PITNEY BOWES INC (PBI) Stock Fundamental Analysis
USA - NYSE:PBI - US7244791007 - Common Stock
9.88 USD
-0.15 (-1.5%)
9.88 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PBI. PBI was compared to 82 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 valued quite cheap, but it does not seem to be growing.
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
PBI has a worse Return On Assets (-3.41%) than 64.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.52%, PBI is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PBI is below the industry average of 10.38%.
The last Return On Invested Capital (7.52%) for PBI is above the 3 year average (7.15%), which is a sign of increasing profitability.
| 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
Looking at the Operating Margin, with a value of 8.45%, PBI is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
PBI's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 53.57%, PBI belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PBI is destroying value.
The number of shares outstanding for PBI has been increased compared to 1 year ago.
PBI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PBI has a worse debt to assets ratio.
2.2 Solvency
PBI has an Altman-Z score of 2.07. 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.
The Altman-Z score of PBI (2.07) is comparable to the rest of the industry.
PBI has a debt to FCF ratio of 10.71. This is a negative value and a sign of low solvency as PBI would need 10.71 years to pay back of all of its debts.
PBI's Debt to FCF ratio of 10.71 is in line compared to the rest of the industry. PBI outperforms 57.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.71 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.86
WACC8.74%
2.3 Liquidity
PBI has a Current 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 Current ratio of 0.76. This is amonst the worse of the industry: PBI underperforms 81.71% of its industry peers.
A Quick Ratio of 0.70 indicates that PBI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, PBI is doing worse than 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 310.00% 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.
PBI shows a decrease in Revenue. In the last year, the revenue decreased by -2.52%.
Measured over the past years, PBI shows a decrease in Revenue. The Revenue has been decreasing by -8.76% on average per year.
EPS 1Y (TTM)310%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%47.62%
Revenue 1Y (TTM)-2.52%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-7.97%
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.
The Revenue is expected to decrease by -13.91% on average over the next years. This is quite bad
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
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
A Price/Earnings ratio of 8.03 indicates a reasonable valuation of PBI.
Based on the Price/Earnings ratio, PBI is valued cheaper than 89.02% of the companies in the same industry.
PBI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.10.
The Price/Forward Earnings ratio is 7.50, which indicates a rather cheap valuation of PBI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PBI indicates a rather cheap valuation: PBI is cheaper than 90.24% of the companies listed in the same industry.
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 | 8.03 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PBI is on the same level as its industry peers.
PBI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PBI is cheaper than 89.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.34 | ||
| EV/EBITDA | 13.1 |
4.3 Compensation for Growth
PBI's 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)0.06
PEG (5Y)N/A
EPS Next 2Y54.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PBI has a Yearly Dividend Yield of 3.59%.
Compared to an average industry Dividend Yield of 2.51, PBI pays a better dividend. On top of this PBI pays more dividend than 89.02% of the companies listed in the same industry.
PBI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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
9.88
-0.15 (-1.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners76.51%
Inst Owner Change-0.15%
Ins Owners0.49%
Ins Owner Change3.07%
Market Cap1.70B
Revenue(TTM)2.03B
Net Income(TTM)-110448000
Analysts45
Price Target17.34 (75.51%)
Short Float %11.77%
Short Ratio7.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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)0%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 7.5 | ||
| P/S | 0.86 | ||
| P/FCF | 9.34 | ||
| P/OCF | 6.98 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.1 |
EPS(TTM)1.23
EY12.45%
EPS(NY)1.32
Fwd EY13.34%
FCF(TTM)1.06
FCFY10.7%
OCF(TTM)1.42
OCFY14.32%
SpS11.45
BVpS-3.12
TBVpS-7.57
PEG (NY)0.06
PEG (5Y)N/A
Graham NumberN/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%
ROICexgc growth 3Y51.48%
ROICexgc 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 | 2.07 |
F-Score4
WACC8.74%
ROIC/WACC0.86
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)310%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%47.62%
EPS Next Y134.14%
EPS Next 2Y54.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.52%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-7.97%
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%
PITNEY BOWES INC / PBI FAQ
Can you provide the ChartMill fundamental rating for PITNEY BOWES INC?
ChartMill assigns a fundamental rating of 4 / 10 to PBI.
Can you provide the valuation status for PITNEY BOWES INC?
ChartMill assigns a valuation rating of 8 / 10 to PITNEY BOWES INC (PBI). This can be considered as Undervalued.
Can you provide the profitability details for PITNEY BOWES INC?
PITNEY BOWES INC (PBI) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for PBI stock?
The Price/Earnings (PE) ratio for PITNEY BOWES INC (PBI) is 8.03 and the Price/Book (PB) ratio is -3.17.
Can you provide the expected EPS growth for PBI stock?
The Earnings per Share (EPS) of PITNEY BOWES INC (PBI) is expected to grow by 134.14% in the next year.