POSTAL REALTY TRUST INC- A (PSTL) Stock Fundamental Analysis
USA - NYSE:PSTL - US73757R1023 - REIT
15.83 USD
-0.14 (-0.88%)
15.83 USD
0 (0%)
PSTL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 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 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.
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
The Return On Assets of PSTL (1.30%) is comparable to the rest of the industry.
PSTL has a Return On Equity (3.57%) which is in line with its industry peers.
The Return On Invested Capital of PSTL (3.16%) is comparable to the rest of the 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(3.16%), indicating increased profibility in the last year.
| 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 (10.36%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PSTL has grown nicely.
The Operating Margin of PSTL (31.06%) is better than 63.85% of its industry peers.
In the last couple of years the Operating Margin of PSTL has grown nicely.
Looking at the Gross Margin, with a value of 77.25%, PSTL is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PSTL is destroying value.
The number of shares outstanding for PSTL has been increased compared to 1 year ago.
PSTL has more shares outstanding than it did 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 0.64. 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 (0.64) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that PSTL has dependencies on debt financing.
With a Debt to Equity ratio value of 1.31, PSTL perfoms like the industry average, outperforming 48.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.64 |
ROIC/WACC0.47
WACC6.79%
2.3 Liquidity
A Current Ratio of 0.59 indicates that PSTL may have some problems paying its short term obligations.
With a Current ratio value of 0.59, PSTL is not doing good in the industry: 76.15% of the companies in the same industry are doing better.
PSTL has a Quick 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.
The Quick ratio of PSTL (0.59) is worse than 75.38% 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.
PSTL shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.43%.
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)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 Y207.96%
EPS Next 2Y83.68%
EPS Next 3Y53.39%
EPS Next 5Y31.44%
Revenue Next Year29.82%
Revenue Next 2Y19.63%
Revenue Next 3Y16.49%
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
With a Price/Earnings ratio of 52.77, PSTL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PSTL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PSTL to the average of the S&P500 Index (27.27), we can say PSTL is valued expensively.
A Price/Forward Earnings ratio of 36.09 indicates a quite expensive valuation of PSTL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSTL indicates a somewhat cheap valuation: PSTL is cheaper than 71.54% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.77. PSTL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.77 | ||
| Fwd PE | 36.09 |
4.2 Price Multiples
PSTL's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.47 |
4.3 Compensation for Growth
PSTL's 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 53.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y83.68%
EPS Next 3Y53.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.06%, PSTL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, PSTL has a dividend in line with 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 | 6.06% |
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.
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.
The dividend of PSTL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP324.95%
EPS Next 2Y83.68%
EPS Next 3Y53.39%
15.83
-0.14 (-0.88%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners69.09%
Inst Owner Change5.56%
Ins Owners5.88%
Ins Owner Change-2.89%
Market Cap389.58M
Analysts84.29
Price Target17.04 (7.64%)
Short Float %0.88%
Short Ratio1.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
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)2.04%
PT rev (3m)6.08%
EPS NQ rev (1m)18.52%
EPS NQ rev (3m)255.57%
EPS NY rev (1m)33.5%
EPS NY rev (3m)50.96%
Revenue NQ rev (1m)1.51%
Revenue NQ rev (3m)22.29%
Revenue NY rev (1m)2.79%
Revenue NY rev (3m)4.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.77 | ||
| Fwd PE | 36.09 | ||
| P/S | 4.5 | ||
| P/FCF | N/A | ||
| P/OCF | 9.88 | ||
| P/B | 1.55 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 14.47 |
EPS(TTM)0.3
EY1.9%
EPS(NY)0.44
Fwd EY2.77%
FCF(TTM)-2.11
FCFYN/A
OCF(TTM)1.6
OCFY10.12%
SpS3.52
BVpS10.19
TBVpS9.59
PEG (NY)0.25
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 | 0.64 |
F-Score6
WACC6.79%
ROIC/WACC0.47
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 Y207.96%
EPS Next 2Y83.68%
EPS Next 3Y53.39%
EPS Next 5Y31.44%
Revenue 1Y (TTM)26.43%
Revenue growth 3Y24.12%
Revenue growth 5Y46.57%
Sales Q2Q%29.37%
Revenue Next Year29.82%
Revenue Next 2Y19.63%
Revenue Next 3Y16.49%
Revenue Next 5Y14.88%
EBIT growth 1Y79.49%
EBIT growth 3Y47.99%
EBIT growth 5Y207.32%
EBIT Next Year490.84%
EBIT Next 3Y98.95%
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%