NasdaqGS:STMP

Stock Analysis Report

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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

-6.6%

STMP

-2.2%

US Online Retail

1.1%

US Market


1 Year Return

453.6%

STMP

31.5%

US Online Retail

4.6%

US Market

Return vs Industry: STMP exceeded the US Online Retail industry which returned 31.4% over the past year.

Return vs Market: STMP exceeded the US Market which returned 4.1% over the past year.


Shareholder returns

STMPIndustryMarket
7 Day-6.6%-2.2%1.1%
30 Day27.8%3.1%5.5%
90 Day27.8%14.6%-4.9%
1 Year453.6%453.6%31.6%31.5%7.0%4.6%
3 Year39.7%39.7%86.4%86.2%28.6%20.1%
5 Year171.2%171.2%208.5%196.5%52.5%35.3%

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

Valuation

Is Stamps.com undervalued compared to its fair value and its price relative to the market?

54.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STMP ($189.04) is trading above our estimate of fair value ($68.27)

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 (54x) compared to the Online Retail industry average (22.6x).

PE vs Market: STMP is poor value based on its PE Ratio (54x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: STMP is poor value based on its PEG Ratio (41.7x)


Price to Book Ratio

PB vs Industry: STMP is overvalued based on its PB Ratio (4.8x) compared to the US Online Retail industry average (2.8x).


Next Steps

Future Growth

How is Stamps.com forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STMP's forecast earnings growth (1.3% per year) is below the savings rate (2.2%).

Earnings vs Market: STMP's earnings (1.3% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: STMP's earnings are forecast to grow, but not significantly.

Revenue vs Market: STMP's revenue (6.1% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: STMP's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if STMP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Stamps.com performed over the past 5 years?

27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STMP has high quality earnings.

Growing Profit Margin: STMP's current net profit margins (10.2%) are lower than last year (23.2%).


Past Earnings Growth Analysis

Earnings Trend: STMP's earnings have grown significantly by 27.2% 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 (-56.2%) over the past year, making it difficult to compare to the Online Retail industry average (0.6%).


Return on Equity

High ROE: STMP's Return on Equity (8.8%) 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 ($317.5M) exceed its short term liabilities ($200.1M).

Long Term Liabilities: STMP's short term assets ($317.5M) exceed its long term liabilities ($51.6M).


Debt to Equity History and Analysis

Debt Level: STMP's debt to equity ratio (9.4%) is considered satisfactory.

Reducing Debt: STMP's debt to equity ratio has increased from 1.4% to 9.4% over the past 5 years.

Debt Coverage: STMP's debt is well covered by operating cash flow (235.6%).

Interest Coverage: STMP's interest payments on its debt are well covered by EBIT (45x coverage).


Balance Sheet


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 recent payouts.

High Dividend: Unable to evaluate STMP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?

3.5yrs

Average management tenure


CEO

Ken McBride (51yo)

18.75yrs

Tenure

US$5,749,476

Compensation

Mr. Kenneth T. McBride, also known as Ken, served as the Chief Executive Officer of Stamps.com Inc., since August 2001 until January 2012. Mr. McBride served as the Chief Financial Officer at Stamps.com In ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD5.75M) is about average for companies of similar size in the US market ($USD6.00M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth McBride
CEO, President & Chairman of the Board18.75yrsUS$5.75m0.013% $430.2k
Jeffrey Carberry
Chief Financial Officer2.83yrsUS$2.60m0.060% $1.9m
Sebastian Buerba
Chief Marketing Officer8.33yrsUS$2.89m0.0047% $152.1k
John Clem
Chief Product Officer8.33yrsUS$3.36m0.036% $1.2m
James Jones
Chief Executive Officer of ShipStation5.92yrsUS$2.51m0.0063% $204.4k
J. Veingkeo
Chief Accounting Officer2.75yrsno datano data
Jonathan Bourgoine
Chief Technology Officer2.25yrsUS$5.36mno data
Matthew Lipson
Chief Legal Officer & Secretary2.33yrsno data0.0064% $207.0k
Steve Rifai
Chief Sales Officer3.08yrsUS$1.63mno data
Amine Khechfe
Chief Strategy Officer3.83yrsUS$2.69m0.0039% $126.0k

3.5yrs

Average Tenure

48yo

Average Age

Experienced Management: STMP's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth McBride
CEO, President & Chairman of the Board18.75yrsUS$5.75m0.013% $430.2k
G. Jones
Independent Director21.58yrsUS$185.11k0.24% $7.6m
Mohan Ananda
Independent Director22.33yrsUS$178.91k3.58% $115.6m
David Habiger
Independent Director3.58yrsUS$176.91k0.0034% $108.2k
Kate May
Director1.17yrsno data0.065% $2.1m
Theodore Samuels
Independent Director3.33yrsUS$172.31k0.0059% $188.9k

6.0yrs

Average Tenure

58yo

Average Age

Experienced Board: STMP's board of directors are considered experienced (6 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$3.230b
  • Shares outstanding: 17.09m
  • Website: https://www.stamps.com

Number of Employees


Location

  • Stamps.com Inc.
  • 1990 East Grand Avenue
  • El Segundo
  • California
  • 90245-5013
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STMPNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 1999
TAP1DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1999

Biography

Stamps.com Inc. provides Internet-based mailing and shipping solutions in the United States and Europe. It operates through Stamps.com and MetaPack segments. 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, Endicia, ShipEngine, ShipStation, ShipWorks, and ShippingEasy 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, postcards, or labels using personal computing device, printer, and Internet connection. It also provides multi carrier shipping solutions under the MetaPack brand; 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 brand, which allow consumers to turn digital photos, designs, or images into USPS-approved postage; and sells NetStamps labels, shipping labels, mailing labels, postage printers, scales, and other mailing and shipping-focused office supplies through its mailing and shipping supplies stores, as well as domestic and international shipping services. It serves individuals, small businesses, home offices, medium-size businesses, large enterprises, e-commerce merchants, large retailers, 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 01:55
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.