Pitney Bowes (NYSE: PBI) shares currently have a dividend yield of 9.90%. Pitney Bowes Inc. provides software, hardware, and services to enable physical and digital communications in the United States and internationally. The company has a P/E ratio of 7.04. Currently there is 1 analyst that rates Pitney Bowes a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Pitney Bowes has been 3,972,000 shares per day over the past 30 days. Pitney Bowes has a market cap of $3.1 billion and is part of the consumer durables industry. Shares are up 42.6% year to date as of the close of trading on Friday. TheStreet Ratings rates Pitney Bowes as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- Compared to other companies in the Commercial Services & Supplies industry and the overall market, PITNEY BOWES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $220.56 million or 29.93% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -18.82%.
- The gross profit margin for PITNEY BOWES INC is rather high; currently it is at 56.10%. Regardless of PBI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PBI's net profit margin of 8.57% compares favorably to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Services & Supplies industry. The net income has significantly decreased by 57.1% when compared to the same quarter one year ago, falling from $257.47 million to $110.34 million.
- The debt-to-equity ratio is very high at 36.31 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, PBI maintains a poor quick ratio of 1.00, which illustrates the inability to avoid short-term cash problems.
- You can view the full Pitney Bowes Ratings Report.
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