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Pitney Bowes Inc. (PBI)

Company Dividend Discount ModelIndustry: Integrated Freight & LogisticsSector: Industrials

Valuation Snapshot

Stable Growth$1.48 - $1.95$1.73
Multi-Stage$3.26 - $3.59$3.42
Blended Fair Value$2.57
Current Price$11.41
Upside-77.44%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.33%-13.40%0.200.190.190.190.190.190.770.770.770.83
YoY Growth--2.10%1.43%-0.24%1.48%-3.03%-74.83%0.72%-0.80%-6.33%-0.99%
Dividend Yield--2.19%4.58%4.91%3.68%2.29%9.54%10.96%7.05%5.90%3.83%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)74.98
(-) Cash Dividends Paid (M)46.02
(=) Cash Retained (M)28.97
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)15.009.375.62
Cash Retained (M)28.9728.9728.97
(-) Cash Required (M)-15.00-9.37-5.62
(=) Excess Retained (M)13.9719.5923.34
(/) Shares Outstanding (M)181.77181.77181.77
(=) Excess Retained per Share0.080.110.13
LTM Dividend per Share0.250.250.25
(+) Excess Retained per Share0.080.110.13
(=) Adjusted Dividend0.330.360.38
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-10.76%-9.76%-8.76%
Fair Value$1.48$1.73$1.95
Upside / Downside-87.00%-84.86%-82.91%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)74.9867.6661.0655.1049.7244.8746.22
Payout Ratio61.37%67.09%72.82%78.55%84.27%90.00%92.50%
Projected Dividends (M)46.0245.4044.4643.2841.9040.3842.75

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-10.76%-9.76%-8.76%
Year 1 PV (M)41.1541.6142.07
Year 2 PV (M)36.5337.3638.19
Year 3 PV (M)32.2333.3334.45
Year 4 PV (M)28.2929.5830.91
Year 5 PV (M)24.7126.1327.61
PV of Terminal Value (M)429.01453.59479.29
Equity Value (M)591.93621.60652.52
Shares Outstanding (M)181.77181.77181.77
Fair Value$3.26$3.42$3.59
Upside / Downside-71.46%-70.03%-68.54%

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