DB:PBW

Stock Analysis Report

Executive Summary

Pitney Bowes Inc. offers customer information management, location intelligence, and customer engagement products and solutions in the United States and internationally.

Snowflake

Undervalued with reasonable growth potential.

Rewards

Trading at 70.3% below its fair value

Revenue grew by 8.3% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Similar Companies

Share Price & News

How has Pitney Bowes's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PBW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.7%

PBW

-0.6%

DE Commercial Services

0.03%

DE Market


1 Year Return

-38.3%

PBW

-2.1%

DE Commercial Services

9.9%

DE Market

Return vs Industry: PBW underperformed the German Commercial Services industry which returned -2.1% over the past year.

Return vs Market: PBW underperformed the German Market which returned 9.9% over the past year.


Shareholder returns

PBWIndustryMarket
7 Day-3.7%-0.6%0.03%
30 Day11.3%5.1%4.4%
90 Day54.5%18.8%13.6%
1 Year-34.8%-38.3%1.4%-2.1%13.4%9.9%
3 Year-61.9%-68.0%5.2%-3.9%25.6%14.6%
5 Year-70.2%-76.9%-2.6%-16.4%36.9%18.2%

Price Volatility Vs. Market

How volatile is Pitney Bowes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Pitney Bowes undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PBW (€4.46) is trading below our estimate of fair value (€15.02)

Significantly Below Fair Value: PBW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PBW is good value based on its PE Ratio (9x) compared to the Commercial Services industry average (16.6x).

PE vs Market: PBW is good value based on its PE Ratio (9x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: PBW is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: PBW is overvalued based on its PB Ratio (33.2x) compared to the DE Commercial Services industry average (2.6x).


Next Steps

Future Growth

How is Pitney Bowes forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

38.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBW's forecast earnings growth (38.7% per year) is above the savings rate (0.2%).

Earnings vs Market: PBW's earnings (38.7% per year) are forecast to grow faster than the German market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PBW's revenue (2.5% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: PBW's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PBW's Return on Equity is forecast to be high in 3 years time (29%)


Next Steps

Past Performance

How has Pitney Bowes performed over the past 5 years?

-22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PBW has large one-off items impacting its financial results.

Growing Profit Margin: PBW's current net profit margins (2.8%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: PBW's earnings have declined by -22.2% per year over the past 5 years.

Accelerating Growth: PBW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PBW had negative earnings growth (-52.5%) over the past year, making it difficult to compare to the Commercial Services industry average (6.1%).


Return on Equity

High ROE: Whilst PBW's Return on Equity (391.69%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pitney Bowes's financial position?


Financial Position Analysis

Short Term Liabilities: PBW's short term assets ($2.4B) exceeds its short term liabilities ($2.1B)

Long Term Liabilities: PBW's short term assets (2.4B) do not cover its long term liabilities (3.4B)


Debt to Equity History and Analysis

Debt Level: PBW's debt to equity ratio (12077.3%) is considered high

Reducing Debt: PBW's debt to equity ratio has increased from 565.6% to 12077.3% over the past 5 years.

Debt Coverage: PBW's debt is not well covered by operating cash flow (10.3%).

Interest Coverage: PBW's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

Inventory Level: PBW has a low level of unsold assets or inventory.

Debt Coverage by Assets: PBW's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Pitney Bowes's current dividend yield, its reliability and sustainability?

4.03%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.3%markettop25%3.7%industryaverage3.5%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: PBW's dividend (4.03%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: PBW's dividend (4.03%) is in the top 25% of dividend payers in the German market (3.66%)


Stability and Growth of Payments

Stable Dividend: PBW's dividend payments have been volatile in the past 10 years.

Growing Dividend: PBW's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.2%), PBW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Pitney Bowes's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Marc Lautenbach (58yo)

6.9yrs

Tenure

US$8,056,939

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD8.06M) is above average for companies of similar size in the German market ($USD1.18M).

Compensation vs Earnings: Marc's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

Experienced Management: PBW's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

66yo

Average Age

Experienced Board: PBW's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$5,31201 Jul 19
Jason Dies
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Sending Technology Solutions
Shares1,500
Max PriceUS$3.54
BuyUS$46,43409 May 19
Robert Dutkowsky
EntityIndividual
Role
Member of the Board of Directors
Non-Employee Director
Shares10,000
Max PriceUS$4.64
BuyUS$18,39706 May 19
Jason Dies
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Sending Technology Solutions
Shares3,600
Max PriceUS$5.11
BuyUS$23,74403 May 19
Stanley Sutula
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares5,000
Max PriceUS$4.75

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Joe Catapano

    VP of Finance & Chief Accounting Officer

    • Tenure: 2.3yrs
  • Bill Hughes (59yo)

    Chief Communications Officer

    • Tenure: 0yrs
  • Dan Goldstein (57yo)

    Executive VP

    • Tenure: 3.8yrs
    • Compensation: US$2.05m
  • Adam David

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Bill Borrelle

    Senior VP & Chief Marketing Officer

    • Tenure: 1.3yrs
  • Marc Lautenbach (58yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$8.06m
  • Lila Snyder (46yo)

    Executive VP & President of Commerce Services

    • Tenure: 6.6yrs
    • Compensation: US$2.51m
  • Stan Sutula (53yo)

    Executive VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$2.39m
  • Bob Guidotti (61yo)

    Executive VP & President of Software Solutions

    • Tenure: 3.8yrs
    • Compensation: US$1.76m
  • Jason Dies (49yo)

    Executive VP & President of Sending Technology Solutions

    • Tenure: 2.1yrs
    • Compensation: US$1.86m

Board Members

  • Anne Busquet (69yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$209.48k
  • David Shedlarz (71yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$220.87k
  • Bob Dutkowsky (64yo)

    Non-Employee Director

    • Tenure: 1.3yrs
    • Compensation: US$133.62k
  • Michael Roth (74yo)

    Non-Executive Chairman

    • Tenure: 6.9yrs
    • Compensation: US$319.57k
  • Linda Sanford (66yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$205.07k
  • Anne Fuchs (71yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$202.07k
  • Doug Hutcheson (63yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$217.40k
  • Marc Lautenbach (58yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$8.06m
  • Mary J. Guilfoile (64yo)

    Non-Employee Director

    • Tenure: 1.3yrs

Company Information

Pitney Bowes Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pitney Bowes Inc.
  • Ticker: PBW
  • Exchange: DB
  • Founded: 1920
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$847.407m
  • Listing Market Cap: US$767.073m
  • Shares outstanding: 170.85m
  • Website: https://www.pitneybowes.com

Number of Employees


Location

  • Pitney Bowes Inc.
  • 3001 Summer Street
  • Stamford
  • Connecticut
  • 6926
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PBINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
PBWDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

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 segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 20:43
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.