Pitney Bowes Inc. Fundamental Analysis (NYSE: PBI-PB)
Pitney Bowes Inc. Fundamental Analysis (NYSE: PBI-PB)
Pitney Bowes Inc. (NYSE: PBI-PB) shows moderate financial fundamentals with a PE ratio of 12.24, profit margin of 10.10%, and ROE of -22.15%. The company generates $1.4B in annual revenue with weak year-over-year growth of -6.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PBI-PB's fundamental strength across five key dimensions:
Efficiency Score
WeakPBI-PB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPBI-PB trades at attractive valuation levels.
Growth Score
ModeratePBI-PB shows steady but slowing expansion.
Financial Health Score
ModeratePBI-PB shows balanced financial health with some risks.
Profitability Score
WeakPBI-PB struggles to sustain strong margins.
Key Financial Metrics
Is PBI-PB Expensive or Cheap?
P/E Ratio
PBI-PB trades at 12.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PBI-PB's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Pitney Bowes Inc. at -2.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.91 times EBITDA. This is generally considered low.
How Well Does PBI-PB Make Money?
Net Profit Margin
For every $100 in sales, Pitney Bowes Inc. keeps $10.10 as profit after all expenses.
Operating Margin
Core operations generate 23.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-22.15 in profit for every $100 of shareholder equity.
ROA
Pitney Bowes Inc. generates $6.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pitney Bowes Inc. generates strong operating cash flow of $425.13M, reflecting robust business health.
Free Cash Flow
Pitney Bowes Inc. generates strong free cash flow of $376.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.69 in free cash annually.
FCF Yield
PBI-PB converts 23.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
-2.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.22
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How PBI-PB Stacks Against Its Sector Peers
| Metric | PBI-PB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.24 | 27.44 | Better (Cheaper) |
| ROE | -22.15% | 1185.00% | Weak |
| Net Margin | 10.10% | -2.00% (disorted) | Strong |
| Debt/Equity | -2.40 | 0.85 | Strong (Low Leverage) |
| Current Ratio | 0.70 | 22.12 | Weak Liquidity |
| ROA | 6.28% | -1355419.00% (disorted) | Weak |
PBI-PB outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pitney Bowes Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-47.22%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
175.29%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
20.13%
Industry Style: Cyclical, Value, Infrastructure
High Growth