Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Pitney Bowes Inc. NT 43 (PBI-PB)

Company Dividend Discount ModelIndustry: Airlines, Airports & Air ServicesSector: Industrials

Valuation Snapshot

Stable Growth$2.22 - $3.08$2.65
Multi-Stage$20.70 - $23.07$21.86
Blended Fair Value$12.25
Current Price$11.41
Upside7.40%
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 Rate2.53%2.53%2.53%
Growth Rate-10.76%-9.76%-8.76%
Fair Value$2.22$2.65$3.08
Upside / Downside-80.58%-76.77%-72.97%

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 Rate2.53%2.53%2.53%
Growth Rate-10.76%-9.76%-8.76%
Year 1 PV (M)43.7944.2844.77
Year 2 PV (M)41.3642.3043.24
Year 3 PV (M)38.8340.1541.50
Year 4 PV (M)36.2637.9239.63
Year 5 PV (M)33.7135.6437.66
PV of Terminal Value (M)3,568.413,772.873,986.60
Equity Value (M)3,762.363,973.164,193.40
Shares Outstanding (M)181.77181.77181.77
Fair Value$20.70$21.86$23.07
Upside / Downside81.41%91.57%102.19%

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