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POSTAL REALTY TRUST INC- A (PSTL) Stock Fundamental Analysis

NYSE:PSTL - New York Stock Exchange, Inc. - US73757R1023 - REIT - Currency: USD

12.43  -0.73 (-5.55%)

After market: 12.43 0 (0%)

Fundamental Rating

3

PSTL gets a fundamental rating of 3 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year PSTL was profitable.
PSTL had a positive operating cash flow in the past year.
In multiple years PSTL reported negative net income over the last 5 years.
Each year in the past 5 years PSTL had a positive operating cash flow.
PSTL Yearly Net Income VS EBIT VS OCF VS FCFPSTL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 -50M -100M

1.2 Ratios

With a Return On Assets value of 0.29%, PSTL perfoms like the industry average, outperforming 43.65% of the companies in the same industry.
The Return On Equity of PSTL (0.72%) is comparable to the rest of the industry.
PSTL's Return On Invested Capital of 2.13% is on the low side compared to the rest of the industry. PSTL is outperformed by 65.87% 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 3.11%.
The 3 year average ROIC (1.60%) for PSTL is below the current ROIC(2.13%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.29%
ROE 0.72%
ROIC 2.13%
ROA(3y)0.45%
ROA(5y)0%
ROE(3y)0.95%
ROE(5y)-0.2%
ROIC(3y)1.6%
ROIC(5y)1.1%
PSTL Yearly ROA, ROE, ROICPSTL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 -10 -15

1.3 Margins

PSTL has a Profit Margin of 2.44%. This is comparable to the rest of the industry: PSTL outperforms 45.24% of its industry peers.
In the last couple of years the Profit Margin of PSTL has declined.
PSTL has a Operating Margin of 22.43%. This is comparable to the rest of the industry: PSTL outperforms 52.38% of its industry peers.
PSTL's Operating Margin has declined in the last couple of years.
PSTL has a better Gross Margin (74.31%) than 69.84% of its industry peers.
PSTL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 22.43%
PM (TTM) 2.44%
GM 74.31%
OM growth 3Y38.29%
OM growth 5Y-8.05%
PM growth 3YN/A
PM growth 5Y-24.34%
GM growth 3Y-1.55%
GM growth 5Y0.08%
PSTL Yearly Profit, Operating, Gross MarginsPSTL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

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2

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
Compared to 5 years ago, PSTL has more shares outstanding
Compared to 1 year ago, PSTL has a worse debt to assets ratio.
PSTL Yearly Shares OutstandingPSTL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
PSTL Yearly Total Debt VS Total AssetsPSTL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

2.2 Solvency

Based on the Altman-Z score of 0.55, we must say that PSTL is in the distress zone and has some risk of bankruptcy.
PSTL's Altman-Z score of 0.55 is in line compared to the rest of the industry. PSTL outperforms 45.24% of its industry peers.
PSTL has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PSTL (1.13) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.13
Debt/FCF N/A
Altman-Z 0.55
ROIC/WACC0.31
WACC6.83%
PSTL Yearly LT Debt VS Equity VS FCFPSTL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M

2.3 Liquidity

PSTL has a Current Ratio of 1.23. This is a normal value and indicates that PSTL is financially healthy and should not expect problems in meeting its short term obligations.
PSTL has a Current ratio (1.23) which is in line with its industry peers.
PSTL has a Quick Ratio of 1.23. This is a normal value and indicates that PSTL is financially healthy and should not expect problems in meeting its short term obligations.
PSTL has a Quick ratio (1.23) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 1.23
PSTL Yearly Current Assets VS Current LiabilitesPSTL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M

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5

3. Growth

3.1 Past

The earnings per share for PSTL have decreased strongly by -38.46% in the last year.
Measured over the past years, PSTL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.28% on average per year.
PSTL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.85%.
The Revenue has been growing by 52.64% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-38.46%
EPS 3YN/A
EPS 5Y-10.28%
EPS Q2Q%-25%
Revenue 1Y (TTM)16.85%
Revenue growth 3Y37.63%
Revenue growth 5Y52.64%
Sales Q2Q%22.11%

3.2 Future

The Earnings Per Share is expected to decrease by -3.55% on average over the next years.
Based on estimates for the next years, PSTL will show a quite strong growth in Revenue. The Revenue will grow by 11.41% on average per year.
EPS Next Y-10.36%
EPS Next 2Y-17.16%
EPS Next 3Y-2.49%
EPS Next 5Y-3.55%
Revenue Next Year13.33%
Revenue Next 2Y12.08%
Revenue Next 3Y11.63%
Revenue Next 5Y11.41%

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.
PSTL Yearly Revenue VS EstimatesPSTL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20M 40M 60M 80M 100M
PSTL Yearly EPS VS EstimatesPSTL Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 0.1 -0.1

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1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 155.38, the valuation of PSTL can be described as expensive.
Based on the Price/Earnings ratio, PSTL is valued a bit more expensive than the industry average as 67.46% of the companies are valued more cheaply.
PSTL is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
PSTL is valuated quite expensively with a Price/Forward Earnings ratio of 164.68.
PSTL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PSTL to the average of the S&P500 Index (22.68), we can say PSTL is valued expensively.
Industry RankSector Rank
PE 155.38
Fwd PE 164.68
PSTL Price Earnings VS Forward Price EarningsPSTL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

PSTL's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.99
PSTL Per share dataPSTL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

PSTL's earnings are expected to decrease with -2.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.16%
EPS Next 3Y-2.49%

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5

5. Dividend

5.1 Amount

PSTL has a Yearly Dividend Yield of 7.37%, which is a nice return.
PSTL's Dividend Yield is a higher than the industry average which is at 18.40.
PSTL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 7.37%

5.2 History

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)N/A
Div Incr Years5
Div Non Decr Years5
PSTL Yearly Dividends per sharePSTL Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

1545.51% of the earnings are spent on dividend by PSTL. This is not a sustainable payout ratio.
DP1545.51%
EPS Next 2Y-17.16%
EPS Next 3Y-2.49%
PSTL Yearly Income VS Free CF VS DividendPSTL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 -50M -100M
PSTL Dividend Payout.PSTL Dividend Payout, showing the Payout Ratio.PSTL Dividend Payout.PayoutRetained Earnings

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POSTAL REALTY TRUST INC- A

NYSE:PSTL (2/21/2025, 8:04:00 PM)

After market: 12.43 0 (0%)

12.43

-0.73 (-5.55%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-04 2024-11-04/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners66.19%
Inst Owner Change-95.8%
Ins Owners5.92%
Ins Owner Change2.09%
Market Cap291.86M
Analysts84.29
Price Target16.03 (28.96%)
Short Float %0.64%
Short Ratio1.01
Dividend
Industry RankSector Rank
Dividend Yield 7.37%
Yearly Dividend1.17
Dividend Growth(5Y)N/A
DP1545.51%
Div Incr Years5
Div Non Decr Years5
Ex-Date02-14 2025-02-14 (0.2425)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-13.84%
Min EPS beat(2)-34.64%
Max EPS beat(2)6.95%
EPS beat(4)2
Avg EPS beat(4)-23.83%
Min EPS beat(4)-107.69%
Max EPS beat(4)40.06%
EPS beat(8)6
Avg EPS beat(8)373.44%
EPS beat(12)8
Avg EPS beat(12)245.91%
EPS beat(16)9
Avg EPS beat(16)191.06%
Revenue beat(2)2
Avg Revenue beat(2)3.29%
Min Revenue beat(2)1.84%
Max Revenue beat(2)4.75%
Revenue beat(4)3
Avg Revenue beat(4)1.93%
Min Revenue beat(4)-1%
Max Revenue beat(4)4.75%
Revenue beat(8)6
Avg Revenue beat(8)1.33%
Revenue beat(12)9
Avg Revenue beat(12)0.96%
Revenue beat(16)13
Avg Revenue beat(16)2.92%
PT rev (1m)-0.9%
PT rev (3m)-0.9%
EPS NQ rev (1m)-25%
EPS NQ rev (3m)-40%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.37%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.31%
Valuation
Industry RankSector Rank
PE 155.38
Fwd PE 164.68
P/S 4.05
P/FCF N/A
P/OCF 9.29
P/B 1.19
P/tB 1.26
EV/EBITDA 14.99
EPS(TTM)0.08
EY0.64%
EPS(NY)0.08
Fwd EY0.61%
FCF(TTM)-1.71
FCFYN/A
OCF(TTM)1.34
OCFY10.76%
SpS3.07
BVpS10.46
TBVpS9.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.29%
ROE 0.72%
ROCE 2.69%
ROIC 2.13%
ROICexc 2.13%
ROICexgc 2.18%
OM 22.43%
PM (TTM) 2.44%
GM 74.31%
FCFM N/A
ROA(3y)0.45%
ROA(5y)0%
ROE(3y)0.95%
ROE(5y)-0.2%
ROIC(3y)1.6%
ROIC(5y)1.1%
ROICexc(3y)1.62%
ROICexc(5y)1.11%
ROICexgc(3y)1.67%
ROICexgc(5y)1.15%
ROCE(3y)2.03%
ROCE(5y)1.39%
ROICexcg growth 3Y45.04%
ROICexcg growth 5Y-20.76%
ROICexc growth 3Y46.22%
ROICexc growth 5Y-19.89%
OM growth 3Y38.29%
OM growth 5Y-8.05%
PM growth 3YN/A
PM growth 5Y-24.34%
GM growth 3Y-1.55%
GM growth 5Y0.08%
F-Score4
Asset Turnover0.12
Health
Industry RankSector Rank
Debt/Equity 1.13
Debt/FCF N/A
Debt/EBITDA 7.31
Cap/Depr 328.95%
Cap/Sales 99.29%
Interest Coverage 250
Cash Conversion 82.9%
Profit Quality N/A
Current Ratio 1.23
Quick Ratio 1.23
Altman-Z 0.55
F-Score4
WACC6.83%
ROIC/WACC0.31
Cap/Depr(3y)566.85%
Cap/Depr(5y)993.95%
Cap/Sales(3y)189.43%
Cap/Sales(5y)344.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.46%
EPS 3YN/A
EPS 5Y-10.28%
EPS Q2Q%-25%
EPS Next Y-10.36%
EPS Next 2Y-17.16%
EPS Next 3Y-2.49%
EPS Next 5Y-3.55%
Revenue 1Y (TTM)16.85%
Revenue growth 3Y37.63%
Revenue growth 5Y52.64%
Sales Q2Q%22.11%
Revenue Next Year13.33%
Revenue Next 2Y12.08%
Revenue Next 3Y11.63%
Revenue Next 5Y11.41%
EBIT growth 1Y19.99%
EBIT growth 3Y90.33%
EBIT growth 5Y40.35%
EBIT Next Year209.74%
EBIT Next 3Y61.13%
EBIT Next 5Y45.59%
FCF growth 1Y62.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y41.33%
OCF growth 3Y44.61%
OCF growth 5Y59.78%