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Pitney Bowes Inc (PBI)
NYSE:PBI
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Pitney Bowes
(NYSE:PBI)
54Neutral
Pitney Bowes (PBI) vs. S&P 500 (SPY)
Market Cap
$1.67B
Dividend Yield2.29%
Average Volume (3M)2.93M
Price to Earnings (P/E)163.8
Beta (1Y)2.43
Revenue Growth-19.20%
EPS GrowthN/A
CountryUS
Employees7,200
SectorIndustrials
Sector Strength72
IndustryTransportation
Share Statistics
EPS (TTM)0.05
Shares Outstanding182,786,970
10 Day Avg. Volume2,684,555
30 Day Avg. Volume2,927,557
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.83
Price to Cash Flow (P/CF)3.10
P/FCF Ratio2.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Pitney Bowes Business Overview & Revenue Model
Company DescriptionPitney Bowes (PBI) is a global technology company that provides commerce solutions to businesses of all sizes. The company operates in sectors such as mailing and shipping, e-commerce logistics, and financial services. Its core products and services include mailing equipment and software, shipping and mailing solutions, and digital commerce services that help businesses manage their shipping and mailing needs efficiently.
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 |
| 102.50M | -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
9.14
Price Trends
8.79
Positive
8.14
Positive
7.18
Positive
Market Momentum
0.17
Positive
40.97
Neutral
13.60
Positive
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 9.14 is below the 20-day moving average (MA) of 10.18, above the 50-day MA of 8.79, and above the 200-day MA of 7.18, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 13.60 is Positive, 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 28 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $722.44M | 13.86 | 8.61% | 7.33% | -3.22% | 99.58% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% | |
56 Neutral | $24.50B | 138.74 | -35.81% | 3.27% | 12.22% | -2.68% | |
54 Neutral | $1.67B | 163.81 | 35.20% | 2.29% | -19.20% | ― | |
47 Neutral | $3.21B | 267.98 | -2.46% | ― | -5.65% | 78.20% | |
46 Neutral | $287.39M | ― | -60.09% | 4.10% | -9.65% | 6.43% | |
43 Neutral | $784.26M | ― | -65.36% | 15.97% | -9.70% | -5576.16% |
* Industrials Sector Average
Performance Comparison
PBI
Pitney Bowes
9.14
5.10
126.24%
DLX
Deluxe
15.84
-2.31
-12.73%
IRM
Iron Mountain
84.51
6.63
8.51%
QUAD
Quad/Graphics
5.54
0.81
17.12%
XRX
Xerox
6.11
-9.33
-60.43%
DXC
DXC Technology
17.52
-3.22
-15.53%
Pitney Bowes Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: 5.18% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant cost reductions, strong financial performance, and successful deleveraging efforts, indicating effective strategic initiatives. However, challenges included a decline in revenue and the impact of SendTech's product cycle. Overall, the company is positioned for future growth with a focus on efficiency and strategic priorities.Highlights
Significant Cost Reductions and Efficiency Gains
Achieved $120 million in annualized cost savings by the end of 2024, with a target increase to $170-$190 million in net annualized savings. These reductions are driven by overhead reductions, IT system simplification, and facility consolidation.
Strong Financial Performance
Adjusted EPS increased by 34% to $0.82, and adjusted EBIT rose 25% to $385 million. Free cash flow was $290 million, excluding restructuring payments.
Presort Business Growth
Presort revenue for the full year rose to $663 million from $618 million, with a 49% increase in adjusted EBIT. Fourth-quarter revenue increased by 10% over the prior year.
Deleveraging Success
Paid off $275 million in Oaktree notes using internally generated cash and refinanced near-term maturities, extending the nearest maturity to March 2027.
Strategic Initiatives and Future Growth
Exited Global Ecommerce segment, unlocking more than $200 million in cash for efficient deployment. Focus on SendTech and Presort for future growth, with shipping technology revenue growing 18% in Q4.
Lowlights
Revenue Decline
Total revenue for 2024 was $2.027 billion, down 3% year-over-year, and Q4 revenue was $516 million, down 2% compared to the prior year.
SendTech Product Cycle Challenges
Equipment revenue declined 16% in Q4 due to the end of its migration cycle, leading to reduced transaction opportunities.
High One-Time Costs
One-time costs related to the Global Ecommerce exit are expected to be approximately $165 million, with $120 million already paid.
Company Guidance
During the Pitney Bowes Fourth Quarter and Full Year 2024 Earnings Release Call, the company provided guidance for 2025, projecting revenue between $1.95 billion and $2 billion, and adjusted EBIT ranging from $450 million to $480 million. Adjusted EPS is expected to be between $1.10 and $1.30 per share. The company anticipates generating free cash flow of $330 million to $370 million, excluding restructuring payments and capital expenditures, which are forecasted to remain consistent with 2024 levels. Pitney Bowes highlighted continued growth opportunities in its SendTech and Presort segments, with Presort achieving a 49% increase in adjusted EBIT in 2024. Cost reduction initiatives are set to deliver $170 million to $190 million in annualized savings by 2026. The company's capital allocation strategy involves investing in organic growth, pursuing tuck-in acquisitions, debt reduction, and returning capital to shareholders through dividends and a $150 million share repurchase program.Pitney Bowes Corporate Events
Executive/Board ChangesStock Buyback
Pitney Bowes Announces $150M Share Repurchase Program
Positive
Feb 12, 2025
On February 11, 2025, Pitney Bowes announced a new $150 million share repurchase program replacing its previous program from 2019, potentially impacting its market positioning by utilizing cash on hand for the repurchases. Additionally, Pitney Bowes appointed Bob Gold as the new Chief Financial Officer, effective March 10, 2025, following an extensive search for a leader with expertise in business transformation and financial operations. This strategic move aims to enhance the company’s value creation efforts, with CEO Lance Rosenzweig expressing optimism about the future under Gold’s leadership.
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Pitney Bowes to Redeem Notes and Refinance Loan
Positive
Jan 23, 2025
Pitney Bowes announced the early redemption of $96.6 million in senior secured notes due in 2028, originally issued to Oaktree Capital Management. This move is part of the company’s strategy to deleverage and increase financial flexibility. Additionally, Pitney Bowes plans to syndicate a new senior secured term loan worth up to $615 million to extend maturity and refinance existing facilities. The company anticipates its 2024 financial performance will exceed prior adjusted EBIT guidance due to improved business performance and cost reductions.
Private Placements and FinancingBusiness Operations and Strategy
Pitney Bowes Reduces Debt by $75 Million
Positive
Dec 20, 2024
Pitney Bowes has announced the repayment of an additional $75 million of its senior secured notes issued by Oaktree Capital Management, reducing the outstanding balance to $172.25 million. This move is part of the company’s strategic initiative to deleverage its balance sheet, funded by cash on hand, and indicates a continued effort to improve its financial stability.
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.