Postal Realty (PSTL) AI Stock Analysis

• Market Cap: $468.21M
• Dividend Yield: 6.21%
• Average Volume (3M): 167.32K
• Price to Earnings (P/E): 40.6
• Beta (1Y): 0.23
• Revenue Growth: 26.73%
• EPS Growth: 332.25%
• Country: US
• Employees: 45
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.12
• Shares Outstanding: 24,580,206
• 10 Day Avg. Volume: 191,730
• 30 Day Avg. Volume: 167,323
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 8.88
• Enterprise Value/Gross Profit: 12.55
• Enterprise Value/Ebitda: 15.62
• 1Y Price Target: $16.79
• Price Target Upside: 7.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 81 Outperform
• Price Target: $19.00 ▲(22.03% Upside)

Postal Realty's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is the most significant factor driving the stock score. The positive sentiment from the earnings call, with increased AFFO guidance and successful acquisition activities, further supports the score. While the technical analysis indicates bullish momentum, the overbought RSI suggests caution. The high P/E ratio tempers the score, but the attractive dividend yield provides a counterbalance.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates strong demand for its properties and effective leasing strategies, supporting long-term financial stability and market position.

Balance Sheet Health

A debt-free balance sheet enhances financial flexibility, allowing the company to pursue growth opportunities and withstand economic fluctuations, ensuring long-term stability.

Acquisition Strategy

The active acquisition strategy expands the company's portfolio, increasing rental income potential and reinforcing its position in the niche market of USPS-leased properties.

Negative Factors

EBITDA Margin Decline

The significant drop in EBITDA margin suggests rising operational costs, which could pressure profitability if not addressed, potentially affecting long-term financial performance.

Potential for Increased Operating Expenses

Increased operating expenses could reduce cash flow and profitability, impacting the company's ability to fund future growth and maintain dividend payouts.

CFO Transition Costs

CFO transition costs may introduce short-term financial strain and operational disruption, potentially affecting strategic execution and investor confidence.

Postal Realty Business Overview & Revenue Model

Company Description

Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 1,000 properties leased to the USPS. The Company believes it is one of the largest owners and managers of properties leased to the USPS.

How the Company Makes Money

Postal Realty generates revenue primarily through rental income derived from its portfolio of properties leased to the USPS. The company benefits from long-term lease agreements, which provide a stable and predictable cash flow. Additionally, Postal Realty may realize income through property management fees, leasing commissions, and potential appreciation of its real estate assets. The company’s strategic focus on properties that serve essential postal services ensures a consistent demand for its real estate, contributing to its financial stability. Significant partnerships with local governments and community organizations may also enhance its operational effectiveness and growth prospects.

Postal Realty Financial Statement Overview

Summary

Postal Realty demonstrates strong financial health with robust revenue growth and a solid balance sheet characterized by zero debt in 2024. The company efficiently generates cash flow, though EBITDA margins have seen a decline, indicating a potential area for operational improvement. Overall, the financial trajectory is positive, with notable strengths in profitability and financial stability.

Income Statement

Postal Realty has demonstrated strong revenue growth, with a 19.9% increase from 2023 to 2024. The company maintains a healthy gross profit margin of 87.1% and a net profit margin of 8.6% for 2024. The EBIT margin is also strong at 27.7%, indicating efficient operations. However, the EBITDA margin decreased from 52.9% in 2023 to 21.8% in 2024, which is a point of concern.

Balance Sheet

Postal Realty exhibits a robust balance sheet with no total debt in 2024, significantly improving the debt-to-equity ratio to 0. The equity ratio is strong at 38.8%, and the return on equity (ROE) is healthy at 2.6% for 2024. The substantial increase in stockholders' equity indicates a solid financial position.

Cash Flow

The company's free cash flow grew by 31% from 2023 to 2024, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is impressive at 5.1, reflecting efficient cash management. However, the free cash flow to net income ratio of 5.1 suggests there is room for improvement in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.54M	76.37M	63.71M	53.33M	39.94M	24.68M
Gross Profit	61.20M	57.40M	48.34M	40.54M	30.55M	19.66M
EBITDA	49.16M	42.68M	33.68M	27.86M	19.40M	10.96M
Net Income	11.27M	6.60M	3.71M	3.85M	2.06M	-640.88K
Balance Sheet
Total Assets	689.82M	646.82M	567.35M	501.30M	377.72M	258.88M
Cash, Cash Equivalents and Short-Term Investments	1.08M	1.80M	2.23M	1.50M	5.86M	2.21M
Total Debt	0.00	296.71M	240.62M	196.66M	95.35M	124.63M
Total Liabilities	365.27M	329.32M	265.72M	217.59M	112.24M	139.25M
Stockholders Equity	250.80M	251.28M	243.56M	229.23M	220.04M	91.99M
Cash Flow
Free Cash Flow	38.23M	30.73M	25.56M	20.90M	15.20M	8.43M
Operating Cash Flow	39.44M	33.50M	28.43M	24.59M	17.09M	9.40M
Investing Cash Flow	-84.24M	-79.15M	-72.61M	-120.15M	-106.72M	-126.15M
Financing Cash Flow	44.27M	45.32M	45.01M	90.57M	93.39M	106.84M

Postal Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSTL, the sentiment is Positive. The current price of 15.57 is below the 20-day moving average (MA) of 15.92, above the 50-day MA of 15.20, and above the 200-day MA of 13.71, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 14.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSTL.

Postal Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSTL	81 Outperform	$468.21M	40.65	3.61%	6.21%	26.73%	332.25%
DEA	66 Neutral	$1.03B	58.27	1.29%	9.81%	8.18%	-15.35%
ONL	52 Neutral	$154.30M	-1.98	-13.48%	5.84%	-15.14%	16.61%
OPI	45 Neutral	$22.10M	-0.06	-27.60%	13.39%	-11.93%	-1877.17%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Postal Realty Corporate Events

Postal Realty Reports Strong Q2 2025 Financial Results

Postal Realty Trust, Inc. reported strong financial results for the second quarter of 2025, with a 29% increase in revenues compared to the same period in 2024. The company acquired 68 USPS properties for $35.9 million and raised $12.8 million from its ATM program to fund acquisitions. The company also announced a quarterly dividend of $0.2425 per share and increased its AFFO guidance for 2025. The portfolio was 99.8% occupied, and the company maintained a strong relationship with the USPS, securing 161 new leases for 2025.

The most recent analyst rating on (PSTL) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Postal Realty stock, see the PSTL Stock Forecast page.

Postal Realty Announces CFO Resignation and Transition

On June 18, 2025, Postal Realty Trust, Inc. announced the resignation of Robert B. Klein as Chief Financial Officer, effective the same day, as he transitions to a role at a privately-held real estate company. Jeremy Garber, who has been with the company since its founding and previously served as the principal financial officer, will take over as interim CFO while the company searches for a permanent successor. Klein will remain with the company as an employee until June 30, 2025, and as a consultant thereafter, ensuring a smooth transition. This change is part of a strategic transition plan, with Klein playing a crucial role in the company’s financial reporting and maintaining its strong financial position.

The most recent analyst rating on (PSTL) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Postal Realty stock, see the PSTL Stock Forecast page.

Postal Realty Approves Key Proposals at Annual Meeting

Postal Realty Trust, Inc. held its 2025 Annual Meeting of Stockholders on May 16, 2025, where several key proposals were approved. These included the election of five directors, ratification of Deloitte & Touche LLP as the independent accounting firm for 2025, and advisory votes on executive compensation and its frequency. The board decided to conduct advisory votes on executive compensation annually, aligning with shareholder preferences.

The most recent analyst rating on (PSTL) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Postal Realty stock, see the PSTL Stock Forecast page.