POSTAL REALTY TRUST INC- A (PSTL)
US73757R1023 - REIT
PSTL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. PSTL has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, PSTL is valued expensive at the moment.
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.
The reported net income has been mixed in the past 5 years: PSTL reported negative net income in multiple years.
Each year in the past 5 years PSTL had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.37%, PSTL perfoms like the industry average, outperforming 47.20% of the companies in the same industry.
Looking at the Return On Equity, with a value of 0.86%, PSTL is in line with its industry, outperforming 46.40% of the companies in the same industry.
PSTL's Return On Invested Capital of 1.99% is on the low side compared to the rest of the industry. PSTL is outperformed by 64.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PSTL is in line with the industry average of 2.97%.
The last Return On Invested Capital (1.99%) for PSTL is above the 3 year average (1.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 0.86% | ||
| ROIC | 1.99% |
ROA(3y)0.45%
ROA(5y)0%
ROE(3y)0.95%
ROE(5y)-0.2%
ROIC(3y)1.6%
ROIC(5y)1.1%
1.3 Margins
The Profit Margin of PSTL (3.25%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PSTL has declined.
With a Operating Margin value of 22.00%, PSTL perfoms like the industry average, outperforming 52.80% of the companies in the same industry.
PSTL's Operating Margin has declined in the last couple of years.
The Gross Margin of PSTL (75.05%) is better than 71.20% of its industry peers.
PSTL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22% | ||
| PM (TTM) | 3.25% | ||
| GM | 75.05% |
OM growth 3Y38.29%
OM growth 5Y-8.05%
PM growth 3YN/A
PM growth 5Y-24.34%
GM growth 3Y-1.55%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSTL is destroying value.
PSTL has more shares outstanding than it did 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 0.67. 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 (0.67) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.00 indicates that PSTL is somewhat dependend on debt financing.
PSTL has a Debt to Equity ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.28
WACC7.1%
2.3 Liquidity
PSTL has a Current Ratio of 2.36. This indicates that PSTL is financially healthy and has no problem in meeting its short term obligations.
PSTL has a Current ratio of 2.36. This is in the better half of the industry: PSTL outperforms 79.20% of its industry peers.
A Quick Ratio of 2.36 indicates that PSTL has no problem at all paying its short term obligations.
The Quick ratio of PSTL (2.36) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
The earnings per share for PSTL have decreased strongly by -14.29% in the last year.
The earnings per share for PSTL have been decreasing by -10.28% on average. This is quite bad
PSTL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.46%.
Measured over the past years, PSTL shows a very strong growth in Revenue. The Revenue has been growing by 52.64% on average per year.
EPS 1Y (TTM)-14.29%
EPS 3YN/A
EPS 5Y-10.28%
EPS growth Q2QN/A
Revenue 1Y (TTM)16.46%
Revenue growth 3Y37.63%
Revenue growth 5Y52.64%
Revenue growth Q2Q14.12%
3.2 Future
PSTL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.26% yearly.
PSTL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.54% yearly.
EPS Next Y124.4%
EPS Next 2Y27.02%
EPS Next 3Y15.23%
EPS Next 5Y14.26%
Revenue Next Year14.83%
Revenue Next 2Y14.19%
Revenue Next 3Y13.44%
Revenue Next 5Y10.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 114.42, the valuation of PSTL can be described as expensive.
65.60% of the companies in the same industry are cheaper than PSTL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PSTL to the average of the S&P500 Index (28.15), we can say PSTL is valued expensively.
The Price/Forward Earnings ratio is 77.36, which means the current valuation is very expensive for PSTL.
PSTL's Price/Forward Earnings ratio is in line with the industry average.
PSTL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.42 | ||
| Fwd PE | 77.36 |
4.2 Price Multiples
PSTL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PSTL is more expensive than 62.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.1 |
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's earnings are expected to grow with 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y27.02%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.01%, PSTL is a good candidate for dividend investing.
PSTL's Dividend Yield is a higher than the industry average which is at 5.70.
Compared to an average S&P500 Dividend Yield of 2.34, PSTL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
5.2 History
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 last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
1180.42% of the earnings are spent on dividend by PSTL. This is not a sustainable payout ratio.
DP1180.42%
EPS Next 2Y27.02%
EPS Next 3Y15.23%
POSTAL REALTY TRUST INC- A
NYSE:PSTL (5/17/2024, 7:21:34 PM)
After market: 13.73 0 (0%)13.73
-0.06 (-0.44%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap310.57M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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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 | 114.42 | ||
| Fwd PE | 77.36 | ||
| 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)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 0.86% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22% | ||
| PM (TTM) | 3.25% | ||
| GM | 75.05% | ||
| 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 Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 | ||
| 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)
Growth
EPS 1Y (TTM)-14.29%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y124.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.46%
Revenue growth 3Y37.63%
Revenue growth 5Y
Revenue growth 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