(8/28 6:40PM)
-0.2%
Open$75.99 Mkt Cap$2.1 Billion
High$76.83 52Wk High$92.90
Low$75.41 52Wk Low$54.65
Volume135,697 Avg Vol 10D182,500

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GHL Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at GHL through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 6 years are 9.80x and 5.32x respectively.

Utilizing this range we can see that GHL’s current Price to Sales per share ratio of 10.01x is significantly above its historical average. This places GHL at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 32% merely to return GHL to its historical average.

GHL Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. GHL is significantly above its historical average multiple of Cash Earnings. Looking at the last 6 years we can get a good understanding of what investors have grown to expect from GHL. For example, GHL's Cash Earnings ratio per share has fluctuated between 21.73 and 40.47 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where GHL is with respect to prior business periods.

So what does this tell us about GHL in particular? Basically, we would value the current level of Cash Earnings per share (which is at 86.01) as significantly overvalued. Just by looking at the last closing price of GHL, which was $75.69, we can see that compared to the historical high Price to Cash Earnings levels we calculated, the market has already rewarded GHL with a higher stock price. So basically, we don't view this level of Cash Earnings or stock price as compatible with a long term value at this point. Just remember, that does not mean that GHL may not have other merits with which to find a good investment opportunity, it just means that we would prefer to see either an increase in Cash Earnings or a decrease in stock price before we would become bullish on this metric.

GHL Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

In GHL’s case, the estimated annual dividend is $1.80 resulting in a current dividend yield of 2.38%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from GHL against the historic high and low levels over the past 6 years. The highest dividend yield from GHL over this period was 3.96% while the lowest dividend yield was 0.53% Therefore, the current dividend yield of GHL is above the historical median by 6.01%. This is definitely a positive in our view.

Peer Comparison

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Greenhill & Co Inc Industry Grouping

(8/28/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding GHL) 16.73 6.08 » 43.66 1.77 1.53 » 10.96 15.70% 20.19%
*10 year range does not include current year values
Baytex Energy Trust BTE $2.4 Billion $22.31 6.08 2.38 » 8.64 0.00 0.00 » 0.00 n/a 21.26%
Waddell & Reed Financial, Inc. WDR $2.3 Billion $26.64 32.10 7.63 » 51.44 2.05 0.79 » 6.23 15.07% 30.54%
Morningstar, Inc. MORN $2.2 Billion $44.67 18.46 10.30 » 40.34 4.49 2.43 » 8.82 n/a 17.22%
Greenhill & Co Inc GHL $2.1 Billion $75.69 86.01 10.98 » 53.09 10.01 3.16 » 11.72 11.86% 46.46%
AllianceBernstein Holding LP AB $2.1 Billion $22.46 15.60 4.30 » 38.90 0.37 3.78 » 33.86 22.64% 18.66%
Knight Capital Group Inc. NITE $1.8 Billion $19.68 11.44 5.76 » 79.00 1.93 0.67 » 5.89 9.38% 13.28%

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The Latest Financial News
2:52:18 PM GHL $64.97 Greenhill & Co Inc
2/4/2009 2:52 PM
“…>> the headlines were horrible. When you read through the quarters, the cash flow is over $5 million. They remain committed and ghl, the collapse mattered greatly to I don't think that people recognize -- this is a terrible market -- I don't think they recognize how much core strength …” - GHL on Street Signs
View All Greenhill & Co Inc News

Key Fundamentals

GHL - Greenhill & Co Inc Fundamentals
Price (8/28 6:40PM) $75.69
Volume (8/28 6:40PM) 135,697
Last Close Price $75.83
10 Day Average Volume 182,500
13 Week Price Range $66.21 - $80.68
52 Week Price Range $54.65 - $92.90
LTM Revenue $212.9 Million
 
Shares Outstanding (12/2008) 28.2 Million
Market Capitalization $2.1 Billion
Shares Held By Institutions 20.3 Million
Institutional Holders 199
% Shares Held By Institutions 72.20%
Earnings Per Share (EPS) $1.74
P/E Ratio 90.10
Book Value Per Share $7.66
 
Gross Margin n/a%
Annual Dividend 1.80
Dividend Yield 2.40%
Beta 0.71
Fiscal Year Ends December

About Greenhill & Co Inc

Greenhill & Co Inc is considered to operate in the Financial sector. They specifically operate in the Investmnt Brokerage-Regional business segment contained within the Financial Services industry.

An independent investment banking company, which provides financial advice on major mergers, acquisitions, restructurings and similar corporate finance matters and manages merchant banking funds and commits capital to those funds and vehicles.