Postal Realty (PSTL) AI Stock Analysis

• Market Cap: $505.35M
• Dividend Yield: 6.12%
• Average Volume (3M): 186.60K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.18
• 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: 264,932
• 30 Day Avg. Volume: 186,600
• 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: 1.64
• Enterprise Value/Revenue: 9.08
• Enterprise Value/Gross Profit: 11.61
• Enterprise Value/Ebitda: 14.87
• 1Y Price Target: $17.83
• Price Target Upside: 12.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.51
• Revenue Forecast (FY): $88.73M

• Rating: 77 Outperform
• Price Target: $17.50 ▲(10.34% Upside)

Postal Realty's strong financial performance and strategic acquisitions are the primary drivers of its positive outlook. The attractive dividend yield and recent corporate events further support the stock's potential. However, the high P/E ratio and some technical indicators suggest caution. Overall, the stock presents a balanced risk-reward profile with a positive growth trajectory.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Balance Sheet Health

A debt-free balance sheet provides financial flexibility and reduces risk, supporting sustainable growth and resilience against economic downturns.

Strategic Acquisitions

Increased acquisition activity enhances asset base and revenue potential, indicating strategic expansion and long-term growth prospects.

Negative Factors

EBITDA Margin Decline

A declining EBITDA margin suggests potential operational inefficiencies, which could impact profitability if not addressed.

Increased Expenses

Higher expenses can pressure margins and reduce profitability, potentially affecting cash flow and financial performance.

Non-Recurring Payments

Reliance on non-recurring payments can create volatility in earnings, impacting predictability and investor confidence.

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 generates revenue primarily through leasing its acquired postal properties to tenants, which include the USPS and other commercial clients. The company operates on a net lease structure, where tenants are responsible for property expenses such as maintenance, taxes, and insurance, allowing Postal Realty to benefit from a steady stream of rental income while minimizing operational costs. Key revenue streams include base rental income from long-term leases and potential increases in rent through contractual escalations. Additionally, the company may benefit from property appreciation and the acquisition of new facilities, which can contribute to higher overall earnings. Strategic partnerships with government entities and commercial operators also play a significant role in securing long-term leases, enhancing the stability of revenue generation.

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	24.44M
Gross Profit	71.31M	57.40M	48.34M	40.54M	30.55M	19.43M
EBITDA	55.67M	42.68M	33.68M	27.86M	19.40M	9.92M
Net Income	14.01M	6.60M	3.71M	3.85M	2.06M	-352.00K
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: 15.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 15.86 is above the 20-day moving average (MA) of 15.52, above the 50-day MA of 15.28, and above the 200-day MA of 14.32, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 59.06 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 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	77 Outperform	$505.35M	32.78	4.40%	6.12%	27.07%	507.03%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ONL	51 Neutral	$122.77M	-0.90	-18.67%	7.34%	-11.41%	-56.73%
CIO	49 Neutral	$280.53M	-2.17	-17.91%	5.76%	-5.61%	-651.25%
OPI	41 Neutral	―	―	―	―	―	―
FSP	40 Neutral	$92.36M	-1.91	-7.21%	4.71%	-14.68%	-13.53%

Postal Realty Corporate Events

Postal Realty Acquires 25 Properties for $13.87 Million

On December 9, 2025, Postal Realty Trust, Inc. completed the acquisition of a portfolio of 25 properties from the family of its CEO, Andrew Spodek, for approximately $13.87 million in cash. This transaction, approved by a special committee of independent directors, adds approximately 59,000 net leasable interior square feet to the company’s portfolio, enhancing its rental income potential.

Postal Realty Increases 2025 Acquisition Volume Guidance

On December 9, 2025, Postal Realty Trust, Inc. announced an increase in its full-year 2025 acquisition volume guidance from $110 million to $120 million, reaffirming all other guidance. The company also entered into a definitive agreement to purchase a portfolio of 25 properties leased to the USPS for approximately $13.87 million. This acquisition, approved by a special committee of the Board of Directors, is expected to close in the fourth quarter of 2025 and is anticipated to increase shareholder value.

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.

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.