PITNEY BOWES INC (PBI)
US7244791007 - Common Stock
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. PBI may be in some trouble as it scores bad on both profitability and health. PBI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: PBI reported negative net income in multiple years.
PBI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PBI has a worse Return On Assets (-9.28%) than 76.83% of its industry peers.
With a Return On Invested Capital value of 3.87%, PBI perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PBI is significantly below the industry average of 9.40%.
The 3 year average ROIC (2.94%) for PBI is below the current ROIC(3.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.28% | ||
| ROE | N/A | ||
| ROIC | 3.87% |
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
PBI's Operating Margin of 3.72% is on the low side compared to the rest of the industry. PBI is outperformed by 60.98% of its industry peers.
In the last couple of years the Operating Margin of PBI has declined.
The Gross Margin of PBI (31.45%) is comparable to the rest of the industry.
PBI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.72% | ||
| PM (TTM) | N/A | ||
| GM | 31.45% |
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
PBI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 less 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 2.07. 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.
The Altman-Z score of PBI (2.07) is comparable to the rest of the industry.
The Debt to FCF ratio of PBI is 170.90, which is on the high side as it means it would take PBI, 170.90 years of fcf income to pay off all of its debts.
PBI has a Debt to FCF ratio (170.90) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 170.9 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.46
WACC8.43%
2.3 Liquidity
PBI has a Current Ratio of 0.97. This is a bad value and indicates that PBI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.97, PBI is not doing good in the industry: 79.27% of the companies in the same industry are doing better.
A Quick Ratio of 0.92 indicates that PBI may have some problems paying its short term obligations.
PBI has a Quick ratio of 0.92. This is in the lower half of the industry: PBI underperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for PBI have decreased strongly by -42.86% in the last year.
PBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.43% yearly.
The Revenue has decreased by -5.32% in the past year.
The Revenue has been growing slightly by 0.34% on average over the past years.
EPS 1Y (TTM)-42.86%
EPS 3Y-48.91%
EPS 5Y-49.43%
EPS Q2Q%0%
Revenue 1Y (TTM)-5.32%
Revenue growth 3Y-2.77%
Revenue growth 5Y0.34%
Sales Q2Q%-0.48%
3.2 Future
PBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 124.72% yearly.
The Revenue is expected to grow by 0.88% on average over the next years.
EPS Next Y-150.5%
EPS Next 2Y124.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.95%
Revenue Next 2Y0.88%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 168.50, which means the current valuation is very expensive for PBI.
Based on the Price/Earnings ratio, PBI is valued a bit more expensive than 62.20% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, PBI is valued quite expensively.
Based on the Price/Forward Earnings ratio of 33.37, the valuation of PBI can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as PBI.
PBI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 168.5 | ||
| Fwd PE | 33.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBI is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
PBI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 96.54 | ||
| EV/EBITDA | 9.78 |
4.3 Compensation for Growth
PBI's earnings are expected to grow with 124.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y124.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.92%, 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 2.23. PBI pays more dividend than 87.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, PBI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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-9.28%
EPS Next 2Y124.72%
EPS Next 3YN/A
PITNEY BOWES INC
NYSE:PBI (7/26/2024, 6:27:00 PM)
After market: 7.5 +0.76 (+11.28%)6.74
+0.08 (+1.2%)
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 Cap1.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 168.5 | ||
| Fwd PE | 33.37 | ||
| 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 | -9.28% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.72% | ||
| PM (TTM) | N/A | ||
| GM | 31.45% | ||
| 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 Turnover0.8
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 | 0.97 | ||
| Quick Ratio | 0.92 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-42.86%
EPS 3Y-48.91%
EPS 5Y
EPS Q2Q%
EPS Next Y-150.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.32%
Revenue growth 3Y-2.77%
Revenue growth 5Y
Sales 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