NYSE:PIPR

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Piper Sandler Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PIPR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PIPR's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.9%

PIPR

0.2%

US Capital Markets

-1.4%

US Market


1 Year Return

45.1%

PIPR

33.4%

US Capital Markets

37.1%

US Market

Return vs Industry: PIPR exceeded the US Capital Markets industry which returned 29% over the past year.

Return vs Market: PIPR exceeded the US Market which returned 34.1% over the past year.


Shareholder returns

PIPRIndustryMarket
7 Day2.9%0.2%-1.4%
30 Day8.2%7.6%1.6%
90 Day14.9%18.4%7.3%
1 Year49.0%45.1%36.8%33.4%40.2%37.1%
3 Year38.4%30.1%41.4%30.9%62.5%52.1%
5 Year167.6%141.2%152.2%120.9%133.9%108.0%

Long-Term Price Volatility Vs. Market

How volatile is Piper Sandler Companies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

36.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PIPR ($108.67) is trading above our estimate of fair value ($46.02)

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


Price To Earnings Ratio

PE vs Industry: PIPR is poor value based on its PE Ratio (37x) compared to the US Capital Markets industry average (23.8x).

PE vs Market: PIPR is poor value based on its PE Ratio (37x) compared to the US market (21.5x).


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 good value based on its PB Ratio (1.9x) compared to the US Capital Markets industry average (10.6x).


Next Steps

Future Growth

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

2.9%

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 (2%).

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 (2.9% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: PIPR's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PIPR's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

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

23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PIPR has high quality earnings.

Growing Profit Margin: PIPR's current net profit margins (3.3%) are lower than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: PIPR's earnings have grown significantly by 23.7% per year over the past 5 years.

Accelerating Growth: PIPR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PIPR had negative earnings growth (-51.2%) over the past year, making it difficult to compare to the Capital Markets industry average (7.6%).


Return on Equity

High ROE: PIPR's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Piper Sandler Companies's financial position?


Financial Position Analysis

Short Term Liabilities: PIPR's short term assets ($1.1B) exceed its short term liabilities ($665.4M).

Long Term Liabilities: PIPR's short term assets ($1.1B) exceed its long term liabilities ($297.4M).


Debt to Equity History and Analysis

Debt Level: PIPR's debt to equity ratio (32.2%) is considered satisfactory.

Reducing Debt: PIPR's debt to equity ratio has reduced from 80.4% to 32.2% over the past 5 years.

Debt Coverage: PIPR's debt is well covered by operating cash flow (210.9%).

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


Balance Sheet


Next Steps

Dividend

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

2.88%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PIPR's dividend (2.88%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: PIPR's dividend (2.88%) is low compared to the top 25% of dividend payers in the US market (3.75%).


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.5%), PIPR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PIPR's dividends in 3 years are forecast to be well covered by earnings (17.4% payout ratio).


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Chad Abraham (51 yo)

3.08yrs

Tenure

US$4,642,401

Compensation

Mr. Chad Richard Abraham serves as Chairman since May 17, 2019 at Piper Sandler Companies (the “Company”) and serves as its Chief Executive Officer since January 2018. He is Chief Executive Officer and Cha...


CEO Compensation Analysis

Compensation vs Market: Chad's total compensation ($USD4.64M) is about average for companies of similar size in the US market ($USD3.68M).

Compensation vs Earnings: Chad's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Chad Abraham
Chairman & CEO3.08yrsUS$4.64m0.59%
$ 8.8m
Debbra Schoneman
President2.42yrsUS$2.68m0.47%
$ 7.1m
Timothy Carter
MD & CFO0.25yrUS$1.51m0.076%
$ 1.1m
Scott Larue
MD & Global Co-Head of Investment Banking & Capital Markets10.33yrsUS$4.41m0.40%
$ 6.0m
James Baker
MD and Global Co-Head of Investment Banking & Capital Marketsno dataUS$5.14m0.63%
$ 9.4m
Jonathan Doyle
Vice Chairman1.08yrsno data2.16%
$ 32.3m
Shawn Quant
MD and Chief Information & Operations Officer1.08yrsno datano data
John Geelan
MD, General Counsel & Secretary8.08yrsUS$815.48k0.12%
$ 1.8m
Christine Esckilsen
Chief Human Capital Officer & MD10.08yrsno datano data
Robert Rinek
Managing Director of the Merchant Banking Group13.08yrsno datano data
Francis Fairman
Head of Public Finance Services & MD15.58yrsUS$1.16mno data
William Henderson
Managing Director of Public Finance Investment Bankingno datano datano data

8.1yrs

Average Tenure

52yo

Average Age

Experienced Management: PIPR's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chad Abraham
Chairman & CEO3.08yrsUS$4.64m0.59%
$ 8.8m
Debbra Schoneman
President2.42yrsUS$2.68m0.47%
$ 7.1m
Jonathan Doyle
Vice Chairman1.08yrsno data2.16%
$ 32.3m
Philip Soran
Lead Independent Directorno dataUS$207.54k0.050%
$ 742.3k
Sherry Smith
Independent Director5.08yrsUS$191.54k0.029%
$ 438.2k
Victoria Holt
Independent Director1.42yrsUS$109.10k0.023%
$ 345.5k
William Fitzgerald
Independent Director6.92yrsUS$171.54kno data
Addison Piper
Independent Director17.17yrsUS$176.54k0.21%
$ 3.1m
Thomas Schnettler
Vice Chairmanno dataUS$1.45mno data
Brian Sterling
Director0.083yrno data0.14%
$ 2.1m
Thomas Schreier
Independent Director2.42yrsUS$178.73k0.031%
$ 465.9k
Scott Taylor
Independent Director7yrsUS$181.28k0.061%
$ 913.9k

2.4yrs

Average Tenure

58yo

Average Age

Experienced Board: PIPR's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: PIPR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Piper Sandler Companies's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Piper Sandler Companies
  • Ticker: PIPR
  • Exchange: NYSE
  • Founded: 1895
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$1.500b
  • Shares outstanding: 13.80m
  • Website: https://www.pipersandler.com

Number of Employees


Location

  • Piper Sandler Companies
  • 800 Nicollet Mall
  • Suite 900
  • Minneapolis
  • Minnesota
  • 55402
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PIPRNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2003
PJRDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2003

Biography

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 i...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/25 00:17
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.