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Pitney Bowes Inc (PBI)
NYSE:PBI
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Pitney Bowes
(NYSE:PBI)
49Neutral
Pitney Bowes (PBI) vs. S&P 500 (SPY)
Market Cap
$1.71B
Dividend Yield2.22%
Average Volume (3M)2.17M
Price to Earnings (P/E)37.1
Beta (1Y)1.86
Revenue Growth-29.43%
EPS GrowthN/A
CountryUS
Employees7,200
SectorIndustrials
Sector Strength90
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)0.33
Shares Outstanding181,253,370
10 Day Avg. Volume2,024,804
30 Day Avg. Volume2,166,161
Financial Highlights & Ratios
PEG Ratio-0.17
Price to Book (P/B)-2.88
Price to Sales (P/S)0.00
P/FCF Ratio10.83
Enterprise Value/Market Cap1.91
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit2.61
Enterprise Value/Ebitda58.09
Forecast
1Y Price Target
$17.00Price Target Upside80.08% Upside
Rating ConsensusHold
Number of Analyst Covering1
Pitney Bowes Business Overview & Revenue Model
Company DescriptionPitney Bowes Inc., a shipping and mailing company, provides technology, logistics, and financial services to small and medium-sized businesses, large enterprises, retailers, and government clients in the United States, Canada, and internationally. It operates through Global Ecommerce, Presort Services, and SendTech Solutions segments. The Global Ecommerce segment provides domestic parcel services, cross-border solutions, and digital delivery services. The Presort Services segment offers mail sortation services, which allow clients to qualify volumes of first-class mail, marketing mail, and bound and packet mail for postal work sharing discounts. The SendTech Solutions segment provides physical and digital mailing and shipping technology solutions, financing, services, supplies, and other applications for sending, tracking and receiving of letters, parcels, and flats. Pitney Bowes Inc. markets its products, solutions, and services through direct and inside sales force, global and regional partner channels, direct mailings, and digital channels. The company was formerly known as Pitney Bowes Postage Meter Company. Pitney Bowes Inc. was founded in 1920 and is headquartered in Stamford, Connecticut.
How the Company Makes MoneyPitney Bowes generates revenue primarily through the sale and leasing of mailing and shipping equipment, as well as providing related software and services. The company's revenue streams include equipment sales, software licensing, subscription services, and service contracts. Additionally, Pitney Bowes earns money through its e-commerce solutions, which offer logistics and fulfillment services to online retailers, and through financing services that support customer purchases of its equipment. Strategic partnerships with carriers and technological integration with commerce platforms also contribute to its earnings by enhancing the value and reach of its service offerings.
Pitney Bowes Financial Statement Overview
Summary
Pitney Bowes faces significant financial challenges with declining revenue, persistent losses, and negative equity. Despite some improvements in free cash flow, the overall financial health is weak with significant leverage and potential insolvency risks. Strategic restructuring and improved revenue generation are essential for stabilization.Income Statement
Pitney Bowes has experienced a significant decline in total revenue over recent years, from $3.67 billion in 2021 to $2.03 billion in 2024. The negative net profit margin and EBIT margin in 2024 indicate a lack of profitability, with net income showing a substantial loss. This reflects ongoing challenges in revenue generation and cost management.30
Negative
Balance Sheet
The company's financial stability is concerning with a negative stockholders' equity of $578 million in 2024, indicating potential insolvency risk. The debt-to-equity ratio cannot be calculated due to negative equity, highlighting a reliance on debt financing. The equity ratio is negative, suggesting more liabilities than assets, which undermines financial stability.20
Very Negative
Cash Flow
While free cash flow has improved to $204 million in 2024, the overall cash flow situation remains tenuous. The operating cash flow to net income ratio is positive, signaling some ability to generate cash despite negative net income. However, the trend of negative free cash flow in previous years suggests inconsistent cash management.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.03B | 3.27B | 3.54B | 3.67B | 3.55B | Gross Profit |
| 1.13B | 1.02B | 1.08B | 1.12B | 1.15B | EBIT |
| 102.50M | -385.63M | -15.24M | -54.38M | -20.92M | EBITDA |
| 235.85M | -135.92M | 148.57M | 108.47M | 83.01M | Net Income Common Stockholders |
| -203.60M | -385.63M | 36.94M | 3.51M | -191.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 486.10M | 623.22M | 681.15M | 746.92M | 940.42M | Total Assets |
| 3.40B | 4.27B | 4.74B | 4.96B | 5.22B | Total Debt |
| 2.05B | 2.48B | 2.52B | 2.56B | 2.78B | Net Debt |
| 1.58B | 1.88B | 1.85B | 1.82B | 1.86B | Total Liabilities |
| 3.98B | 4.64B | 4.68B | 4.84B | 5.15B | Stockholders Equity |
| -578.43M | -368.58M | 60.65M | 112.63M | 66.39M |
| Cash Flow | Free Cash Flow | |||
| 156.77M | -23.41M | 51.14M | 117.47M | 196.99M | Operating Cash Flow |
| 229.17M | 79.47M | 175.98M | 301.51M | 301.97M | Investing Cash Flow |
| -49.06M | -122.83M | -24.27M | -155.25M | -75.69M | Financing Cash Flow |
| -305.45M | -31.27M | -198.08M | -330.37M | -235.37M |
Pitney Bowes Technical Analysis
Positive
9.44
Price Trends
8.89
Positive
8.78
Positive
7.94
Positive
Market Momentum
0.23
Negative
61.08
Neutral
71.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PBI, the sentiment is Positive. The current price of 9.44 is above the 20-day moving average (MA) of 8.89, above the 50-day MA of 8.89, and above the 200-day MA of 7.94, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PBI.
Pitney Bowes Risk Analysis
Pitney Bowes disclosed 25 risk factors in its most recent earnings report. Pitney Bowes reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pitney Bowes Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $54.99B | 14.51 | 14.74% | 2.40% | 0.34% | -8.45% | |
71 Outperform | $16.21B | 19.09 | 37.70% | 1.23% | 24.07% | 27.40% | |
71 Outperform | $85.80B | 14.64 | 35.96% | 6.44% | 1.30% | -0.76% | |
69 Neutral | $5.07B | 28.77 | 18.34% | 0.97% | -4.72% | -22.46% | |
68 Neutral | $14.69B | 26.85 | 13.97% | 1.17% | -3.82% | -12.80% | |
64 Neutral | $4.42B | 12.00 | 5.16% | 249.23% | 4.01% | -11.70% | |
49 Neutral | $1.71B | 37.06 | 35.20% | 2.22% | -29.43% | ― |
* Industrials Sector Average
Performance Comparison
PBI
Pitney Bowes
9.44
4.31
84.02%
EXPD
Expeditors International
118.33
1.34
1.15%
FDX
FedEx
229.51
-19.98
-8.01%
JBHT
JB Hunt
148.05
-14.31
-8.81%
LSTR
Landstar System
145.09
-33.97
-18.97%
UPS
United Parcel
101.32
-40.61
-28.61%
Pitney Bowes Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 5.47%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented strong growth in adjusted EPS and EBIT, dividend increases, and effective cost management strategies. However, these were tempered by a decline in overall revenue and specific challenges in the SendTech segment. The company's strategic initiatives and cost-saving measures position it well for future growth despite current revenue declines.Q1-2025 Updates
Positive Updates
Adjusted EPS Increase
Adjusted EPS was $0.33, up 74% year-over-year.
Adjusted EBIT Growth
Adjusted EBIT was $120 million, up 28% year-over-year.
Dividend Increase
Increased quarterly dividend for a second consecutive quarter from $0.06 to $0.07 a share.
Cost Savings Target Increase
Raised cost savings target to $180 million to $200 million annualized net savings.
Debt Repurchase and Leverage Target
Repurchased $37 million of debt and expect to drop below a 3x leverage ratio target by Q3.
Presort Services Performance
Presort revenue was $178 million, up 5%, with a 36% increase in EBIT.
Negative Updates
Revenue Decline
Revenue was $493 million, down 5% year-over-year.
SendTech Revenue Decline
SendTech revenue was $298 million, down 9% in line with expectations due to less product revenue.
Free Cash Flow Usage
Free cash flow was a use of $20 million excluding $13 million of restructuring payments.
Impact of Non-Recurring Items
SendTech results impacted by a $4 million unfavorable one-time accounting adjustment.
Company Guidance
In the Q1 2025 earnings call for Pitney Bowes, several key metrics and guidance were highlighted. The company reported a revenue of $493 million, a 5% decrease year-over-year, but achieved a significant rise in adjusted EPS to $0.33, marking a 74% increase compared to the previous year. Adjusted EBIT climbed 28% to $120 million, while free cash flow showed a $20 million usage, excluding $13 million of restructuring payments. Importantly, Pitney Bowes reaffirmed its full-year guidance, projecting free cash flow between $330 million and $370 million for 2025. It also noted a raised cost savings target to $180 million-$200 million, reflecting strong cost management efforts. The company repurchased $37 million of debt and emphasized its commitment to lowering its leverage below 3x by Q3 2025. Additionally, Pitney Bowes increased its quarterly dividend from $0.06 to $0.07 per share, underscoring its improved financial position and confidence in continued profitability and cash flow growth amidst a challenging economic backdrop.Pitney Bowes Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Pitney Bowes Stockholders Approve Key Proposals at Meeting
Positive
May 14, 2025
On May 13, 2025, Pitney Bowes Inc. held its Annual Meeting where stockholders approved several proposals, including the election of directors and the ratification of PricewaterhouseCoopers LLP as the independent registered public accountants for 2025. Additionally, the Amended Pitney Bowes Inc. 2024 Stock Plan was approved, and an advisory vote on executive compensation was passed, indicating continued support for the company’s strategic direction and governance.
The most recent analyst rating on (PBI) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Pitney Bowes stock, see the PBI Stock Forecast page.
Spark’s Take on PBI Stock
According to Spark, TipRanks’ AI Analyst, PBI is a Neutral.
Pitney Bowes’ overall stock score is impacted by significant financial challenges, including declining revenue, persistent losses, and negative equity. Despite these issues, the company shows some promise through technical indicators suggesting upward momentum and strategic initiatives such as cost-saving measures and a share repurchase program. Valuation concerns remain due to a high P/E ratio, but the dividend yield offers some investor appeal. The recent earnings call highlights improvements in profitability metrics, but revenue declines continue to pose risks.
To see Spark’s full report on PBI stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.