Piper Sandler (PIPR) AI Stock Analysis

• Market Cap: $5.77B
• Dividend Yield: 1.77%
• Average Volume (3M): 165.40K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.48
• Revenue Growth: 12.49%
• EPS Growth: 36.43%
• Country: US
• Employees: 1,801
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 3.82
• Shares Outstanding: 17,690,540
• 10 Day Avg. Volume: 222,978
• 30 Day Avg. Volume: 165,398
• PEG Ratio: 0.26
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 3.11
• P/FCF Ratio: 15.95
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 2.96
• Enterprise Value/Gross Profit: 5.50
• Enterprise Value/Ebitda: 17.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $375.00 ▲(14.89% Upside)

Piper Sandler's overall stock score reflects strong financial performance and positive earnings call insights, which are slightly offset by technical indicators suggesting bearish momentum and a high valuation. The company's robust revenue growth and profitability are significant strengths, while potential macroeconomic challenges and valuation concerns present risks.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong business performance and market demand, enhancing the company's competitive position and financial stability.

Balance Sheet Health

A debt-free balance sheet provides financial flexibility, reduces risk, and allows for strategic investments and acquisitions without leverage concerns.

Cash Generation

Strong cash generation supports ongoing operations, strategic investments, and shareholder returns, underpinning long-term financial health.

Negative Factors

Decline in Equity Brokerage Revenues

A decline in equity brokerage revenues could indicate challenges in maintaining market share and profitability in a key business segment.

Potential Impact of Government Shutdown

A prolonged government shutdown could disrupt corporate financing activities, impacting revenue streams and client engagements in the near term.

Challenges in Consumer Sector

Ongoing challenges in the consumer sector may limit growth opportunities and revenue potential, affecting overall business performance.

Piper Sandler Business Overview & Revenue Model

Company Description

Piper Sandler Companies operates as an investment bank and institutional securities firm that serves corporations, private equity groups, public entities, non-profit entities, and institutional investors in the United States and internationally. The company offers investment banking and institutional sales, trading, and research services for various equity and fixed income products. It provides advisory services, such as mergers and acquisitions, equity private placements, and debt and restructuring advisory; raises capital through equity and debt financings; underwrites municipal issuances; and offers municipal financial advisory and loan placement services, as well as various over-the-counter derivative products. The company also offers public finance investment banking services that focus on state and local governments, and cultural and social service non-profit entities, as well as the education, healthcare, hospitality, senior living, and transportation sectors. In addition, it provides equity and fixed income advisory and trade execution services for institutional investors, and government and non-profit entities. Further, the company is involved in the alternative asset management funds merchant banking and healthcare to invest firm capital and to manage capital from outside investors, as well as trading activities. The company was formerly known as Piper Jaffray Companies and changed its name to Piper Sandler Companies in January 2020. Piper Sandler Companies was founded in 1895 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Piper Sandler generates revenue through several key streams. The primary sources of income include investment banking fees, which are earned from advisory services for mergers and acquisitions, underwriting of public offerings, and private placements. Additionally, the firm earns commissions and trading revenues from its institutional brokerage services, which involve executing trades on behalf of institutional clients. Asset management fees also contribute to the firm's earnings, as Piper Sandler manages investment funds and portfolios for clients. The company benefits from strategic partnerships with other financial institutions, enhancing its service offerings and expanding its market reach. Economic conditions, market activity, and client demand are significant factors influencing its revenue performance.

Piper Sandler Financial Statement Overview

Summary

Piper Sandler has shown strong financial performance with significant revenue growth and robust profitability margins. The balance sheet is solid with no debt and strong equity, while cash flow metrics indicate robust cash generation. However, attention is needed on potential fluctuations in gross profit.

Income Statement

Piper Sandler has demonstrated a strong income statement performance with a notable increase in revenue from $1.35 billion in 2023 to $1.53 billion in 2024, reflecting a revenue growth rate of approximately 13.6%. The gross profit margin in 2024 was approximately 34.4%, while the net profit margin was around 11.8%. The EBIT and EBITDA margins were both approximately 31.7%. These margins indicate robust profitability, although the decrease in gross profit from 2023 is a point of concern.

Balance Sheet

The balance sheet reveals a strong financial position with no total debt as of 2024, significantly improving from the prior year. The debt-to-equity ratio is 0, indicating no leverage, while the equity ratio stands at 54.4%, showing a solid equity base. Return on equity (ROE) is approximately 14.8%, which is healthy for the industry, reflecting efficient use of equity to generate profit.

Cash Flow

Piper Sandler's cash flow statement shows a positive trajectory, with free cash flow growing from $265.58 million in 2023 to $297.76 million in 2024, translating to a growth rate of approximately 12.1%. The operating cash flow to net income ratio is 1.73, indicating strong cash generation relative to net profits. However, the free cash flow to net income ratio is a high 1.64, suggesting the company is generating significant free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.53B	1.31B	1.43B	2.04B	1.25B
Gross Profit	925.76M	527.42M	1.23B	1.43B	1.89B	1.11B
EBITDA	287.35M	253.75M	159.96M	186.30M	499.68M	149.18M
Net Income	236.42M	181.11M	85.49M	110.67M	278.51M	40.50M
Balance Sheet
Total Assets	2.22B	2.26B	2.14B	2.18B	2.57B	2.00B
Cash, Cash Equivalents and Short-Term Investments	114.00M	482.83M	383.10M	365.62M	970.97M	507.94M
Total Debt	0.00	98.82M	164.16M	234.77M	214.63M	294.48M
Total Liabilities	756.66M	840.16M	841.51M	927.53M	1.34B	1.07B
Stockholders Equity	1.28B	1.23B	1.09B	1.05B	1.06B	829.42M
Cash Flow
Free Cash Flow	-19.05M	297.76M	265.58M	-255.51M	686.51M	762.18M
Operating Cash Flow	20.66M	313.25M	275.63M	-224.91M	707.09M	779.76M
Investing Cash Flow	-48.81M	-31.77M	-10.05M	-127.10M	-20.58M	-435.00M
Financing Cash Flow	-206.81M	-180.61M	-249.59M	-250.06M	-223.12M	-87.56M

Piper Sandler Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 326.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PIPR, the sentiment is Neutral. The current price of 326.4 is below the 20-day moving average (MA) of 334.88, below the 50-day MA of 340.39, and above the 200-day MA of 291.90, indicating a neutral trend. The MACD of -3.75 indicates Positive momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 29.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PIPR.

Piper Sandler Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PIPR	71 Outperform	$5.77B	24.59	19.30%	1.77%	12.49%	36.43%
MC	71 Outperform	$5.00B	20.80	51.98%	3.82%	51.19%	456.59%
SF	69 Neutral	$12.20B	21.07	―	1.51%	7.53%	2.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LAZ	64 Neutral	$4.60B	19.23	36.41%	4.14%	1.58%	1.93%
PJT	61 Neutral	$5.69B	28.06	106.47%	0.62%	18.40%	54.77%
JEF	49 Neutral	$10.93B	18.26	6.29%	2.93%	-5.41%	25.28%

Piper Sandler Corporate Events

Piper Sandler Reports Strong Q2 2025 Results

Piper Sandler Companies is a prominent investment bank offering a wide range of financial services, including securities brokerage and investment banking, with a focus on advisory services across various sectors such as healthcare and industrials. The company is based in Minneapolis and operates globally.

Piper Sandler Reports Strong Q2 Earnings Amid Challenges

Piper Sandler Companies’ recent earnings call reflected a generally positive sentiment, highlighting strong growth in advisory and municipal financing revenues. This growth was supported by strategic acquisitions and increased dividends. However, the call also acknowledged challenges in corporate financing and the biopharma sectors, alongside restructuring costs, which pointed to areas needing attention.