PITNEY BOWES INC (PBI)
US7244791007 - Common Stock
Taking everything into account, PBI scores 3 out of 10 in our fundamental rating. PBI was compared to 84 industry peers in the Commercial Services & Supplies industry. PBI has a bad profitability rating. Also its financial health evaluation is rather negative. PBI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PBI was profitable.
PBI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PBI reported negative net income in multiple years.
Each year in the past 5 years PBI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -6.48%, PBI is doing worse than 73.49% of the companies in the same industry.
PBI has a Return On Invested Capital (4.29%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PBI is significantly below the industry average of 9.77%.
The 3 year average ROIC (2.94%) for PBI is below the current ROIC(4.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.48% | ||
| ROE | N/A | ||
| ROIC | 4.29% |
ROA(3y)-2.76%
ROA(5y)-1.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.94%
ROIC(5y)3.27%
1.3 Margins
PBI has a Operating Margin of 3.98%. This is in the lower half of the industry: PBI underperforms 61.45% of its industry peers.
PBI's Operating Margin has declined in the last couple of years.
PBI has a Gross Margin (31.50%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PBI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.98% | ||
| PM (TTM) | N/A | ||
| GM | 31.5% |
OM growth 3Y-10.96%
OM growth 5Y-24.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.09%
GM growth 5Y-6.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PBI is destroying value.
PBI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PBI has been reduced compared to 5 years ago.
Compared to 1 year ago, PBI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.07 indicates that PBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
PBI has a Altman-Z score (2.07) which is in line with its industry peers.
PBI has a debt to FCF ratio of 19.25. This is a negative value and a sign of low solvency as PBI would need 19.25 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.25, PBI is in line with its industry, outperforming 48.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.25 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.51
WACC8.37%
2.3 Liquidity
PBI has a Current Ratio of 0.96. 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's Current ratio of 0.96 is on the low side compared to the rest of the industry. PBI is outperformed by 83.13% of its industry peers.
PBI has a Quick Ratio of 0.96. 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 worse Quick ratio (0.91) than 78.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 200.00% over the past year.
PBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.43% yearly.
PBI shows a decrease in Revenue. In the last year, the revenue decreased by -2.14%.
The Revenue has been growing slightly by 0.34% on average over the past years.
EPS 1Y (TTM)200%
EPS 3Y-48.91%
EPS 5Y-49.43%
EPS Q2Q%250%
Revenue 1Y (TTM)-2.14%
Revenue growth 3Y-2.77%
Revenue growth 5Y0.34%
Sales Q2Q%2.15%
3.2 Future
PBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 396.17% yearly.
Based on estimates for the next years, PBI will show a very negative growth in Revenue. The Revenue will decrease by -23.60% on average per year.
EPS Next Y821.62%
EPS Next 2Y396.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-20.45%
Revenue Next 2Y-23.6%
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 78.33, the valuation of PBI can be described as expensive.
PBI's Price/Earnings ratio is a bit more expensive when compared to the industry. PBI is more expensive than 62.65% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 31.46, PBI is valued quite expensively.
PBI is valuated cheaply with a Price/Forward Earnings ratio of 7.16.
93.98% of the companies in the same industry are more expensive than PBI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, PBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.33 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBI is valued a bit cheaper than 65.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PBI indicates a somewhat cheap valuation: PBI is cheaper than 75.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.48 | ||
| EV/EBITDA | 9.39 |
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 396.17% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y396.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PBI has a Yearly Dividend Yield of 2.83%. Purely for dividend investing, there may be better candidates out there.
PBI's Dividend Yield is rather good when compared to the industry average which is at 2.19. PBI pays more dividend than 86.75% of the companies in the same industry.
PBI's Dividend Yield is a higher than the S&P500 average which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of PBI decreases each year by -23.17%.
PBI has paid a dividend for at least 10 years, which is a reliable track record.
PBI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-23.17%
Div Incr Years0
Div Non Decr Years4
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.
DP-13.43%
EPS Next 2Y396.17%
EPS Next 3YN/A
PITNEY BOWES INC
NYSE:PBI (10/22/2024, 1:27:50 PM)
7.05
+0.03 (+0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.33 | ||
| Fwd PE | 7.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.48% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.98% | ||
| PM (TTM) | N/A | ||
| GM | 31.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)200%
EPS 3Y-48.91%
EPS 5Y
EPS Q2Q%
EPS Next Y821.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.14%
Revenue growth 3Y-2.77%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y