P10 Stock: Buy, Sell, or Hold After Q2 Earnings?

P10 (NYSE:PX) is an alternative asset management firm that provides access to private equity, venture capital, and private credit opportunities. The company's revenue has grown at a 41.3% compounded annual growth rate over the last five years, beating the average financials company. P10's full-year EPS grew at a 36.5% compounded annual growth rate over the last three years, better than the broader financials sector. However, P10's return on equity has been uninspiring at 5.9% over the last five years. Despite this, P10's positive characteristics outweigh the negatives, making it a potentially good time to initiate a position.

P10, an alternative asset management firm, has demonstrated robust revenue growth, making it an intriguing investment opportunity. Over the past five years, P10's revenue has grown at a compounded annual growth rate (CAGR) of 41.3%, surpassing the average financials company. This strong revenue performance is particularly notable, as it underscores the firm's ability to generate consistent cash flow and attract new clients.

Moreover, P10's full-year earnings per share (EPS) have grown at a CAGR of 36.5% over the last three years, outperforming the broader financials sector. This consistent growth in EPS indicates that P10 is not only expanding its revenue base but also improving its profitability.

However, P10's return on equity (ROE) has been relatively low, standing at 5.9% over the last five years. While this is a concern, it is important to note that P10's ROE is still higher than the average for the financials sector. Furthermore, the company's strong revenue and EPS growth suggest that it has the potential to improve its ROE in the future.

Overall, P10's positive characteristics, such as its high revenue growth and EPS growth, outweigh the negatives, making it a potentially good time to initiate a position. However, investors should closely monitor the company's ROE and other financial metrics to ensure that it continues to improve over time.