PIPR

Piper Sandler just put up a record year. FY2025 revenue rose to $1.83B (+21.7%) and net income jumped to $281M (+55.3%), lifting diluted EPS to $15.82 (+54.5%). At $81.80 the stock trades at only 5.2x trailing EPS and 0.8x sales, an unusually low multiple even for a cyclical advisory and brokerage franchise. The recovery is broad-based: management's 10-K attributes the strong year to robust equity markets and a significant overall increase in investment banking activity versus 2024, the same activity that drove operating cash flow to $587M (+87.3%).

The balance sheet is a standout. Stockholders' equity is $1.37B against total liabilities of $1.01B (liabilities/equity 0.74x), with long-term debt at zero as of FY2023 and only $15.0M of short-term borrowings. Cash swelled to $809M (+67.6%) and retained earnings reached $729M. That capital strength funds aggressive shareholder returns: $125M of buybacks (+88.2%) and $114M of dividends (+54.8%) in FY2025, together roughly $239M returned, supported by a 20.5% return on equity and a 15.3% net margin.