Pitney Bowes Inc

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PBI : NYSE : Consumer Goods
$17.60 -0.17 | -0.96%
Today's Range: 17.55 - 17.75
Avg. Daily Volume: 1,415,900
09/26/16 - 4:00 PM ET

Financial Analysis


PITNEY BOWES INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. PITNEY BOWES INC has weak liquidity. Currently, the Quick Ratio is 0.99 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 58.81% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)835.89880.89
EBITDA ($mil)199.38222.65
EBIT ($mil)154.14179.99
Net Income ($mil)53.59151.77


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)750.78800.43
Total Assets ($mil)5963.586254.16
Total Debt ($mil)3093.822994.19
Equity ($mil)78.81191.36


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin62.5163.14
EBITDA Margin23.8525.27
Operating Margin18.4420.43
Sales Turnover0.580.59
Return on Assets4.816.83
Return on Equity359.03210.85
Debt Q2 FY16 Q2 FY15
Current Ratio1.070.98
Debt/Capital0.980.94
Interest Expense34.2938.84
Interest Coverage4.494.63


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)185.58201.77
Div / share0.190.19
EPS0.290.75
Book value / share0.420.95
Institutional Own % n/a n/a
Avg Daily Volume1454322.01625965.0

Valuation


BUY. PITNEY BOWES INC's P/E ratio indicates a significant discount compared to an average of 44.52 for the Commercial Services & Supplies industry and a significant discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 41.97 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 5.15. 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 12.38 Peers 44.52   PBI 7.22 Peers 17.23

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 8.63 Peers 24.44   PBI NM Peers 3.64

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 41.97 Peers 5.15   PBI -27.64 Peers 12.86

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 0.95 Peers 2.34   PBI -5.69 Peers 4.43

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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