PBI Stock Overview
Pitney Bowes Inc., a technology company, provides commerce solutions in the United States and internationally.
Pitney Bowes Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$5.78|
|52 Week High||US$15.50|
|52 Week Low||US$5.76|
|1 Month Change||-11.89%|
|3 Month Change||-18.59%|
|1 Year Change||-19.61%|
|3 Year Change||-18.93%|
|5 Year Change||-63.58%|
|Change since IPO||-51.83%|
Recent News & Updates
Pitney Bowes (NYSE:PBI) Takes On Some Risk With Its Use Of Debt
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...
Buying Pitney Bowes Stock
I think the turnaround at Pitney Bowes is underway, with revenue up significantly in 2021 compared to both 2020 and 2019. Net loss has basically evaporated in 2021. In my view, the dividend, currently yielding 3% is sustainable, and so these shares are an attractive place to park capital. Most intriguing to me is the fact that shares are very pessimistically priced, suggesting upside as the market digests future positive surprises. Short puts are also intriguing. It's possible to make 7.5% on a strike price ~39% below the current market price.
Pitney Bowes: Balance Sheet Trends Point To A Rising Share Price
Earnings trends look solid especially when compared to pre-Covid numbers. The Presort segment continue to excel. Demand within SendTech and Ecommerce remain strong. Leverage continues to come down. Shares look very cheap when equity is adjusted to include the $4+ billion of treasury stock.
|PBI||US Commercial Services||US Market|
Return vs Industry: PBI underperformed the US Commercial Services industry which returned 11.2% over the past year.
Return vs Market: PBI underperformed the US Market which returned 6.6% over the past year.
|PBI Average Weekly Movement||6.3%|
|Commercial Services Industry Average Movement||6.0%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: PBI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: PBI's weekly volatility has decreased from 14% to 6% over the past year.
About the Company
Pitney Bowes Inc., a technology company, provides commerce solutions in the United States and internationally. The company operates through Global Ecommerce, Presort Services, and SendTech Solutions segments. The Global Ecommerce segment provides domestic parcel services, cross-border solutions, and digital delivery services.
Pitney Bowes Fundamentals Summary
|PBI fundamental statistics|
Is PBI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PBI income statement (TTM)|
|Cost of Revenue||US$2.52b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 01, 2022
|Earnings per share (EPS)||0.10|
|Net Profit Margin||0.49%|
How did PBI perform over the long term?See historical performance and comparison
3.5%Current Dividend Yield
Is Pitney Bowes undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PBI ($5.78) is trading below our estimate of fair value ($14.43)
Significantly Below Fair Value: PBI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PBI is poor value based on its PE Ratio (56.1x) compared to the US Commercial Services industry average (25.6x).
PE vs Market: PBI is poor value based on its PE Ratio (56.1x) compared to the US market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: PBI is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: PBI is overvalued based on its PB Ratio (20.9x) compared to the US Commercial Services industry average (2.1x).
How is Pitney Bowes forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PBI's forecast earnings growth (88.3% per year) is above the savings rate (2%).
Earnings vs Market: PBI's earnings (88.3% per year) are forecast to grow faster than the US market (13.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PBI's revenue (4.2% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: PBI's revenue (4.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PBI's Return on Equity is forecast to be high in 3 years time (28.6%)
How has Pitney Bowes performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PBI has a large one-off loss of $55.9M impacting its September 30 2021 financial results.
Growing Profit Margin: PBI became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: PBI's earnings have declined by 45.5% per year over the past 5 years.
Accelerating Growth: PBI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: PBI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (35.3%).
Return on Equity
High ROE: Whilst PBI's Return on Equity (37.25%) is high, this metric is skewed due to their high level of debt.
How is Pitney Bowes's financial position?
Financial Position Analysis
Short Term Liabilities: PBI's short term assets ($1.8B) exceed its short term liabilities ($1.7B).
Long Term Liabilities: PBI's short term assets ($1.8B) do not cover its long term liabilities ($3.2B).
Debt to Equity History and Analysis
Debt Level: PBI's net debt to equity ratio (3279%) is considered high.
Reducing Debt: PBI's debt to equity ratio has increased from 799.8% to 4806.3% over the past 5 years.
Debt Coverage: PBI's debt is not well covered by operating cash flow (14%).
Interest Coverage: PBI's interest payments on its debt are not well covered by EBIT (1.7x coverage).
What is Pitney Bowes's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PBI's dividend (3.46%) is higher than the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: PBI's dividend (3.46%) is low compared to the top 25% of dividend payers in the US market (3.55%).
Stability and Growth of Payments
Stable Dividend: PBI's dividend payments have been volatile in the past 10 years.
Growing Dividend: PBI's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (191.1%), PBI's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Marc Lautenbach (60 yo)
Mr. Marc B. Lautenbach has been the Chief Executive Officer and President of Pitney Bowes Inc. since December 3, 2012. Mr. Lautenbach is 27-Year IBM Veteran and has an extensive experience and proven track...
CEO Compensation Analysis
Compensation vs Market: Marc's total compensation ($USD4.71M) is above average for companies of similar size in the US market ($USD2.38M).
Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.
Experienced Management: PBI's management team is considered experienced (4.3 years average tenure).
Experienced Board: PBI's board of directors are considered experienced (9.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Pitney Bowes Inc.'s employee growth, exchange listings and data sources
- Name: Pitney Bowes Inc.
- Ticker: PBI
- Exchange: NYSE
- Founded: 1920
- Industry: Office Services and Supplies
- Sector: Commercial Services
- Implied Market Cap: US$1.018b
- Shares outstanding: 176.06m
- Website: https://www.pitneybowes.com
Number of Employees
- Pitney Bowes Inc.
- 3001 Summer Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/21 23:36|
|End of Day Share Price||2022/01/21 00:00|
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.