PITNEY BOWES INC (PBI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PBI - US7244791007 - Common Stock
10.22 USD
-0.13 (-1.26%)
10.22 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PBI. PBI was compared to 80 industry peers in the Commercial Services & Supplies industry. While PBI is still in line with the averages on profitability rating, there are concerns on its financial health. PBI is valued quite cheap, but it does not seem to be growing. Finally PBI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year PBI was profitable.
- PBI had a positive operating cash flow in the past year.
- PBI had negative earnings in 4 of the past 5 years.
- PBI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PBI's Return On Assets of 2.46% is fine compared to the rest of the industry. PBI outperforms 61.25% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.69%, PBI is in the better half of the industry, outperforming 77.50% 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 10.58%.
- The last Return On Invested Capital (10.69%) for PBI is above the 3 year average (7.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | N/A | ||
| ROIC | 10.69% |
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's Profit Margin of 4.14% is fine compared to the rest of the industry. PBI outperforms 63.75% of its industry peers.
- Looking at the Operating Margin, with a value of 12.84%, PBI is in the better half of the industry, outperforming 78.75% 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 53.78%. This is amongst the best in the industry. PBI outperforms 96.25% of its industry peers.
- In the last couple of years the Gross Margin of PBI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.84% | ||
| PM (TTM) | 4.14% | ||
| GM | 53.78% |
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
- PBI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, PBI has more shares outstanding
- 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
- An Altman-Z score of 2.14 indicates that PBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- PBI's Altman-Z score of 2.14 is in line compared to the rest of the industry. PBI outperforms 51.25% of its industry peers.
- The Debt to FCF ratio of PBI is 9.24, which is on the high side as it means it would take PBI, 9.24 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of PBI (9.24) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.24 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.2
WACC8.92%
2.3 Liquidity
- PBI has a Current Ratio of 0.81. 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 Current ratio (0.81) than 80.00% of its industry peers.
- A Quick Ratio of 0.76 indicates that PBI may have some problems paying its short term obligations.
- PBI has a Quick ratio of 0.76. This is in the lower half of the industry: PBI underperforms 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
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.
- The Revenue for PBI has decreased by -39.89% in the past year. This is quite bad
- The Revenue has been decreasing by -8.76% on average over the past years.
EPS 1Y (TTM)310%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%47.62%
Revenue 1Y (TTM)-39.89%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-7.97%
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 43.45% on average per year.
- The Revenue is expected to decrease by -10.42% on average over the next years. This is quite bad
EPS Next Y135.97%
EPS Next 2Y60.46%
EPS Next 3Y43.45%
EPS Next 5YN/A
Revenue Next Year-26.51%
Revenue Next 2Y-15.31%
Revenue Next 3Y-10.42%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.31, the valuation of PBI can be described as reasonable.
- PBI's Price/Earnings ratio is rather cheap when compared to the industry. PBI is cheaper than 90.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, PBI is valued rather cheaply.
- PBI is valuated cheaply with a Price/Forward Earnings ratio of 7.22.
- Based on the Price/Forward Earnings ratio, PBI is valued cheaply inside the industry as 92.50% of the companies are valued more expensively.
- PBI is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 7.22 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PBI is valued a bit cheaper than 73.75% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PBI is valued cheaper than 92.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.22 | ||
| EV/EBITDA | 9.47 |
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.
- The decent profitability rating of PBI may justify a higher PE ratio.
- PBI's earnings are expected to grow with 43.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y60.46%
EPS Next 3Y43.45%
5. Dividend
5.1 Amount
- PBI has a Yearly Dividend Yield of 3.48%.
- PBI's Dividend Yield is rather good when compared to the industry average which is at 0.83. PBI pays more dividend than 90.00% of the companies in the same industry.
- PBI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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.
- As PBI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.29%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
- PBI pays out 57.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of PBI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.53%
EPS Next 2Y60.46%
EPS Next 3Y43.45%
PITNEY BOWES INC / PBI FAQ
Can you provide the ChartMill fundamental rating for PITNEY BOWES INC?
ChartMill assigns a fundamental rating of 5 / 10 to PBI.
What is the valuation status of PITNEY BOWES INC (PBI) stock?
ChartMill assigns a valuation rating of 9 / 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 6 / 10.
Can you provide the PE and PB ratios for PBI stock?
The Price/Earnings (PE) ratio for PITNEY BOWES INC (PBI) is 8.31 and the Price/Book (PB) ratio is -2.49.
What is the financial health of PITNEY BOWES INC (PBI) stock?
The financial health rating of PITNEY BOWES INC (PBI) is 2 / 10.