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Pitney Bowes (PBI)
:PBI

Pitney Bowes (PBI) AI Stock Analysis

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Pitney Bowes

(NYSE:PBI)

Rating:57Neutral
Price Target:
$11.50
▲(2.50%Upside)
Pitney Bowes' stock is currently rated at 57, reflecting substantial financial challenges, including declining revenue and negative equity. The technical analysis shows bullish momentum, but caution is warranted due to overbought signals. Valuation concerns persist with a high P/E ratio, although dividend yield offers some investor value. Positive corporate events and strong earnings call outcomes, such as improved EPS and EBIT, provide additional support for future growth potential.

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 a diverse set of streams primarily categorized into three segments: Sending Technology Solutions, Presort Services, and Global Ecommerce. Sending Technology Solutions includes the sale and rental of mailing equipment, software, and supplies, as well as the provision of maintenance services. Presort Services offers mail sorting, processing, and related logistics services, helping customers streamline their mail operations and reduce postage costs. Global Ecommerce encompasses cross-border shipping and ecommerce logistics services, leveraging technology to enhance delivery services for international and domestic commerce. The company also benefits from partnerships with major logistics and postal organizations, enabling a comprehensive service offering to its clients. These segments create a balanced revenue model, driving profitability through both recurring service contracts and transactional sales.

Pitney Bowes Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 26.35%|
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 Financial Statement Overview

Summary
Pitney Bowes is facing severe financial challenges with declining revenue, persistent losses, and negative equity, indicating insolvency risks. While there have been some improvements in free cash flow, the overall financial health is weak with significant leverage.
Income Statement
30
Negative
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.
Balance Sheet
20
Very Negative
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.
Cash Flow
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.30B2.03B3.27B3.54B3.67B3.55B
Gross Profit1.28B1.06B1.02B1.08B1.17B1.20B
EBITDA95.20M182.38M230.85M294.23M312.91M83.01M
Net Income-165.29M-203.60M-385.63M36.94M3.51M-180.38M
Balance Sheet
Total Assets3.27B3.40B4.27B4.74B4.96B5.22B
Cash, Cash Equivalents and Short-Term Investments323.79M486.10M623.22M681.15M746.92M940.42M
Total Debt2.04B2.05B2.48B2.52B2.56B2.78B
Total Liabilities3.81B3.98B4.64B4.68B4.85B5.15B
Stockholders Equity-535.88M-578.43M-368.58M60.65M112.63M70.62M
Cash Flow
Free Cash Flow155.68M156.77M-23.41M51.14M117.47M196.99M
Operating Cash Flow216.27M229.17M79.47M175.98M301.51M301.97M
Investing Cash Flow-82.75M-49.06M-122.83M-24.27M-155.25M-75.69M
Financing Cash Flow-332.09M-305.45M-31.27M-198.08M-330.37M-235.37M

Pitney Bowes Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.22
Price Trends
50DMA
9.72
Positive
100DMA
9.51
Positive
200DMA
8.44
Positive
Market Momentum
MACD
0.32
Negative
RSI
71.86
Negative
STOCH
80.70
Negative
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 11.22 is above the 20-day moving average (MA) of 10.51, above the 50-day MA of 9.72, and above the 200-day MA of 8.44, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 71.86 is Negative, neither overbought nor oversold. The STOCH value of 80.70 is Negative, 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 (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FDFDX
75
Outperform
$56.15B13.9214.69%2.55%0.27%
UPUPS
74
Outperform
$85.68B14.7635.96%6.28%1.30%-0.76%
73
Outperform
$16.16B19.5937.70%1.35%24.07%27.40%
69
Neutral
$14.99B27.4313.97%1.16%-3.82%-12.80%
66
Neutral
$5.08B28.8118.34%1.15%-4.72%-22.46%
59
Neutral
AU$1.63B9.4211.29%3.69%6.59%5.93%
PBPBI
57
Neutral
$2.03B43.5935.20%2.50%-29.43%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PBI
Pitney Bowes
11.21
5.12
84.07%
EXPD
Expeditors International
119.07
-3.19
-2.61%
FDX
FedEx
239.14
-48.26
-16.79%
JBHT
JB Hunt
153.02
-4.01
-2.55%
LSTR
Landstar System
146.55
-33.83
-18.75%
UPS
United Parcel
105.54
-22.70
-17.70%

Pitney Bowes Corporate Events

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.

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.

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.

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: Jul 02, 2025