POSTAL REALTY TRUST INC- A (PSTL) Stock Fundamental Analysis
NYSE:PSTL - New York Stock Exchange, Inc. - US73757R1023 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to PSTL. PSTL was compared to 128 industry peers in the Diversified REITs industry. While PSTL is still in line with the averages on profitability rating, there are concerns on its financial health. PSTL is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year PSTL was profitable.
In the past year PSTL had a positive cash flow from operations.
Of the past 5 years PSTL 4 years were profitable.
Each year in the past 5 years PSTL had a positive operating cash flow.
1.2 Ratios
PSTL's Return On Assets of 0.99% is in line compared to the rest of the industry. PSTL outperforms 55.47% of its industry peers.
PSTL has a Return On Equity (2.63%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.80%, PSTL is in line with its industry, outperforming 53.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSTL is in line with the industry average of 3.14%.
The last Return On Invested Capital (2.80%) for PSTL is above the 3 year average (1.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.63% | ||
| ROIC | 2.8% |
ROA(3y)0.58%
ROA(5y)0.37%
ROE(3y)1.37%
ROE(5y)0.8%
ROIC(3y)1.98%
ROIC(5y)1.57%
1.3 Margins
PSTL has a Profit Margin of 7.96%. This is comparable to the rest of the industry: PSTL outperforms 57.03% of its industry peers.
PSTL's Profit Margin has improved in the last couple of years.
PSTL has a better Operating Margin (27.85%) than 60.94% of its industry peers.
In the last couple of years the Operating Margin of PSTL has grown nicely.
PSTL has a Gross Margin of 76.08%. This is in the better half of the industry: PSTL outperforms 74.22% of its industry peers.
In the last couple of years the Gross Margin of PSTL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.85% | ||
| PM (TTM) | 7.96% | ||
| GM | 76.08% |
OM growth 3Y19.23%
OM growth 5Y109.67%
PM growth 3Y21.53%
PM growth 5YN/A
GM growth 3Y-0.58%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PSTL is destroying value.
The number of shares outstanding for PSTL has been increased compared to 1 year ago.
PSTL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PSTL has a worse debt to assets ratio.
2.2 Solvency
PSTL has an Altman-Z score of 0.62. This is a bad value and indicates that PSTL is not financially healthy and even has some risk of bankruptcy.
PSTL has a Altman-Z score (0.62) which is comparable to the rest of the industry.
PSTL has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
PSTL has a Debt to Equity ratio (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.62 |
ROIC/WACC0.34
WACC8.2%
2.3 Liquidity
PSTL has a Current Ratio of 0.56. This is a bad value and indicates that PSTL is not financially healthy enough and could expect problems in meeting its short term obligations.
PSTL has a Current ratio of 0.56. This is in the lower half of the industry: PSTL underperforms 75.78% of its industry peers.
PSTL has a Quick Ratio of 0.56. This is a bad value and indicates that PSTL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PSTL (0.56) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
PSTL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, which is quite impressive.
PSTL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.73% yearly.
PSTL shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.35%.
PSTL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 46.57% yearly.
EPS 1Y (TTM)100%
EPS 3Y5.73%
EPS 5YN/A
EPS Q2Q%700%
Revenue 1Y (TTM)23.35%
Revenue growth 3Y24.12%
Revenue growth 5Y46.57%
Sales Q2Q%28.13%
3.2 Future
The Earnings Per Share is expected to grow by 23.76% on average over the next years. This is a very strong growth
Based on estimates for the next years, PSTL will show a quite strong growth in Revenue. The Revenue will grow by 13.00% on average per year.
EPS Next Y135.38%
EPS Next 2Y82.07%
EPS Next 3Y48.81%
EPS Next 5Y23.76%
Revenue Next Year26.3%
Revenue Next 2Y17.94%
Revenue Next 3Y15.32%
Revenue Next 5Y13%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 76.45, the valuation of PSTL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PSTL is on the same level as its industry peers.
PSTL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.91.
The Price/Forward Earnings ratio is 35.48, which means the current valuation is very expensive for PSTL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSTL indicates a somewhat cheap valuation: PSTL is cheaper than 68.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.46, PSTL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.45 | ||
| Fwd PE | 35.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSTL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.85 |
4.3 Compensation for Growth
PSTL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PSTL may justify a higher PE ratio.
PSTL's earnings are expected to grow with 48.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y82.07%
EPS Next 3Y48.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.43%, PSTL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.72, PSTL has a dividend in line with its industry peers.
PSTL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.43% |
5.2 History
On average, the dividend of PSTL grows each year by 14.57%, which is quite nice.
PSTL has been paying a dividend for over 5 years, so it has already some track record.
PSTL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)14.57%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
PSTL pays out 440.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PSTL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP440.92%
EPS Next 2Y82.07%
EPS Next 3Y48.81%
15.29
-0.06 (-0.39%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners69.01%
Inst Owner Change7.82%
Ins Owners5.98%
Ins Owner Change0.46%
Market Cap364.36M
Analysts84.29
Price Target16.36 (7%)
Short Float %1.6%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.43% |
Yearly Dividend1.23
Dividend Growth(5Y)14.57%
DP440.92%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)272.55%
Min EPS beat(2)56.86%
Max EPS beat(2)488.24%
EPS beat(4)3
Avg EPS beat(4)129.35%
Min EPS beat(4)-34.64%
Max EPS beat(4)488.24%
EPS beat(8)6
Avg EPS beat(8)73.93%
EPS beat(12)10
Avg EPS beat(12)297.11%
EPS beat(16)10
Avg EPS beat(16)216.21%
Revenue beat(2)2
Avg Revenue beat(2)9.49%
Min Revenue beat(2)4.64%
Max Revenue beat(2)14.33%
Revenue beat(4)4
Avg Revenue beat(4)6.39%
Min Revenue beat(4)1.84%
Max Revenue beat(4)14.33%
Revenue beat(8)7
Avg Revenue beat(8)3.46%
Revenue beat(12)9
Avg Revenue beat(12)2.41%
Revenue beat(16)13
Avg Revenue beat(16)2.5%
PT rev (1m)2.94%
PT rev (3m)2.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.46%
EPS NY rev (1m)15.38%
EPS NY rev (3m)305.4%
Revenue NQ rev (1m)1.87%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)3.15%
Revenue NY rev (3m)9.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.45 | ||
| Fwd PE | 35.48 | ||
| P/S | 4.49 | ||
| P/FCF | N/A | ||
| P/OCF | 9.61 | ||
| P/B | 1.48 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 14.85 |
EPS(TTM)0.2
EY1.31%
EPS(NY)0.43
Fwd EY2.82%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)1.59
OCFY10.41%
SpS3.41
BVpS10.3
TBVpS9.72
PEG (NY)0.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.63% | ||
| ROCE | 3.54% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 2.87% | ||
| OM | 27.85% | ||
| PM (TTM) | 7.96% | ||
| GM | 76.08% | ||
| FCFM | N/A |
ROA(3y)0.58%
ROA(5y)0.37%
ROE(3y)1.37%
ROE(5y)0.8%
ROIC(3y)1.98%
ROIC(5y)1.57%
ROICexc(3y)1.99%
ROICexc(5y)1.58%
ROICexgc(3y)2.05%
ROICexgc(5y)1.63%
ROCE(3y)2.51%
ROCE(5y)1.99%
ROICexcg growth 3Y22.58%
ROICexcg growth 5Y119.37%
ROICexc growth 3Y23.31%
ROICexc growth 5Y121.08%
OM growth 3Y19.23%
OM growth 5Y109.67%
PM growth 3Y21.53%
PM growth 5YN/A
GM growth 3Y-0.58%
GM growth 5Y-0.52%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.79 | ||
| Cap/Depr | 386.4% | ||
| Cap/Sales | 107.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 0.62 |
F-Score6
WACC8.2%
ROIC/WACC0.34
Cap/Depr(3y)476.49%
Cap/Depr(5y)689.71%
Cap/Sales(3y)150.2%
Cap/Sales(5y)238.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)100%
EPS 3Y5.73%
EPS 5YN/A
EPS Q2Q%700%
EPS Next Y135.38%
EPS Next 2Y82.07%
EPS Next 3Y48.81%
EPS Next 5Y23.76%
Revenue 1Y (TTM)23.35%
Revenue growth 3Y24.12%
Revenue growth 5Y46.57%
Sales Q2Q%28.13%
Revenue Next Year26.3%
Revenue Next 2Y17.94%
Revenue Next 3Y15.32%
Revenue Next 5Y13%
EBIT growth 1Y56.18%
EBIT growth 3Y47.99%
EBIT growth 5Y207.32%
EBIT Next Year477.81%
EBIT Next 3Y96.57%
EBIT Next 5Y73.77%
FCF growth 1Y42.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.61%
OCF growth 3Y25.13%
OCF growth 5Y63.59%