tiprankstipranks
Trending News
More News >
Pitney Bowes Inc (PBI)
NYSE:PBI
Advertisement

Pitney Bowes (PBI) AI Stock Analysis

Compare
817 Followers

Top Page

PBI

Pitney Bowes

(NYSE:PBI)

Rating:52Neutral
Price Target:
$11.00
▼(-6.94% Downside)
Pitney Bowes' overall stock score is driven by financial challenges, including declining revenues and high leverage, which weigh heavily on the score. Technical indicators suggest a lack of strong momentum, while valuation metrics are moderate. The earnings call and corporate events provide some positive outlooks, particularly with strategic initiatives and leadership changes, but are not enough to offset the financial concerns.

Pitney Bowes (PBI) vs. SPDR S&P 500 ETF (SPY)

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 through multiple streams, primarily from its Digital Commerce segment, which includes shipping solutions, software, and data analytics. This segment capitalizes on the growth of e-commerce by offering solutions that help businesses manage their shipping and logistics more efficiently. The Presort Services segment contributes to revenue by providing mail sorting and delivery services, allowing businesses to save on postage costs. Additionally, Pitney Bowes earns income from leasing mailing equipment and software subscriptions. Key partnerships with shipping carriers and integration with e-commerce platforms further enhance its offerings and revenue potential. The company's diverse product portfolio and focus on innovation in logistical solutions are significant factors contributing to its earnings.

Pitney Bowes Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: 4.60%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
While the earnings call highlighted strong earnings and cash flow growth, aggressive share repurchases, and a positive outlook for the SaaS business, these positives were countered by a reduction in revenue guidance, significant customer losses in the Presort business, and unexpected management changes. The call reflects a balanced view with both positive achievements and notable challenges.
Q2-2025 Updates
Positive Updates
Significant Earnings and Cash Flow Growth
Continued significant earnings and cash flow growth on a year-over-year basis, with a focus on efficiency and return of capital to shareholders.
Aggressive Share Repurchase Program
Almost exhausted $150 million share repurchase authorization, increased dividend for the third quarter in a row, and expanded share repurchase authorization to $400 million.
New CFO Appointment
Paul Evans appointed as CFO, bringing prior experience as a public company CEO and CFO, and having a strong working relationship with CEO Kurt Wolf.
Positive Outlook for SaaS Business
The SaaS part of the SendTech business grew 17% year-over-year for the quarter, showing strong performance.
Negative Updates
Reduction in Revenue Guidance
Revenue guidance reduced by $50 million due to prior management decisions to accept customer losses rather than offer price concessions.
Presort Customer Losses
Significant loss of Presort customers impacting revenue and EBIT, described as an 'unforced error' by management.
Management Changes
Surprise management changes with the CEO and CFO, which may raise concerns about stability.
Company Guidance
During the Q2 2025 Pitney Bowes Earnings Conference Call, CEO Kurt Wolf provided guidance updates, including a reduction in revenue guidance by $50 million, driven by previous management's decisions on customer concessions in the Presort business. Despite this, the company tightened its EBIT margin range and increased its EPS guidance by $0.10, supported by significant share repurchases. The company nearly exhausted its $150 million share repurchase authorization, leading to an increase in authorization to $400 million. Additionally, Pitney Bowes maintained its free cash flow guidance, with strong liquidity and an adjusted leverage ratio below 3x, allowing for aggressive share repurchases. The strategic review's first phase has identified numerous opportunities for value creation, with further discussions anticipated in 2026.

Pitney Bowes Financial Statement Overview

Summary
Pitney Bowes faces challenges in maintaining revenue growth and profitability, with negative net income and declining revenues. The balance sheet reveals significant leverage and a negative equity position, raising concerns about financial stability. Despite positive free cash flow, the company's cash conversion efficiency is limited by ongoing losses.
Income Statement
45
Neutral
Pitney Bowes has experienced a declining revenue trend over recent periods, with the TTM revenue decreasing to $1.97 billion from $2.03 billion in the previous year and $3.27 billion two years ago. The gross profit margin is relatively strong at approximately 54.38% for TTM, but the net profit margin is negative due to ongoing losses, reflecting profitability challenges. The EBIT margin is 15.75% for TTM, indicating some operational efficiency, but overall performance is constrained by negative net income.
Balance Sheet
30
Negative
The company faces significant financial leverage, with a negative stockholders' equity of -$536.809 million, resulting in an undefined debt-to-equity ratio. The equity ratio is negative due to this negative equity position, indicating a critical financial stability issue. The return on equity is also undefined due to negative equity, highlighting the company's inability to generate positive returns for shareholders.
Cash Flow
60
Neutral
Pitney Bowes shows some strength in cash flow management, with a positive operating cash flow of $243.55 million and a free cash flow of $182.01 million for TTM. The free cash flow growth rate is positive compared to the previous period. However, the operating cash flow to net income ratio is negative due to negative net income, and the company's ability to convert earnings into cash remains a concern.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.97B2.03B3.27B3.54B3.67B3.55B
Gross Profit1.06B1.06B1.02B1.08B1.17B1.20B
EBITDA187.63M172.25M230.85M294.23M312.91M83.01M
Net Income-110.45M-203.60M-385.63M36.94M3.51M-180.38M
Balance Sheet
Total Assets3.24B3.40B4.27B4.74B4.96B5.22B
Cash, Cash Equivalents and Short-Term Investments300.78M486.10M623.22M681.15M746.92M940.42M
Total Debt2.02B2.05B2.48B2.52B2.56B2.78B
Total Liabilities3.78B3.98B4.64B4.68B4.85B5.15B
Stockholders Equity-536.81M-578.43M-368.58M60.65M112.63M70.62M
Cash Flow
Free Cash Flow182.01M156.77M-23.41M51.14M117.47M196.99M
Operating Cash Flow243.55M229.17M79.47M175.98M301.51M301.97M
Investing Cash Flow-95.44M-49.06M-122.83M-24.27M-155.25M-75.69M
Financing Cash Flow-453.14M-305.45M-31.27M-198.08M-330.37M-235.37M

Pitney Bowes Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.82
Price Trends
50DMA
11.23
Positive
100DMA
10.13
Positive
200DMA
9.24
Positive
Market Momentum
MACD
0.04
Negative
RSI
58.21
Neutral
STOCH
63.02
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 11.82 is above the 20-day moving average (MA) of 11.35, above the 50-day MA of 11.23, and above the 200-day MA of 9.24, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.21 is Neutral, neither overbought nor oversold. The STOCH value of 63.02 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$53.14B13.3914.68%2.36%0.27%-2.64%
72
Outperform
$16.07B19.3239.01%1.25%23.70%31.33%
69
Neutral
$74.42B13.0534.96%7.37%0.94%9.62%
66
Neutral
$13.88B26.0614.33%1.23%-2.24%-5.43%
60
Neutral
$4.50B27.2417.47%2.73%-2.10%-22.19%
60
Neutral
kr42.91B13.861.95%2.30%-0.55%-21.28%
52
Neutral
$1.97B20.3135.20%2.20%-39.89%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PBI
Pitney Bowes
11.82
4.78
67.90%
EXPD
Expeditors International
120.02
-1.15
-0.95%
FDX
FedEx
236.80
-54.06
-18.59%
JBHT
JB Hunt
150.14
-23.84
-13.70%
LSTR
Landstar System
135.76
-46.11
-25.35%
UPS
United Parcel
88.82
-32.73
-26.93%

Pitney Bowes Corporate Events

Private Placements and FinancingStock Buyback
Pitney Bowes Completes $230M Convertible Notes Offering
Neutral
Aug 11, 2025

On August 8, 2025, Pitney Bowes completed a $230 million offering of 1.50% Convertible Senior Notes due 2030, raising approximately $221.4 million after expenses. The company used part of the proceeds for capped call transactions to mitigate stock dilution and repurchased shares, with the remainder intended for strategic investments and debt management, potentially impacting its leverage and borrowing costs.

Executive/Board ChangesStock BuybackBusiness Operations and StrategyFinancial Disclosures
Pitney Bowes Announces Leadership Changes and Financial Results
Positive
Jul 30, 2025

On July 28, 2025, Pitney Bowes announced significant leadership changes, with Paul Evans appointed as EVP, Chief Financial Officer, and Treasurer, effective July 29, 2025. Concurrently, Brent Rosenthal was named Chair of the Audit Committee, and Peter Brimm was appointed as a director of the Board. These changes are expected to impact the company’s strategic direction and governance. Additionally, Pitney Bowes disclosed strong financial results for Q2 2025, with improvements in GAAP EPS, adjusted EPS, and net income year over year. The company also increased its share repurchase authorization and adjusted its full-year revenue and EPS guidance, reflecting ongoing strategic initiatives and market positioning.

Executive/Board ChangesStock BuybackBusiness Operations and Strategy
Pitney Bowes Appoints Kurt Wolf as New CEO
Positive
May 22, 2025

On May 21, 2025, Pitney Bowes announced the appointment of Kurt Wolf as its new President and CEO, effective May 22, 2025, succeeding Lance Rosenzweig, who will transition to a consultant role. The company plans to execute a $150 million share repurchase in 2025, achieve a 3.0x adjusted leverage ratio by the end of the second quarter, and conduct a comprehensive strategic review to enhance shareholder value. The establishment of a new Executive Planning Group aims to improve connectivity and autonomy among business leaders, reinforcing Pitney Bowes’ commitment to capital allocation and strategic growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 19, 2025