PITNEY BOWES INC (PBI) Stock Fundamental Analysis
NYSE:PBI - New York Stock Exchange, Inc. - US7244791007 - Common Stock - Currency: USD
PBI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 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
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.
In the past 5 years PBI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PBI (-6.08%) is worse than 69.88% of its industry peers.
PBI has a better Return On Invested Capital (8.58%) than 69.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PBI is below the industry average of 10.89%.
The 3 year average ROIC (7.15%) for PBI is below the current ROIC(8.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.08% | ||
| ROE | N/A | ||
| ROIC | 8.58% |
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
With a Operating Margin value of 6.56%, PBI perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
In the last couple of years the Operating Margin of PBI has grown nicely.
PBI's Gross Margin of 46.53% is fine compared to the rest of the industry. PBI outperforms 79.52% of its industry peers.
PBI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.56% | ||
| PM (TTM) | N/A | ||
| GM | 46.53% |
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.
PBI has more shares outstanding than it did 1 year ago.
PBI has more shares outstanding than it did 5 years ago.
PBI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.25 indicates that PBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
PBI has a Altman-Z score (2.25) which is in line with its industry peers.
PBI has a debt to FCF ratio of 12.62. This is a negative value and a sign of low solvency as PBI would need 12.62 years to pay back of all of its debts.
With a Debt to FCF ratio value of 12.62, PBI perfoms like the industry average, outperforming 53.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.62 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.98
WACC8.75%
2.3 Liquidity
PBI has a Current Ratio of 0.79. This is a bad value and indicates that PBI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.79, PBI is doing worse than 86.75% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that PBI may have some problems paying its short term obligations.
PBI has a worse Quick ratio (0.75) than 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
PBI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 2125.00%, which is quite impressive.
The Earnings Per Share has been decreasing by -5.76% on average over the past years.
Looking at the last year, PBI shows a decrease in Revenue. The Revenue has decreased by -2.52% in the last year.
PBI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.76% yearly.
EPS 1Y (TTM)2125%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%3400%
Revenue 1Y (TTM)-2.52%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-40.59%
3.2 Future
The Earnings Per Share is expected to grow by 53.91% on average over the next years. This is a very strong growth
Based on estimates for the next years, PBI will show a very negative growth in Revenue. The Revenue will decrease by -12.30% on average per year.
EPS Next Y128.63%
EPS Next 2Y53.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-23.55%
Revenue Next 2Y-12.3%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.16, which indicates a very decent valuation of PBI.
83.13% of the companies in the same industry are more expensive than PBI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.03, PBI is valued rather cheaply.
PBI is valuated cheaply with a Price/Forward Earnings ratio of 7.62.
95.18% of the companies in the same industry are more expensive than PBI, based on the Price/Forward Earnings ratio.
PBI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 7.62 |
4.2 Price Multiples
67.47% 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 cheaply inside the industry as 84.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.59 | ||
| EV/EBITDA | 10.41 |
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.
PBI's earnings are expected to grow with 53.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y53.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PBI has a Yearly Dividend Yield of 2.94%. 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 2.47. PBI pays more dividend than 87.95% of the companies in the same industry.
PBI's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of PBI has a limited annual growth rate of 0.29%.
PBI has paid a dividend for at least 10 years, which is 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 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-17.41%
EPS Next 2Y53.91%
EPS Next 3YN/A
NYSE:PBI (5/22/2025, 2:49:56 PM)
9.93
+0.83 (+9.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners71.75%
Inst Owner Change0.01%
Ins Owners0.81%
Ins Owner Change2.39%
Market Cap1.82B
Analysts45
Price Target17.34 (74.62%)
Short Float %5.8%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend0.2
Dividend Growth(5Y)0.29%
DP-17.41%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)83.51%
Min EPS beat(2)48.51%
Max EPS beat(2)118.51%
EPS beat(4)4
Avg EPS beat(4)96.86%
Min EPS beat(4)48.51%
Max EPS beat(4)142.43%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)1
Avg Revenue beat(2)-18.46%
Min Revenue beat(2)-37.19%
Max Revenue beat(2)0.27%
Revenue beat(4)3
Avg Revenue beat(4)-7.99%
Min Revenue beat(4)-37.19%
Max Revenue beat(4)3.17%
Revenue beat(8)5
Avg Revenue beat(8)-4.83%
Revenue beat(12)5
Avg Revenue beat(12)-4.54%
Revenue beat(16)7
Avg Revenue beat(16)-3.31%
PT rev (1m)0%
PT rev (3m)13.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)4.18%
EPS NY rev (3m)16.36%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 7.62 | ||
| P/S | 0.64 | ||
| P/FCF | 11.59 | ||
| P/OCF | 7.93 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.41 |
EPS(TTM)0.89
EY8.96%
EPS(NY)1.3
Fwd EY13.12%
FCF(TTM)0.86
FCFY8.63%
OCF(TTM)1.25
OCFY12.61%
SpS15.61
BVpS-3.16
TBVpS-7.19
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.08% | ||
| ROE | N/A | ||
| ROCE | 10.86% | ||
| ROIC | 8.58% | ||
| ROICexc | 11.95% | ||
| ROICexgc | 29.49% | ||
| OM | 6.56% | ||
| PM (TTM) | N/A | ||
| GM | 46.53% | ||
| FCFM | 5.49% |
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%
ROICexcg growth 3Y51.48%
ROICexcg 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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.62 | ||
| Debt/EBITDA | 6.38 | ||
| Cap/Depr | 63.24% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 1.12 | ||
| Cash Conversion | 75.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.25 |
F-Score5
WACC8.75%
ROIC/WACC0.98
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)2125%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%3400%
EPS Next Y128.63%
EPS Next 2Y53.91%
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%-40.59%
Revenue Next Year-23.55%
Revenue Next 2Y-12.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y104.4%
EBIT growth 3Y12.77%
EBIT growth 5Y-5.57%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y7809.54%
FCF growth 3Y10.1%
FCF growth 5Y3.72%
OCF growth 1Y186.14%
OCF growth 3Y-8.74%
OCF growth 5Y-3.07%