PITNEY BOWES INC (PBI) Stock Fundamental Analysis
NYSE:PBI - New York Stock Exchange, Inc. - US7244791007 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PBI. PBI was compared to 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.
PBI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PBI's Return On Assets of -5.14% is on the low side compared to the rest of the industry. PBI is outperformed by 68.67% of its industry peers.
With a decent Return On Invested Capital value of 9.67%, PBI is doing good in the industry, outperforming 72.29% 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 11.67%.
The 3 year average ROIC (7.15%) for PBI is below the current ROIC(9.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.14% | ||
| ROE | N/A | ||
| ROIC | 9.67% |
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 decent Operating Margin value of 8.65%, PBI is doing good in the industry, outperforming 63.86% of the companies in the same industry.
PBI's Operating Margin has improved in the last couple of years.
PBI's Gross Margin of 52.83% is amongst the best of the industry. PBI outperforms 91.57% of its industry peers.
In the last couple of years the Gross Margin of PBI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.65% | ||
| PM (TTM) | N/A | ||
| GM | 52.83% |
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.
The number of shares outstanding for PBI has been increased compared to 1 year ago.
Compared to 5 years ago, PBI has more shares outstanding
Compared to 1 year ago, PBI has a worse debt to assets ratio.
2.2 Solvency
PBI has an Altman-Z score of 2.31. 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's Altman-Z score of 2.31 is in line compared to the rest of the industry. PBI outperforms 49.40% of 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 51.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.62 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.92
WACC10.51%
2.3 Liquidity
A Current Ratio of 0.80 indicates that PBI may have some problems paying its short term obligations.
The Current ratio of PBI (0.80) is worse than 86.75% of its industry peers.
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 81.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 2125.00% over the past year.
Measured over the past years, PBI shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.76% on average per year.
PBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.75%.
The Revenue has been decreasing by -8.76% on average over the past years.
EPS 1Y (TTM)2125%
EPS 3Y19.79%
EPS 5Y-5.76%
EPS Q2Q%3400%
Revenue 1Y (TTM)-22.75%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-40.59%
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 53.91% on average per year.
Based on estimates for the next years, PBI will show a very negative growth in Revenue. The Revenue will decrease by -12.41% on average per year.
EPS Next Y128.63%
EPS Next 2Y53.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-23.59%
Revenue Next 2Y-12.41%
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
With a Price/Earnings ratio of 11.55, the valuation of PBI can be described as very reasonable.
PBI's Price/Earnings ratio is rather cheap when compared to the industry. PBI is cheaper than 84.34% of the companies in the same industry.
PBI is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.89 indicates a rather cheap valuation of PBI.
Based on the Price/Forward Earnings ratio, PBI is valued cheaper than 93.98% of the companies in the same industry.
PBI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
PBI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PBI is cheaper than 63.86% of the companies in the same industry.
80.72% of the companies in the same industry are more expensive than PBI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.97 | ||
| EV/EBITDA | 10.85 |
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.
A more expensive valuation may be justified as PBI's earnings are expected to grow with 53.91% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y53.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.67%, PBI has a reasonable but not impressive dividend return.
PBI's Dividend Yield is rather good when compared to the industry average which is at 2.57. PBI pays more dividend than 86.75% of the companies in the same industry.
PBI's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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.
The dividend of PBI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-22.66%
EPS Next 2Y53.91%
EPS Next 3YN/A
10.28
-0.21 (-2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners71.67%
Inst Owner Change0.11%
Ins Owners0.53%
Ins Owner Change3.17%
Market Cap1.86B
Analysts45
Price Target17.34 (68.68%)
Short Float %6.85%
Short Ratio5.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend0.2
Dividend Growth(5Y)0.29%
DP-22.66%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)69.76%
Min EPS beat(2)21.01%
Max EPS beat(2)118.51%
EPS beat(4)4
Avg EPS beat(4)82.62%
Min EPS beat(4)21.01%
Max EPS beat(4)142.43%
EPS beat(8)7
Avg EPS beat(8)82.12%
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)-0.81%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)0.27%
Revenue beat(4)2
Avg Revenue beat(4)-9.26%
Min Revenue beat(4)-37.19%
Max Revenue beat(4)1.77%
Revenue beat(8)5
Avg Revenue beat(8)-4.51%
Revenue beat(12)5
Avg Revenue beat(12)-4.57%
Revenue beat(16)6
Avg Revenue beat(16)-3.66%
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)4.18%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 7.89 | ||
| P/S | 0.74 | ||
| P/FCF | 11.97 | ||
| P/OCF | 8.28 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.85 |
EPS(TTM)0.89
EY8.66%
EPS(NY)1.3
Fwd EY12.67%
FCF(TTM)0.86
FCFY8.36%
OCF(TTM)1.24
OCFY12.08%
SpS13.9
BVpS-2.96
TBVpS-7.08
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.14% | ||
| ROE | N/A | ||
| ROCE | 12.24% | ||
| ROIC | 9.67% | ||
| ROICexc | 11.95% | ||
| ROICexgc | 24.84% | ||
| OM | 8.65% | ||
| PM (TTM) | N/A | ||
| GM | 52.83% | ||
| FCFM | 6.18% |
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.62 | ||
| Debt/EBITDA | 6.1 | ||
| Cap/Depr | 68.02% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 1.35 | ||
| Cash Conversion | 70.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.31 |
F-Score4
WACC10.51%
ROIC/WACC0.92
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)-22.75%
Revenue growth 3Y-17.98%
Revenue growth 5Y-8.76%
Sales Q2Q%-40.59%
Revenue Next Year-23.59%
Revenue Next 2Y-12.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y79.72%
EBIT growth 3Y12.77%
EBIT growth 5Y-5.57%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3173.4%
FCF growth 3Y10.1%
FCF growth 5Y3.72%
OCF growth 1Y79%
OCF growth 3Y-8.74%
OCF growth 5Y-3.07%