POSTAL REALTY TRUST INC- A (PSTL) Stock Fundamental Analysis
USA - NYSE:PSTL - US73757R1023 - REIT
15.05 USD
+0.06 (+0.4%)
15.05 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PSTL. PSTL was compared to 129 industry peers in the Diversified REITs industry. There are concerns on the financial health of PSTL while its profitability can be described as average. PSTL is growing strongly while it is still valued neutral. This is a good combination! PSTL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PSTL was profitable.
PSTL had a positive operating cash flow in the past year.
Of the past 5 years PSTL 4 years were profitable.
PSTL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PSTL has a Return On Assets (1.30%) which is in line with its industry peers.
PSTL has a Return On Equity of 3.57%. This is comparable to the rest of the industry: PSTL outperforms 58.91% of its industry peers.
PSTL has a Return On Invested Capital of 3.16%. This is in the better half of the industry: PSTL outperforms 60.47% of its industry peers.
PSTL had an Average Return On Invested Capital over the past 3 years of 1.98%. This is in line with the industry average of 3.01%.
The last Return On Invested Capital (3.16%) for PSTL is above the 3 year average (1.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 3.57% | ||
| ROIC | 3.16% |
ROA(3y)0.58%
ROA(5y)0.37%
ROE(3y)1.37%
ROE(5y)0.8%
ROIC(3y)1.98%
ROIC(5y)1.57%
1.3 Margins
PSTL has a Profit Margin of 10.36%. This is comparable to the rest of the industry: PSTL outperforms 58.91% of its industry peers.
PSTL's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 31.06%, PSTL is doing good in the industry, outperforming 64.34% of the companies in the same industry.
PSTL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 77.25%, PSTL is in the better half of the industry, outperforming 75.19% of the companies in the same industry.
PSTL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.06% | ||
| PM (TTM) | 10.36% | ||
| GM | 77.25% |
OM growth 3Y19.23%
OM growth 5Y109.67%
PM growth 3Y21.53%
PM growth 5YN/A
GM growth 3Y-0.58%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSTL is destroying value.
The number of shares outstanding for PSTL has been increased compared to 1 year ago.
Compared to 5 years ago, PSTL has more shares outstanding
The debt/assets ratio for PSTL is higher compared to a year ago.
2.2 Solvency
PSTL has an Altman-Z score of 0.61. This is a bad value and indicates that PSTL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.61, PSTL is in line with its industry, outperforming 56.59% of the companies in the same industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that PSTL has dependencies on debt financing.
PSTL's Debt to Equity ratio of 1.31 is in line compared to the rest of the industry. PSTL outperforms 48.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.61 |
ROIC/WACC0.49
WACC6.49%
2.3 Liquidity
PSTL has a Current Ratio of 0.59. This is a bad value and indicates that PSTL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.59, PSTL is doing worse than 75.97% of the companies in the same industry.
A Quick Ratio of 0.59 indicates that PSTL may have some problems paying its short term obligations.
PSTL has a worse Quick ratio (0.59) than 75.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
PSTL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 233.33%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.73% on average over the past years.
The Revenue has grown by 26.43% in the past year. This is a very strong growth!
PSTL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 46.57% yearly.
EPS 1Y (TTM)233.33%
EPS 3Y5.73%
EPS 5YN/A
EPS Q2Q%500%
Revenue 1Y (TTM)26.43%
Revenue growth 3Y24.12%
Revenue growth 5Y46.57%
Sales Q2Q%29.37%
3.2 Future
PSTL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.44% yearly.
Based on estimates for the next years, PSTL will show a quite strong growth in Revenue. The Revenue will grow by 14.88% on average per year.
EPS Next Y233.46%
EPS Next 2Y90.5%
EPS Next 3Y58.07%
EPS Next 5Y31.44%
Revenue Next Year30.59%
Revenue Next 2Y20.25%
Revenue Next 3Y17.06%
Revenue Next 5Y14.88%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
PSTL is valuated quite expensively with a Price/Earnings ratio of 50.17.
PSTL's Price/Earnings ratio is in line with the industry average.
PSTL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.40.
The Price/Forward Earnings ratio is 31.90, which means the current valuation is very expensive for PSTL.
Based on the Price/Forward Earnings ratio, PSTL is valued a bit cheaper than the industry average as 73.64% of the companies are valued more expensively.
PSTL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.17 | ||
| Fwd PE | 31.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PSTL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.99 |
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.
PSTL has a very decent profitability rating, which may justify a higher PE ratio.
PSTL's earnings are expected to grow with 58.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y90.5%
EPS Next 3Y58.07%
5. Dividend
5.1 Amount
PSTL has a Yearly Dividend Yield of 6.52%, which is a nice return.
Compared to an average industry Dividend Yield of 6.99, PSTL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, PSTL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
5.2 History
The dividend of PSTL is nicely growing with an annual growth rate of 14.57%!
PSTL has been paying a dividend for over 5 years, so it has already some track record.
As PSTL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)14.57%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
PSTL pays out 324.95% of its income as dividend. This is not a sustainable payout ratio.
PSTL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP324.95%
EPS Next 2Y90.5%
EPS Next 3Y58.07%
15.05
+0.06 (+0.4%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners70.46%
Inst Owner Change0%
Ins Owners5.68%
Ins Owner Change-1.57%
Market Cap370.38M
Analysts83.08
Price Target17.21 (14.35%)
Short Float %0.96%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
Yearly Dividend1.23
Dividend Growth(5Y)14.57%
DP324.95%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.58%
Min EPS beat(2)56.86%
Max EPS beat(2)74.29%
EPS beat(4)4
Avg EPS beat(4)156.59%
Min EPS beat(4)6.95%
Max EPS beat(4)488.24%
EPS beat(8)6
Avg EPS beat(8)75.29%
EPS beat(12)10
Avg EPS beat(12)302.3%
EPS beat(16)11
Avg EPS beat(16)220.98%
Revenue beat(2)2
Avg Revenue beat(2)4%
Min Revenue beat(2)3.36%
Max Revenue beat(2)4.64%
Revenue beat(4)4
Avg Revenue beat(4)6.77%
Min Revenue beat(4)3.36%
Max Revenue beat(4)14.33%
Revenue beat(8)7
Avg Revenue beat(8)3.78%
Revenue beat(12)9
Avg Revenue beat(12)2.66%
Revenue beat(16)13
Avg Revenue beat(16)2.46%
PT rev (1m)1%
PT rev (3m)5.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)58.03%
EPS NY rev (1m)8.28%
EPS NY rev (3m)41.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.58%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)3.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.17 | ||
| Fwd PE | 31.9 | ||
| P/S | 4.28 | ||
| P/FCF | N/A | ||
| P/OCF | 9.39 | ||
| P/B | 1.48 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 13.99 |
EPS(TTM)0.3
EY1.99%
EPS(NY)0.47
Fwd EY3.13%
FCF(TTM)-2.11
FCFYN/A
OCF(TTM)1.6
OCFY10.65%
SpS3.52
BVpS10.19
TBVpS9.59
PEG (NY)0.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 3.57% | ||
| ROCE | 4% | ||
| ROIC | 3.16% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 3.24% | ||
| OM | 31.06% | ||
| PM (TTM) | 10.36% | ||
| GM | 77.25% | ||
| FCFM | N/A |
ROA(3y)0.58%
ROA(5y)0.37%
ROE(3y)1.37%
ROE(5y)0.8%
ROIC(3y)1.98%
ROIC(5y)1.57%
ROICexc(3y)1.99%
ROICexc(5y)1.58%
ROICexgc(3y)2.05%
ROICexgc(5y)1.63%
ROCE(3y)2.51%
ROCE(5y)1.99%
ROICexcg growth 3Y22.58%
ROICexcg growth 5Y119.37%
ROICexc growth 3Y23.31%
ROICexc growth 5Y121.08%
OM growth 3Y19.23%
OM growth 5Y109.67%
PM growth 3Y21.53%
PM growth 5YN/A
GM growth 3Y-0.58%
GM growth 5Y-0.52%
F-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.6 | ||
| Cap/Depr | 398.5% | ||
| Cap/Sales | 105.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.61 |
F-Score6
WACC6.49%
ROIC/WACC0.49
Cap/Depr(3y)476.49%
Cap/Depr(5y)689.71%
Cap/Sales(3y)150.2%
Cap/Sales(5y)238.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)233.33%
EPS 3Y5.73%
EPS 5YN/A
EPS Q2Q%500%
EPS Next Y233.46%
EPS Next 2Y90.5%
EPS Next 3Y58.07%
EPS Next 5Y31.44%
Revenue 1Y (TTM)26.43%
Revenue growth 3Y24.12%
Revenue growth 5Y46.57%
Sales Q2Q%29.37%
Revenue Next Year30.59%
Revenue Next 2Y20.25%
Revenue Next 3Y17.06%
Revenue Next 5Y14.88%
EBIT growth 1Y79.49%
EBIT growth 3Y47.99%
EBIT growth 5Y207.32%
EBIT Next Year520.02%
EBIT Next 3Y102.18%
EBIT Next 5Y75.7%
FCF growth 1Y-13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y50.88%
OCF growth 3Y25.13%
OCF growth 5Y63.59%