PITNEY BOWES INC (PBI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PBI - US7244791007 - Common Stock
10.23 USD
-0.01 (-0.1%)
10.23 USD
0 (0%)
Overall PBI gets a fundamental rating of 5 out of 10. We evaluated PBI against 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 cheap, but on the other hand it scores bad on growth. PBI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PBI was profitable.
In the past year PBI had a positive cash flow from operations.
PBI had negative earnings in 4 of the past 5 years.
Each year in the past 5 years PBI had a positive operating cash flow.
1.2 Ratios
PBI has a Return On Assets (2.46%) which is in line with 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 79.27% of the companies in the same industry.
PBI had an Average Return On Invested Capital over the past 3 years of 7.15%. This is below the industry average of 10.13%.
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 has a better Profit Margin (4.14%) than 62.20% of its industry peers.
With an excellent Operating Margin value of 12.84%, PBI belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
PBI's Operating Margin has improved in the last couple of years.
PBI's Gross Margin of 53.78% is amongst the best of the industry. PBI outperforms 95.12% of its industry peers.
PBI's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PBI is still creating some 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 2.14. 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 2.14, PBI is in line with its industry, outperforming 50.00% of the companies in the same industry.
PBI has a debt to FCF ratio of 9.24. This is a negative value and a sign of low solvency as PBI would need 9.24 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 9.24, PBI is doing good in the industry, outperforming 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.24 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.19
WACC9.01%
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 Current ratio of 0.81. This is amonst the worse of the industry: PBI underperforms 80.49% of its industry peers.
A Quick Ratio of 0.76 indicates that PBI may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, PBI is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been decreasing by -5.76% on average over the past years.
The Revenue for PBI has decreased by -39.89% in the past year. This is quite bad
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)-39.89%
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 41.26% yearly.
The Revenue is expected to decrease by -9.90% on average over the next years.
EPS Next Y135.05%
EPS Next 2Y56.48%
EPS Next 3Y41.26%
EPS Next 5YN/A
Revenue Next Year-26.39%
Revenue Next 2Y-14.97%
Revenue Next 3Y-9.9%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.32, which indicates a very decent valuation of PBI.
Based on the Price/Earnings ratio, PBI is valued cheaper than 89.02% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.56, PBI is valued rather cheaply.
The Price/Forward Earnings ratio is 7.60, which indicates a rather cheap valuation of PBI.
91.46% of the companies in the same industry are more expensive than PBI, based on the Price/Forward Earnings ratio.
PBI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 7.6 |
4.2 Price Multiples
67.07% of the companies in the same industry are more expensive than PBI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PBI is valued cheaper than 93.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.23 | ||
| EV/EBITDA | 9.41 |
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.
PBI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PBI's earnings are expected to grow with 41.26% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y56.48%
EPS Next 3Y41.26%
5. Dividend
5.1 Amount
PBI has a Yearly Dividend Yield of 3.52%. 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 0.93. PBI pays more dividend than 90.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, PBI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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
57.53% of the earnings are spent on dividend by PBI. 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 2Y56.48%
EPS Next 3Y41.26%
10.23
-0.01 (-0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners83.29%
Inst Owner Change3.49%
Ins Owners0.54%
Ins Owner Change0.91%
Market Cap1.65B
Revenue(TTM)1.93B
Net Income(TTM)79.99M
Analysts46.67
Price Target13.94 (36.27%)
Short Float %12.7%
Short Ratio7.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend0.2
Dividend Growth(5Y)0.29%
DP57.53%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.68%
Min EPS beat(2)-2.79%
Max EPS beat(2)-2.56%
EPS beat(4)2
Avg EPS beat(4)33.54%
Min EPS beat(4)-2.79%
Max EPS beat(4)118.51%
EPS beat(8)6
Avg EPS beat(8)81.21%
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)-3.27%
Min Revenue beat(2)-3.91%
Max Revenue beat(2)-2.64%
Revenue beat(4)1
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-3.91%
Max Revenue beat(4)0.27%
Revenue beat(8)4
Avg Revenue beat(8)-4.86%
Revenue beat(12)5
Avg Revenue beat(12)-4.45%
Revenue beat(16)6
Avg Revenue beat(16)-3.85%
PT rev (1m)-19.61%
PT rev (3m)-19.61%
EPS NQ rev (1m)1.59%
EPS NQ rev (3m)3.47%
EPS NY rev (1m)0%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 7.6 | ||
| P/S | 0.85 | ||
| P/FCF | 7.23 | ||
| P/OCF | 5.56 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.41 |
EPS(TTM)1.23
EY12.02%
EPS(NY)1.35
Fwd EY13.16%
FCF(TTM)1.42
FCFY13.84%
OCF(TTM)1.84
OCFY17.98%
SpS12
BVpS-4.11
TBVpS-8.85
PEG (NY)0.06
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | N/A | ||
| ROCE | 13.53% | ||
| ROIC | 10.69% | ||
| ROICexc | 13.08% | ||
| ROICexgc | 26.66% | ||
| OM | 12.84% | ||
| PM (TTM) | 4.14% | ||
| GM | 53.78% | ||
| FCFM | 11.8% |
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-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.24 | ||
| Debt/EBITDA | 5.78 | ||
| Cap/Depr | 60.31% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 81.99% | ||
| Profit Quality | 284.83% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.14 |
F-Score5
WACC9.01%
ROIC/WACC1.19
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 Y135.05%
EPS Next 2Y56.48%
EPS Next 3Y41.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-39.89%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-7.97%
Revenue Next Year-26.39%
Revenue Next 2Y-14.97%
Revenue Next 3Y-9.9%
Revenue Next 5YN/A
EBIT growth 1Y9.78%
EBIT growth 3Y12.77%
EBIT growth 5Y-5.57%
EBIT Next Year95.67%
EBIT Next 3Y27.6%
EBIT Next 5YN/A
FCF growth 1Y380.69%
FCF growth 3Y10.1%
FCF growth 5Y3.72%
OCF growth 1Y94.38%
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 5 / 10 to PBI.
Can you provide the valuation status for PITNEY BOWES INC?
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 8.32 and the Price/Book (PB) ratio is -2.49.
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 135.05% in the next year.