PITNEY BOWES INC (PBI) Stock Fundamental Analysis
USA - NYSE:PBI - US7244791007 - Common Stock
11.25 USD
+0.23 (+2.09%)
11.26 USD
+0.01 (+0.09%)
Taking everything into account, PBI scores 4 out of 10 in our fundamental rating. PBI was compared to 84 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
PBI had positive earnings in the past year.
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 has a Return On Assets of -3.41%. This is in the lower half of the industry: PBI underperforms 64.29% of its industry peers.
With a decent Return On Invested Capital value of 7.52%, PBI is doing good in the industry, outperforming 69.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PBI is below the industry average of 10.17%.
The last Return On Invested Capital (7.52%) for PBI is above the 3 year average (7.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.41% | ||
| ROE | N/A | ||
| ROIC | 7.52% |
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
The Operating Margin of PBI (8.45%) is better than 64.29% of its industry peers.
In the last couple of years the Operating Margin of PBI has grown nicely.
Looking at the Gross Margin, with a value of 53.57%, PBI belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
PBI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.45% | ||
| PM (TTM) | N/A | ||
| GM | 53.57% |
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 below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PBI has more shares outstanding
Compared to 5 years ago, PBI has more shares outstanding
The debt/assets ratio for PBI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.11 indicates that PBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.11, PBI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
PBI has a debt to FCF ratio of 10.71. This is a negative value and a sign of low solvency as PBI would need 10.71 years to pay back of all of its debts.
PBI's Debt to FCF ratio of 10.71 is in line compared to the rest of the industry. PBI outperforms 59.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.71 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.85
WACC8.8%
2.3 Liquidity
PBI has a Current Ratio of 0.76. This is a bad value and indicates that PBI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PBI (0.76) is worse than 82.14% of its industry peers.
PBI has a Quick Ratio of 0.76. This is a bad value and indicates that PBI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PBI (0.70) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1155.56% over the past year.
The Earnings Per Share has been decreasing by -5.76% on average over the past years.
Looking at the last year, PBI shows a very negative growth in Revenue. The Revenue has decreased by -43.64% 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)1155.56%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%800%
Revenue 1Y (TTM)-43.64%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-41.76%
3.2 Future
PBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.80% yearly.
PBI is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -13.91% yearly.
EPS Next Y134.14%
EPS Next 2Y54.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-25.58%
Revenue Next 2Y-13.91%
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 9.96, 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 90.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.53, PBI is valued rather cheaply.
The Price/Forward Earnings ratio is 8.54, which indicates a very decent valuation of PBI.
Based on the Price/Forward Earnings ratio, PBI is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.04. PBI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.54 |
4.2 Price Multiples
PBI's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PBI indicates a rather cheap valuation: PBI is cheaper than 89.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.64 | ||
| EV/EBITDA | 13.91 |
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 54.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y54.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PBI has a Yearly Dividend Yield of 2.78%.
PBI's Dividend Yield is rather good when compared to the industry average which is at 2.41. PBI pays more dividend than 88.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, PBI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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
The earnings of PBI are negative and hence is the payout ratio. PBI will probably not be able to sustain this dividend level.
PBI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-37.83%
EPS Next 2Y54.8%
EPS Next 3YN/A
11.25
+0.23 (+2.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners76.51%
Inst Owner Change-0.12%
Ins Owners0.49%
Ins Owner Change3.8%
Market Cap1.94B
Analysts45
Price Target17.34 (54.13%)
Short Float %12.09%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend0.2
Dividend Growth(5Y)0.29%
DP-37.83%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.11%
Min EPS beat(2)-2.79%
Max EPS beat(2)21.01%
EPS beat(4)3
Avg EPS beat(4)46.31%
Min EPS beat(4)-2.79%
Max EPS beat(4)118.51%
EPS beat(8)7
Avg EPS beat(8)94.03%
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)-2.89%
Min Revenue beat(2)-3.91%
Max Revenue beat(2)-1.88%
Revenue beat(4)1
Avg Revenue beat(4)-10.68%
Min Revenue beat(4)-37.19%
Max Revenue beat(4)0.27%
Revenue beat(8)5
Avg Revenue beat(8)-4.37%
Revenue beat(12)5
Avg Revenue beat(12)-4.57%
Revenue beat(16)6
Avg Revenue beat(16)-3.87%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.54 | ||
| P/S | 0.98 | ||
| P/FCF | 10.64 | ||
| P/OCF | 7.95 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.91 |
EPS(TTM)1.13
EY10.04%
EPS(NY)1.32
Fwd EY11.72%
FCF(TTM)1.06
FCFY9.4%
OCF(TTM)1.42
OCFY12.58%
SpS11.45
BVpS-3.12
TBVpS-7.57
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.41% | ||
| ROE | N/A | ||
| ROCE | 9.52% | ||
| ROIC | 7.52% | ||
| ROICexc | 9.08% | ||
| ROICexgc | 19.24% | ||
| OM | 8.45% | ||
| PM (TTM) | N/A | ||
| GM | 53.57% | ||
| FCFM | 9.23% |
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-Score4
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.71 | ||
| Debt/EBITDA | 7.54 | ||
| Cap/Depr | 68.41% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 1.08 | ||
| Cash Conversion | 94.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.11 |
F-Score4
WACC8.8%
ROIC/WACC0.85
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)1155.56%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%800%
EPS Next Y134.14%
EPS Next 2Y54.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-43.64%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-41.76%
Revenue Next Year-25.58%
Revenue Next 2Y-13.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30.03%
EBIT growth 3Y12.77%
EBIT growth 5Y-5.57%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y834.47%
FCF growth 3Y10.1%
FCF growth 5Y3.72%
OCF growth 1Y169.02%
OCF growth 3Y-8.74%
OCF growth 5Y-3.07%