PITNEY BOWES INC (PBI)

US7244791007 - Common Stock

6.71  +0.11 (+1.67%)

After market: 6.71 0 (0%)

Fundamental Rating

3

Overall PBI gets a fundamental rating of 3 out of 10. We evaluated PBI against 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of PBI have multiple concerns. PBI is valied quite expensively at the moment, while it does show a decent growth rate.



3

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.
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 Return On Assets of -9.28%. This is in the lower half of the industry: PBI underperforms 76.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.87%, PBI is in line with its industry, outperforming 45.24% of the companies in the same industry.
PBI had an Average Return On Invested Capital over the past 3 years of 2.94%. This is significantly below the industry average of 9.45%.
The last Return On Invested Capital (3.87%) for PBI is above the 3 year average (2.94%), which is a sign of increasing profitability.
Industry RankSector 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 has a Operating Margin (3.72%) which is in line with its industry peers.
PBI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 31.45%, PBI is in line with its industry, outperforming 52.38% of the companies in the same industry.
PBI's Gross Margin has declined in the last couple of years.
Industry RankSector 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

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PBI is destroying value.
The number of shares outstanding for PBI has been increased compared to 1 year ago.
The number of shares outstanding for PBI has been reduced compared to 5 years ago.
PBI has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.07 indicates that PBI is not a great score, but indicates 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 of 170.90. This is comparable to the rest of the industry: PBI outperforms 45.24% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 170.9
Altman-Z 2.07
ROIC/WACC0.46
WACC8.47%

2.3 Liquidity

A Current Ratio of 0.97 indicates that PBI may have some problems paying its short term obligations.
The Current ratio of PBI (0.97) is worse than 78.57% of its industry peers.
PBI has a Quick 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.
PBI has a Quick ratio of 0.92. This is in the lower half of the industry: PBI underperforms 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.97
Quick Ratio 0.92

4

3. Growth

3.1 Past

The earnings per share for PBI have decreased strongly by -42.86% in the last year.
The earnings per share for PBI have been decreasing by -49.43% on average. This is quite bad
PBI shows a decrease in Revenue. In the last year, the revenue decreased by -5.32%.
PBI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.34% yearly.
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

Based on estimates for the next years, PBI will show a very strong growth in Earnings Per Share. The EPS will grow by 124.72% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 167.75, PBI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, PBI is valued a bit more expensive than the industry average as 60.71% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 29.15, PBI is valued quite expensively.
A Price/Forward Earnings ratio of 33.22 indicates a quite expensive valuation of PBI.
PBI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.65. PBI is valued rather expensively when compared to this.
Industry RankSector Rank
PE 167.75
Fwd PE 33.22

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PBI is valued a bit cheaper than the industry average as 63.10% of the companies are valued more expensively.
PBI's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 96.12
EV/EBITDA 9.81

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

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.03%, PBI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.32, PBI pays a better dividend. On top of this PBI pays more dividend than 89.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, PBI pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.03%

5.2 History

The dividend of PBI decreases each year by -23.17%.
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)-23.17%
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-9.28%
EPS Next 2Y124.72%
EPS Next 3YN/A

PITNEY BOWES INC

NYSE:PBI (7/12/2024, 7:04:00 PM)

After market: 6.71 0 (0%)

6.71

+0.11 (+1.67%)

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 Cap1.20B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.03%
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 RankSector Rank
PE 167.75
Fwd PE 33.22
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 RankSector 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 RankSector 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