POSTAL REALTY TRUST INC- A (PSTL) Stock Fundamental Analysis
NYSE:PSTL - New York Stock Exchange, Inc. - US73757R1023 - REIT - Currency: USD
PSTL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. While PSTL is still in line with the averages on profitability rating, there are concerns on its financial health. PSTL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year PSTL was profitable.
In the past year PSTL had a positive cash flow from operations.
PSTL had positive earnings in 4 of the past 5 years.
In the past 5 years PSTL always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.99%, PSTL perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.63%, PSTL is in line with its industry, outperforming 56.59% of the companies in the same industry.
PSTL has a Return On Invested Capital of 2.80%. This is comparable to the rest of the industry: PSTL outperforms 53.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSTL is in line with the industry average of 3.15%.
The 3 year average ROIC (1.98%) for PSTL is below the current ROIC(2.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.63% | ||
| ROIC | 2.8% |
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
The Profit Margin of PSTL (7.96%) is comparable to the rest of the industry.
PSTL's Profit Margin has improved in the last couple of years.
PSTL has a better Operating Margin (27.85%) than 61.24% of its industry peers.
PSTL's Operating Margin has improved in the last couple of years.
PSTL has a Gross Margin of 76.08%. This is in the better half of the industry: PSTL outperforms 74.42% of its industry peers.
PSTL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.85% | ||
| PM (TTM) | 7.96% | ||
| GM | 76.08% |
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%
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.
The number of shares outstanding for PSTL has been increased compared to 5 years ago.
The debt/assets ratio for PSTL is higher compared to a year ago.
2.2 Solvency
PSTL has an Altman-Z score of 0.60. 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 0.60, PSTL is in line with its industry, outperforming 52.71% of the companies in the same industry.
PSTL has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
PSTL has a Debt to Equity ratio of 1.25. This is comparable to the rest of the industry: PSTL outperforms 49.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.6 |
ROIC/WACC0.41
WACC6.9%
2.3 Liquidity
PSTL has a Current Ratio of 0.56. This is a bad value and indicates that PSTL is not financially healthy enough and could expect problems in meeting its short term obligations.
PSTL has a Current ratio of 0.56. This is in the lower half of the industry: PSTL underperforms 75.97% of its industry peers.
A Quick Ratio of 0.56 indicates that PSTL may have some problems paying its short term obligations.
PSTL has a worse Quick ratio (0.56) than 75.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
PSTL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, 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 23.35% 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)100%
EPS 3Y5.73%
EPS 5YN/A
EPS Q2Q%700%
Revenue 1Y (TTM)23.35%
Revenue growth 3Y24.12%
Revenue growth 5Y46.57%
Sales Q2Q%28.13%
3.2 Future
Based on estimates for the next years, PSTL will show a very strong growth in Earnings Per Share. The EPS will grow by 23.76% on average per year.
Based on estimates for the next years, PSTL will show a quite strong growth in Revenue. The Revenue will grow by 13.00% on average per year.
EPS Next Y135.38%
EPS Next 2Y82.07%
EPS Next 3Y48.81%
EPS Next 5Y23.76%
Revenue Next Year26.3%
Revenue Next 2Y17.94%
Revenue Next 3Y15.32%
Revenue Next 5Y13%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 74.25, the valuation of PSTL can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as PSTL.
The average S&P500 Price/Earnings ratio is at 27.30. PSTL is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 34.46, 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 69.77% of the companies are valued more expensively.
PSTL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.25 | ||
| Fwd PE | 34.46 |
4.2 Price Multiples
PSTL's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.57 |
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 PSTL may justify a higher PE ratio.
A more expensive valuation may be justified as PSTL's earnings are expected to grow with 48.81% in the coming years.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y82.07%
EPS Next 3Y48.81%
5. Dividend
5.1 Amount
PSTL has a Yearly Dividend Yield of 6.47%, which is a nice return.
PSTL's Dividend Yield is comparable with the industry average which is at 6.43.
PSTL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
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.
PSTL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)14.57%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
440.92% of the earnings are spent on dividend by PSTL. This is not a sustainable payout ratio.
The dividend of PSTL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP440.92%
EPS Next 2Y82.07%
EPS Next 3Y48.81%
14.85
+0.09 (+0.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners69.01%
Inst Owner Change0%
Ins Owners5.98%
Ins Owner Change-0.84%
Market Cap353.88M
Analysts84.29
Price Target16.36 (10.17%)
Short Float %1.66%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
Yearly Dividend1.23
Dividend Growth(5Y)14.57%
DP440.92%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)272.55%
Min EPS beat(2)56.86%
Max EPS beat(2)488.24%
EPS beat(4)3
Avg EPS beat(4)129.35%
Min EPS beat(4)-34.64%
Max EPS beat(4)488.24%
EPS beat(8)6
Avg EPS beat(8)73.93%
EPS beat(12)10
Avg EPS beat(12)297.11%
EPS beat(16)10
Avg EPS beat(16)216.21%
Revenue beat(2)2
Avg Revenue beat(2)9.49%
Min Revenue beat(2)4.64%
Max Revenue beat(2)14.33%
Revenue beat(4)4
Avg Revenue beat(4)6.39%
Min Revenue beat(4)1.84%
Max Revenue beat(4)14.33%
Revenue beat(8)7
Avg Revenue beat(8)3.46%
Revenue beat(12)9
Avg Revenue beat(12)2.41%
Revenue beat(16)13
Avg Revenue beat(16)2.5%
PT rev (1m)2.94%
PT rev (3m)1.39%
EPS NQ rev (1m)17.39%
EPS NQ rev (3m)-3.57%
EPS NY rev (1m)15.38%
EPS NY rev (3m)-6.25%
Revenue NQ rev (1m)1.84%
Revenue NQ rev (3m)4.82%
Revenue NY rev (1m)1.77%
Revenue NY rev (3m)5.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.25 | ||
| Fwd PE | 34.46 | ||
| P/S | 4.36 | ||
| P/FCF | N/A | ||
| P/OCF | 9.33 | ||
| P/B | 1.44 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 14.57 |
EPS(TTM)0.2
EY1.35%
EPS(NY)0.43
Fwd EY2.9%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)1.59
OCFY10.72%
SpS3.41
BVpS10.3
TBVpS9.72
PEG (NY)0.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.63% | ||
| ROCE | 3.54% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 2.87% | ||
| OM | 27.85% | ||
| PM (TTM) | 7.96% | ||
| GM | 76.08% | ||
| 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 Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.79 | ||
| Cap/Depr | 386.4% | ||
| Cap/Sales | 107.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 0.6 |
F-Score6
WACC6.9%
ROIC/WACC0.41
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)100%
EPS 3Y5.73%
EPS 5YN/A
EPS Q2Q%700%
EPS Next Y135.38%
EPS Next 2Y82.07%
EPS Next 3Y48.81%
EPS Next 5Y23.76%
Revenue 1Y (TTM)23.35%
Revenue growth 3Y24.12%
Revenue growth 5Y46.57%
Sales Q2Q%28.13%
Revenue Next Year26.3%
Revenue Next 2Y17.94%
Revenue Next 3Y15.32%
Revenue Next 5Y13%
EBIT growth 1Y56.18%
EBIT growth 3Y47.99%
EBIT growth 5Y207.32%
EBIT Next Year477.81%
EBIT Next 3Y96.57%
EBIT Next 5Y73.77%
FCF growth 1Y42.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.61%
OCF growth 3Y25.13%
OCF growth 5Y63.59%