NYSE:PBI

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

Fundamentals

Undervalued with moderate growth potential.

Risks

  • Pitney Bowes has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

1.4%

NYSE:PBI

1.2%

US Commercial Services

0.9%

US Market


1 Year Return

-55.9%

NYSE:PBI

6.4%

US Commercial Services

0.3%

US Market

PBI underperformed the Commercial Services industry which returned 5.8% over the past year.

PBI underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

PBIIndustryMarket
7 Day1.4%1.2%0.9%
30 Day-7.6%-0.07%-1.9%
90 Day-24.9%3.4%1.6%
1 Year-52.9%-55.9%10.5%6.4%2.6%0.3%
3 Year-76.4%-80.1%64.9%53.8%41.0%31.8%
5 Year-82.6%-86.4%97.8%77.9%55.2%38.0%

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

Valuation

Is Pitney Bowes undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Pitney Bowes is good value based on earnings compared to the US Commercial Services industry average.

Pitney Bowes is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Pitney Bowes is good value based on expected growth next year.


Price Based on Value of Assets

Pitney Bowes is overvalued based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

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

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pitney Bowes's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

Pitney Bowes's earnings are expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).

Pitney Bowes's revenue growth is positive but not above the United States of America market average.

Pitney Bowes's earnings growth is expected to exceed the United States of America market average.

Pitney Bowes's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Pitney Bowes is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Pitney Bowes performed over the past 5 years?

-19.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Pitney Bowes's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Pitney Bowes's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Pitney Bowes's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.


Return on Equity

Whilst Pitney Bowes made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Pitney Bowes used its assets less efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Pitney Bowes's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Pitney Bowes's financial position?


Financial Position Analysis

Pitney Bowes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Pitney Bowes's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Pitney Bowes's level of debt (6124.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (560.4% vs 6124.3% today).

Debt is not well covered by operating cash flow (10%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

5.48%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Pitney Bowes before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Pitney Bowes's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Pitney Bowes's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Marc Lautenbach (58yo)

6.7yrs

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

Marc's remuneration is higher than average for companies of similar size in United States of America.

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

3.0yrs

Average Tenure

57yo

Average Age

The tenure for the Pitney Bowes management team is about average.


Board Age and Tenure

6.9yrs

Average Tenure

66yo

Average Age

The tenure for the Pitney Bowes board of directors is about average.


Insider Trading

More shares have been bought than sold by Pitney Bowes individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$6,04501 Jul 19
Jason Dies
EntityIndividual
Role
Senior Key Executive
Executive VP & President of SMB Solutions
Shares1,500
Max PriceUS$4.03
BuyUS$52,15009 May 19
Robert Dutkowsky
EntityIndividual
Role
Member of the Board of Directors
Non-Employee Director
Shares10,000
Max PriceUS$5.22
BuyUS$20,59206 May 19
Jason Dies
EntityIndividual
Role
Senior Key Executive
Executive VP & President of SMB Solutions
Shares3,600
Max PriceUS$5.72
BuyUS$26,70003 May 19
Stanley Sutula
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares5,000
Max PriceUS$5.34

Ownership Breakdown


Management Team

  • Joe Catapano

    VP & Chief Accounting Officer

    • Tenure: 2.0yrs
  • Bill Hughes (59yo)

    Chief Communications Officer

    • Tenure: 0.0yrs
  • Dan Goldstein (57yo)

    Executive VP

    • Tenure: 3.6yrs
    • Compensation: US$2.05m
  • Adam David

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Bill Borrelle

    Senior VP & Chief Marketing Officer

    • Tenure: 1.1yrs
  • Marc Lautenbach (58yo)

    President

    • Tenure: 6.7yrs
    • Compensation: US$8.06m
  • Lila Snyder (46yo)

    Executive VP & President of Commerce Services

    • Tenure: 6.3yrs
    • Compensation: US$2.51m
  • Stan Sutula (53yo)

    Executive VP & CFO

    • Tenure: 2.5yrs
    • Compensation: US$2.39m
  • Bob Guidotti (61yo)

    Executive VP & President of Software Solutions

    • Tenure: 3.6yrs
    • Compensation: US$1.76m
  • Jason Dies (49yo)

    Executive VP & President of SMB Solutions

    • Tenure: 1.8yrs
    • Compensation: US$1.86m

Board Members

  • Anne Busquet (69yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$209.48k
  • David Shedlarz (71yo)

    Director

    • Tenure: 18.6yrs
    • Compensation: US$220.87k
  • Bob Dutkowsky (64yo)

    Non-Employee Director

    • Tenure: 1.1yrs
    • Compensation: US$133.62k
  • Michael Roth (74yo)

    Non-Executive Chairman

    • Tenure: 6.7yrs
    • Compensation: US$319.57k
  • Linda Sanford (66yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$205.07k
  • Anne Fuchs (71yo)

    Director

    • Tenure: 13.9yrs
    • Compensation: US$202.07k
  • Roger Fradin (66yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$208.57k
  • Doug Hutcheson (63yo)

    Director

    • Tenure: 7.1yrs
    • Compensation: US$217.40k
  • Marc Lautenbach (58yo)

    President

    • Tenure: 6.7yrs
    • Compensation: US$8.06m
  • Mary J. Guilfoile (64yo)

    Non-Employee Director

    • Tenure: 1.1yrs

Company Information

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


Key Information

  • Name: Pitney Bowes Inc.
  • Ticker: PBI
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$623.785m
  • Shares outstanding: 170.90m
  • 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
PBIBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/3 ORD(USD)ARARSFeb 2003

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 Analysis2019/08/19 23:47
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
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.