Piper Sandler Companies
Piper Sandler Companies Fundamental Analysis
Piper Sandler Companies (PIPR) shows strong financial fundamentals with a PE ratio of 19.51, profit margin of 15.04%, and ROE of 22.72%. The company generates $2.0B in annual revenue with strong year-over-year growth of 16.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PIPR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPIPR demonstrates superior asset utilization.
Valuation Score
ExcellentPIPR trades at attractive valuation levels.
Growth Score
ModeratePIPR shows steady but slowing expansion.
Financial Health Score
ExcellentPIPR maintains a strong and stable balance sheet.
Profitability Score
ModeratePIPR maintains healthy but balanced margins.
Key Financial Metrics
Is PIPR Expensive or Cheap?
P/E Ratio
PIPR trades at 19.51 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PIPR's PEG of 1.14 indicates fair valuation.
Price to Book
The market values Piper Sandler Companies at 4.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.61 times EBITDA. This signals the market has high growth expectations.
How Well Does PIPR Make Money?
Net Profit Margin
For every $100 in sales, Piper Sandler Companies keeps $15.04 as profit after all expenses.
Operating Margin
Core operations generate 20.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.72 in profit for every $100 of shareholder equity.
ROA
Piper Sandler Companies generates $12.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Piper Sandler Companies generates limited operating cash flow of $-150.49M, signaling weaker underlying cash strength.
Free Cash Flow
Piper Sandler Companies generates weak or negative free cash flow of $-183.45M, restricting financial flexibility.
FCF Per Share
Each share generates $-10.37 in free cash annually.
FCF Yield
PIPR converts -3.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How PIPR Stacks Against Its Sector Peers
| Metric | PIPR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.51 | 18.86 | Neutral |
| ROE | 22.72% | 847.00% | Weak |
| Net Margin | 15.04% | 4202.00% | Weak |
| Debt/Equity | 0.09 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 6.99 | 667.17 | Strong Liquidity |
| ROA | 12.67% | -21543.00% (disorted) | Strong |
PIPR outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Piper Sandler Companies's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.31%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
38.76%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
295.44%
Industry Style: Value, Dividend, Cyclical
High Growth