PIPER SANDLER COS (PIPR) Stock Fundamental Analysis
NYSE:PIPR - New York Stock Exchange, Inc. - US7240781002 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to PIPR. PIPR was compared to 232 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes PIPR very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year PIPR was profitable.
In the past year PIPR had a positive cash flow from operations.
In the past 5 years PIPR has always been profitable.
Of the past 5 years PIPR 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PIPR (11.18%) is better than 90.95% of its industry peers.
With an excellent Return On Equity value of 16.77%, PIPR belongs to the best of the industry, outperforming 80.17% of the companies in the same industry.
PIPR has a Return On Invested Capital of 10.22%. This is amongst the best in the industry. PIPR outperforms 84.91% of its industry peers.
PIPR had an Average Return On Invested Capital over the past 3 years of 8.57%. This is in line with the industry average of 7.87%.
The last Return On Invested Capital (10.22%) for PIPR is above the 3 year average (8.57%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 13.17%, PIPR is in line with its industry, outperforming 46.55% of the companies in the same industry.
In the last couple of years the Profit Margin of PIPR has remained more or less at the same level.
Looking at the Operating Margin, with a value of 12.81%, PIPR is doing worse than 68.97% of the companies in the same industry.
In the last couple of years the Operating Margin of PIPR has declined.
PIPR has a better Gross Margin (98.34%) than 97.41% of its industry peers.
In the last couple of years the Gross Margin of PIPR has remained more or less at the same level.
| 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
PIPR has more shares outstanding than it did 1 year ago.
PIPR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PIPR has an improved debt to assets ratio.
2.2 Solvency
PIPR has an Altman-Z score of 6.00. This indicates that PIPR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.00, PIPR belongs to the top of the industry, outperforming 87.93% 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.
Looking at the Debt to FCF ratio, with a value of 0.37, PIPR belongs to the top of the industry, outperforming 90.95% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that PIPR is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.08, PIPR belongs to the best of the industry, outperforming 80.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 6 |
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.
PIPR has a worse Current ratio (0.72) than 68.53% 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.
Looking at the Quick ratio, with a value of 0.72, PIPR is doing worse than 68.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
PIPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.98%, which is quite impressive.
The Earnings Per Share has been growing by 11.31% on average over the past years. This is quite good.
The Revenue has grown by 10.25% in the past year. This is quite good.
PIPR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.60% yearly.
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
The Earnings Per Share is expected to grow by 15.55% on average over the next years. This is quite good.
PIPR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.05% yearly.
EPS Next Y8.46%
EPS Next 2Y18.18%
EPS Next 3Y15.55%
EPS Next 5YN/A
Revenue Next Year8.38%
Revenue Next 2Y13.03%
Revenue Next 3Y11.05%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.20 indicates a rather expensive valuation of PIPR.
The rest of the industry has a similar Price/Earnings ratio as PIPR.
The average S&P500 Price/Earnings ratio is at 26.34. PIPR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.37, the valuation of PIPR can be described as correct.
PIPR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.19. PIPR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 14.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PIPR indicates a somewhat cheap valuation: PIPR is cheaper than 72.41% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PIPR indicates a somewhat cheap valuation: PIPR is cheaper than 61.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.27 | ||
| EV/EBITDA | 19.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PIPR does not grow enough to justify the current Price/Earnings ratio.
PIPR has a very decent profitability rating, which may justify a higher PE ratio.
PIPR's earnings are expected to grow with 15.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.15
PEG (5Y)1.61
EPS Next 2Y18.18%
EPS Next 3Y15.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, PIPR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.91, PIPR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, PIPR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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 2Y18.18%
EPS Next 3Y15.55%
254.5
+0.95 (+0.37%)
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 Change4.8%
Market Cap4.52B
Analysts48.89
Price Target291.72 (14.62%)
Short Float %1.64%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)7.12%
PT rev (3m)-10.9%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)-33.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.96%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-14.43%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-8.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 14.37 | ||
| P/S | 2.92 | ||
| P/FCF | 16.27 | ||
| P/OCF | 14.91 | ||
| P/B | 3.72 | ||
| P/tB | 5.68 | ||
| EV/EBITDA | 19.47 |
EPS(TTM)13.98
EY5.49%
EPS(NY)17.71
Fwd EY6.96%
FCF(TTM)15.64
FCFY6.15%
OCF(TTM)17.07
OCFY6.71%
SpS87.03
BVpS68.33
TBVpS44.83
PEG (NY)2.15
PEG (5Y)1.61
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 |
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 Y8.46%
EPS Next 2Y18.18%
EPS Next 3Y15.55%
EPS Next 5YN/A
Revenue 1Y (TTM)10.25%
Revenue growth 3Y-9.14%
Revenue growth 5Y12.6%
Sales Q2Q%14.8%
Revenue Next Year8.38%
Revenue Next 2Y13.03%
Revenue Next 3Y11.05%
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%