PITNEY BOWES INC (PBI) Stock Fundamental Analysis
NYSE:PBI - New York Stock Exchange, Inc. - US7244791007 - Common Stock - Currency: USD
Overall PBI gets a fundamental rating of 4 out of 10. We evaluated PBI against 83 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of PBI while its profitability can be described as average. PBI is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PBI had positive earnings in the past year.
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
With a Return On Assets value of -5.14%, PBI is not doing good in the industry: 67.47% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 9.67%, PBI is doing good in the industry, outperforming 72.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PBI is below the industry average of 11.67%.
The 3 year average ROIC (7.15%) for PBI is below the current ROIC(9.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.14% | ||
| ROE | N/A | ||
| ROIC | 9.67% |
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
With a decent Operating Margin value of 8.65%, PBI is doing good in the industry, outperforming 63.86% of the companies in the same industry.
In the last couple of years the Operating Margin of PBI has grown nicely.
PBI has a Gross Margin of 52.83%. This is amongst the best in the industry. PBI outperforms 92.77% of its industry peers.
In the last couple of years the Gross Margin of PBI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.65% | ||
| PM (TTM) | N/A | ||
| GM | 52.83% |
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 just above the Cost of Capital (WACC), so PBI is still creating some value.
PBI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PBI has more shares outstanding
Compared to 1 year ago, PBI has a worse debt to assets ratio.
2.2 Solvency
PBI has an Altman-Z score of 2.33. 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.
Looking at the Altman-Z score, with a value of 2.33, PBI is in line with its industry, outperforming 48.19% of the companies in the same industry.
The Debt to FCF ratio of PBI is 12.62, which is on the high side as it means it would take PBI, 12.62 years of fcf income to pay off all of its debts.
PBI has a Debt to FCF ratio (12.62) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.62 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.1
WACC8.82%
2.3 Liquidity
A Current Ratio of 0.80 indicates that PBI may have some problems paying its short term obligations.
PBI has a worse Current ratio (0.80) than 85.54% of its industry peers.
PBI has a Quick Ratio of 0.80. 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 0.75. This is amonst the worse of the industry: PBI underperforms 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 2125.00% over the past year.
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.
Looking at the last year, PBI shows a very negative growth in Revenue. The Revenue has decreased by -22.75% in the last year.
The Revenue has been decreasing by -8.76% on average over the past years.
EPS 1Y (TTM)2125%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%3400%
Revenue 1Y (TTM)-22.75%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-40.59%
3.2 Future
Based on estimates for the next years, PBI will show a very strong growth in Earnings Per Share. The EPS will grow by 53.91% on average per year.
PBI is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -12.41% yearly.
EPS Next Y128.63%
EPS Next 2Y53.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-23.59%
Revenue Next 2Y-12.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.37, the valuation of PBI can be described as correct.
83.13% of the companies in the same industry are more expensive than PBI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. PBI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.45, the valuation of PBI can be described as very reasonable.
PBI's Price/Forward Earnings ratio is rather cheap when compared to the industry. PBI is cheaper than 91.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PBI to the average of the S&P500 Index (35.19), we can say PBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 8.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBI is valued a bit cheaper than the industry average as 63.86% of the companies are valued more expensively.
80.72% of the companies in the same industry are more expensive than PBI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.82 | ||
| EV/EBITDA | 11.27 |
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 53.91% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y53.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, PBI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.45, PBI pays a better dividend. On top of this PBI pays more dividend than 84.34% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, PBI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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
The earnings of PBI are negative and hence is the payout ratio. PBI will probably not be able to sustain this dividend level.
PBI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-22.66%
EPS Next 2Y53.91%
EPS Next 3YN/A
11.01
-0.07 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners71.67%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change3.07%
Market Cap2.00B
Analysts45
Price Target17.34 (57.49%)
Short Float %6.48%
Short Ratio5.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend0.2
Dividend Growth(5Y)0.29%
DP-22.66%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)69.76%
Min EPS beat(2)21.01%
Max EPS beat(2)118.51%
EPS beat(4)4
Avg EPS beat(4)82.62%
Min EPS beat(4)21.01%
Max EPS beat(4)142.43%
EPS beat(8)7
Avg EPS beat(8)82.12%
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)1
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)0.27%
Revenue beat(4)2
Avg Revenue beat(4)-9.26%
Min Revenue beat(4)-37.19%
Max Revenue beat(4)1.77%
Revenue beat(8)5
Avg Revenue beat(8)-4.51%
Revenue beat(12)5
Avg Revenue beat(12)-4.57%
Revenue beat(16)6
Avg Revenue beat(16)-3.66%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)4.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 8.45 | ||
| P/S | 0.79 | ||
| P/FCF | 12.82 | ||
| P/OCF | 8.87 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.27 |
EPS(TTM)0.89
EY8.08%
EPS(NY)1.3
Fwd EY11.83%
FCF(TTM)0.86
FCFY7.8%
OCF(TTM)1.24
OCFY11.28%
SpS13.9
BVpS-2.96
TBVpS-7.08
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.14% | ||
| ROE | N/A | ||
| ROCE | 12.24% | ||
| ROIC | 9.67% | ||
| ROICexc | 11.95% | ||
| ROICexgc | 24.84% | ||
| OM | 8.65% | ||
| PM (TTM) | N/A | ||
| GM | 52.83% | ||
| FCFM | 6.18% |
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.62 | ||
| Debt/EBITDA | 6.1 | ||
| Cap/Depr | 68.02% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 1.35 | ||
| Cash Conversion | 70.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.33 |
F-Score4
WACC8.82%
ROIC/WACC1.1
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)2125%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%3400%
EPS Next Y128.63%
EPS Next 2Y53.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-22.75%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-40.59%
Revenue Next Year-23.59%
Revenue Next 2Y-12.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y79.72%
EBIT growth 3Y12.77%
EBIT growth 5Y-5.57%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3173.4%
FCF growth 3Y10.1%
FCF growth 5Y3.72%
OCF growth 1Y79%
OCF growth 3Y-8.74%
OCF growth 5Y-3.07%