Piper Sandler Companies (NYSE:PIPR) - Share price, News & Analysis

PIPR fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	6/6
Financial Health	5/6
Dividends	4/6

PIPR Stock Overview

Rewards

Price-To-Earnings ratio (8.2x) is below the US market (15.1x)

Earnings grew by 153.8% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year

Piper Sandler Companies Competitors

Morgan Stanley

NYSE:MS

US$143.4b

Goldman Sachs Group

NYSE:GS

US$103.0b

Raymond James Financial

NYSE:RJF

US$19.4b

LPL Financial Holdings

NasdaqGS:LPLA

US$14.7b

Price History & Performance

Summary of all time highs, changes and price drops for Piper Sandler Companies
Historical stock prices
Current Share Price	US$122.62
52 Week High	US$193.60
52 Week Low	US$110.45
Beta	1.4
1 Month Change	-0.84%
3 Month Change	-15.25%
1 Year Change	-1.64%
3 Year Change	67.19%
5 Year Change	108.72%
Change since IPO	168.02%

Recent News & Updates

May 25

Piper Sandler Delivers Respectable Quarter On Sponsor And S&T Strength

Piper Sandler is a more emerging bank in terms of reputation, but is delivering well against some of the comps in the advisory sector. Piper Sandler has a sales and trading business that is also doing well thanks to volatility in equities and interest rates. Public finance is also a solid exposure. Annualising PIPR's EPS, the 15x P/E ratio looks alright but only if you expect the factors driving volatility to abate. Unfortunately, we still see risks on the horizon. There are offsets in the business, but the timing could be better due to advisory exposure.

May 10

Do Piper Sandler Companies's (NYSE:PIPR) Earnings Warrant Your Attention?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

	PIPR	US Capital Markets	US Market
7D	-5.2%	-0.9%	-4.0%
1Y	-1.6%	-14.0%	-13.2%

Return vs Industry: PIPR exceeded the US Capital Markets industry which returned -13.5% over the past year.

Return vs Market: PIPR exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is PIPR's price volatile compared to industry and market?
PIPR volatility
PIPR Average Weekly Movement	6.9%
Capital Markets Industry Average Movement	0.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: PIPR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: PIPR's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1895	1,665	Chad Abraham	https://www.pipersandler.com

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.

Piper Sandler Companies Fundamentals Summary

How do Piper Sandler Companies's earnings and revenue compare to its market cap?
PIPR fundamental statistics
Market Cap	US$2.18b
Earnings (TTM)	US$265.71m
Revenue (TTM)	US$1.95b

8.2x

P/E Ratio

1.1x

P/S Ratio

Is PIPR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PIPR income statement (TTM)
Revenue	US$1.95b
Cost of Revenue	US$146.49m
Gross Profit	US$1.81b
Other Expenses	US$1.54b
Earnings	US$265.71m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	14.92
Gross Margin	92.50%
Net Profit Margin	13.60%
Debt/Equity Ratio	11.1%

How did PIPR perform over the long term?

See historical performance and comparison

Dividends

8.1%

Current Dividend Yield

12%

Payout Ratio

Does PIPR pay a reliable dividends?

See PIPR dividend history and benchmarks

When do you need to buy PIPR by to receive an upcoming dividend?
Piper Sandler Companies dividend dates
Ex Dividend Date	May 26 2022
Dividend Pay Date	Jun 10 2022
Days until Ex dividend	0 days
Days until Dividend pay date	15 days

Does PIPR pay a reliable dividends?

See PIPR dividend history and benchmarks

Valuation

Is Piper Sandler Companies undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

8.22x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: PIPR ($122.62) is trading above our estimate of fair value ($103.38)

Significantly Below Fair Value: PIPR is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: PIPR is good value based on its Price-To-Earnings Ratio (8.2x) compared to the US Capital Markets industry average (30.5x).

PE vs Market: PIPR is good value based on its Price-To-Earnings Ratio (8.2x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PIPR's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: PIPR is overvalued based on its Price-To-Book Ratio (2.1x) compared to the US Capital Markets industry average (-17.7x).

Future Growth

How is Piper Sandler Companies forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

0.5%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PIPR's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if PIPR's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PIPR's revenue (0.5% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: PIPR's revenue (0.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if PIPR's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Piper Sandler Companies performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

62.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PIPR has high quality earnings.

Growing Profit Margin: PIPR's current net profit margins (13.6%) are higher than last year (7.3%).

Past Earnings Growth Analysis

Earnings Trend: PIPR has become profitable over the past 5 years, growing earnings by 62.7% per year.

Accelerating Growth: PIPR's earnings growth over the past year (153.8%) exceeds its 5-year average (62.7% per year).

Earnings vs Industry: PIPR earnings growth over the past year (153.8%) exceeded the Capital Markets industry 98.3%.

Return on Equity

High ROE: PIPR's Return on Equity (25%) is considered high.

Financial Health

How is Piper Sandler Companies's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PIPR's short term assets ($951.6M) exceed its short term liabilities ($492.8M).

Long Term Liabilities: PIPR's short term assets ($951.6M) exceed its long term liabilities ($233.3M).

Debt to Equity History and Analysis

Debt Level: PIPR has more cash than its total debt.

Reducing Debt: PIPR's debt to equity ratio has reduced from 59.4% to 11.1% over the past 5 years.

Debt Coverage: PIPR's debt is well covered by operating cash flow (379.1%).

Interest Coverage: Insufficient data to determine if PIPR's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is Piper Sandler Companies's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

8.07%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PIPR's dividend (8.07%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: PIPR's dividend (8.07%) is in the top 25% of dividend payers in the US market (4.05%)

Stability and Growth of Payments

Stable Dividend: PIPR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PIPR's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.6%), PIPR's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.5%), PIPR's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure

CEO

Chad Abraham (52 yo)

4.33yrs

Tenure

US$9,138,214

Compensation

Mr. Chad Richard Abraham serves as Director at Columbus McKinnon Corporation since November 11, 2021. He has been Chairman at Piper Sandler Companies since May 17, 2019 and has been its Chief Executive Off...

CEO Compensation Analysis

Compensation vs Market: Chad's total compensation ($USD9.14M) is above average for companies of similar size in the US market ($USD5.43M).

Compensation vs Earnings: Chad's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: PIPR's management team is considered experienced (4.3 years average tenure).

Board Members

Experienced Board: PIPR's board of directors are considered experienced (4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31