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Pitney Bowes Inc
PBI : NYSE : Consumer Goods
$16.66 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 1,813,700
02/09/16 - 4:03 PM ET

Financial Analysis


PITNEY BOWES INC's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. PITNEY BOWES INC has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 131.32% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)936.95983.91
EBITDA ($mil)226.61255.32
EBIT ($mil)180.78200.59
Net Income ($mil)86.2862.53


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)779.551111.27
Total Assets ($mil)6141.466485.69
Total Debt ($mil)2969.03252.01
Equity ($mil)178.7277.26


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin63.3764.16
EBITDA Margin24.1825.94
Operating Margin19.2920.39
Sales Turnover0.580.59
Return on Assets6.645.14
Return on Equity225.28388.25
Debt Q4 FY15 Q4 FY14
Current Ratio1.021.17
Debt/Capital0.940.98
Interest Expense40.043.12
Interest Coverage4.524.65


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)197.04201.03
Div / share0.190.19
EPS0.410.29
Book value / share0.910.38
Institutional Own % n/a n/a
Avg Daily Volume1742296.01671173.0

Valuation


BUY. PITNEY BOWES INC's P/E ratio indicates a significant discount compared to an average of 26.71 for the Commercial Services & Supplies industry and a significant discount compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 19.43 indicates a significant premium versus the S&P 500 average of 2.51 and a significant premium versus the industry average of 4.06. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, PITNEY BOWES INC seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PBI 8.81 Peers 26.71   PBI 6.75 Peers 12.61

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

PBI is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

PBI is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PBI 8.20 Peers 20.38   PBI NM Peers 1.08

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

PBI is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

PBI's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PBI 19.43 Peers 4.06   PBI 35.13 Peers 145.63

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

PBI is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, PBI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PBI 0.97 Peers 1.84   PBI -6.38 Peers 2.46

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

PBI is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

PBI significantly trails its peers on the basis of sales growth

 

 

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