Pitney Bowes Inc. offers customer information management, location intelligence, and customer engagement products and solutions in the United States and internationally.
The last earnings update was 57 days ago.
Discounted Cash Flow Calculation for DB:PBW using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:PBW DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Pitney Bowes's share price is below the future cash flow value, and at a moderate discount (> 20%).
Pitney Bowes's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Pitney Bowes's earnings available for a low price, and how does
this compare to other companies in the same industry?
Pitney Bowes's earnings are expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
Pitney Bowes's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Pitney Bowes's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Marc B. Lautenbach has been the Chief Executive Officer and President of Pitney Bowes Inc. since December 3, 2012. Mr. Lautenbach is 27-Year IBM Veteran and has an extensive experience and proven track record in Technology Services. He joined Pitney Bowes Inc., with nearly 30 years of experience in the technology and business services industry. He served in Senior Leadership Positions at IBM. At different stages of his 27-year career at IBM, Mr. Lautenbach oversaw the small- and medium-size (SMB) customer segment. He served as an Executive and was responsible for sales in the Americas at IBM. He has substantial experience in the enterprise and federal government segments. Mr. Lautenbach served as the Managing Partner of IBM North America Global Business Services from 2010 to 2012. He served in various senior management positions of increasing responsibility, including General Manager of IBM North America from 2005 to 2010. He served as General Manager of IBM Global Small and Medium Business and Vice President of IBM Asia-Pacific Small and Medium Business. He has been a Director of Pitney Bowes Inc. since December 3, 2012. He has been an Independent Director of Campbell Soup Company since June 11, 2014. Mr. Lautenbach graduated magna cum laude and Phi Beta Kappa at Denison University in 1983 and went on to receive an MBA from the Kellogg Graduate School of Management at Northwestern University in 1985.
Marc's compensation has increased by more than 20% in the past year.
Marc's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Pitney Bowes management team is about average.
Executive VP & CFO
Executive VP & President of Commerce Services
Executive VP & President of Software Solutions
Executive VP & President of SMB Solutions
VP & Chief Accounting Officer
Chief Communications Officer
Senior VP & Chief Marketing Officer
Executive VP & Chief Human Resources Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Pitney Bowes board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Pitney Bowes Inc. offers customer information management, location intelligence, and customer engagement products and solutions in the United States and internationally. The company operates in three segments: Commerce Services; Small & Medium Business Solutions; and Software Solutions. The Commerce Services segment provides cross-border e-commerce solutions, domestic retail and e-commerce shipping solutions, fulfillment, and delivery and return services; and mail sortation services that allow clients to qualify large volumes of first class mail, marketing mail, and bound and packet mail for postal work sharing discounts. The Small & Medium Business Solutions segment offers mailing and shipping solutions, financing, services, and supplies for small and medium businesses to create mail and evidence postage, as well as for sending, tracking, and receiving of letters, parcels, and flats. The Software Solutions segment provides customer engagement, customer information, and location intelligence software, as well as data solutions and related support services. Pitney Bowes Inc. also provides revolving credit and interest-bearing deposit solutions. The company markets its products through sales force, partner channels, direct mailings, and Web and partner channels. Pitney Bowes Inc. has a strategic partnership with Shyplite to develop a multicarrier shipping platform for small businesses that simplifies office shipping; and has collaboration with Accenture plc. The company was formerly known as Pitney Bowes Postage Meter Company. Pitney Bowes Inc. was founded in 1920 and is headquartered in Stamford, Connecticut.
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