POSTAL REALTY TRUST INC- A (PSTL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSTL - US73757R1023 - REIT
17.7 USD
-0.06 (-0.34%)
17.467 USD
-0.23 (-1.32%)
Overall PSTL gets a fundamental rating of 5 out of 10. We evaluated PSTL against 125 industry peers in the Diversified REITs industry. While PSTL has a great profitability rating, there are quite some 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
- PSTL had positive earnings in the past year.
- PSTL had a positive operating cash flow in the past year.
- PSTL had positive earnings in 4 of the past 5 years.
- PSTL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PSTL has a Return On Assets (1.55%) which is in line with its industry peers.
- The Return On Equity of PSTL (4.17%) is better than 61.60% of its industry peers.
- With a decent Return On Invested Capital value of 3.44%, PSTL is doing good in the industry, outperforming 64.00% of the companies in the same industry.
- 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 3.07%.
- 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
- The Profit Margin of PSTL (12.53%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of PSTL has grown nicely.
- Looking at the Operating Margin, with a value of 34.13%, PSTL is in the better half of the industry, outperforming 70.40% of the companies in the same industry.
- In the last couple of years the Operating Margin of PSTL has grown nicely.
- PSTL has a Gross Margin of 78.20%. This is in the better half of the industry: PSTL outperforms 78.40% of its industry peers.
- In the last couple of years the Gross Margin of PSTL has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSTL is destroying value.
- PSTL has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PSTL has more shares outstanding
- Compared to 1 year ago, PSTL has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.72, we must say that PSTL is in the distress zone and has some risk of bankruptcy.
- PSTL's Altman-Z score of 0.72 is fine compared to the rest of the industry. PSTL outperforms 62.40% of its industry peers.
- PSTL has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.27, PSTL is in line with its industry, outperforming 51.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.5
WACC6.93%
2.3 Liquidity
- A Current Ratio of 0.68 indicates that PSTL may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.68, PSTL is doing worse than 70.40% of the companies in the same industry.
- 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.
- With a Quick ratio value of 0.68, PSTL is not doing good in the industry: 70.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- PSTL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 400.00%, which is quite impressive.
- The Earnings Per Share has been growing slightly by 5.73% on average over the past years.
- Looking at the last year, PSTL shows a very strong growth in Revenue. The Revenue has grown by 26.65%.
- Measured over the past years, PSTL shows a very strong growth in Revenue. The Revenue has been growing by 46.57% on average per year.
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
- The Earnings Per Share is expected to grow by 41.38% on average over the next years. This is a very strong growth
- PSTL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.26% yearly.
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
- 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
- A Price/Earnings ratio of 44.25 indicates a quite expensive valuation of PSTL.
- PSTL's Price/Earnings ratio is in line with the industry average.
- PSTL is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 31.36, the valuation of PSTL can be described as expensive.
- Based on the Price/Forward Earnings ratio, PSTL is valued a bit cheaper than 75.20% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, PSTL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.25 | ||
| Fwd PE | 31.36 |
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 | 14.86 |
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 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
- With a Yearly Dividend Yield of 5.59%, PSTL is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.59, PSTL has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PSTL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
5.2 History
- On average, the dividend of PSTL grows each year by 14.57%, which is quite nice.
- 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.
- PSTL's earnings are growing more than its dividend. This makes the dividend growth 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 44.25 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.