POSTAL REALTY TRUST INC- A (PSTL) Stock Fundamental Analysis
NYSE:PSTL - US73757R1023 - REIT
15.96 USD
+0.07 (+0.44%)
15.72 USD
-0.24 (-1.5%)
Taking everything into account, PSTL scores 5 out of 10 in our fundamental rating. PSTL was compared to 129 industry peers in the Diversified REITs industry. PSTL has a medium profitability rating, but doesn't score so well on its financial health evaluation. PSTL is not priced too expensively while it is growing strongly. Keep and eye on this one! PSTL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PSTL had positive earnings in the past year.
PSTL had a positive operating cash flow in the past year.
PSTL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years PSTL had a positive operating cash flow.
1.2 Ratios
PSTL has a Return On Assets of 1.30%. This is comparable to the rest of the industry: PSTL outperforms 55.81% of its industry peers.
PSTL's Return On Equity of 3.57% is in line compared to the rest of the industry. PSTL outperforms 58.91% of its industry peers.
PSTL has a Return On Invested Capital of 3.16%. This is in the better half of the industry: PSTL outperforms 60.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSTL is in line with the industry average of 3.04%.
The last Return On Invested Capital (3.16%) for PSTL is above the 3 year average (1.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 3.57% | ||
| ROIC | 3.16% |
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 (10.36%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PSTL has grown nicely.
Looking at the Operating Margin, with a value of 31.06%, PSTL is in the better half of the industry, outperforming 64.34% of the companies in the same industry.
PSTL's Operating Margin has improved in the last couple of years.
PSTL has a Gross Margin of 77.25%. This is in the better half of the industry: PSTL outperforms 75.19% of its industry peers.
PSTL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.06% | ||
| PM (TTM) | 10.36% | ||
| GM | 77.25% |
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
PSTL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PSTL has more shares outstanding
PSTL has more shares outstanding than it did 5 years ago.
PSTL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that PSTL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.64, PSTL is in line with its industry, outperforming 59.69% of the companies in the same industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that PSTL has dependencies on debt financing.
PSTL has a Debt to Equity ratio of 1.31. This is comparable to the rest of the industry: PSTL outperforms 48.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.64 |
ROIC/WACC0.46
WACC6.81%
2.3 Liquidity
A Current Ratio of 0.59 indicates that PSTL may have some problems paying its short term obligations.
PSTL has a Current ratio of 0.59. This is in the lower half of the industry: PSTL underperforms 75.97% of its industry peers.
A Quick Ratio of 0.59 indicates that PSTL may have some problems paying its short term obligations.
The Quick ratio of PSTL (0.59) is worse than 75.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 233.33% over the past year.
The Earnings Per Share has been growing slightly by 5.73% on average over the past years.
Looking at the last year, PSTL shows a very strong growth in Revenue. The Revenue has grown by 26.43%.
Measured over the past years, PSTL shows a very strong growth in Revenue. The Revenue has been growing by 46.57% on average per year.
EPS 1Y (TTM)233.33%
EPS 3Y5.73%
EPS 5YN/A
EPS Q2Q%500%
Revenue 1Y (TTM)26.43%
Revenue growth 3Y24.12%
Revenue growth 5Y46.57%
Sales Q2Q%29.37%
3.2 Future
The Earnings Per Share is expected to grow by 31.44% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.88% on average over the next years. This is quite good.
EPS Next Y207.96%
EPS Next 2Y83.68%
EPS Next 3Y53.39%
EPS Next 5Y31.44%
Revenue Next Year28.55%
Revenue Next 2Y18.79%
Revenue Next 3Y15.62%
Revenue Next 5Y14.88%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 53.20, the valuation of PSTL can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as PSTL.
Compared to an average S&P500 Price/Earnings ratio of 27.06, PSTL is valued quite expensively.
PSTL is valuated quite expensively with a Price/Forward Earnings ratio of 36.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSTL indicates a somewhat cheap valuation: PSTL is cheaper than 70.54% of the companies listed in the same industry.
PSTL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.2 | ||
| Fwd PE | 36.39 |
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 | 14.43 |
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.
PSTL has a very decent profitability rating, which may justify a higher PE ratio.
PSTL's earnings are expected to grow with 53.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y83.68%
EPS Next 3Y53.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.18%, PSTL is a good candidate for dividend investing.
PSTL's Dividend Yield is a higher than the industry average which is at 6.14.
Compared to an average S&P500 Dividend Yield of 2.32, PSTL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
5.2 History
The dividend of PSTL is nicely growing with an annual growth rate of 14.57%!
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 324.95% of its income as dividend. This is not a sustainable payout ratio.
PSTL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP324.95%
EPS Next 2Y83.68%
EPS Next 3Y53.39%
15.96
+0.07 (+0.44%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners69.09%
Inst Owner Change5.56%
Ins Owners5.88%
Ins Owner Change-3.07%
Market Cap392.78M
Analysts84.29
Price Target17.04 (6.77%)
Short Float %0.88%
Short Ratio1.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
Yearly Dividend1.23
Dividend Growth(5Y)14.57%
DP324.95%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.58%
Min EPS beat(2)56.86%
Max EPS beat(2)74.29%
EPS beat(4)4
Avg EPS beat(4)156.59%
Min EPS beat(4)6.95%
Max EPS beat(4)488.24%
EPS beat(8)6
Avg EPS beat(8)75.29%
EPS beat(12)10
Avg EPS beat(12)302.3%
EPS beat(16)11
Avg EPS beat(16)220.98%
Revenue beat(2)2
Avg Revenue beat(2)4%
Min Revenue beat(2)3.36%
Max Revenue beat(2)4.64%
Revenue beat(4)4
Avg Revenue beat(4)6.77%
Min Revenue beat(4)3.36%
Max Revenue beat(4)14.33%
Revenue beat(8)7
Avg Revenue beat(8)3.78%
Revenue beat(12)9
Avg Revenue beat(12)2.66%
Revenue beat(16)13
Avg Revenue beat(16)2.46%
PT rev (1m)1.52%
PT rev (3m)7.22%
EPS NQ rev (1m)43.21%
EPS NQ rev (3m)222.23%
EPS NY rev (1m)33.5%
EPS NY rev (3m)50.96%
Revenue NQ rev (1m)3.03%
Revenue NQ rev (3m)20.47%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)4.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.2 | ||
| Fwd PE | 36.39 | ||
| P/S | 4.54 | ||
| P/FCF | N/A | ||
| P/OCF | 9.96 | ||
| P/B | 1.57 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 14.43 |
EPS(TTM)0.3
EY1.88%
EPS(NY)0.44
Fwd EY2.75%
FCF(TTM)-2.11
FCFYN/A
OCF(TTM)1.6
OCFY10.04%
SpS3.52
BVpS10.19
TBVpS9.59
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 3.57% | ||
| ROCE | 4% | ||
| ROIC | 3.16% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 3.24% | ||
| OM | 31.06% | ||
| PM (TTM) | 10.36% | ||
| GM | 77.25% | ||
| 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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.6 | ||
| Cap/Depr | 398.5% | ||
| Cap/Sales | 105.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.64 |
F-Score6
WACC6.81%
ROIC/WACC0.46
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)233.33%
EPS 3Y5.73%
EPS 5YN/A
EPS Q2Q%500%
EPS Next Y207.96%
EPS Next 2Y83.68%
EPS Next 3Y53.39%
EPS Next 5Y31.44%
Revenue 1Y (TTM)26.43%
Revenue growth 3Y24.12%
Revenue growth 5Y46.57%
Sales Q2Q%29.37%
Revenue Next Year28.55%
Revenue Next 2Y18.79%
Revenue Next 3Y15.62%
Revenue Next 5Y14.88%
EBIT growth 1Y79.49%
EBIT growth 3Y47.99%
EBIT growth 5Y207.32%
EBIT Next Year490.84%
EBIT Next 3Y98.95%
EBIT Next 5Y75.7%
FCF growth 1Y-13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y50.88%
OCF growth 3Y25.13%
OCF growth 5Y63.59%