Piper Sandler (PIPR) AI Stock Analysis

• Market Cap: $5.42B
• Dividend Yield: 1.63%
• Average Volume (3M): 170.75K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.46
• Revenue Growth: 12.77%
• EPS Growth: 36.43%
• Country: US
• Employees: 1,801
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 6.88
• Shares Outstanding: 17,822,435
• 10 Day Avg. Volume: 188,149
• 30 Day Avg. Volume: 170,751
• PEG Ratio: 0.42
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 2.97
• P/FCF Ratio: 8.11
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: 13.24
• 1Y Price Target: $381.00
• Price Target Upside: 27.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 18.14
• Revenue Forecast (FY): $2.02B

• Rating: 72 Outperform
• Price Target: $338.00 ▲(12.96% Upside)
• Action: Upgraded Date: 03/04/26
• Date: Action: Upgraded 03/04/26

The score is driven primarily by solid financial strength (strong 2025 recovery and very low leverage) and a bullish earnings-call outlook with continued advisory momentum and meaningful shareholder returns. These positives are tempered by weak technicals (below key moving averages with negative MACD) and only moderate support from valuation and dividend yield.

Positive Factors

Conservative balance sheet

Very low reported leverage and growing equity provide durable financial flexibility. Zero reported debt in 2025 plus an attractive ROE (~19.2%) allows the firm to fund buybacks/dividends, invest in talent and M&A, and better withstand capital-markets downturns without refinancing stress.

Advisory revenue leadership

Advisory now drives the business (≈55% of net revenues) and produced sustained, high-margin fee income. Strong deal flow, #2 ranking in sub-$1B M&A, and consistent advisory growth create a structurally higher-share recurring fee base less dependent on trading cycles.

Disciplined capital returns

Consistent buybacks, a special cash dividend and an ongoing quarterly payout indicate strong free-capital generation and disciplined allocation. These actions signal management confidence in cash flow durability and support shareholder value over the medium term.

Negative Factors

Cash-flow volatility

Material swings in operating and free cash flow across cycles undermine predictability for dividends, buybacks, and investments. Episodic negative cash flow years (2022) and sharp year-over-year FCF swings reduce resilience to revenue shocks and complicate multi-year planning.

ECM volatility and seasonality risk

Heavy exposure to ECM and timing-sensitive advisory fees makes revenue lumpy and correlated with market cycles. Equity market sell-offs and quarter-to-quarter seasonality can curb underwriting and ECM activity, pressuring fee income and forward visibility for 2–6 month horizons.

Rising non-compensation costs

Sustained increases in non-payroll spending for relocations and technology investments can compress operating margins if revenue growth slows. If these cost bases become structural, the firm must sustain higher revenue or improve productivity to preserve operating leverage.

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

Strong overall fundamentals supported by a solid 2025 recovery (revenue rebound and improved profitability) and a very conservative balance sheet with minimal/zero debt and attractive latest ROE. The main offset is cyclicality and cash-flow variability, including negative cash flow in 2022 and an unusually negative free-cash-flow growth figure in 2025.

Income Statement

Revenue rebounded strongly in 2025 (up ~13.9% after a flat 2024 and declines in 2022–2023), and profitability improved meaningfully versus 2023–2024. 2025 operating profitability was solid (EBIT margin ~20.2%) with a healthy net margin (~14.8%), approaching the stronger 2021 level, though results have been cyclical with notable profit compression in 2020 and 2023.

Balance Sheet

Leverage is very conservative: debt-to-equity improved from ~0.36 (2020) down to ~0.08 (2024) and is shown as 0 in 2025, supporting financial flexibility. Equity has grown (to ~$1.46B in 2025), and returns on equity are attractive in the latest period (~19.2% in 2025), though ROE has fluctuated materially across the cycle (from ~4.9% in 2020 to ~26.2% in 2021). Total assets are not provided for 2025, limiting full balance-sheet trend assessment in the most recent year.

Cash Flow

Cash generation is generally strong with free cash flow closely tracking earnings in most years (free cash flow running at ~95% of net income in 2024–2025). However, cash flow is volatile: operating and free cash flow were negative in 2022, and free-cash-flow growth in 2025 is shown as extremely negative (suggesting a sharp year-over-year swing or a data anomaly). Operating cash flow was very strong in 2025 (~$732M), but the inconsistency across years tempers the score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90B	1.48B	1.31B	1.38B	1.98B
Gross Profit	1.78B	1.48B	1.30B	1.37B	1.97B
EBITDA	412.92M	245.48M	159.96M	165.38M	484.22M
Net Income	281.33M	181.11M	85.49M	110.67M	278.51M
Balance Sheet
Total Assets	0.00	2.26B	2.14B	2.18B	2.57B
Cash, Cash Equivalents and Short-Term Investments	0.00	482.83M	383.10M	365.62M	970.97M
Total Debt	0.00	98.82M	164.16M	234.77M	214.63M
Total Liabilities	-1.46B	840.16M	841.51M	927.53M	1.34B
Stockholders Equity	1.46B	1.23B	1.09B	1.05B	1.06B
Cash Flow
Free Cash Flow	697.53M	297.76M	265.58M	-255.51M	686.51M
Operating Cash Flow	732.19M	313.25M	275.63M	-224.91M	707.09M
Investing Cash Flow	-178.01M	-31.77M	-10.05M	-127.10M	-20.58M
Financing Cash Flow	-229.94M	-180.61M	-249.59M	-250.06M	-223.12M

Piper Sandler Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 299.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 299.21 is below the 20-day moving average (MA) of 329.33, below the 50-day MA of 345.90, and below the 200-day MA of 322.63, indicating a bearish trend. The MACD of -12.68 indicates Positive momentum. The RSI at 38.28 is Neutral, neither overbought nor oversold. The STOCH value of 30.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PIPR.

Piper Sandler Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PIPR	72 Outperform	$5.42B	18.68	21.65%	1.63%	12.77%	36.43%
MC	71 Outperform	$4.80B	20.18	46.14%	3.69%	51.19%	456.59%
PJT	71 Outperform	$7.19B	22.10	72.74%	0.58%	23.16%	64.04%
SF	69 Neutral	$11.70B	18.91	11.72%	1.43%	7.54%	2.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LAZ	60 Neutral	$4.77B	21.36	30.59%	4.06%	1.58%	1.93%
JEF	57 Neutral	$9.41B	15.68	6.13%	2.52%	-5.41%	25.28%

Piper Sandler Corporate Events

Piper Sandler Announces Four-for-One Forward Stock Split

On February 6, 2026, Piper Sandler announced that its board of directors approved a four-for-one forward stock split of the company’s common stock, to be implemented by increasing the number of authorized shares through an amendment to its certificate of incorporation. The amendment is expected to take effect at 4:30 p.m. Eastern Time on March 23, 2026, with each existing share converting into four shares, and the company’s common stock beginning to trade on a split-adjusted basis on March 24, 2026, a move that could enhance liquidity and broaden the shareholder base.

The most recent analyst rating on (PIPR) stock is a Hold with a $354.00 price target. To see the full list of analyst forecasts on Piper Sandler stock, see the PIPR Stock Forecast page.

Piper Sandler Expands Board, Appoints New Independent Director

Effective February 4, 2026, Piper Sandler Companies expanded its board of directors from nine to ten members and elected Stuart M. Essig as a director for an initial term ending at the firm’s 2026 annual meeting of shareholders, also appointing him to the Audit Committee. Essig, the longtime former chief executive and current chairman of Integra LifeSciences Corporation and a director at IDEXX Laboratories, will join Piper Sandler’s 2026 non-employee director compensation program, receiving a pro-rated cash retainer and equity awards, and the company noted there are no special arrangements or related-party transactions connected to his appointment, underscoring standard governance practices around the board refresh announced on February 4, 2026.

The most recent analyst rating on (PIPR) stock is a Hold with a $384.00 price target. To see the full list of analyst forecasts on Piper Sandler stock, see the PIPR Stock Forecast page.