Piper Sandler (PIPR) AI Stock Analysis

• Market Cap: $6.26B
• Dividend Yield: 1.63%
• Average Volume (3M): 112.07K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.40
• Revenue Growth: 12.77%
• EPS Growth: 36.43%
• Country: US
• Employees: 1,801
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 3.82
• Shares Outstanding: 17,689,596
• 10 Day Avg. Volume: 99,433
• 30 Day Avg. Volume: 112,073
• PEG Ratio: 0.26
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 3.21
• P/FCF Ratio: 15.95
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 3.68
• Enterprise Value/Gross Profit: 3.69
• Enterprise Value/Ebitda: 20.89
• 1Y Price Target: $389.67
• Price Target Upside: 10.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $384.00 ▲(8.60% Upside)

Piper Sandler's overall stock score is driven by strong financial performance and positive earnings call highlights, including record revenues and strategic growth in investment banking. However, technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. Cash flow management issues and external risks, such as a government shutdown, also weigh on the score.

Positive Factors

Margin Profile

High gross (53.82%) and net (13.75%) margins reflect durable fee-based earnings and pricing power across advisory and trading. Sustained margins support reinvestment in talent and technology, provide a buffer through cycles, and underpin long-term profitability and cash generation.

Corporate Investment Banking Franchise

Corporate investment banking revenues of $292M, including $212M in advisory, show a deep advisory franchise and deal-execution capability. Strong DCM/ECM activity and a robust advisory pipeline indicate durable client relationships and repeatable high-fee revenue streams over quarters.

Conservative Leverage and ROE

A low debt-to-equity ratio (0.09) alongside a 19.09% ROE signals conservative leverage and efficient capital deployment. This balance sheet strength provides flexibility for strategic hires, acquisitions, or shareholder returns and enhances resilience to capital-markets volatility.

Negative Factors

Weak Free Cash Flow

A severe decline in free cash flow (-158% TTM) and low operating-cash-to-net-income ratios point to cash conversion issues. Persistent negative FCF reduces capacity to self-fund growth, dividends or buybacks and increases reliance on external financing, weakening structural financial flexibility.

Revenue Concentration / Cycle Exposure

With advisory contributing $212M of CIB revenues, the firm is materially exposed to deal flow cycles. Heavy concentration in advisory and corporate finance amplifies revenue volatility across market cycles and makes earnings more sensitive to sustained downturns in M&A and capital markets activity.

Exposure to Policy/Market Disruptions

Management flagged risks from a government shutdown affecting corporate financing. Dependence on uninterrupted market and regulatory operations means prolonged policy disruptions can delay transactions, compress DCM/ECM activity and materially reduce fee income until resolution.

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 source of income is investment banking, which includes advisory services for mergers and acquisitions (M&A), capital raising, and underwriting of equity and debt securities. The firm also earns fees from public finance activities, assisting municipalities in funding projects. Additionally, Piper Sandler generates revenue from institutional brokerage services, which encompasses equity research, trading, and sales to institutional investors. The company's asset management division contributes to its earnings by managing investment portfolios for clients, charging management fees based on assets under management. Significant partnerships with various corporations and institutional clients, along with its strong market presence, further enhance its revenue potential.

Piper Sandler Financial Statement Overview

Summary

Piper Sandler shows strong revenue growth and profitability with a robust gross profit margin of 53.82% and a net profit margin of 13.75%. The balance sheet is stable with low leverage, but cash flow management is a concern due to negative free cash flow growth and low cash flow coverage ratios.

Income Statement

Piper Sandler's income statement shows a strong revenue growth rate of 7.22% in the TTM period, indicating a positive trajectory. The gross profit margin is robust at 53.82%, and the net profit margin has improved to 13.75%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while healthy, suggest room for operational efficiency improvements.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.09, indicating conservative leverage. Return on equity is strong at 19.09%, showcasing effective use of equity. However, the equity ratio is not explicitly mentioned, which could provide additional insights into asset financing.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -158.31% in the TTM period. The operating cash flow to net income ratio is low, indicating potential cash flow management issues. The negative free cash flow to net income ratio further highlights cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.67B	1.48B	1.31B	1.38B	1.98B	1.20B
Gross Profit	1.67B	1.48B	1.30B	1.37B	1.97B	1.18B
EBITDA	294.37M	245.48M	159.96M	165.38M	484.22M	123.97M
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	114.66M	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: 353.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 353.6 is below the 20-day moving average (MA) of 361.97, above the 50-day MA of 349.08, and above the 200-day MA of 313.01, indicating a neutral trend. The MACD of 1.48 indicates Positive momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 14.12 is Positive, 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
MC	78 Outperform	$5.87B	24.40	51.98%	3.69%	51.19%	456.59%
SF	72 Outperform	$12.85B	21.51	11.72%	1.43%	7.54%	2.73%
PJT	71 Outperform	$8.69B	27.48	91.85%	0.58%	23.16%	64.04%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PIPR	67 Neutral	$6.26B	26.63	19.30%	1.63%	12.77%	36.43%
LAZ	64 Neutral	$5.01B	20.95	30.80%	4.06%	1.58%	1.93%
JEF	60 Neutral	$12.76B	21.84	6.36%	2.52%	-5.41%	25.28%