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1. Company Snapshot

1.a. Company Description

Pitney 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.

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1.b. Last Insights on PBI

Pitney Bowes' recent performance was negatively impacted by its Q3 earnings miss, with quarterly earnings of $0.31 per share, falling short of the Zacks Consensus Estimate of $0.32 per share. The company's transition to high-margin SaaS shipping solutions and cost efficiencies have improved profitability, but a 6% YoY revenue drop in Q2 2025 may have raised concerns. Additionally, some investors reduced their stakes, with Mutual of America Capital Management LLC selling 2,763 shares. A quarterly cash dividend of $0.09 per share was declared. (Source: Zacks, Business Wire)

1.c. Company Highlights

2. Disappointing Revenue, But Progress on Cost Cuts and Strategic Review

The company's Q3 revenue came in below expectations, primarily due to a loss in volume rather than price, with the high-volume business having a high contribution margin. The actual EPS was $0.31, slightly below estimates of $0.32. Despite the revenue shortfall, the company reported continued profitability improvements for the quarter. The price increase in July 2024 contributed to a $19.5 million revenue increase in Q3 2024. As per Paul Evans, the decline in volume was partly due to competitors using the rate case to bid share and win contracts.

Publication Date: Nov -12

📋 Highlights
  • Revenue Outlook Adjusted: Guidance revised to low end of range for 2024 due to forecasting errors, not operational issues.
  • $50M–$60M Cost Cuts: Management-led initiatives by 2026, driven by leadership changes and process streamlining.
  • $161M Share Repurchases: Additional buybacks executed in Q3, reflecting confidence in profitable growth opportunities.
  • Presort Strategic Expansion: Aggressive pursuit of acquisitions and client recovery, capitalizing on competitors' financial struggles.
  • GFS/SendTech Restructuring: $50M–$60M savings from realigning credit decision incentives and improving operational efficiency.

Cost Cuts and Restructuring Efforts

The company has identified $50 million to $60 million in cost cuts across the organization, which will be realized by the end of 2026, driven by the new leadership team's efforts to refine costs. The restructuring aims to improve the business, with estimated savings of $50-60 million. Kurt Wolf emphasized that the company's leaders are restructuring their organizations to better meet the needs of the business, addressing what processes are not needed and how to be better on a go-forward basis.

Strategic Review and Capital Allocation

The company is making progress in its strategic review, enhancing talent, structure, and processes to support future growth. The company is opportunistic in its capital allocation and will evaluate debt and equity markets to maximize returns, aiming to maintain a 3.0 leverage ratio. The share repurchase program continued, with an additional $161 million spent during the quarter.

Valuation Metrics

With a P/E Ratio of -15.36 and an EV/EBITDA of 18.23, the market seems to be pricing in some level of distress. However, the Dividend Yield of 3.18% and Free Cash Flow Yield of 10.83% could be attractive to income investors. The ROE of 20.36% indicates a relatively healthy return on equity. Analysts estimate next year's revenue growth at -1.8%, which may put pressure on the stock in the near term.

3. NewsRoom

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Here Are Wednesday’s Top Wall Street Analyst Upgrades and Downgrades: American Eagle Outfitters, Equinix, Garmin, Honeywell, Uber, Wendy’s and More

Dec -03

Source: 247wallst.com

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Franklin Resources Inc. Has $6.15 Million Stake in Pitney Bowes Inc. $PBI

Dec -01

Source: defenseworld.net

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Pitney Bowes Inc. Commences Cash Tender Offers for Two Series of Notes

Nov -21

Source: businesswire.com

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Pitney Bowes Inc. $PBI Position Lessened by Campbell & CO Investment Adviser LLC

Nov -17

Source: defenseworld.net

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Mutual of America Capital Management LLC Sells 2,763 Shares of Pitney Bowes Inc. $PBI

Oct -31

Source: defenseworld.net

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Pitney Bowes Inc. (PBI) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Pitney Bowes (PBI) Misses Q3 Earnings and Revenue Estimates

Oct -29

Source: zacks.com

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Pitney Bowes Declares Common Stock Dividend

Oct -29

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.98%)

6. Segments

Global Ecommerce

Expected Growth: 1.2%

The 1.2% growth in global ecommerce is driven by increasing internet penetration, rising mobile adoption, and growing consumer confidence in online transactions. Additionally, cross-border ecommerce, social commerce, and omnichannel retailing are contributing to the growth. Furthermore, the COVID-19 pandemic has accelerated the shift to online shopping, leading to increased demand for ecommerce services.

SendTech Solutions

Expected Growth: 0.8%

SendTech Solutions' 0.8 growth driven by increasing demand for digital transformation in mail and parcel industry, Pitney Bowes' strategic investments in cloud-based technologies, and expansion into new markets, such as e-commerce and logistics, enabling clients to optimize their shipping operations and improve customer experience.

Presort Services

Expected Growth: 0.9%

Pitney Bowes' Presort Services growth is driven by increasing demand for efficient mail processing, e-commerce growth, and cost savings for businesses. Additionally, the company's investments in technology and infrastructure, such as automation and data analytics, enhance operational efficiency and customer experience, contributing to the 0.9% growth rate.

7. Detailed Products

SendPro

A cloud-based sending technology that helps businesses simplify their shipping operations and reduce costs.

SendSuite

A suite of shipping and mailing solutions that help businesses manage their logistics and supply chain operations.

Pitney Bowes Presort Services

A mail presorting service that helps businesses reduce their mailing costs and improve delivery times.

Location Intelligence

A location-based data and analytics platform that helps businesses make informed decisions about their operations and customer engagement.

Spectrum

A customer information management platform that helps businesses manage their customer data and improve their customer engagement.

Pitney Bowes Commerce Cloud

A cloud-based platform that provides a range of commerce and shipping solutions for businesses of all sizes.

8. Pitney Bowes Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Pitney Bowes Inc. has a moderate threat of substitutes due to the presence of alternative solutions in the market, such as digital mail and online bill payment services.

Bargaining Power Of Customers

Pitney Bowes Inc. has a high bargaining power of customers due to the presence of large and established clients who can negotiate prices and terms.

Bargaining Power Of Suppliers

Pitney Bowes Inc. has a low bargaining power of suppliers due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

Pitney Bowes Inc. has a moderate threat of new entrants due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.

Intensity Of Rivalry

Pitney Bowes Inc. operates in a highly competitive market with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 117.42%
Debt Cost 3.95%
Equity Weight -17.42%
Equity Cost 14.60%
WACC 2.09%
Leverage -673.97%

11. Quality Control: Pitney Bowes Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ennis

A-Score: 6.7/10

Value: 7.2

Growth: 4.1

Quality: 7.2

Yield: 10.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

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REV Group

A-Score: 5.8/10

Value: 4.1

Growth: 6.2

Quality: 6.3

Yield: 4.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Pitney Bowes

A-Score: 5.3/10

Value: 7.3

Growth: 1.0

Quality: 4.9

Yield: 6.0

Momentum: 9.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Cryoport

A-Score: 4.6/10

Value: 8.3

Growth: 3.9

Quality: 6.8

Yield: 0.0

Momentum: 7.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Radiant Logistics

A-Score: 4.0/10

Value: 5.8

Growth: 4.0

Quality: 4.6

Yield: 0.0

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Forward Air

A-Score: 2.3/10

Value: 6.2

Growth: 2.4

Quality: 1.8

Yield: 0.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.77$

Current Price

9.77$

Potential

-0.00%

Expected Cash-Flows