PITNEY BOWES INC (PBI)
US7244791007 - Common Stock
PBI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. PBI may be in some trouble as it scores bad on both profitability and health. PBI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
PBI had positive earnings in the past year.
PBI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PBI reported negative net income in multiple years.
In the past 5 years PBI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -10.69%, PBI is doing worse than 80.72% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.76%, PBI is in line with its industry, outperforming 45.78% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PBI is significantly below the industry average of 10.00%.
The 3 year average ROIC (2.94%) for PBI is below the current ROIC(4.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.69% | ||
| ROE | N/A | ||
| ROIC | 4.76% |
ROA(3y)-2.76%
ROA(5y)-1.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.94%
ROIC(5y)3.27%
1.3 Margins
With a Operating Margin value of 3.95%, PBI is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of PBI has declined.
The Gross Margin of PBI (35.08%) is better than 60.24% of its industry peers.
PBI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.95% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% |
OM growth 3Y-10.96%
OM growth 5Y-24.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.09%
GM growth 5Y-6.7%
2. Health
2.1 Basic Checks
PBI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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 reduced compared to 5 years ago.
PBI has a worse debt/assets ratio than last year.
2.2 Solvency
PBI has an Altman-Z score of 2.10. 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.
With a Altman-Z score value of 2.10, PBI perfoms like the industry average, outperforming 49.40% of the companies in the same industry.
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 | 2.1 |
ROIC/WACC0.56
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.88 indicates that PBI may have some problems paying its short term obligations.
PBI has a Current ratio of 0.88. This is amonst the worse of the industry: PBI underperforms 84.34% of its industry peers.
A Quick Ratio of 0.84 indicates that PBI may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, PBI is not doing good in the industry: 79.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 900.00% over the past year.
Measured over the past years, PBI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -49.43% on average per year.
PBI shows a decrease in Revenue. In the last year, the revenue decreased by -9.35%.
Measured over the past years, PBI shows a small growth in Revenue. The Revenue has been growing by 0.34% on average per year.
EPS 1Y (TTM)900%
EPS 3Y-48.91%
EPS 5Y-49.43%
EPS Q2Q%-969.07%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y-2.77%
Revenue growth 5Y0.34%
Sales Q2Q%-36.27%
3.2 Future
PBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 208.25% yearly.
PBI is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -15.13% yearly.
EPS Next Y796.37%
EPS Next 2Y402.49%
EPS Next 3Y208.25%
EPS Next 5YN/A
Revenue Next Year-20.45%
Revenue Next 2Y-23.94%
Revenue Next 3Y-15.13%
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
PBI is valuated rather expensively with a Price/Earnings ratio of 24.10.
Based on the Price/Earnings ratio, PBI is valued a bit cheaper than 65.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. PBI is around the same levels.
PBI is valuated cheaply with a Price/Forward Earnings ratio of 7.16.
95.18% of the companies in the same industry are more expensive than PBI, based on the Price/Forward Earnings ratio.
PBI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PBI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PBI indicates a rather cheap valuation: PBI is cheaper than 83.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.61 | ||
| EV/EBITDA | 11.76 |
4.3 Compensation for Growth
PBI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PBI's earnings are expected to grow with 208.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y402.49%
EPS Next 3Y208.25%
5. Dividend
5.1 Amount
PBI has a Yearly Dividend Yield of 2.52%.
Compared to an average industry Dividend Yield of 1.99, PBI pays a better dividend. On top of this PBI pays more dividend than 89.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, PBI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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-9.16%
EPS Next 2Y402.49%
EPS Next 3Y208.25%
PITNEY BOWES INC
NYSE:PBI (12/20/2024, 8:04:00 PM)
After market: 7.23 0 (0%)7.23
+0.08 (+1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners58.48%
Inst Owner Change4.69%
Ins Owners2.52%
Ins Owner Change6.64%
Market Cap1.31B
Analysts45
Price Target15.3 (111.62%)
Short Float %6.98%
Short Ratio7.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Dividend Growth(5Y)-23.17%
DP-9.16%
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)15.38%
PT rev (3m)15.38%
EPS NQ rev (1m)153.85%
EPS NQ rev (3m)153.85%
EPS NY rev (1m)-2.74%
EPS NY rev (3m)-2.74%
Revenue NQ rev (1m)-44.58%
Revenue NQ rev (3m)-44.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 7.16 | ||
| P/S | 0.44 | ||
| P/FCF | 11.61 | ||
| P/OCF | 6.97 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.76 |
EPS(TTM)0.3
EY4.15%
EPS(NY)1.01
Fwd EY13.97%
FCF(TTM)0.62
FCFY8.61%
OCF(TTM)1.04
OCFY14.36%
SpS16.48
BVpS-2.86
TBVpS-7.01
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.69% | ||
| ROE | N/A | ||
| ROCE | 6.03% | ||
| ROIC | 4.76% | ||
| ROICexc | 6.74% | ||
| ROICexgc | 14.76% | ||
| OM | 3.95% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% | ||
| FCFM | 3.78% |
ROA(3y)-2.76%
ROA(5y)-1.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.94%
ROIC(5y)3.27%
ROICexc(3y)3.84%
ROICexc(5y)4.38%
ROICexgc(3y)7.31%
ROICexgc(5y)8.86%
ROCE(3y)3.73%
ROCE(5y)4.14%
ROICexcg growth 3Y-13.96%
ROICexcg growth 5Y-18.71%
ROICexc growth 3Y-6.55%
ROICexc growth 5Y-16.29%
OM growth 3Y-10.96%
OM growth 5Y-24.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.09%
GM growth 5Y-6.7%
F-Score4
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.16 | ||
| Debt/EBITDA | 8.63 | ||
| Cap/Depr | 59.78% | ||
| Cap/Sales | 2.52% | ||
| Interest Coverage | 0.69 | ||
| Cash Conversion | 77.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.1 |
F-Score4
WACC8.58%
ROIC/WACC0.56
Cap/Depr(3y)84.45%
Cap/Depr(5y)80.99%
Cap/Sales(3y)3.9%
Cap/Sales(5y)3.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)900%
EPS 3Y-48.91%
EPS 5Y-49.43%
EPS Q2Q%-969.07%
EPS Next Y796.37%
EPS Next 2Y402.49%
EPS Next 3Y208.25%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y-2.77%
Revenue growth 5Y0.34%
Sales Q2Q%-36.27%
Revenue Next Year-20.45%
Revenue Next 2Y-23.94%
Revenue Next 3Y-15.13%
Revenue Next 5YN/A
EBIT growth 1Y36.27%
EBIT growth 3Y-13.43%
EBIT growth 5Y-24.06%
EBIT Next Year133.52%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y345.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y99.44%
OCF growth 3Y-35.92%
OCF growth 5Y-25.43%