PITNEY BOWES INC (PBI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PBI - US7244791007 - Common Stock
10.62 USD
+0.15 (+1.43%)
10.62 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PBI. PBI was compared to 82 industry peers in the Commercial Services & Supplies industry. PBI has a medium profitability rating, but doesn't score so well on its financial health evaluation. PBI has a bad growth rate and is valued cheaply. PBI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PBI had positive earnings in the past year.
In the past year PBI had a positive cash flow from operations.
PBI had negative earnings in 4 of the past 5 years.
In the past 5 years PBI always reported a positive cash flow from operatings.
1.2 Ratios
PBI has a Return On Assets (2.46%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 10.69%, PBI is in the better half of the industry, outperforming 79.27% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PBI is below the industry average of 10.13%.
The last Return On Invested Capital (10.69%) for PBI is above the 3 year average (7.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | N/A | ||
| ROIC | 10.69% |
ROA(3y)-4.75%
ROA(5y)-3.54%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.15%
ROIC(5y)5.48%
1.3 Margins
PBI's Profit Margin of 4.14% is fine compared to the rest of the industry. PBI outperforms 62.20% of its industry peers.
PBI has a Operating Margin of 12.84%. This is amongst the best in the industry. PBI outperforms 80.49% of its industry peers.
PBI's Operating Margin has improved in the last couple of years.
PBI has a better Gross Margin (53.78%) than 95.12% of its industry peers.
PBI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.84% | ||
| PM (TTM) | 4.14% | ||
| GM | 53.78% |
OM growth 3Y37.5%
OM growth 5Y3.49%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y19.73%
GM growth 5Y5.55%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PBI is still creating some value.
The number of shares outstanding for PBI has been increased compared to 1 year ago.
The number of shares outstanding for PBI has been increased compared to 5 years ago.
Compared to 1 year ago, PBI has a worse debt to assets ratio.
2.2 Solvency
PBI has an Altman-Z score of 2.15. This is not the best score and indicates that PBI is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of PBI (2.15) is comparable to the rest of the industry.
PBI has a debt to FCF ratio of 9.24. This is a negative value and a sign of low solvency as PBI would need 9.24 years to pay back of all of its debts.
The Debt to FCF ratio of PBI (9.24) is better than 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.24 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.19
WACC8.96%
2.3 Liquidity
PBI has a Current Ratio of 0.81. This is a bad value and indicates that PBI is not financially healthy enough and could expect problems in meeting its short term obligations.
PBI has a worse Current ratio (0.81) than 80.49% of its industry peers.
PBI has a Quick Ratio of 0.81. This is a bad value and indicates that PBI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.76, PBI is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
PBI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 310.00%, which is quite impressive.
Measured over the past years, PBI shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.76% on average per year.
Looking at the last year, PBI shows a very negative growth in Revenue. The Revenue has decreased by -39.89% in the last year.
The Revenue has been decreasing by -8.76% on average over the past years.
EPS 1Y (TTM)310%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%47.62%
Revenue 1Y (TTM)-39.89%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-7.97%
3.2 Future
The Earnings Per Share is expected to grow by 41.26% on average over the next years. This is a very strong growth
Based on estimates for the next years, PBI will show a decrease in Revenue. The Revenue will decrease by -9.90% on average per year.
EPS Next Y135.05%
EPS Next 2Y56.48%
EPS Next 3Y41.26%
EPS Next 5YN/A
Revenue Next Year-26.39%
Revenue Next 2Y-14.97%
Revenue Next 3Y-9.9%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.63 indicates a reasonable valuation of PBI.
PBI's Price/Earnings ratio is rather cheap when compared to the industry. PBI is cheaper than 90.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.38. PBI is valued rather cheaply when compared to this.
PBI is valuated cheaply with a Price/Forward Earnings ratio of 7.89.
Based on the Price/Forward Earnings ratio, PBI is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.83. PBI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
67.07% of the companies in the same industry are more expensive than PBI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PBI indicates a rather cheap valuation: PBI is cheaper than 93.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.5 | ||
| EV/EBITDA | 9.52 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PBI may justify a higher PE ratio.
PBI's earnings are expected to grow with 41.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y56.48%
EPS Next 3Y41.26%
5. Dividend
5.1 Amount
PBI has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
PBI's Dividend Yield is rather good when compared to the industry average which is at 0.93. PBI pays more dividend than 90.24% of the companies in the same industry.
PBI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of PBI has a limited annual growth rate of 0.29%.
PBI has paid a dividend for at least 10 years, which is a reliable track record.
PBI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.29%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
PBI pays out 57.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
PBI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.53%
EPS Next 2Y56.48%
EPS Next 3Y41.26%
10.62
+0.15 (+1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners83.29%
Inst Owner Change3.49%
Ins Owners0.54%
Ins Owner Change0.91%
Market Cap1.71B
Revenue(TTM)1.93B
Net Income(TTM)79.99M
Analysts46.67
Price Target13.94 (31.26%)
Short Float %12.28%
Short Ratio6.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend0.2
Dividend Growth(5Y)0.29%
DP57.53%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.68%
Min EPS beat(2)-2.79%
Max EPS beat(2)-2.56%
EPS beat(4)2
Avg EPS beat(4)33.54%
Min EPS beat(4)-2.79%
Max EPS beat(4)118.51%
EPS beat(8)6
Avg EPS beat(8)81.21%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-3.91%
Max Revenue beat(2)-2.64%
Revenue beat(4)1
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-3.91%
Max Revenue beat(4)0.27%
Revenue beat(8)4
Avg Revenue beat(8)-4.86%
Revenue beat(12)5
Avg Revenue beat(12)-4.45%
Revenue beat(16)6
Avg Revenue beat(16)-3.85%
PT rev (1m)-19.61%
PT rev (3m)-19.61%
EPS NQ rev (1m)1.59%
EPS NQ rev (3m)3.47%
EPS NY rev (1m)0%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 7.89 | ||
| P/S | 0.88 | ||
| P/FCF | 7.5 | ||
| P/OCF | 5.77 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.52 |
EPS(TTM)1.23
EY11.58%
EPS(NY)1.35
Fwd EY12.68%
FCF(TTM)1.42
FCFY13.33%
OCF(TTM)1.84
OCFY17.32%
SpS12
BVpS-4.11
TBVpS-8.85
PEG (NY)0.06
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | N/A | ||
| ROCE | 13.53% | ||
| ROIC | 10.69% | ||
| ROICexc | 13.08% | ||
| ROICexgc | 26.66% | ||
| OM | 12.84% | ||
| PM (TTM) | 4.14% | ||
| GM | 53.78% | ||
| FCFM | 11.8% |
ROA(3y)-4.75%
ROA(5y)-3.54%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.15%
ROIC(5y)5.48%
ROICexc(3y)9.55%
ROICexc(5y)7.35%
ROICexgc(3y)19.63%
ROICexgc(5y)15.21%
ROCE(3y)9.05%
ROCE(5y)6.94%
ROICexgc growth 3Y51.48%
ROICexgc growth 5Y14.95%
ROICexc growth 3Y42.21%
ROICexc growth 5Y11.6%
OM growth 3Y37.5%
OM growth 5Y3.49%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y19.73%
GM growth 5Y5.55%
F-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.24 | ||
| Debt/EBITDA | 5.78 | ||
| Cap/Depr | 60.31% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 81.99% | ||
| Profit Quality | 284.83% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.15 |
F-Score5
WACC8.96%
ROIC/WACC1.19
Cap/Depr(3y)68.95%
Cap/Depr(5y)77.05%
Cap/Sales(3y)3.55%
Cap/Sales(5y)3.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)310%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%47.62%
EPS Next Y135.05%
EPS Next 2Y56.48%
EPS Next 3Y41.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-39.89%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-7.97%
Revenue Next Year-26.39%
Revenue Next 2Y-14.97%
Revenue Next 3Y-9.9%
Revenue Next 5YN/A
EBIT growth 1Y9.78%
EBIT growth 3Y12.77%
EBIT growth 5Y-5.57%
EBIT Next Year95.67%
EBIT Next 3Y27.6%
EBIT Next 5YN/A
FCF growth 1Y380.69%
FCF growth 3Y10.1%
FCF growth 5Y3.72%
OCF growth 1Y94.38%
OCF growth 3Y-8.74%
OCF growth 5Y-3.07%
PITNEY BOWES INC / PBI FAQ
Can you provide the ChartMill fundamental rating for PITNEY BOWES INC?
ChartMill assigns a fundamental rating of 5 / 10 to PBI.
Can you provide the valuation status for PITNEY BOWES INC?
ChartMill assigns a valuation rating of 9 / 10 to PITNEY BOWES INC (PBI). This can be considered as Undervalued.
Can you provide the profitability details for PITNEY BOWES INC?
PITNEY BOWES INC (PBI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for PBI stock?
The Price/Earnings (PE) ratio for PITNEY BOWES INC (PBI) is 8.63 and the Price/Book (PB) ratio is -2.58.
Can you provide the expected EPS growth for PBI stock?
The Earnings per Share (EPS) of PITNEY BOWES INC (PBI) is expected to grow by 135.05% in the next year.