PIPER SANDLER COS (PIPR) Stock Fundamental Analysis
NYSE:PIPR - New York Stock Exchange, Inc. - US7240781002 - Common Stock - Currency: USD
Taking everything into account, PIPR scores 6 out of 10 in our fundamental rating. PIPR was compared to 233 industry peers in the Capital Markets industry. PIPR has an excellent profitability rating, but there are some minor concerns on its financial health. PIPR is growing strongly while it is still valued neutral. This is a good combination! These ratings could make PIPR a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
PIPR had positive earnings in the past year.
In the past year PIPR had a positive cash flow from operations.
PIPR had positive earnings in each of the past 5 years.
PIPR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.18%, PIPR belongs to the top of the industry, outperforming 90.99% of the companies in the same industry.
PIPR has a better Return On Equity (16.77%) than 82.40% of its industry peers.
PIPR has a better Return On Invested Capital (10.22%) than 84.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PIPR is in line with the industry average of 7.86%.
The 3 year average ROIC (8.57%) for PIPR is below the current ROIC(10.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.18% | ||
| ROE | 16.77% | ||
| ROIC | 10.22% |
ROA(3y)5.7%
ROA(5y)6%
ROE(3y)11.04%
ROE(5y)12.85%
ROIC(3y)8.57%
ROIC(5y)10.7%
1.3 Margins
The Profit Margin of PIPR (13.17%) is comparable to the rest of the industry.
PIPR's Profit Margin has been stable in the last couple of years.
The Operating Margin of PIPR (12.81%) is worse than 68.24% of its industry peers.
In the last couple of years the Operating Margin of PIPR has declined.
PIPR's Gross Margin of 98.34% is amongst the best of the industry. PIPR outperforms 97.42% of its industry peers.
PIPR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.81% | ||
| PM (TTM) | 13.17% | ||
| GM | 98.34% |
OM growth 3Y-12.92%
OM growth 5Y-1.74%
PM growth 3Y-4.65%
PM growth 5Y-1.37%
GM growth 3Y-0.11%
GM growth 5Y0.19%
2. Health
2.1 Basic Checks
Compared to 1 year ago, PIPR has more shares outstanding
Compared to 5 years ago, PIPR has more shares outstanding
The debt/assets ratio for PIPR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.95 indicates that PIPR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.95, PIPR belongs to the top of the industry, outperforming 89.27% of the companies in the same industry.
PIPR has a debt to FCF ratio of 0.37. This is a very positive value and a sign of high solvency as it would only need 0.37 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.37, PIPR belongs to the best of the industry, outperforming 91.42% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that PIPR is not too dependend on debt financing.
PIPR has a better Debt to Equity ratio (0.08) than 81.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 6.95 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.72 indicates that PIPR may have some problems paying its short term obligations.
The Current ratio of PIPR (0.72) is worse than 67.38% of its industry peers.
PIPR has a Quick Ratio of 0.72. This is a bad value and indicates that PIPR is not financially healthy enough and could expect problems in meeting its short term obligations.
PIPR has a worse Quick ratio (0.72) than 66.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.98% over the past year.
The Earnings Per Share has been growing by 11.31% on average over the past years. This is quite good.
Looking at the last year, PIPR shows a quite strong growth in Revenue. The Revenue has grown by 10.25% in the last year.
The Revenue has been growing by 12.60% on average over the past years. This is quite good.
EPS 1Y (TTM)43.98%
EPS 3Y-16.64%
EPS 5Y11.31%
EPS Q2Q%46.59%
Revenue 1Y (TTM)10.25%
Revenue growth 3Y-9.14%
Revenue growth 5Y12.6%
Sales Q2Q%14.8%
3.2 Future
Based on estimates for the next years, PIPR will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.79% on average per year.
The Revenue is expected to grow by 11.01% on average over the next years. This is quite good.
EPS Next Y8.86%
EPS Next 2Y21.41%
EPS Next 3Y15.79%
EPS Next 5YN/A
Revenue Next Year8.71%
Revenue Next 2Y13.73%
Revenue Next 3Y11.01%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.44, the valuation of PIPR can be described as rather expensive.
PIPR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PIPR to the average of the S&P500 Index (27.48), we can say PIPR is valued inline with the index average.
The Price/Forward Earnings ratio is 16.78, which indicates a correct valuation of PIPR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PIPR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PIPR to the average of the S&P500 Index (36.52), we can say PIPR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 16.78 |
4.2 Price Multiples
69.53% of the companies in the same industry are more expensive than PIPR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PIPR is valued a bit cheaper than the industry average as 60.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.05 | ||
| EV/EBITDA | 23.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PIPR may justify a higher PE ratio.
A more expensive valuation may be justified as PIPR's earnings are expected to grow with 15.79% in the coming years.
PEG (NY)2.53
PEG (5Y)1.98
EPS Next 2Y21.41%
EPS Next 3Y15.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, PIPR is not a good candidate for dividend investing.
PIPR's Dividend Yield is slightly below the industry average, which is at 7.75.
With a Dividend Yield of 0.86, PIPR pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of PIPR is nicely growing with an annual growth rate of 12.05%!
PIPR has been paying a dividend for over 5 years, so it has already some track record.
The dividend of PIPR decreased recently.
Dividend Growth(5Y)12.05%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PIPR pays out 53.22% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of PIPR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.22%
EPS Next 2Y21.41%
EPS Next 3Y15.79%
313.67
+6.41 (+2.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners82%
Inst Owner ChangeN/A
Ins Owners2.84%
Ins Owner Change5.01%
Market Cap5.57B
Analysts48.89
Price Target291.72 (-7%)
Short Float %2.58%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend4.71
Dividend Growth(5Y)12.05%
DP53.22%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.92%
Min EPS beat(2)18.9%
Max EPS beat(2)40.94%
EPS beat(4)3
Avg EPS beat(4)15.91%
Min EPS beat(4)-5.82%
Max EPS beat(4)40.94%
EPS beat(8)6
Avg EPS beat(8)18.25%
EPS beat(12)10
Avg EPS beat(12)18.89%
EPS beat(16)14
Avg EPS beat(16)22.92%
Revenue beat(2)2
Avg Revenue beat(2)4.89%
Min Revenue beat(2)2.19%
Max Revenue beat(2)7.58%
Revenue beat(4)3
Avg Revenue beat(4)1.66%
Min Revenue beat(4)-6.36%
Max Revenue beat(4)7.58%
Revenue beat(8)6
Avg Revenue beat(8)3.93%
Revenue beat(12)9
Avg Revenue beat(12)3.26%
Revenue beat(16)13
Avg Revenue beat(16)7.43%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)2.2%
EPS NQ rev (3m)-26.02%
EPS NY rev (1m)0.37%
EPS NY rev (3m)-6.91%
Revenue NQ rev (1m)1.07%
Revenue NQ rev (3m)-10.87%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-5.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 16.78 | ||
| P/S | 3.6 | ||
| P/FCF | 20.05 | ||
| P/OCF | 18.37 | ||
| P/B | 4.59 | ||
| P/tB | 7 | ||
| EV/EBITDA | 23.72 |
EPS(TTM)13.98
EY4.46%
EPS(NY)18.69
Fwd EY5.96%
FCF(TTM)15.64
FCFY4.99%
OCF(TTM)17.07
OCFY5.44%
SpS87.03
BVpS68.33
TBVpS44.83
PEG (NY)2.53
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.18% | ||
| ROE | 16.77% | ||
| ROCE | 14.37% | ||
| ROIC | 10.22% | ||
| ROICexc | 11.18% | ||
| ROICexgc | 16.44% | ||
| OM | 12.81% | ||
| PM (TTM) | 13.17% | ||
| GM | 98.34% | ||
| FCFM | 17.98% |
ROA(3y)5.7%
ROA(5y)6%
ROE(3y)11.04%
ROE(5y)12.85%
ROIC(3y)8.57%
ROIC(5y)10.7%
ROICexc(3y)12.01%
ROICexc(5y)22.17%
ROICexgc(3y)20.67%
ROICexgc(5y)66.52%
ROCE(3y)12.07%
ROCE(5y)15.09%
ROICexcg growth 3Y-51.6%
ROICexcg growth 5Y12.45%
ROICexc growth 3Y-37.22%
ROICexc growth 5Y9.46%
OM growth 3Y-12.92%
OM growth 5Y-1.74%
PM growth 3Y-4.65%
PM growth 5Y-1.37%
GM growth 3Y-0.11%
GM growth 5Y0.19%
F-Score9
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.37 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 94.88% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 35.26 | ||
| Cash Conversion | 134.91% | ||
| Profit Quality | 136.51% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 6.95 |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)60.94%
Cap/Depr(5y)52.55%
Cap/Sales(3y)1.29%
Cap/Sales(5y)1.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.98%
EPS 3Y-16.64%
EPS 5Y11.31%
EPS Q2Q%46.59%
EPS Next Y8.86%
EPS Next 2Y21.41%
EPS Next 3Y15.79%
EPS Next 5YN/A
Revenue 1Y (TTM)10.25%
Revenue growth 3Y-9.14%
Revenue growth 5Y12.6%
Sales Q2Q%14.8%
Revenue Next Year8.71%
Revenue Next 2Y13.73%
Revenue Next 3Y11.01%
Revenue Next 5YN/A
EBIT growth 1Y26.16%
EBIT growth 3Y-20.88%
EBIT growth 5Y10.64%
EBIT Next Year34.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y835.29%
FCF growth 3Y-24.3%
FCF growth 5Y37.18%
OCF growth 1Y427.98%
OCF growth 3Y-23.77%
OCF growth 5Y35.81%