POSTAL REALTY TRUST INC- A (PSTL) Stock Fundamental Analysis
USA - NYSE:PSTL - US73757R1023 - REIT
15.36 USD
+0.17 (+1.12%)
15.36 USD
0 (0%)
PSTL gets a fundamental rating of 5 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. PSTL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! Finally PSTL also has an excellent dividend rating.
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.
PSTL had positive earnings in 4 of the past 5 years.
PSTL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.30%, PSTL is in line with its industry, outperforming 55.12% of the companies in the same industry.
PSTL has a Return On Equity of 3.57%. This is comparable to the rest of the industry: PSTL outperforms 57.48% of its industry peers.
With a Return On Invested Capital value of 3.16%, PSTL perfoms like the industry average, outperforming 59.84% of the companies in the same industry.
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
The Profit Margin of PSTL (10.36%) is comparable to the rest of the industry.
PSTL's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 31.06%, PSTL is doing good in the industry, outperforming 63.78% of the companies in the same industry.
PSTL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 77.25%, PSTL is in the better half of the industry, outperforming 74.80% of the companies in the same industry.
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
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.
Compared to 5 years ago, PSTL has more shares outstanding
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 of 0.62. This is comparable to the rest of the industry: PSTL outperforms 55.91% of its industry peers.
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 (1.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.62 |
ROIC/WACC0.49
WACC6.51%
2.3 Liquidity
PSTL has a Current Ratio of 0.59. 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's Current ratio of 0.59 is on the low side compared to the rest of the industry. PSTL is outperformed by 75.59% of its industry peers.
A Quick Ratio of 0.59 indicates that PSTL may have some problems paying its short term obligations.
PSTL has a worse Quick ratio (0.59) than 74.80% 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.
Measured over the past 5 years, PSTL shows a small growth in Earnings Per Share. The EPS has been growing by 5.73% on average per year.
PSTL shows a strong growth in Revenue. In the last year, 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
Based on estimates for the next years, PSTL will show a quite strong growth in Revenue. The Revenue will grow by 14.88% on average per year.
EPS Next Y233.46%
EPS Next 2Y90.5%
EPS Next 3Y58.07%
EPS Next 5Y31.44%
Revenue Next Year30.59%
Revenue Next 2Y20.25%
Revenue Next 3Y17.06%
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
With a Price/Earnings ratio of 51.20, PSTL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as PSTL.
PSTL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.57.
Based on the Price/Forward Earnings ratio of 32.56, the valuation of PSTL can be described as expensive.
Based on the Price/Forward Earnings ratio, PSTL is valued a bit cheaper than 73.23% of the companies in the same industry.
PSTL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.2 | ||
| Fwd PE | 32.56 |
4.2 Price Multiples
PSTL's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.17 |
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.
A more expensive valuation may be justified as PSTL's earnings are expected to grow with 58.07% in the coming years.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y90.5%
EPS Next 3Y58.07%
5. Dividend
5.1 Amount
PSTL has a Yearly Dividend Yield of 6.47%, which is a nice return.
PSTL's Dividend Yield is a higher than the industry average which is at 6.21.
PSTL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
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 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 2Y90.5%
EPS Next 3Y58.07%
15.36
+0.17 (+1.12%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners70.46%
Inst Owner Change-0.04%
Ins Owners5.68%
Ins Owner Change-1.57%
Market Cap378.01M
Revenue(TTM)86.54M
Net Income(TTM)8.97M
Analysts83.08
Price Target17.21 (12.04%)
Short Float %0.96%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
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%
PT rev (3m)5.19%
EPS NQ rev (1m)-10.94%
EPS NQ rev (3m)40.74%
EPS NY rev (1m)8.28%
EPS NY rev (3m)44.56%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)4.96%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)3.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.2 | ||
| Fwd PE | 32.56 | ||
| P/S | 4.37 | ||
| P/FCF | N/A | ||
| P/OCF | 9.58 | ||
| P/B | 1.51 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 14.17 |
EPS(TTM)0.3
EY1.95%
EPS(NY)0.47
Fwd EY3.07%
FCF(TTM)-2.11
FCFYN/A
OCF(TTM)1.6
OCFY10.43%
SpS3.52
BVpS10.19
TBVpS9.59
PEG (NY)0.22
PEG (5Y)N/A
Graham Number8.29
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%
ROICexgc growth 3Y22.58%
ROICexgc 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 | 0.62 |
F-Score6
WACC6.51%
ROIC/WACC0.49
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 Y233.46%
EPS Next 2Y90.5%
EPS Next 3Y58.07%
EPS Next 5Y31.44%
Revenue 1Y (TTM)26.43%
Revenue growth 3Y24.12%
Revenue growth 5Y46.57%
Sales Q2Q%29.37%
Revenue Next Year30.59%
Revenue Next 2Y20.25%
Revenue Next 3Y17.06%
Revenue Next 5Y14.88%
EBIT growth 1Y79.49%
EBIT growth 3Y47.99%
EBIT growth 5Y207.32%
EBIT Next Year520.02%
EBIT Next 3Y102.18%
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%