PITNEY BOWES INC (PBI) Stock Fundamental Analysis
NYSE:PBI - US7244791007 - Common Stock
12.01 USD
-0.11 (-0.91%)
11.95 USD
-0.06 (-0.5%)
We assign a fundamental rating of 4 out of 10 to PBI. PBI was compared to 84 industry peers in the Commercial Services & Supplies industry. PBI has a medium profitability rating, but doesn't score so well on its financial health evaluation. PBI has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year PBI was profitable.
PBI had a positive operating cash flow in the past year.
In the past 5 years PBI reported 4 times negative net income.
Each year in the past 5 years PBI had a positive operating cash flow.
1.2 Ratios
PBI has a worse Return On Assets (-3.41%) than 65.48% of its industry peers.
The Return On Invested Capital of PBI (7.52%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PBI is below the industry average of 10.65%.
The 3 year average ROIC (7.15%) for PBI is below the current ROIC(7.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.41% | ||
| ROE | N/A | ||
| ROIC | 7.52% |
ROA(3y)-4.75%
ROA(5y)-3.54%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.15%
ROIC(5y)5.48%
1.3 Margins
PBI has a Operating Margin of 8.45%. This is in the better half of the industry: PBI outperforms 61.90% of its industry peers.
In the last couple of years the Operating Margin of PBI has grown nicely.
PBI has a better Gross Margin (53.57%) than 95.24% of its industry peers.
PBI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.45% | ||
| PM (TTM) | N/A | ||
| GM | 53.57% |
OM growth 3Y37.5%
OM growth 5Y3.49%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y19.73%
GM growth 5Y5.55%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PBI is destroying value.
The number of shares outstanding for PBI has been increased compared to 1 year ago.
The number of shares outstanding for PBI has been increased compared to 5 years ago.
PBI has a worse debt/assets ratio than last year.
2.2 Solvency
PBI has an Altman-Z score of 2.13. This is not the best score and indicates that PBI is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.13, PBI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of PBI is 10.71, which is on the high side as it means it would take PBI, 10.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.71, PBI is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.71 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.81
WACC9.23%
2.3 Liquidity
A Current Ratio of 0.76 indicates that PBI may have some problems paying its short term obligations.
The Current ratio of PBI (0.76) is worse than 83.33% of its industry peers.
PBI has a Quick Ratio of 0.76. This is a bad value and indicates that PBI is not financially healthy enough and could expect problems in meeting its short term obligations.
PBI has a Quick ratio of 0.70. This is amonst the worse of the industry: PBI underperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
PBI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1155.56%, which is quite impressive.
Measured over the past years, PBI shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.76% on average per year.
PBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.64%.
The Revenue has been decreasing by -8.76% on average over the past years.
EPS 1Y (TTM)1155.56%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%800%
Revenue 1Y (TTM)-43.64%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-41.76%
3.2 Future
PBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.80% yearly.
Based on estimates for the next years, PBI will show a very negative growth in Revenue. The Revenue will decrease by -13.91% on average per year.
EPS Next Y134.14%
EPS Next 2Y54.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-25.58%
Revenue Next 2Y-13.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.63, which indicates a very decent valuation of PBI.
Based on the Price/Earnings ratio, PBI is valued cheaply inside the industry as 89.29% of the companies are valued more expensively.
PBI is valuated cheaply when we compare the Price/Earnings ratio to 26.90, which is the current average of the S&P500 Index.
PBI is valuated reasonably with a Price/Forward Earnings ratio of 9.11.
Based on the Price/Forward Earnings ratio, PBI is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
PBI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PBI.
Based on the Price/Free Cash Flow ratio, PBI is valued cheaper than 86.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| EV/EBITDA | 14.5 |
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.
A more expensive valuation may be justified as PBI's earnings are expected to grow with 54.80% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y54.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PBI has a Yearly Dividend Yield of 2.66%.
Compared to an average industry Dividend Yield of 2.26, PBI pays a better dividend. On top of this PBI pays more dividend than 88.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, PBI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of PBI has a limited annual growth rate of 0.29%.
PBI has been paying a dividend for at least 10 years, so it has a reliable track record.
PBI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.29%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
PBI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
PBI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-37.83%
EPS Next 2Y54.8%
EPS Next 3YN/A
12.01
-0.11 (-0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners72.01%
Inst Owner Change1.57%
Ins Owners0.51%
Ins Owner Change3.02%
Market Cap2.07B
Analysts45
Price Target17.34 (44.38%)
Short Float %11.62%
Short Ratio5.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend0.2
Dividend Growth(5Y)0.29%
DP-37.83%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.11%
Min EPS beat(2)-2.79%
Max EPS beat(2)21.01%
EPS beat(4)3
Avg EPS beat(4)46.31%
Min EPS beat(4)-2.79%
Max EPS beat(4)118.51%
EPS beat(8)7
Avg EPS beat(8)94.03%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.89%
Min Revenue beat(2)-3.91%
Max Revenue beat(2)-1.88%
Revenue beat(4)1
Avg Revenue beat(4)-10.68%
Min Revenue beat(4)-37.19%
Max Revenue beat(4)0.27%
Revenue beat(8)5
Avg Revenue beat(8)-4.37%
Revenue beat(12)5
Avg Revenue beat(12)-4.57%
Revenue beat(16)6
Avg Revenue beat(16)-3.87%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)2.41%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)-3.88%
Revenue NQ rev (3m)-4.61%
Revenue NY rev (1m)-2.61%
Revenue NY rev (3m)-2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.11 | ||
| P/S | 1.05 | ||
| P/FCF | 11.36 | ||
| P/OCF | 8.49 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.5 |
EPS(TTM)1.13
EY9.41%
EPS(NY)1.32
Fwd EY10.97%
FCF(TTM)1.06
FCFY8.8%
OCF(TTM)1.42
OCFY11.78%
SpS11.45
BVpS-3.12
TBVpS-7.57
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.41% | ||
| ROE | N/A | ||
| ROCE | 9.52% | ||
| ROIC | 7.52% | ||
| ROICexc | 9.08% | ||
| ROICexgc | 19.24% | ||
| OM | 8.45% | ||
| PM (TTM) | N/A | ||
| GM | 53.57% | ||
| FCFM | 9.23% |
ROA(3y)-4.75%
ROA(5y)-3.54%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.15%
ROIC(5y)5.48%
ROICexc(3y)9.55%
ROICexc(5y)7.35%
ROICexgc(3y)19.63%
ROICexgc(5y)15.21%
ROCE(3y)9.05%
ROCE(5y)6.94%
ROICexcg growth 3Y51.48%
ROICexcg growth 5Y14.95%
ROICexc growth 3Y42.21%
ROICexc growth 5Y11.6%
OM growth 3Y37.5%
OM growth 5Y3.49%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y19.73%
GM growth 5Y5.55%
F-Score4
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.71 | ||
| Debt/EBITDA | 7.54 | ||
| Cap/Depr | 68.41% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 1.08 | ||
| Cash Conversion | 94.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.13 |
F-Score4
WACC9.23%
ROIC/WACC0.81
Cap/Depr(3y)68.95%
Cap/Depr(5y)77.05%
Cap/Sales(3y)3.55%
Cap/Sales(5y)3.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1155.56%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%800%
EPS Next Y134.14%
EPS Next 2Y54.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-43.64%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-41.76%
Revenue Next Year-25.58%
Revenue Next 2Y-13.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30.03%
EBIT growth 3Y12.77%
EBIT growth 5Y-5.57%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y834.47%
FCF growth 3Y10.1%
FCF growth 5Y3.72%
OCF growth 1Y169.02%
OCF growth 3Y-8.74%
OCF growth 5Y-3.07%