Stamps.com
Market Cap
US$2.2b
Last Updated
2020/03/31 02:08 UTC
Data Sources
Company Financials +
Executive Summary
Stamps.com Inc. provides Internet-based mailing and shipping solutions in the United States and Europe.
Snowflake Analysis
Excellent balance sheet with questionable track record.
Similar Companies
Share Price & News
How has Stamps.com's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STMP's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.4%
STMP
2.0%
US Online Retail
5.3%
US Market
1 Year Return
54.9%
STMP
4.3%
US Online Retail
-10.7%
US Market
Return vs Industry: STMP exceeded the US Online Retail industry which returned 2.7% over the past year.
Return vs Market: STMP exceeded the US Market which returned -10.4% over the past year.
Shareholder returns
| STMP | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 2.0% | 5.3% |
| 30 Day | -9.8% | -2.4% | -13.6% |
| 90 Day | 52.5% | -3.7% | -19.8% |
| 1 Year | 54.9%54.9% | 4.4%4.3% | -8.9%-10.7% |
| 3 Year | 9.6%9.6% | 76.1%75.9% | 15.5%8.0% |
| 5 Year | 94.0%94.0% | 179.1%167.1% | 35.2%20.4% |
Price Volatility Vs. Market
How volatile is Stamps.com's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Should You Worry About Stamps.com Inc.'s (NASDAQ:STMP) CEO Pay Cheque?1 month ago | Simply Wall St
Stamps.com Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next1 month ago | Simply Wall St
Is Stamps.com Inc.’s (NASDAQ:STMP) 16% ROCE Any Good?Valuation
Is Stamps.com undervalued compared to its fair value and its price relative to the market?
37.11x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: STMP ($127.35) is trading above our estimate of fair value ($58.09)
Significantly Below Fair Value: STMP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: STMP is poor value based on its PE Ratio (37.1x) compared to the Online Retail industry average (22x).
PE vs Market: STMP is poor value based on its PE Ratio (37.1x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: STMP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: STMP is overvalued based on its PB Ratio (3.3x) compared to the US Online Retail industry average (2.1x).
Next Steps
Future Growth
How is Stamps.com forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-10.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STMP's earnings are forecast to decline over the next 3 years (-10.7% per year).
Earnings vs Market: STMP's earnings are forecast to decline over the next 3 years (-10.7% per year).
High Growth Earnings: STMP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: STMP's revenue (4.5% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: STMP's revenue (4.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: STMP's Return on Equity is forecast to be low in 3 years time (6.5%).
Next Steps
Past Performance
How has Stamps.com performed over the past 5 years?
32.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STMP has high quality earnings.
Growing Profit Margin: STMP's current net profit margins (10.4%) are lower than last year (28.7%).
Past Earnings Growth Analysis
Earnings Trend: STMP's earnings have grown significantly by 32.4% per year over the past 5 years.
Accelerating Growth: STMP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: STMP had negative earnings growth (-64.9%) over the past year, making it difficult to compare to the Online Retail industry average (15%).
Return on Equity
High ROE: STMP's Return on Equity (8.9%) is considered low.
Next Steps
Financial Health
How is Stamps.com's financial position?
Financial Position Analysis
Short Term Liabilities: STMP's short term assets ($274.7M) exceed its short term liabilities ($184.7M).
Long Term Liabilities: STMP's short term assets ($274.7M) exceed its long term liabilities ($52.2M).
Debt to Equity History and Analysis
Debt Level: STMP's debt to equity ratio (7.7%) is considered satisfactory.
Reducing Debt: STMP's debt to equity ratio has increased from 0.02% to 7.7% over the past 5 years.
Debt Coverage: STMP's debt is well covered by operating cash flow (268%).
Interest Coverage: STMP's interest payments on its debt are well covered by EBIT (40.5x coverage).
Balance Sheet
Inventory Level: STMP has a low level of unsold assets or inventory.
Debt Coverage by Assets: STMP's debt is covered by short term assets (assets are 5.4x debt).
Next Steps
Dividend
What is Stamps.com's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate STMP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate STMP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if STMP's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if STMP's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of STMP's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Ken McBride (51yo)
18.58s
Tenure
US$2,697,342
Compensation
Mr. Kenneth T. McBride, also known as Ken, served as the Chief Executive Officer of Stamps.com Inc., from August 2001 to January 2012. Mr. McBride served as the Chief Financial Officer at Stamps.com Inc. f ...
CEO Compensation Analysis
Compensation vs Market: Ken's total compensation ($USD2.70M) is below average for companies of similar size in the US market ($USD4.58M).
Compensation vs Earnings: Ken's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 18.58yrs | US$2.70m | 0.013% $289.8k | |
| Chief Financial Officer | 2.67yrs | US$866.16k | 0.060% $1.3m | |
| Chief Technology Officer | 2yrs | US$5.36m | no data | |
| Chief Executive Officer of ShipStation | no data | US$4.65m | 0.0063% $137.7k | |
| Chief Accounting Officer | 2.58yrs | no data | no data | |
| Chief Legal Officer & Secretary | 2.17yrs | no data | 0.0064% $139.7k | |
| Chief Marketing Officer | 8.17yrs | US$3.71m | 0.0047% $102.3k | |
| Chief Sales Officer | 2.83yrs | US$1.63m | no data | |
| Chief Product Officer | 8.17yrs | US$3.71m | 0.036% $790.9k | |
| Chief Strategy Officer | 3.67yrs | US$2.69m | 0.0039% $84.7k |
2.8yrs
Average Tenure
48yo
Average Age
Experienced Management: STMP's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 18.58yrs | US$2.70m | 0.013% $289.8k | |
| Independent Director | 21.42yrs | US$588.07k | 0.24% $5.1m | |
| Independent Director | 22.17yrs | US$582.67k | 3.59% $77.9m | |
| Independent Director | 3.42yrs | US$580.67k | 0.0034% $72.8k | |
| Director | 1yr | US$4.67m | 0.065% $1.4m | |
| Independent Director | 3.17yrs | US$576.07k | 0.0059% $127.3k |
5.8yrs
Average Tenure
58yo
Average Age
Experienced Board: STMP's board of directors are considered experienced (5.8 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
Stamps.com Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Stamps.com Inc.
- Ticker: STMP
- Exchange: NasdaqGS
- Founded: 1996
- Industry: Internet and Direct Marketing Retail
- Sector: Retail
- Market Cap: US$2.172b
- Shares outstanding: 17.06m
- Website: https://www.stamps.com
Number of Employees
Location
- Stamps.com Inc.
- 1990 East Grand Avenue
- El Segundo
- California
- 90245
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STMP | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Jun 1999 |
| TAP1 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jun 1999 |
| TAP1 | BRSE (Berne Stock Exchange) | Yes | Common Shares | CH | CHF | Jun 1999 |
Biography
Stamps.com Inc. provides Internet-based mailing and shipping solutions in the United States and Europe. The company offers mailing and shipping solutions to mail and ship various mail pieces and packages through the United States Postal Service (USPS) under the Stamps.com and Endicia brands. Its solutions support various USPS mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select, and others. The company’s USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using personal computer, printer, and Internet connection. It also provides multi carrier shipping solutions under the MetaPack, ShipStation, ShipWorks, and ShippingEasy brands; mailing and shipping integration solutions comprising electronic postage for transactions to partners who manage the front-end process; branded insurance to insure mails or packages; and international postage solutions. In addition, the company offers customized postage solutions under the PhotoStamps and PictureItPostage brand names, which allow consumers to turn digital photos, designs, or images into USPS-approved postage; and sells NetStamps labels, shipping labels, other mailing labels, dedicated postage printers, scales, and other mailing and shipping-focused office supplies through its mailing and shipping supplies stores. It serves individuals, small businesses, home offices, medium-size businesses, large enterprises, e-commerce merchants, and warehouse shippers. The company was formerly known as StampMaster, Inc. and changed its name to Stamps.com Inc. in December 1998. Stamps.com Inc. was founded in 1996 and is headquartered in El Segundo, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 02:08 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.