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PBI

Pitney BowesNYSE:PBI Stock Report

Last Price

US$5.80

Market Cap

US$1.0b

7D

-7.6%

1Y

-46.3%

Updated

26 Jan, 2022

Data

Company Financials +
PBI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance1/6
Financial Health1/6
Dividends1/6

PBI Stock Overview

Pitney Bowes Inc., a technology company, provides commerce solutions in the United States and internationally.

Pitney Bowes Competitors

MillerKnoll

NasdaqGS:MLKN

US$2.8b

Steelcase

NYSE:SCS

US$1.4b

Maxx Sports TV

OTCPK:AMXX

US$121.2m

PayPal Holdings

NasdaqGS:PYPL

US$185.9b

Price History & Performance

Summary of all time highs, changes and price drops for Pitney Bowes
Historical stock prices
Current Share PriceUS$5.80
52 Week HighUS$15.50
52 Week LowUS$5.56
Beta2.55
1 Month Change-12.78%
3 Month Change-16.31%
1 Year Change-46.35%
3 Year Change-19.78%
5 Year Change-55.86%
Change since IPO-51.67%

Recent News & Updates

Jan 21
Pitney Bowes (NYSE:PBI) Takes On Some Risk With Its Use Of Debt

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...

Jan 18

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.

Nov 06

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.

Shareholder Returns

PBIUS Commercial ServicesUS Market
7D-7.6%-4.2%-5.1%
1Y-46.3%10.5%3.3%

Return vs Industry: PBI underperformed the US Commercial Services industry which returned 11.8% over the past year.

Return vs Market: PBI underperformed the US Market which returned 4.2% over the past year.

Price Volatility

Is PBI's price volatile compared to industry and market?
PBI volatility
PBI Average Weekly Movement6.3%
Commercial Services Industry Average Movement6.2%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

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 (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192011,500Marc Lautenbachhttps://www.pitneybowes.com

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

How do Pitney Bowes's earnings and revenue compare to its market cap?
PBI fundamental statistics
Market CapUS$1.02b
Earnings (TTM)US$18.13m
Revenue (TTM)US$3.72b

56.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PBI income statement (TTM)
RevenueUS$3.72b
Cost of RevenueUS$2.52b
Gross ProfitUS$1.15b
ExpensesUS$1.13b
EarningsUS$18.13m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 01, 2022

Earnings per share (EPS)0.10
Gross Margin30.90%
Net Profit Margin0.49%
Debt/Equity Ratio4,806.3%

How did PBI perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

191%

Payout Ratio

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: PBI ($5.95) 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 (57.8x) compared to the US Commercial Services industry average (26x).

PE vs Market: PBI is poor value based on its PE Ratio (57.8x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: PBI is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: PBI is overvalued based on its PB Ratio (21.5x) compared to the US Commercial Services industry average (2x).


Future Growth

How is Pitney Bowes forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

88.6%

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% 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 (9.1% 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%)


Past Performance

How has Pitney Bowes performed over the past 5 years?

-45.5%

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.


Financial Health

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).


Balance Sheet


Dividend

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

3.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PBI's dividend (3.36%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: PBI's dividend (3.36%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Marc Lautenbach (60 yo)

9.08yrs

Tenure

US$4,713,360

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 ($USD4.71M) is above average for companies of similar size in the US market ($USD2.39M).

Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PBI's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: PBI's board of directors are considered experienced (9.3 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

Pitney Bowes Inc.'s 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
  • Implied Market Cap: US$1.021b
  • Shares outstanding: 176.06m
  • Website: https://www.pitneybowes.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 23:57
End of Day Share Price2022/01/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.