PITNEY BOWES INC (PBI)

US7244791007 - Common Stock

3.95  -0.08 (-1.99%)

Fundamental Rating

3

PBI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of PBI have multiple concerns. PBI has a valuation in line with the averages, but on the other hand it scores bad on growth.



2

1. Profitability

1.1 Basic Checks

PBI had positive earnings in the past year.
In the past year PBI had a positive cash flow from operations.
In multiple years PBI reported negative net income over the last 5 years.
Of the past 5 years PBI 4 years had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -3.52%, PBI is not doing good in the industry: 75.31% of the companies in the same industry are doing better.
PBI has a Return On Invested Capital of 2.47%. This is in the lower half of the industry: PBI underperforms 62.96% of its industry peers.
PBI had an Average Return On Invested Capital over the past 3 years of 2.97%. This is significantly below the industry average of 8.95%.
Industry RankSector Rank
ROA -3.52%
ROE N/A
ROIC 2.47%
ROA(3y)-2.75%
ROA(5y)-1.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.97%
ROIC(5y)3.29%

1.3 Margins

PBI has a worse Operating Margin (2.63%) than 61.73% of its industry peers.
PBI's Operating Margin has declined in the last couple of years.
PBI has a Gross Margin (31.02%) which is in line with its industry peers.
PBI's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 2.63%
PM (TTM) N/A
GM 31.02%
OM growth 3Y-9.98%
OM growth 5Y-23.82%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.09%
GM growth 5Y-6.7%

2

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
The number of shares outstanding for PBI has been reduced compared to 5 years ago.
Compared to 1 year ago, PBI has a worse debt to assets ratio.

2.2 Solvency

PBI has an Altman-Z score of 2.44. 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.
PBI has a better Altman-Z score (2.44) than 62.96% of its industry peers.
PBI has a debt to FCF ratio of 45.53. This is a negative value and a sign of low solvency as PBI would need 45.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 45.53, PBI is in line with its industry, outperforming 40.74% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 45.53
Altman-Z 2.44
ROIC/WACC0.34
WACC7.26%

2.3 Liquidity

A Current Ratio of 0.99 indicates that PBI may have some problems paying its short term obligations.
PBI has a Current ratio of 0.99. This is in the lower half of the industry: PBI underperforms 75.31% of its industry peers.
PBI has a Quick Ratio of 0.99. 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 Quick ratio, with a value of 0.93, PBI is doing worse than 70.37% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.93

3

3. Growth

3.1 Past

PBI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -81.25%.
The earnings per share for PBI have been decreasing by -49.43% on average. This is quite bad
Looking at the last year, PBI shows a decrease in Revenue. The Revenue has decreased by -8.57% in the last year.
The Revenue has been growing slightly by 0.34% on average over the past years.
EPS 1Y (TTM)-81.25%
EPS 3Y-48.91%
EPS 5Y-49.43%
EPS growth Q2Q-325.25%
Revenue 1Y (TTM)-8.57%
Revenue growth 3Y-2.77%
Revenue growth 5Y0.34%
Revenue growth Q2Q-5.68%

3.2 Future

PBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 193.00% yearly.
Based on estimates for the next years, PBI will show a decrease in Revenue. The Revenue will decrease by -0.98% on average per year.
EPS Next Y203%
EPS Next 2Y193%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.23%
Revenue Next 2Y-0.98%
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

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 131.67, PBI can be considered very expensive at the moment.
64.20% of the companies in the same industry are cheaper than PBI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.18. PBI is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 32.59, the valuation of PBI can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PBI is on the same level as its industry peers.
PBI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.51.
Industry RankSector Rank
PE 131.67
Fwd PE 32.59

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PBI is valued a bit cheaper than the industry average as 72.84% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PBI is valued a bit cheaper than 71.60% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.7
EV/EBITDA 9.22

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.
A more expensive valuation may be justified as PBI's earnings are expected to grow with 193.00% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y193%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

PBI has a Yearly Dividend Yield of 4.88%, which is a nice return.
PBI's Dividend Yield is rather good when compared to the industry average which is at 2.32. PBI pays more dividend than 96.30% of the companies in the same industry.
PBI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.48.
Industry RankSector Rank
Dividend Yield 4.88%

5.2 History

The dividend of PBI decreases each year by -23.29%.
PBI has paid a dividend for at least 10 years, which is a reliable track record.
PBI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-23.29%
Div Incr Years0
Div Non Decr Years4

5.3 Sustainability

PBI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-22.53%
EPS Next 2Y193%
EPS Next 3YN/A

PITNEY BOWES INC

NYSE:PBI (2/20/2024, 9:51:20 AM)

3.95

-0.08 (-1.99%)

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 Cap696.50M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.88%
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)
Max EPS beat(2)
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)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 131.67
Fwd PE 32.59
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)0.65
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.52%
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM 2.63%
PM (TTM) N/A
GM 31.02%
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 Turnover0.75
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.99
Quick Ratio 0.93
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)-81.25%
EPS 3Y-48.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y203%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.57%
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