Pitney Bowes Inc
Find Ratings Reports
-0.17 |
-0.96%
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 ($mil) | 835.89 | 880.89 |
| EBITDA ($mil) | 199.38 | 222.65 |
| EBIT ($mil) | 154.14 | 179.99 |
| Net Income ($mil) | 53.59 | 151.77 |
| Balance Sheet | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Cash & Equiv. ($mil) | 750.78 | 800.43 |
| Total Assets ($mil) | 5963.58 | 6254.16 |
| Total Debt ($mil) | 3093.82 | 2994.19 |
| Equity ($mil) | 78.81 | 191.36 |
| Profitability | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Gross Profit Margin | 62.51 | 63.14 |
| EBITDA Margin | 23.85 | 25.27 |
| Operating Margin | 18.44 | 20.43 |
| Sales Turnover | 0.58 | 0.59 |
| Return on Assets | 4.81 | 6.83 |
| Return on Equity | 359.03 | 210.85 |
| Debt | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Current Ratio | 1.07 | 0.98 |
| Debt/Capital | 0.98 | 0.94 |
| Interest Expense | 34.29 | 38.84 |
| Interest Coverage | 4.49 | 4.63 |
| Share Data | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Shares outstanding (mil) | 185.58 | 201.77 |
| Div / share | 0.19 | 0.19 |
| EPS | 0.29 | 0.75 |
| Book value / share | 0.42 | 0.95 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1454322.0 | 1625965.0 |
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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Sales |
|
Sales Growth |
|
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| 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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