Piper Sandler Companies (PIPR) stock analysis

P/E below its 5-year median

Piper Sandler Companies's P/E of 15.6 is below its own 5-year median of 23.2.

P/E above the industry

Piper Sandler Companies's P/E of 15.6 is above the Security Brokers, Dealers, and Flotation median of 15.6.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Piper Sandler Companies's price-to-book of 3.39 is above the Security Brokers, Dealers, and Flotation median of 3.02.

Trading below fair value

The share price of $66.23 is below our fair value estimate of $70.78.

Margin of safety under 20%

The price is 6.4% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 9.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 34.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 27.9% over the last twelve months, against a 5-year average of 47.3% a year.

Growing faster than the industry

Revenue grew 20.9% over the last twelve months; the Security Brokers, Dealers, and Flotation median is 16.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 22.7% over the last twelve months and averaged 17.0% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Piper Sandler Companies's return on equity of 22.7% is above the Security Brokers, Dealers, and Flotation median of 17.9%.

Earnings grew over 5 years

Net income grew 47.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 14.5% over the last twelve months, against a 5-year average of 10.8%.

Net margin above the industry

Piper Sandler Companies's net margin of 14.5% is above the Security Brokers, Dealers, and Flotation median of 14.4%.

Low debt

Debt is 1.1% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.0% five years ago to 1.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 5495% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Low bankruptcy risk

The Altman Z-score is 4.53; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Piper Sandler Companies paid dividends worth 3.0% of the share price over the last twelve months.

Yield below Treasuries

The 3.0% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Piper Sandler Companies yields 3.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 47.3% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.