Piper Sandler (PIPR) AI Stock Analysis

• Market Cap: $5.71B
• Dividend Yield: 1.73%
• Average Volume (3M): 180.98K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.49
• Revenue Growth: 10.46%
• EPS Growth: 50.47%
• Country: US
• Employees: 1,801
• Sector: Financial
• Sector Strength: 71
• Industry: Financial - Capital Markets
• EPS (TTM): 2.95
• Shares Outstanding: 17,690,540
• 10 Day Avg. Volume: 182,812
• 30 Day Avg. Volume: 180,982
• 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: 0.89
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 5.12
• Enterprise Value/Ebitda: 22.91
• 1Y Price Target: $345.50
• Price Target Upside: 6.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $352.00 ▲(8.23% Upside)

Piper Sandler's overall stock score of 76 reflects its strong financial performance and positive technical indicators. While valuation suggests possible overvaluation, the robust earnings call and strategic corporate events support a favorable outlook. However, attention is needed on maintaining profitability margins amidst market challenges.

Positive Factors

Financial Performance

Piper Sandler delivered a strong quarter with adjusted revenues significantly above estimates, indicating strong company performance.

Growth Potential

The firm has heavily invested in talent to expand its platform, particularly in the Advisory business, which is expected to drive incremental growth.

Market Position

Piper Sandler is building a defensible moat in the middle markets given its level of scale and materially increasing relevance to private equity clients.

Negative Factors

Market Volatility

Timely investor meetings with Piper Sandler management address recent market volatility, adding some near-term uncertainty.

Stock Valuation

Despite strong stock performance over the past two years, the current valuation reasonably reflects the outlook, leading to a Market Perform rating.

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 shows strong financial performance with a 13.6% revenue growth and robust profitability margins. The balance sheet indicates no debt and a solid equity base, while cash flow metrics highlight significant free cash flow generation. However, the decrease in gross profit margin warrants attention.

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	1.53B	1.53B	1.31B	1.43B	2.04B	1.25B
Gross Profit	994.47M	527.42M	1.23B	1.43B	1.89B	1.11B
EBITDA	222.16M	253.75M	159.96M	186.30M	499.68M	149.18M
Net Income	203.54M	181.11M	85.49M	110.67M	278.51M	40.50M
Balance Sheet
Total Assets	1.82B	2.26B	2.14B	2.18B	2.57B	2.00B
Cash, Cash Equivalents and Short-Term Investments	126.08M	482.83M	383.10M	365.62M	970.97M	507.94M
Total Debt	115.67M	98.82M	164.16M	234.77M	214.63M	294.48M
Total Liabilities	442.39M	840.16M	841.51M	927.53M	1.34B	1.07B
Stockholders Equity	1.21B	1.23B	1.09B	1.05B	1.06B	829.42M
Cash Flow
Free Cash Flow	252.05M	297.76M	265.58M	-255.51M	686.51M	762.18M
Operating Cash Flow	320.03M	313.25M	275.63M	-224.91M	707.09M	779.76M
Investing Cash Flow	-71.75M	-31.77M	-10.05M	-127.10M	-20.58M	-435.00M
Financing Cash Flow	-192.53M	-180.61M	-249.59M	-250.06M	-223.12M	-87.56M

Piper Sandler Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 325.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PIPR, the sentiment is Positive. The current price of 325.23 is above the 20-day moving average (MA) of 315.01, above the 50-day MA of 287.81, and above the 200-day MA of 283.11, indicating a bullish trend. The MACD of 9.46 indicates Positive momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 82.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PIPR.

Piper Sandler Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MC	79 Outperform	$5.65B	27.59	45.36%	3.59%	42.85%	1398.33%
PIPR	76 Outperform	$5.71B	27.25	17.91%	1.73%	10.46%	50.47%
EVR	76 Outperform	$11.43B	26.90	29.16%	1.10%	23.24%	55.76%
PJT	76 Outperform	$6.15B	30.32	106.47%	0.57%	18.40%	54.77%
LAZ	74 Outperform	$4.88B	17.88	50.41%	3.86%	10.40%	91.75%
SNEX	63 Neutral	$4.66B	15.22	16.01%	―	53.19%	23.89%
Sector *	62 Neutral	C$15.51B	6.62	13.72%	6.00%	23.45%	-14.93%

Piper Sandler Corporate Events

Piper Sandler Approves Directors and Auditor at Annual Meeting

Piper Sandler held its Annual Meeting on May 22, 2025, where shareholders elected ten directors to serve until the 2026 meeting. The meeting also saw the approval of Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025, and an advisory vote in favor of the officers’ compensation. These decisions reflect shareholder confidence in the company’s leadership and financial oversight, potentially strengthening its market position.

The most recent analyst rating on (PIPR) stock is a Hold with a $317.00 price target. To see the full list of analyst forecasts on Piper Sandler stock, see the PIPR Stock Forecast page.