PITNEY BOWES INC (PBI)
US7244791007 - Common Stock
Taking everything into account, PBI scores 2 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. While showing a medium growth rate, PBI is valued expensive at the moment.
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.
In the past 5 years PBI always reported a positive cash flow from operatings.
1.2 Ratios
PBI's Return On Assets of -9.03% is on the low side compared to the rest of the industry. PBI is outperformed by 79.52% of its industry peers.
PBI's Return On Invested Capital of 2.85% is in line compared to the rest of the industry. PBI outperforms 40.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PBI is significantly below the industry average of 9.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.03% | ||
| ROE | N/A | ||
| ROIC | 2.85% |
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
Looking at the Operating Margin, with a value of 2.81%, PBI is doing worse than 62.65% of the companies in the same industry.
PBI's Operating Margin has declined in the last couple of years.
PBI has a Gross Margin (31.29%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PBI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.81% | ||
| PM (TTM) | N/A | ||
| GM | 31.29% |
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.
Compared to 1 year ago, PBI has more shares outstanding
Compared to 5 years ago, PBI has less shares outstanding
The debt/assets ratio for PBI is higher compared to a year ago.
2.2 Solvency
PBI has an Altman-Z score of 1.92. 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.
With a Altman-Z score value of 1.92, PBI perfoms like the industry average, outperforming 45.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.92 |
ROIC/WACC0.34
WACC8.34%
2.3 Liquidity
A Current Ratio of 0.98 indicates that PBI may have some problems paying its short term obligations.
PBI's Current ratio of 0.98 is on the low side compared to the rest of the industry. PBI is outperformed by 77.11% of its industry peers.
A Quick Ratio of 0.94 indicates that PBI may have some problems paying its short term obligations.
The Quick ratio of PBI (0.94) is worse than 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
PBI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -75.00%.
Measured over the past years, PBI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -49.43% on average per year.
Looking at the last year, PBI shows a decrease in Revenue. The Revenue has decreased by -7.68% in the last year.
Measured over the past years, PBI shows a small growth in Revenue. The Revenue has been growing by 0.34% on average per year.
EPS 1Y (TTM)-75%
EPS 3Y-48.91%
EPS 5Y-49.43%
EPS growth Q2Q16.67%
Revenue 1Y (TTM)-7.68%
Revenue growth 3Y-2.77%
Revenue growth 5Y0.34%
Revenue growth Q2Q-4.08%
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 81.18% on average per year.
The Revenue is expected to grow by 0.94% on average over the next years.
EPS Next Y-163.12%
EPS Next 2Y81.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.27%
Revenue Next 2Y0.94%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 100.75, the valuation of PBI can be described as expensive.
Based on the Price/Earnings ratio, PBI is valued a bit more expensive than 61.45% of the companies in the same industry.
PBI is valuated expensively when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for PBI. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.75 | ||
| Fwd PE | N/A |
4.2 Price Multiples
PBI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PBI is cheaper than 73.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PBI's earnings are expected to grow with 81.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y81.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PBI has a Yearly Dividend Yield of 4.87%, which is a nice return.
PBI's Dividend Yield is rather good when compared to the industry average which is at 2.35. PBI pays more dividend than 95.18% of the companies in the same industry.
PBI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
5.2 History
The dividend of PBI decreases each year by -23.17%.
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 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-9.13%
EPS Next 2Y81.18%
EPS Next 3YN/A
PITNEY BOWES INC
NYSE:PBI (4/18/2024, 4:19:05 PM)
After market: 4.03 0 (0%)4.03
+0.1 (+2.54%)
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 Cap711.42M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 100.75 | ||
| Fwd PE | N/A | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.03% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.81% | ||
| PM (TTM) | N/A | ||
| GM | 31.29% | ||
| 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 Turnover0.76
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 | 0.98 | ||
| Quick Ratio | 0.94 | ||
| 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)
Growth
EPS 1Y (TTM)-75%
EPS 3Y-48.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y-163.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.68%
Revenue growth 3Y-2.77%
Revenue growth 5Y
Revenue growth 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