POSTAL REALTY TRUST INC- A (PSTL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSTL - US73757R1023 - REIT
17.72 USD
+0.02 (+0.11%)
17.85 USD
+0.13 (+0.73%)
PSTL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 industry peers in the Diversified REITs industry. PSTL has an excellent profitability rating, but there are concerns on its financial health. PSTL is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- In the past year PSTL was profitable.
- PSTL had a positive operating cash flow in the past year.
- 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
- PSTL has a Return On Assets of 1.55%. This is comparable to the rest of the industry: PSTL outperforms 55.65% of its industry peers.
- With a decent Return On Equity value of 4.17%, PSTL is doing good in the industry, outperforming 62.10% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 3.44%, PSTL is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PSTL is in line with the industry average of 3.05%.
- The 3 year average ROIC (1.98%) for PSTL is below the current ROIC(3.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 4.17% | ||
| ROIC | 3.44% |
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 better Profit Margin (12.53%) than 60.48% of its industry peers.
- PSTL's Profit Margin has improved in the last couple of years.
- PSTL's Operating Margin of 34.13% is fine compared to the rest of the industry. PSTL outperforms 70.16% of its industry peers.
- PSTL's Operating Margin has improved in the last couple of years.
- The Gross Margin of PSTL (78.20%) is better than 78.23% of its industry peers.
- PSTL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.13% | ||
| PM (TTM) | 12.53% | ||
| GM | 78.2% |
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
- PSTL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, PSTL has more shares outstanding
- The number of shares outstanding for PSTL has been increased compared to 5 years ago.
- Compared to 1 year ago, PSTL has a worse debt to assets ratio.
2.2 Solvency
- PSTL has an Altman-Z score of 0.72. This is a bad value and indicates that PSTL is not financially healthy and even has some risk of bankruptcy.
- PSTL has a Altman-Z score of 0.72. This is in the better half of the industry: PSTL outperforms 62.90% of its industry peers.
- A Debt/Equity ratio of 1.27 is on the high side and indicates that PSTL has dependencies on debt financing.
- PSTL has a Debt to Equity ratio (1.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.5
WACC6.91%
2.3 Liquidity
- PSTL has a Current Ratio of 0.68. 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 0.68. This is in the lower half of the industry: PSTL underperforms 70.16% of its industry peers.
- PSTL has a Quick Ratio of 0.68. 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's Quick ratio of 0.68 is on the low side compared to the rest of the industry. PSTL is outperformed by 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 400.00% over the past year.
- The Earnings Per Share has been growing slightly by 5.73% on average over the past years.
- PSTL shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.65%.
- The Revenue has been growing by 46.57% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)400%
EPS 3Y5.73%
EPS 5YN/A
EPS Q2Q%333.33%
Revenue 1Y (TTM)26.65%
Revenue growth 3Y24.12%
Revenue growth 5Y46.57%
Sales Q2Q%23.69%
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 41.38% on average per year.
- The Revenue is expected to grow by 17.26% on average over the next years. This is quite good.
EPS Next Y311.92%
EPS Next 2Y108.36%
EPS Next 3Y70.05%
EPS Next 5Y41.38%
Revenue Next Year32.5%
Revenue Next 2Y23.1%
Revenue Next 3Y19.11%
Revenue Next 5Y17.26%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 44.30, PSTL can be considered very expensive at the moment.
- PSTL's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of PSTL to the average of the S&P500 Index (27.25), we can say PSTL is valued expensively.
- The Price/Forward Earnings ratio is 31.40, which means the current valuation is very expensive for PSTL.
- Based on the Price/Forward Earnings ratio, PSTL is valued a bit cheaper than 75.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. PSTL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.3 | ||
| Fwd PE | 31.4 |
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 | 14.84 |
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.
- PSTL's earnings are expected to grow with 70.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y108.36%
EPS Next 3Y70.05%
5. Dividend
5.1 Amount
- PSTL has a Yearly Dividend Yield of 5.46%, which is a nice return.
- PSTL's Dividend Yield is comparable with the industry average which is at 6.82.
- Compared to an average S&P500 Dividend Yield of 1.82, PSTL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
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
- 260.93% 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.
DP260.93%
EPS Next 2Y108.36%
EPS Next 3Y70.05%
POSTAL REALTY TRUST INC- A / PSTL FAQ
What is the fundamental rating for PSTL stock?
ChartMill assigns a fundamental rating of 5 / 10 to PSTL.
What is the valuation status of POSTAL REALTY TRUST INC- A (PSTL) stock?
ChartMill assigns a valuation rating of 4 / 10 to POSTAL REALTY TRUST INC- A (PSTL). This can be considered as Fairly Valued.
Can you provide the profitability details for POSTAL REALTY TRUST INC- A?
POSTAL REALTY TRUST INC- A (PSTL) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for PSTL stock?
The Price/Earnings (PE) ratio for POSTAL REALTY TRUST INC- A (PSTL) is 44.3 and the Price/Book (PB) ratio is 1.69.
Can you provide the expected EPS growth for PSTL stock?
The Earnings per Share (EPS) of POSTAL REALTY TRUST INC- A (PSTL) is expected to grow by 311.92% in the next year.