Piper Sandler (PIPR) AI Stock Analysis

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Piper Sandler

(NYSE:PIPR)

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Outperform 73 (OpenAI - 4o)

Rating:73Outperform

Price Target:

$372.00

▲(6.95% Upside)

Piper Sandler's overall stock score is driven by strong financial performance and positive earnings call highlights, including strategic growth in advisory and municipal financing. Technical indicators show positive momentum, though valuation concerns and challenges in corporate financing present risks.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates strong market demand and effective business strategies, enhancing its competitive position in the financial services sector.

Balance Sheet Health

A debt-free balance sheet provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities and withstand economic fluctuations.

Strategic Acquisitions

This acquisition enhances Piper Sandler's capabilities in technology investment banking, positioning it for growth in a high-demand sector and expanding its service offerings.

Negative Factors

Decline in Corporate Financing

A significant decline in corporate financing revenues can impact overall profitability and indicates challenges in maintaining client activity in certain sectors.

High Non-Compensation Expenses

Rising non-compensation expenses can pressure margins, reducing profitability and potentially limiting resources available for strategic investments.

Subdued Non-Depository Client Activity

Subdued activity with non-depository clients may limit revenue growth in the fixed income segment, affecting overall financial performance.

Piper Sandler (PIPR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.23B

Dividend Yield1.6%

Average Volume (3M)127.50K

Price to Earnings (P/E)30.6

Beta (1Y)1.46

Revenue Growth10.46%

EPS Growth50.47%

CountryUS

Employees1,801

SectorFinancial

Sector Strength70

IndustryFinancial - Capital Markets

Share Statistics

EPS (TTM)2.95

Shares Outstanding17,690,540

10 Day Avg. Volume155,087

30 Day Avg. Volume127,499

Financial Highlights & Ratios

PEG Ratio0.26

Price to Book (P/B)3.87

Price to Sales (P/S)3.11

P/FCF Ratio15.95

Enterprise Value/Market Cap0.82

Enterprise Value/Revenue3.21

Enterprise Value/Gross Profit4.70

Enterprise Value/Ebitda21.36

Forecast

1Y Price Target

$339.00

Price Target Upside-2.53% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Piper Sandler Business Overview & Revenue Model

Company DescriptionPiper 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 MoneyPiper 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 Key Performance Indicators (KPIs)

Any

Total Advisory Services Completed Transactions

Total Advisory Services Completed Transactions
Counts the number of advisory deals closed, indicating the firm's success in securing and completing client engagements in this competitive sector.

Chart InsightsPiper Sandler's advisory transactions have shown volatility, with a notable dip in 2023 but a recovery trend into 2024. The latest earnings call highlights a strong performance in advisory revenues, up 12% year-over-year, driven by higher fees and strategic acquisitions like G Squared Capital Partners. Despite challenges in corporate financing, the firm maintains growth momentum in advisory services, which is crucial for sustaining overall revenue growth. Investors should note the positive impact of strategic acquisitions and increased dividends, despite anticipated revenue softening in other segments.

Data provided by:

Main Street Data

Piper Sandler Earnings Call Summary

Earnings Call Date:Aug 01, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 24, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong performance in advisory revenues, municipal financing, and brokerage activities, with strategic hiring and acquisitions positioning the company for further growth. However, challenges were noted in corporate financing and non-depository client activity, alongside increased expenses.

Q2-2025 Updates

Positive Updates

Strong Advisory Revenue Growth

Advisory revenues reached $206 million, up 12% year-over-year, with the Services and Industrials group having one of their best quarters since 2021.

Record Municipal Financing Revenues

Municipal financing revenues increased by 66% year-over-year, driven by strong client and geographic reach.

Increased Brokerage Revenues

Equity brokerage generated $58 million, a 12% increase year-over-year, with strong activity on the derivatives desk.

Improved Operating Margin

The company achieved an 18.1% operating margin for the second quarter of 2025, with net revenues of $405 million.

Growth in Managing Directors

The company ended the quarter with 182 managing directors, up 7% from a year ago, reflecting strategic hires in key sectors.

Acquisition to Enhance Technology Investment Banking

Announced acquisition of G Squared Capital Partners, specializing in government services and defense technology, to bolster technology investment banking.

Dividend Increase

The Board approved a $0.05 increase to the quarterly cash dividend, bringing it to $0.70 per share.

Negative Updates

Decline in Corporate Financing Revenues

Corporate financing revenues were $35 million, down 31% from the previous year, with notable declines in the biopharma sector.

Impact of Restructuring Charges

A $5 million restructuring charge related to headcount reductions and vacated office space impacted GAAP results.

Subdued Activity with Non-depository Clients

Fixed income revenues with non-depository clients were subdued due to spread tightening and relative value concerns.

High Non-Compensation Expenses

Non-compensation expenses increased 6% year-over-year, driven by higher legal and professional fees.

Company Guidance

During Piper Sandler's Second Quarter 2025 earnings call, the company reported adjusted net revenues of $405 million, marking an increase compared to the previous year, with an 18.1% operating margin and an adjusted EPS of $2.95. Advisory revenues reached $206 million, up 12% year-over-year, with notable performance from the Services and Industrials group. The company completed 71 transactions, and advisory revenues for the first half of 2025 were $423 million, reflecting a 24% increase. Corporate financing revenues were $35 million, down 31% from the previous year, with $10 billion raised through 26 financings. Public finance revenues grew to $42 million, up 66% year-over-year, while equity brokerage revenues increased by 12% to $58 million. Fixed income revenues were $54 million, showing a 37% year-over-year growth. The company ended the quarter with 182 managing directors, reflecting a 7% increase from the previous year, and highlighted strategic hires to strengthen sector and product expertise. They also announced a $0.05 increase to their quarterly cash dividend, now at $0.70 per share.

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 is solid with no debt and a healthy equity base. Cash flow is strong, with significant free cash flow generation. However, attention is needed on maintaining healthy margins amidst fluctuations in gross profit.

Income Statement

Positive

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

Positive

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

Positive

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	1.58B	1.53B	1.31B	1.43B	2.04B	1.25B
Gross Profit	1.08B	527.42M	1.23B	1.43B	1.89B	1.11B
EBITDA	238.29M	253.75M	159.96M	186.30M	499.68M	149.18M
Net Income	210.94M	181.11M	85.49M	110.67M	278.51M	40.50M
Balance Sheet
Total Assets	1.96B	2.26B	2.14B	2.18B	2.57B	2.00B
Cash, Cash Equivalents and Short-Term Investments	123.32M	482.83M	383.10M	365.62M	970.97M	507.94M
Total Debt	116.22M	98.82M	164.16M	234.77M	214.63M	294.48M
Total Liabilities	559.73M	840.16M	841.51M	927.53M	1.34B	1.07B
Stockholders Equity	1.23B	1.23B	1.09B	1.05B	1.06B	829.42M
Cash Flow
Free Cash Flow	32.67M	297.76M	265.58M	-255.51M	686.51M	762.18M
Operating Cash Flow	68.89M	313.25M	275.63M	-224.91M	707.09M	779.76M
Investing Cash Flow	-52.48M	-31.77M	-10.05M	-127.10M	-20.58M	-435.00M
Financing Cash Flow	-216.55M	-180.61M	-249.59M	-250.06M	-223.12M	-87.56M

Piper Sandler Technical Analysis

Technical Analysis Sentiment

Positive

Last Price347.81

Price Trends

50DMA

331.10

Positive

100DMA

298.86

Positive

200DMA

286.57

Positive

Market Momentum

MACD

8.76

Positive

RSI

53.87

Neutral

STOCH

37.79

Neutral

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 347.81 is above the 20-day moving average (MA) of 344.49, above the 50-day MA of 331.10, and above the 200-day MA of 286.57, indicating a bullish trend. The MACD of 8.76 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 37.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PIPR.

Piper Sandler Risk Analysis

Piper Sandler disclosed 32 risk factors in its most recent earnings report. Piper Sandler reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Piper Sandler Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MC	80 Outperform	5.87B	28.66	38.39%	3.55%	42.85%	1398.33%
SF	77 Outperform	11.48B	21.72	12.86%	1.61%	8.76%	10.32%
PIPR	73 Outperform	$6.23B	30.61	17.91%	1.60%	10.46%	50.47%
LAZ	73 Outperform	5.19B	18.98	41.80%	3.72%	10.40%	91.75%
JEF	68 Neutral	13.76B	25.29	7.32%	2.35%	1.00%	46.98%
PJT	64 Neutral	6.34B	31.27	95.78%	0.55%	18.40%	54.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

PIPR

Piper Sandler

347.81

72.90

26.52%

JEF

Jefferies

65.93

6.27

10.51%

LAZ

Lazard

53.73

5.40

11.17%

Stifel Financial

111.92

20.56

22.50%

Moelis

71.76

5.20

7.81%

PJT

PJT Partners

181.16

48.17

36.22%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 09, 2025