Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Pitney Bowes Inc. (PBI)

Company Dividend Discount ModelIndustry: Integrated Freight & LogisticsSector: Industrials

Valuation Snapshot

Stable Growth$2.46 - $3.48$2.96
Multi-Stage$22.03 - $24.56$23.27
Blended Fair Value$13.11
Current Price$11.41
Upside14.94%
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 Rate1.23%1.23%1.23%
Growth Rate-10.76%-9.76%-8.76%
Fair Value$2.46$2.96$3.48
Upside / Downside-78.48%-74.03%-69.46%

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 Rate1.23%1.23%1.23%
Growth Rate-10.76%-9.76%-8.76%
Year 1 PV (M)44.3544.8545.34
Year 2 PV (M)42.4343.3944.36
Year 3 PV (M)40.3541.7243.12
Year 4 PV (M)38.1639.9041.70
Year 5 PV (M)35.9337.9840.14
PV of Terminal Value (M)3,803.164,021.084,248.87
Equity Value (M)4,004.384,228.924,463.52
Shares Outstanding (M)181.77181.77181.77
Fair Value$22.03$23.27$24.56
Upside / Downside93.08%103.91%115.22%

High-Yield Dividend Screener

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