Piper Sandler Companies Common Stock (PIPR)

FairStock Score: 69/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 19.6% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.07, providing financial flexibility
• Altman Z-Score of 4.3 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 38.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($43) with negative 105% margin of safety—limited downside protection

AI Analysis

Piper Sandler Companies Common Stock is a small-cap financial services company valued at $6.2 billion. The business generates $1.9 billion in annual revenue with a 6.0% net margin. From a quality standpoint, Piper shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 4.3. On valuation, the stock is reasonably priced at 22.2x earnings, with trades far above its Graham Number ($43) with no margin of safety. Growth dynamics show revenue growing at 38.8% and profit growth of 65.0%. Our composite FairStock Score of 69/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Piper's 39% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer