PITNEY BOWES INC (PBI) Stock Fundamental Analysis
NYSE:PBI - New York Stock Exchange, Inc. - US7244791007 - Common Stock - Currency: USD
PBI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 84 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 is valued quite cheap, but it does not seem to be growing.
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.
PBI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PBI has a worse Return On Assets (-10.77%) than 79.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.09%, PBI is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PBI is below the industry average of 10.12%.
The 3 year average ROIC (5.56%) for PBI is below the current ROIC(9.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.77% | ||
| ROE | N/A | ||
| ROIC | 9.09% |
ROA(3y)-4.75%
ROA(5y)-3.54%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.56%
ROIC(5y)4.53%
1.3 Margins
With a Operating Margin value of 7.03%, PBI perfoms like the industry average, outperforming 54.88% of the companies in the same industry.
PBI's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 41.19%, PBI is doing good in the industry, outperforming 70.73% of the companies in the same industry.
In the last couple of years the Gross Margin of PBI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.03% | ||
| PM (TTM) | N/A | ||
| GM | 41.19% |
OM growth 3Y31.05%
OM growth 5Y0.55%
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.
PBI has more shares outstanding than it did 1 year ago.
PBI has more shares outstanding than it did 5 years ago.
PBI has a worse debt/assets ratio than last year.
2.2 Solvency
PBI has an Altman-Z score of 2.35. 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.
PBI has a Altman-Z score of 2.35. This is comparable to the rest of the industry: PBI outperforms 53.66% of its industry peers.
PBI has a debt to FCF ratio of 19.16. This is a negative value and a sign of low solvency as PBI would need 19.16 years to pay back of all of its debts.
PBI has a Debt to FCF ratio (19.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.16 | ||
| Altman-Z | 2.35 |
ROIC/WACC1.09
WACC8.31%
2.3 Liquidity
A Current Ratio of 0.88 indicates that PBI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.88, PBI is doing worse than 84.15% of the companies in the same industry.
PBI has a Quick Ratio of 0.88. This is a bad value and indicates that PBI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PBI (0.84) is worse than 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
PBI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1275.00%, which is quite impressive.
PBI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.76% yearly.
PBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.53%.
PBI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.76% yearly.
EPS 1Y (TTM)1275%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%357.14%
Revenue 1Y (TTM)-12.53%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-40.78%
3.2 Future
The Earnings Per Share is expected to grow by 53.02% on average over the next years. This is a very strong growth
PBI is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -12.11% yearly.
EPS Next Y119.45%
EPS Next 2Y53.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-23.09%
Revenue Next 2Y-12.11%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.76 indicates a rather expensive valuation of PBI.
69.51% of the companies in the same industry are more expensive than PBI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. PBI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 8.55, which indicates a very decent valuation of PBI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PBI indicates a rather cheap valuation: PBI is cheaper than 90.24% of the companies listed in the same industry.
PBI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 8.55 |
4.2 Price Multiples
PBI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PBI is cheaper than 69.51% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PBI indicates a somewhat cheap valuation: PBI is cheaper than 71.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.58 | ||
| EV/EBITDA | 10 |
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.
A more expensive valuation may be justified as PBI's earnings are expected to grow with 53.02% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y53.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.25%, PBI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.12, PBI pays a better dividend. On top of this PBI pays more dividend than 86.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, PBI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of PBI decreases each year by -23.17%.
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)-23.17%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
The earnings of PBI are negative and hence is the payout ratio. PBI will probably not be able to sustain this dividend level.
DP-9.09%
EPS Next 2Y53.02%
EPS Next 3YN/A
10.32
-0.37 (-3.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners71.75%
Inst Owner Change19.68%
Ins Owners0.81%
Ins Owner Change5.87%
Market Cap1.88B
Analysts45
Price Target17.34 (68.02%)
Short Float %6.31%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend0.2
Dividend Growth(5Y)-23.17%
DP-9.09%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)95.47%
Min EPS beat(2)48.51%
Max EPS beat(2)142.43%
EPS beat(4)4
Avg EPS beat(4)128.87%
Min EPS beat(4)48.51%
Max EPS beat(4)246.54%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)1
Avg Revenue beat(2)-17.71%
Min Revenue beat(2)-37.19%
Max Revenue beat(2)1.77%
Revenue beat(4)3
Avg Revenue beat(4)-7.67%
Min Revenue beat(4)-37.19%
Max Revenue beat(4)3.17%
Revenue beat(8)4
Avg Revenue beat(8)-5.66%
Revenue beat(12)5
Avg Revenue beat(12)-4.46%
Revenue beat(16)7
Avg Revenue beat(16)-2.8%
PT rev (1m)0%
PT rev (3m)15.38%
EPS NQ rev (1m)-12.12%
EPS NQ rev (3m)123.08%
EPS NY rev (1m)0%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)4.06%
Revenue NQ rev (3m)-42.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 8.55 | ||
| P/S | 0.58 | ||
| P/FCF | 16.58 | ||
| P/OCF | 9.94 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10 |
EPS(TTM)0.55
EY5.33%
EPS(NY)1.21
Fwd EY11.7%
FCF(TTM)0.62
FCFY6.03%
OCF(TTM)1.04
OCFY10.06%
SpS17.68
BVpS-2.86
TBVpS-7.01
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.77% | ||
| ROE | N/A | ||
| ROCE | 11.51% | ||
| ROIC | 9.09% | ||
| ROICexc | 12.86% | ||
| ROICexgc | 28.18% | ||
| OM | 7.03% | ||
| PM (TTM) | N/A | ||
| GM | 41.19% | ||
| FCFM | 3.52% |
ROA(3y)-4.75%
ROA(5y)-3.54%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.56%
ROIC(5y)4.53%
ROICexc(3y)7.46%
ROICexc(5y)6.09%
ROICexgc(3y)15.3%
ROICexgc(5y)12.62%
ROCE(3y)7.03%
ROCE(5y)5.73%
ROICexcg growth 3Y44.37%
ROICexcg growth 5Y11.68%
ROICexc growth 3Y35.54%
ROICexc growth 5Y8.43%
OM growth 3Y31.05%
OM growth 5Y0.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y19.73%
GM growth 5Y5.55%
F-Score4
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.16 | ||
| Debt/EBITDA | 5.99 | ||
| Cap/Depr | 59.78% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | 53.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.35 |
F-Score4
WACC8.31%
ROIC/WACC1.09
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1275%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%357.14%
EPS Next Y119.45%
EPS Next 2Y53.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.53%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-40.78%
Revenue Next Year-23.09%
Revenue Next 2Y-12.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y160.06%
EBIT growth 3Y7.48%
EBIT growth 5Y-8.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y138.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.84%
OCF growth 3YN/A
OCF growth 5YN/A