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1. Company Snapshot

1.a. Company Description

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.The company offers investment banking and institutional sales, trading, and research services for various equity and fixed income products.It provides advisory services, such as mergers and acquisitions, equity private placements, and debt and restructuring advisory; raises capital through equity and debt financings; underwrites municipal issuances; and offers municipal financial advisory and loan placement services, as well as various over-the-counter derivative products.


The company also offers public finance investment banking services that focus on state and local governments, and cultural and social service non-profit entities, as well as the education, healthcare, hospitality, senior living, and transportation sectors.In addition, it provides equity and fixed income advisory and trade execution services for institutional investors, and government and non-profit entities.Further, the company is involved in the alternative asset management funds merchant banking and healthcare to invest firm capital and to manage capital from outside investors, as well as trading activities.


The company was formerly known as Piper Jaffray Companies and changed its name to Piper Sandler Companies in January 2020.Piper Sandler Companies was founded in 1895 and is headquartered in Minneapolis, Minnesota.

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1.b. Last Insights on PIPR

Piper Sandler Companies' recent performance was positively driven by its Q3 earnings beat, with quarterly earnings of $3.82 per share exceeding the Zacks Consensus Estimate of $2.96 per share. The company's strength in regional bank advisory could benefit from potential bank consolidation. Piper Sandler also announced an acquisition to strengthen its presence in the Middle East. Additionally, the company received a rating upgrade to Strong Buy from Zacks, reflecting growing optimism about its earnings prospects. A "golden cross" technical indicator also sparked interest in the stock.

1.c. Company Highlights

2. Piper Sandler's Q3 2025 Earnings: A Strong Performance

Piper Sandler reported adjusted net revenues of $455 million for the third quarter of 2025, coupled with an operating margin of 21.2% and adjusted EPS of $3.82, significantly beating estimates of $2.96. The company's financial performance was driven by its deep sector expertise and comprehensive suite of products, resulting in 8 consecutive quarters of year-over-year growth. The strong quarterly results were largely attributed to the improved market environment, with equity markets reaching record highs and lower volatility.

Publication Date: Nov -13

📋 Highlights
  • Strong Revenue and Margin Growth: Quarterly adjusted net revenues reached $455 million with a 21.2% operating margin and adjusted EPS of $3.82.
  • Corporate Investment Banking Surge: Generated $292 million in revenues, showing significant year-over-year growth, driven by financial services and healthcare.
  • Record Corporate Financing Performance: $80 million in revenues, the highest since 2021, with $14 billion raised through 38 financings.
  • Shareholder Returns: $16 million returned in Q3 (primarily dividends), totaling $204 million for the first 9 months of 2025.

Revenue Breakdown

The company's corporate investment banking revenues stood at $292 million, reflecting significant growth over the prior year. The leading financial services and health care franchises generated strong advisory and corporate financing revenues during the quarter. Corporate financing revenues were $80 million, the company's strongest quarterly results since 2021, with 38 financings raising $14 billion for corporate clients. As Chad Abraham noted, "The advisory pipeline is robust and building," indicating a positive outlook for future revenues.

Valuation Metrics

With a P/E Ratio of 23.96 and a P/B Ratio of 4.42, Piper Sandler's valuation appears to be reasonable, considering its strong financial performance. The ROE of 19.09% and ROIC of 35.48% indicate the company's ability to generate profits from its equity and invested capital. Analysts estimate revenue growth at 14.9% for the next year, which, combined with the current valuation metrics, suggests that the stock may be attractively priced.

Dividend and Shareholder Returns

The company returned an aggregate of $16 million to its shareholders in the third quarter, with the majority related to its quarterly dividend payment. The Board approved a quarterly cash dividend of $0.70 per share, which will be paid on December 12 to shareholders of record as of the close of business on November 25. The dividend yield stands at 1.67%, providing a relatively stable source of return for investors.

Outlook and Future Prospects

The company's outlook for the fourth quarter and beyond appears positive, driven by a robust advisory pipeline and strong corporate financing revenues. As Deb Schoneman noted, the municipal demand has been strong, with fund flows picking up in the second half of the year. The expected normalization of the yield curve is likely to drive increased activity in the market, benefiting Piper Sandler's business. With a favorable backdrop and a strong track record of execution, the company is well-positioned for future growth.

3. NewsRoom

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Fisher Asset Management LLC Sells 3,563 Shares of Piper Sandler Companies $PIPR

Dec -03

Source: defenseworld.net

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Earnings Estimates Rising for Piper Sandler Companies (PIPR): Will It Gain?

Dec -01

Source: zacks.com

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Market Today: Stocks Rise on Fed Cut Bets; Alphabet, Apple Hit Records

Nov -25

Source: gurufocus.com

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First Look: Alphabet nears $4T as Google chip talks jolt Nvidia

Nov -25

Source: gurufocus.com

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Piper Sandler Appoints Michael Piper as Head of Fixed Income

Nov -24

Source: businesswire.com

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Piper Sandler Launches Private Markets Trading with Three Key Hires

Nov -20

Source: businesswire.com

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Bank of Montreal Can Boosts Stake in Piper Sandler Companies $PIPR

Nov -16

Source: defenseworld.net

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Aviva PLC Has $506,000 Stock Position in Piper Sandler Companies $PIPR

Nov -14

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.00%)

6. Segments

Capital Markets

Expected Growth: 13%

Piper Sandler Companies' 13% growth in Capital Markets is driven by increasing institutional trading volumes, strong equity issuance activity, and a growing presence in fixed income and derivatives. Additionally, strategic acquisitions and investments in technology have enhanced the company's capabilities, contributing to its robust growth.

7. Detailed Products

Equity Capital Markets

Piper Sandler's equity capital markets team provides a range of services, including initial public offerings, follow-on offerings, and equity-linked transactions.

Debt Capital Markets

Piper Sandler's debt capital markets team provides debt financing solutions, including high-yield bonds, investment-grade bonds, and leveraged loans.

Mergers and Acquisitions Advisory

Piper Sandler's mergers and acquisitions advisory team provides strategic advice to clients on buying and selling businesses, including cross-border transactions.

Equity Research

Piper Sandler's equity research team provides in-depth analysis and insights on publicly traded companies, covering a range of industries and sectors.

Fixed Income Sales and Trading

Piper Sandler's fixed income sales and trading team provides liquidity and execution services for a range of fixed income products, including government securities, corporate bonds, and municipal bonds.

Public Finance

Piper Sandler's public finance team provides financial advisory services to municipalities, schools, and other public entities, helping them to access the capital markets and achieve their financing goals.

8. Piper Sandler Companies's Porter Forces

Forces Ranking

Threat Of Substitutes

Piper Sandler Companies operates in a highly competitive industry, and there are many substitutes available to clients. However, the company's strong brand reputation and diversified product offerings help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Piper Sandler Companies' clients are primarily institutional investors and corporations, which have limited bargaining power due to the company's strong market position and diversified product offerings.

Bargaining Power Of Suppliers

Piper Sandler Companies relies on a network of suppliers for its operations, including technology providers and market data vendors. While the company has some bargaining power due to its size and reputation, suppliers still have some negotiating power.

Threat Of New Entrants

The financial services industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This limits the threat of new entrants and allows established players like Piper Sandler Companies to maintain their market position.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. Piper Sandler Companies faces intense rivalry from other investment banks and financial institutions, which can lead to pricing pressure and margin compression.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.20%
Debt Cost 10.16%
Equity Weight 80.80%
Equity Cost 10.88%
WACC 10.74%
Leverage 23.76%

11. Quality Control: Piper Sandler Companies passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Stifel Financial

A-Score: 6.4/10

Value: 7.6

Growth: 5.8

Quality: 6.1

Yield: 4.0

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
PJT Partners

A-Score: 6.1/10

Value: 3.8

Growth: 8.2

Quality: 6.5

Yield: 3.0

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Houlihan Lokey

A-Score: 5.9/10

Value: 2.0

Growth: 6.8

Quality: 7.8

Yield: 3.0

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Jefferies

A-Score: 5.7/10

Value: 6.3

Growth: 5.1

Quality: 6.6

Yield: 6.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Evercore

A-Score: 5.6/10

Value: 3.3

Growth: 5.8

Quality: 8.2

Yield: 3.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Piper Sandler

A-Score: 5.6/10

Value: 1.8

Growth: 5.4

Quality: 7.9

Yield: 5.0

Momentum: 6.5

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

351.24$

Current Price

351.24$

Potential

-0.00%

Expected Cash-Flows