PITNEY BOWES INC (PBI) Stock Fundamental Analysis
NYSE:PBI - New York Stock Exchange, Inc. - 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 has a bad profitability rating. Also its financial health evaluation is rather negative. PBI is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In multiple years PBI reported negative net income over the last 5 years.
In the past 5 years PBI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PBI (-10.77%) is worse than 79.27% of its industry peers.
PBI has a Return On Invested Capital of 9.09%. This is in the better half of the industry: PBI outperforms 71.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PBI is significantly below the industry average of 10.08%.
The last Return On Invested Capital (9.09%) for PBI is above the 3 year average (2.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.77% | ||
| ROE | N/A | ||
| ROIC | 9.09% |
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
PBI has a Operating Margin of 7.03%. This is comparable to the rest of the industry: PBI outperforms 54.88% of its industry peers.
PBI's Operating Margin has declined in the last couple of years.
PBI's Gross Margin of 41.19% is fine compared to the rest of the industry. PBI outperforms 70.73% of its industry peers.
In the last couple of years the Gross Margin of PBI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.03% | ||
| PM (TTM) | N/A | ||
| GM | 41.19% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PBI is destroying value.
The number of shares outstanding for PBI has been increased compared to 1 year ago.
Compared to 5 years ago, PBI has less shares outstanding
Compared to 1 year ago, PBI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.27 indicates that PBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
PBI has a Altman-Z score (2.27) which is comparable to the rest of the industry.
The Debt to FCF ratio of PBI is 19.16, which is on the high side as it means it would take PBI, 19.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.16, PBI is in line with its industry, outperforming 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.16 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.99
WACC9.18%
2.3 Liquidity
PBI has a Current 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.
PBI has a Current ratio of 0.88. This is amonst the worse of the industry: PBI underperforms 84.15% 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: 79.27% 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.
PBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.43% yearly.
Looking at the last year, PBI shows a decrease in Revenue. The Revenue has decreased by -2.75% in the last year.
PBI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.34% yearly.
EPS 1Y (TTM)900%
EPS 3Y-48.91%
EPS 5Y-49.43%
EPS Q2Q%-969.07%
Revenue 1Y (TTM)-2.75%
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.
The Revenue is expected to decrease by -15.13% on average over the next years. This is quite bad
EPS Next Y834.25%
EPS Next 2Y411.21%
EPS Next 3Y208.25%
EPS Next 5YN/A
Revenue Next Year-20.45%
Revenue Next 2Y-21.99%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.55, PBI is valued on the expensive side.
PBI's Price/Earnings ratio is a bit cheaper when compared to the industry. PBI is cheaper than 64.63% of the companies in the same industry.
PBI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
PBI is valuated cheaply with a Price/Forward Earnings ratio of 7.05.
96.34% of the companies in the same industry are more expensive than PBI, based on the Price/Forward Earnings ratio.
PBI is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.55 | ||
| Fwd PE | 7.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBI is valued a bit cheaper than the industry average as 76.83% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PBI is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.83 | ||
| EV/EBITDA | 8.31 |
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 2Y411.21%
EPS Next 3Y208.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.74%, PBI has a reasonable but not impressive dividend return.
PBI's Dividend Yield is rather good when compared to the industry average which is at 2.09. PBI pays more dividend than 87.80% of the companies in the same industry.
PBI's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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 2Y411.21%
EPS Next 3Y208.25%
PITNEY BOWES INC
NYSE:PBI (1/22/2025, 11:35:00 AM)
7.365
-0.06 (-0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.02%
Inst Owner Change0.53%
Ins Owners0.73%
Ins Owner Change5.96%
Market Cap1.34B
Analysts45
Price Target15.3 (107.74%)
Short Float %7.96%
Short Ratio7.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend0.2
Dividend Growth(5Y)-23.17%
DP-9.09%
Div Incr Years0
Div Non Decr Years5
Ex-DateN/A
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)0%
EPS NQ rev (3m)153.85%
EPS NY rev (1m)0%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-44.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.55 | ||
| Fwd PE | 7.05 | ||
| P/S | 0.42 | ||
| P/FCF | 11.83 | ||
| P/OCF | 7.1 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.31 |
EPS(TTM)0.3
EY4.07%
EPS(NY)1.05
Fwd EY14.19%
FCF(TTM)0.62
FCFY8.45%
OCF(TTM)1.04
OCFY14.09%
SpS17.68
BVpS-2.86
TBVpS-7.01
PEG (NY)0.03
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)-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 Turnover0.88
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 | 2.27 |
F-Score4
WACC9.18%
ROIC/WACC0.99
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 Y834.25%
EPS Next 2Y411.21%
EPS Next 3Y208.25%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.75%
Revenue growth 3Y-2.77%
Revenue growth 5Y0.34%
Sales Q2Q%-36.27%
Revenue Next Year-20.45%
Revenue Next 2Y-21.99%
Revenue Next 3Y-15.13%
Revenue Next 5YN/A
EBIT growth 1Y160.06%
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%