MeritValue

PIPER SANDLER COMPANIES

PIPRdata completeness 88%18 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

PIPER SANDLER COMPANIES earns about 50% on invested capital, but has diluted owners by 5% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $105.53 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$2.04B1$1.44B2$1.3B3$1.51B3$1.83B3
Net income$278.5M4$110.7M5$85.5M6$181.1M6$281.3M6
Operating cash flow$707.1M7−$224.9M8$275.6M9$313.3M9$586.6M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$125M10$125M11$30M11$10M12$15M12
Cash & equivalents$971M13$365.6M14$383.1M14$482.8M14$809.4M14
Diluted shares17.0M17.0M17.2M17.7M17.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$770.88
your share of equity
Profit it earned you last year
$158.18
Free cash flow it threw off
—
Debt you’d be carrying
$8.43

10 shares is a claim on $770.88 of net worth that earned you $158.18 last year, against $8.43 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
50% avg · 5y
FY21 153%FY22 12%FY23 14%FY24 21%FY25 51%

It earned an average 50% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+5% shares · 5y

Share count is up 5% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 88% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$105.53
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$181.1M
  • growthAssumed0.0%
Graham Number
$165.65
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001230245-24-000038 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001230245-25-000038 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001230245-26-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001230245-24-000038 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001230245-25-000038 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001230245-26-000013 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001230245-24-000038 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001230245-25-000038 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001230245-26-000013 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001230245-23-000033 (LongTermDebt)
  11. 10-K · period ending 2022-12-31 · accession 0001230245-24-000038 (LongTermDebt)
  12. 10-K · period ending 2024-12-31 · accession 0001230245-26-000013 (ShortTermBorrowings)
  13. 10-K · period ending 2021-12-31 · accession 0001230245-22-000039 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001230245-26-000013 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)