Postal Realty (PSTL) AI Stock Analysis

• Market Cap: $430.10M
• Dividend Yield: 6.52%
• Average Volume (3M): 169.65K
• Price to Earnings (P/E): 53.0
• Beta (1Y): 0.23
• Revenue Growth: 23.51%
• EPS Growth: 167.49%
• Country: US
• Employees: 45
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Office
• EPS (TTM): 0.06
• Shares Outstanding: 23,805,546
• 10 Day Avg. Volume: 176,444
• 30 Day Avg. Volume: 169,649
• PEG Ratio: 0.25
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.34
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: 9.18
• Enterprise Value/Ebitda: 2.92
• 1Y Price Target: $15.85
• Price Target Upside: 7.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 79 Outperform
• Price Target: $17.50 ▲(18.48%Upside)

Postal Realty scores highly due to its strong financial performance, highlighted by robust revenue growth and a debt-free balance sheet. The positive sentiment from the earnings call and strong dividend yield further support the stock's attractiveness. However, the high P/E ratio and overbought technical indicators suggest a need for cautious optimism.

Positive Factors

Financial Performance

The company reported higher-than-expected FFO and AFFO, indicating strong financial performance.

Leasing and Partnerships

The programmatic approach to leasing, as well as the strength of relationship between PSTL and the USPS, has helped the company build internal lease escalations into the company's leases, something not standard in USPS leases.

Occupancy and Management

Postal Realty Trust has a high occupancy rate of 99.8%, reflecting its effective property management.

Negative Factors

Management Changes

The company announced that Robert Klein had notified the company of his intent to resign as Chief Financial Officer.

Market Valuation

Equity capital remains constrained with PSTL trading at an 9.8% implied cap rate.

Privatization Concerns

There have been reports of the possible privatization of the Post Office, which could cause some uncertainty in future cash flows.

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 Trust generates revenue primarily through the rental income from its portfolio of properties leased to the United States Postal Service. The company's business model capitalizes on the long-term leases and stable, government-backed tenant provided by USPS, ensuring consistent cash flow. This REIT benefits from the predictable and secure nature of its lease agreements, which typically include rental escalations over time. Additionally, Postal Realty Trust may engage in strategic acquisitions to expand its property portfolio and increase its revenue potential. The focus on postal properties provides a unique market niche with limited competition, contributing to its earnings stability.

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.

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	81.23M	76.37M	63.71M	53.33M	39.94M	24.68M
Gross Profit	50.63M	57.40M	48.34M	40.54M	30.55M	19.66M
EBITDA	44.38M	40.99M	33.68M	27.86M	19.40M	10.96M
Net Income	8.07M	6.60M	3.71M	3.85M	2.06M	-640.88K
Balance Sheet
Total Assets	654.02M	646.82M	567.35M	501.30M	377.72M	258.88M
Cash, Cash Equivalents and Short-Term Investments	639.00K	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	339.11M	329.32M	265.72M	217.59M	112.24M	139.25M
Stockholders Equity	245.48M	251.28M	243.56M	229.23M	220.04M	91.99M
Cash Flow
Free Cash Flow	35.08M	30.73M	25.56M	20.90M	15.20M	8.43M
Operating Cash Flow	37.92M	33.50M	28.43M	24.59M	17.09M	9.40M
Investing Cash Flow	-81.05M	-79.15M	-72.61M	-120.15M	-106.72M	-126.15M
Financing Cash Flow	42.01M	45.32M	45.01M	90.57M	93.39M	106.84M

Postal Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 14.77 is below the 20-day moving average (MA) of 14.93, above the 50-day MA of 13.94, and above the 200-day MA of 13.64, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 54.41 is Neutral, neither overbought nor oversold. The STOCH value of 37.56 is Neutral, 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	79 Outperform	$430.10M	53.03	2.62%	6.52%	23.51%	167.49%
DEA	67 Neutral	$1.01B	54.03	1.32%	8.03%	6.06%	-15.10%
Sector *	63 Neutral	$6.93B	18.26	-1.91%	6.91%	4.65%	-25.39%
EQC	56 Neutral	$169.73M	4.10	2.10%	―	-4.47%	-44.64%
ONL	55 Neutral	$131.49M	―	-10.71%	3.42%	-18.92%	-15.81%
OPI	49 Neutral	$18.67M	―	-15.03%	15.21%	-11.91%	-80.43%
NLOP		$479.24M	―	-10.27%	1.05%	―	―

Postal Realty Corporate Events

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.

Postal Realty Updates Management Agreements with Amendments

On May 5, 2025, Postal Realty Trust, Inc. announced amendments to its management agreements through its subsidiary, Real Estate Asset Counseling, LLC. These amendments, effective from April 1, 2025, include a management fee structure of 4.0% per annum of each property’s gross revenue, with annual increases and provisions for termination. The agreements, approved by an independent committee excluding CEO Andrew Spodek, also include additional fees for financing services.