Postal Realty (PSTL) AI Stock Analysis

• Market Cap: $492.09M
• Dividend Yield: 6.23%
• Average Volume (3M): 141.64K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.17
• Revenue Growth: 27.07%
• EPS Growth: 507.03%
• Country: US
• Employees: 45
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.13
• Shares Outstanding: 26,062,635
• 10 Day Avg. Volume: 164,299
• 30 Day Avg. Volume: 141,644
• PEG Ratio: 0.60
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 3.86
• P/FCF Ratio: 9.58
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 9.08
• Enterprise Value/Gross Profit: 11.23
• Enterprise Value/Ebitda: 17.69
• 1Y Price Target: $17.00
• Price Target Upside: 9.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.45
• Revenue Forecast (FY): $89.34M

• Rating: 73 Outperform
• Price Target: $16.50 ▲(5.91% Upside)

Postal Realty's strong financial performance and positive earnings call results are the primary drivers of its overall score. The company's robust revenue growth, zero debt, and strategic acquisitions contribute to its financial stability. However, the high P/E ratio and bearish technical indicators suggest caution. The attractive dividend yield provides a buffer against valuation concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust demand for Postal Realty's niche properties, enhancing long-term financial stability and market position.

Balance Sheet Health

A debt-free balance sheet provides financial flexibility and reduces risk, allowing Postal Realty to invest in growth opportunities without significant financial constraints.

Strategic Acquisitions

Strategic acquisitions at favorable rates expand Postal Realty's asset base and revenue potential, supporting long-term growth and shareholder value.

Negative Factors

EBITDA Margin Decline

The significant decline in EBITDA margin suggests potential operational inefficiencies, which may impact profitability if not addressed.

Higher Fourth Quarter Expenses

Increased expenses could pressure short-term profitability, highlighting the need for cost management to sustain margins.

Catch-up Payment Impact

Non-recurring payments can distort financial results, potentially leading to overestimation of sustainable earnings and affecting future financial projections.

Postal Realty Business Overview & Revenue Model

Company Description

Postal Realty Trust, Inc. (PSTL) is a real estate investment trust (REIT) that specializes in acquiring, owning, and managing properties leased to the United States Postal Service (USPS). The company focuses primarily on properties utilized for postal operations, which are generally characterized by long-term leases and stable cash flows. By investing in this niche sector, Postal Realty aims to provide a compelling investment opportunity that combines the reliability of government-backed tenants with the potential for capital appreciation.

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	91.19M	76.37M	63.71M	53.33M	39.94M	24.68M
Gross Profit	73.67M	57.40M	48.34M	40.54M	30.55M	19.66M
EBITDA	46.78M	42.68M	33.68M	27.86M	19.40M	10.96M
Net Income	14.01M	6.60M	3.71M	3.85M	2.06M	-640.88K
Balance Sheet
Total Assets	735.19M	646.82M	567.35M	501.30M	377.72M	258.88M
Cash, Cash Equivalents and Short-Term Investments	1.90M	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	386.71M	329.32M	265.72M	217.59M	112.24M	139.25M
Stockholders Equity	273.93M	251.28M	243.56M	229.23M	220.04M	91.99M
Cash Flow
Free Cash Flow	27.84M	30.73M	25.56M	20.90M	15.20M	8.43M
Operating Cash Flow	31.43M	33.50M	28.43M	24.59M	17.09M	9.40M
Investing Cash Flow	-71.96M	-79.15M	-72.61M	-120.15M	-106.72M	-126.15M
Financing Cash Flow	41.11M	45.32M	45.01M	90.57M	93.39M	106.84M

Postal Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.58 is above the 20-day moving average (MA) of 14.87, above the 50-day MA of 15.21, and above the 200-day MA of 13.86, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.78 is Neutral, neither overbought nor oversold. The STOCH value of 83.11 is Negative, 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	73 Outperform	$492.09M	32.20	4.40%	6.23%	27.07%	507.03%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CIO	53 Neutral	$278.51M	―	-17.91%	5.80%	-5.61%	-651.25%
ONL	50 Neutral	$146.42M	―	-18.67%	6.15%	-11.41%	-56.73%
OPI	41 Neutral	―	―	―	―	―	―
FSP	40 Underperform	$120.28M	―	-7.21%	3.45%	-14.68%	-13.53%

Postal Realty Corporate Events

Postal Realty Appoints New CFO Stephen Bakke

On September 22, 2025, Postal Realty Trust, Inc. announced the appointment of Stephen Bakke as the new Executive Vice President and Chief Financial Officer, effective on or about November 5, 2025. Mr. Bakke, who brings extensive experience in capital markets and investor relations, will succeed Jeremy Garber, who served as interim CFO since June 18, 2025. This strategic appointment is expected to enhance the company’s financial strategy and stakeholder relationships as it continues to expand its portfolio.

The most recent analyst rating on (PSTL) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Postal Realty stock, see the PSTL Stock Forecast page.

Postal Realty Expands Credit Facilities to $440 Million

On September 19, 2025, Postal Realty Trust, Inc. announced the recast and expansion of its credit facilities to $440 million, effective immediately. This expansion includes a $150 million senior unsecured revolving credit facility and a $290 million term loan facility, with extended maturity dates to November 2029 and January 2030, respectively. The move is aimed at increasing the company’s liquidity and supporting its growth strategy, with the potential to increase lending commitments further. The new credit agreement also includes an interest rate swap to fix the SOFR component of the interest rate, enhancing financial stability.

The most recent analyst rating on (PSTL) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Postal Realty stock, see the PSTL Stock Forecast page.

Postal Realty Trust Maintains Steady Risk Profile: Key Insights for Stakeholders

Postal Realty Trust has indicated that there have been no significant changes in their risk factors as previously disclosed in their Annual Report on Form 10-K for the year ending December 31, 2024. This suggests that the company continues to face the same business risks as before, without any new developments that could alter their risk profile. Stakeholders should remain vigilant and consider these persistent risks when evaluating the company’s financial health and strategic decisions. The stability in risk factors may imply a steady operational environment, but it also highlights the importance of ongoing risk management strategies.

Postal Realty Trust Reports Strong Q2 2025 Results

Postal Realty Trust, Inc. is an internally managed real estate investment trust that specializes in owning and managing properties leased primarily to the United States Postal Service, spanning from last-mile post offices to industrial facilities. In its second quarter of 2025, Postal Realty Trust reported a notable increase in revenue and net income, alongside strategic acquisitions and financial maneuvers aimed at enhancing its portfolio and shareholder value. The company achieved a 29% growth in revenues compared to the same period last year, with net income attributable to common shareholders reaching $3.6 million. Additionally, the company acquired 68 USPS properties for $35.9 million, contributing to a robust property portfolio with a 99.8% occupancy rate. Postal Realty Trust also raised $12.8 million through its ATM program to fund these acquisitions, reflecting its strategic focus on growth and expansion. Looking ahead, the company has increased its AFFO guidance for 2025, indicating confidence in its operational strategy and financial health. Management remains optimistic about driving long-term shareholder value through disciplined growth and maintaining strong relationships with its primary tenant, the USPS.

Postal Realty Trust’s Earnings Call Highlights Growth

Postal Realty Trust’s recent earnings call revealed a positive sentiment, with the company showcasing robust achievements in re-leasing efforts, AFFO growth, and strategic acquisitions. Despite some concerns regarding higher CapEx and cash G&A expenses, the overall performance and strategic direction suggest continued growth and stability for the company.