Pitney Bowes Inc

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PBI : NYSE : Consumer Goods
$19.18 up 0.12 | 0.60%
Today's Range: 19.09 - 19.24
Avg. Daily Volume: 1,743,500
07/27/16 - 10:26 AM ET

Financial Analysis


PITNEY BOWES INC's gross profit margin for the first 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 average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the 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 greatly increased by 124.38% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)844.59890.68
EBITDA ($mil)178.11220.85
EBIT ($mil)133.81178.35
Net Income ($mil)58.0580.61


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)735.13913.43
Total Assets ($mil)6005.826109.44
Total Debt ($mil)3044.953075.23
Equity ($mil)123.2754.94


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin63.7763.03
EBITDA Margin21.0824.79
Operating Margin15.8420.02
Sales Turnover0.590.62
Return on Assets6.416.05
Return on Equity308.45616.26
Debt Q1 FY16 Q1 FY15
Current Ratio1.131.05
Debt/Capital0.960.98
Interest Expense34.2242.83
Interest Coverage3.914.16


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)192.24201.67
Div / share0.190.19
EPS0.30.4
Book value / share0.640.27
Institutional Own % n/a n/a
Avg Daily Volume1720149.01687219.0

Valuation


BUY. PITNEY BOWES INC's P/E ratio indicates a significant discount compared to an average of 32.51 for the Commercial Services & Supplies industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 29.30 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 5.05. 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 9.89 Peers 32.51   PBI 7.76 Peers 16.57

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 8.93 Peers 25.92   PBI NM Peers 8.41

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 29.30 Peers 5.05   PBI 13.77 Peers -23.37

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.

 

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

PBI is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PBI 1.02 Peers 2.24   PBI -6.44 Peers 2.84

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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