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Category: Stock Market and Pitney Bowes
Date: 5 February 2020 Stock Price: $15.84 We take a look at the 4th quarter earnings report of their 2019 fiscal year of Pitney Bowes, a global commerce company that power billions of transactions, with 90% of Fortune 500 companies using their services.
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About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global technology company providing commerce solutions that power billions of transactions. Clients around the world, including 90 percent of the Fortune 500, rely on the accuracy and precision delivered by Pitney Bowes solutions, analytics, and APIs in the areas of ecommerce fulfillment, shipping and returns; cross-border ecommerce; office mailing and shipping; presort services; and financing. For nearly 100 years Pitney Bowes has been innovating and delivering technologies that remove the complexity of getting commerce transactions precisely right.
Overview of Pitney Bowes 4th quarter 2019 earnings report
Data below refers to quarterly data unless specified otherwise:
- Total Revenue: $831.343 million (down from $857.414 million for the same period of the previous year)
- Revenue decreased by -3.04% over the last 12 months
- Costs and expenses: $822.962 million (up from $819.081 million for the same period of the previous year)
- Costs and expenses increased by 0.47% over the last 12 months
- Some margin squeeze being experienced by Pitney Bowes with revenues declining yet costs and expenses increasing
- Net income: $176.691 million (up from $49.960 million profit for the same period of the previous year)
- The strong increase in net income is due to income from discontinued operations
- The strong increase in net income is due to income from discontinued operations
- Diluted earnings per share: $1.03 (up from $0.26 profit for the same period of the previous year)
- PE ratio of Pitney Bowes : 3.59 (if the net income from discontinued operations are excluded the PE ratio is 66.3)
- Diluted weighted-average shares outstanding: 171.587 million (down from 188.806 million for the same period of the previous year)
- Cash and cash equivalents: $924.442 million
- Cash and cash equivalents per share: $5.38
- Cash and cash equivalents makes up 135% of Pitney Bowes market capital
- Cash and cash equivalents makes up 16.9% of Pitney Bowes total assets
- Accounts receivable: $374.833 million
- Accounts receivable makes up 6.8% of Pitney Bowes total assets
- Stockholders equity in Pitney Bowes : $286.096 million
- Stockholders equity per share: $1.66
- So Pitney Bowes is trading a 2.39 times its stockholders equity which is outside the expected range of between 2 and 4 which most firms tend to trade at.
Pitney Bowes management commentary on their 4th quarter 2019 earnings report
STAMFORD, Conn.--(BUSINESS WIRE)--Feb. 4, 2020-- Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing and financial services, today announced its financial results for the full year and fourth quarter 2019.
“2019 was another important step forward in transforming our Company,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “We delivered our third consecutive year of revenue growth on a constant currency basis. We substantially realigned our business and our product portfolio, strengthened our balance sheet, and set ourselves up to drive profitable revenue growth going forward. Importantly, over the last two years, we have reduced our debt by over $1 billion, while maintaining significant investment in the business.
“In 2020, Pitney Bowes enters its 100th year, a noteworthy accomplishment few can claim,” Lautenbach added. “Our transformation continues to build on our three logical core adjacencies of shipping and mail along with the financing of mission-critical assets for our clients.”
“2019 was another important step forward in transforming our Company,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “We delivered our third consecutive year of revenue growth on a constant currency basis. We substantially realigned our business and our product portfolio, strengthened our balance sheet, and set ourselves up to drive profitable revenue growth going forward. Importantly, over the last two years, we have reduced our debt by over $1 billion, while maintaining significant investment in the business.
“In 2020, Pitney Bowes enters its 100th year, a noteworthy accomplishment few can claim,” Lautenbach added. “Our transformation continues to build on our three logical core adjacencies of shipping and mail along with the financing of mission-critical assets for our clients.”
2020 Guidance
The Company expects for full year 2020:
The Company expects for full year 2020:
- Revenue, on a constant currency basis, is expected to be in the range of 1 percent decline to 1.5 percent growth when compared to 2019.
- Adjusted EPS from continuing operations to be in the range of $0.60 to $0.70 and reflects double-digit EBIT dollar growth over prior year, which will be offset by an expected higher tax rate as compared to prior year.
- Free cash flow to be in the range of $140 million to $170 million. Free cash flow also reflects the planned use of cash for growth in third party leasing initiatives.
Pitney Bowes (NYSE: PBI) stock price history
The image below, obtained from Google, shows the stock price history of Pitney Bowes over the last 5 years. And it's not been a good time for Pitney Bowes stockholders. In fact its been a horrible time for them. 5 years ago the stock was trading at around $22.60 a stock and its currently trading at $3.98 a stock. That's a massive loss of -82.4% suffered by Pitney Bowes stockholders over the last 5 years.
The stock of Pitney Bowes is trading at very close to its 52 week low of $3.14 and is far away from its 52 week high of $8.32 which to us is a clear indication that the short term sentiment and momentum of Ethan Allen stock is very negative at this point in time..
The stock of Pitney Bowes is trading at very close to its 52 week low of $3.14 and is far away from its 52 week high of $8.32 which to us is a clear indication that the short term sentiment and momentum of Ethan Allen stock is very negative at this point in time..
Recent coverage of Pitney Bowes
The extract below discusses the latest news regarding Pitney Bowes as obtained from nasdaqnewsfeed.com
EPS growth is an important number as it gives a suggestion of the future prospects of a company. It is usually expressed as a percentage and is then referred to as the EPS growth rate. Growth in EPS is an important measure of administration performance because it shows how much money the company is making for it’s investors or shareholders, not only because of changes in profit, but also after all the effects of issuance of new shares (this is especially important when the growth comes as a result of acquisition).
Pitney Bowes Inc., belongs to Consumer Goods sector and Business Equipmentindustry. The company’s Market capitalization is $681.81M with the total Outstanding Shares of 326. On 04-02-2020 (Tuesday), PBI stock construct a change of 2.84 in a total of its share price and finished its trading at 3.98.
Profitability Ratios (ROE, ROA, ROI):
Looking into the profitability ratios of PBI stock, an investor will find its ROE, ROA, ROI standing at 22.9%, 0.3% and 9.1%, respectively. Return on assets (ROA) is a financial ratio that shows the percentage of profit a company earns about its overall resources. A performance measure used to estimate the efficiency of an investment or to compare the ability of some different investments. ROI measures the amount of return on an investment relative to the investment’s cost.
Earnings per Share Details of Pitney Bowes Inc.:
The EPS of PBI is strolling at 0.31, measuring its EPS growth this year at -11%. As a result, the company has an EPS growth of -1.52% for the approaching year. Given the significance of identifying companies that will make sure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years. We can’t have sufficient maintenance the once will always replicate the difficult, but logically stocks that have grown earnings per allowance strongly in the subsequent to are a fine bet to keep on to take effect as a result. Analyst’s mean target price for the company is $5.5 while analysts mean suggestion is 2.6. A beta factor is used to measure the volatility of the stock. The stock remained 7.53% volatile for the week and 5.48% for the month.
Historical Performance In The News:
Taking a look at the performance of Pitney Bowes Inc. stock, an investor will come to know that the weekly performance for this stock is valued at 6.99%, resulting in a performance for the month at 0%. Therefore, the stated figure displays a quarterly performance of -12.14%, bringing six-month performance to 12.11% and year to date performance of -1.24%.
EPS growth is an important number as it gives a suggestion of the future prospects of a company. It is usually expressed as a percentage and is then referred to as the EPS growth rate. Growth in EPS is an important measure of administration performance because it shows how much money the company is making for it’s investors or shareholders, not only because of changes in profit, but also after all the effects of issuance of new shares (this is especially important when the growth comes as a result of acquisition).
Pitney Bowes Inc., belongs to Consumer Goods sector and Business Equipmentindustry. The company’s Market capitalization is $681.81M with the total Outstanding Shares of 326. On 04-02-2020 (Tuesday), PBI stock construct a change of 2.84 in a total of its share price and finished its trading at 3.98.
Profitability Ratios (ROE, ROA, ROI):
Looking into the profitability ratios of PBI stock, an investor will find its ROE, ROA, ROI standing at 22.9%, 0.3% and 9.1%, respectively. Return on assets (ROA) is a financial ratio that shows the percentage of profit a company earns about its overall resources. A performance measure used to estimate the efficiency of an investment or to compare the ability of some different investments. ROI measures the amount of return on an investment relative to the investment’s cost.
Earnings per Share Details of Pitney Bowes Inc.:
The EPS of PBI is strolling at 0.31, measuring its EPS growth this year at -11%. As a result, the company has an EPS growth of -1.52% for the approaching year. Given the significance of identifying companies that will make sure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years. We can’t have sufficient maintenance the once will always replicate the difficult, but logically stocks that have grown earnings per allowance strongly in the subsequent to are a fine bet to keep on to take effect as a result. Analyst’s mean target price for the company is $5.5 while analysts mean suggestion is 2.6. A beta factor is used to measure the volatility of the stock. The stock remained 7.53% volatile for the week and 5.48% for the month.
Historical Performance In The News:
Taking a look at the performance of Pitney Bowes Inc. stock, an investor will come to know that the weekly performance for this stock is valued at 6.99%, resulting in a performance for the month at 0%. Therefore, the stated figure displays a quarterly performance of -12.14%, bringing six-month performance to 12.11% and year to date performance of -1.24%.
Pitney Bowes (NYSE: PBI) latest stock valuation
So what is Pitney Bowes stock worth based on the release of their latest earnings report? Based on Pitney Bowes latest earnings report our valuation models provide a target price (full value price) for Pitney Bowes stock at $1.66 a stock. We therefore believe that the stock of Pitney Bowess is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $1.66. But in the case of Pitney Bowes we would recommend long term fundamental and value investors steer clear of the stock as the sentiment remains overwhelmingly negative and the future for the group doesnt look very bright at this point in time, unless they can use their massive cash pile to buy a strong cash generative asset that adds significant earnings to their books.
We rate the stock of Pitney Bowes as AVOID
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $1.66. But in the case of Pitney Bowes we would recommend long term fundamental and value investors steer clear of the stock as the sentiment remains overwhelmingly negative and the future for the group doesnt look very bright at this point in time, unless they can use their massive cash pile to buy a strong cash generative asset that adds significant earnings to their books.
We rate the stock of Pitney Bowes as AVOID
Next earnings release date for Pitney Bowes
It is expected that Pitney Bowes (NYSE: PBI) 1st quarter 2020 earnings report will be released early May 2020