P10 Holdings (PX) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: 1.48%
• Average Volume (3M): 510.75K
• Price to Earnings (P/E): 61.0
• Beta (1Y): 1.31
• Revenue Growth: 22.63%
• EPS Growth: N/A
• Country: US
• Employees: 267
• Sector: Financial
• Sector Strength: 80
• Industry: Asset Management
• EPS (TTM): 0.15
• Shares Outstanding: 74,792,960
• 10 Day Avg. Volume: 483,357
• 30 Day Avg. Volume: 510,750
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.45
• Price to Cash Flow (P/CF): 11.90
• P/FCF Ratio: 10.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.20
• Price Target Upside: 60.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

P10 Holdings demonstrates strong growth potential, reflected in solid financial performance and strategic achievements. However, high leverage, inconsistent profitability, and potential valuation concerns pose risks. Technical indicators suggest caution, with bearish momentum and downward pressure. Positive earnings call sentiment and strategic initiatives support a stable outlook, pending margin management.

Positive Factors

Financial Targets

Long-term financial targets are ahead of expectations across fee-paying AUM (FPAUM) and fee-related earnings (FRE) margins.

Leadership Changes

The appointment of Luke Sarsfield as CEO is a significant development for the company.

Valuation

Private markets growth at a compelling valuation has resulted in an initiation at an overweight rating.

Negative Factors

Growth Outlook

Slower than expected growth outlook has led to a downgrade.

P10 Holdings Business Overview & Revenue Model

Company Description

P10, Inc., together with its subsidiaries, operates as a multi-asset class private market solutions provider in the alternative asset management industry in the United States. The company offers private equity, venture capital, private credit, impact investing, and private credit services, as well as primary fund of funds, secondary investment, and direct and co-investments services. It also provides tax credit transaction and consulting services. The company was founded in 1992 and is headquartered in Dallas, Texas.

How the Company Makes Money

P10 Holdings generates revenue primarily through management fees and performance-based incentives. The company earns management fees by overseeing and managing assets on behalf of its clients, typically calculated as a percentage of the total assets under management. Additionally, P10 Holdings may receive performance fees, which are contingent on achieving specific investment benchmarks or returns. These fee structures incentivize the firm to enhance investment performance while aligning its interests with those of their investors. Strategic partnerships with institutional investors and other financial entities further bolster their revenue streams by expanding their investment reach and capabilities.

P10 Holdings Financial Statement Overview

Summary

P10 Holdings exhibits strong revenue growth and efficient operational management, despite inconsistent profitability, notably in 2023. The balance sheet shows significant leverage, posing potential risks. Cash flow statements indicate robust cash generation, supporting growth and operations. Overall, the company is positioned for future growth if profitability and leverage are addressed.

Income Statement

P10 Holdings has demonstrated a strong revenue growth trajectory over the years, with a significant increase in total revenue from 2020 to 2024. The gross profit margin has remained healthy, indicating efficient cost management. However, the net profit margin has been volatile, with a notable negative margin in 2023 due to a net loss, signaling some profitability challenges. EBIT and EBITDA margins are robust, showing good operational efficiency.

Balance Sheet

The company maintains a high debt-to-equity ratio, reflecting significant leverage which could pose a risk if not managed carefully. However, the return on equity has been positive overall, indicating effective use of shareholder funds. The equity ratio has been stable, suggesting a balanced approach to financing assets with equity.

Cash Flow

P10 Holdings has shown impressive free cash flow growth, with a substantial increase in free cash flow in 2024 compared to previous years. The operating cash flow to net income ratio indicates strong cash-generating ability relative to net income. The company has also managed to maintain a stable free cash flow to net income ratio, demonstrating effective cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
296.45M	241.73M	198.36M	150.53M	67.37M
	Gross Profit
141.13M	87.45M	104.06M	95.78M	42.84M
	EBIT
60.62M	20.92M	43.42M	40.35M	8.69M
	EBITDA
91.83M	48.69M	72.32M	56.59M	24.26M
	Net Income Common Stockholders
18.70M	-7.13M	29.21M	10.77M	23.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
67.45M	30.47M	20.02M	40.92M	11.77M
	Total Assets
869.27M	834.07M	826.36M	676.22M	582.43M
	Total Debt
340.37M	310.12M	307.78M	228.20M	297.74M
	Net Debt
272.92M	279.65M	287.76M	187.28M	285.96M
	Total Liabilities
482.39M	408.91M	392.48M	281.05M	522.59M
	Stockholders Equity
347.00M	385.59M	393.14M	395.16M	59.84M
Cash Flow		Free Cash Flow
96.59M	46.22M	60.21M	48.86M	10.64M
	Operating Cash Flow
100.97M	47.69M	61.67M	49.02M	10.67M
	Investing Cash Flow
-5.80M	-2.25M	-98.59M	-47.40M	-214.19M
	Financing Cash Flow
-59.11M	-42.87M	22.93M	29.08M	196.84M

P10 Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PX, the sentiment is Negative. The current price of 9.48 is below the 20-day moving average (MA) of 11.54, below the 50-day MA of 12.41, and below the 200-day MA of 11.36, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 21.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PX.

P10 Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APO	73 Outperform	$62.00B	15.16	28.29%	1.70%	-20.40%	-13.30%
CG	68 Neutral	$12.96B	12.94	18.90%	3.90%	62.87%	―
PX	67 Neutral	$1.05B	61.04	5.11%	1.48%	22.63%	―
BX	65 Neutral	$152.38B	34.53	36.95%	3.16%	21.25%	97.42%
KKR	64 Neutral	$82.42B	28.32	13.23%	0.75%	42.19%	-18.20%
ARES	64 Neutral	$37.23B	56.99	15.93%	3.31%	6.12%	-15.84%
Sector *	63 Neutral	$12.86B	9.19	9.16%	4.78%	16.31%	-8.97%

P10 Holdings Corporate Events

P10 Holdings Appoints New Chief Accounting Officer

P10, Inc. has appointed Andrew Corsi as the new Chief Accounting Officer, effective January 1, 2025. This appointment comes as part of a leadership transition where Amanda Coussens will continue her role as Chief Financial Officer. Andrew Corsi, who has been with the company since April 2021 as Corporate Controller, brings experience from his previous roles at Goldman, Sachs & Co. and Ernst & Young, and holds a CPA license in Texas. This leadership change is expected to maintain stability in the company’s financial operations without any known implications or conflicts of interest.