Pitney Story

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PBI -- USA Stock  

USD 6.05  0.37  6.51%

Pitney Bowes Earnings before Tax are most likely to decrease significantly in the upcoming years. The last year's value of Earnings before Tax was reported at 181.6 Million. The current Enterprise Value is estimated to increase to about 4.4 B, while Net Income Per Employee is projected to decrease to roughly 16.2 K. As many baby boomers are still indifferent towards industrials space, it makes sense to concentrate on Pitney Bowes. I will take a closer look at this stock and the current sentiment generated by stockholders. Here I will also concentrate on some technical and fundamental indicators that Pitney Bowes investors should consider in December.
Published over a month ago
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Is Pitney Bowes (NYSE:PBI) finally getting endorsement from stockholders?
The company is undervalued at 5.73 per share with modest projections ahead. On a scale of 0 to 100, Pitney Bowes holds a performance score of 3. The company holds a Beta of 2.6407, which implies a somewhat significant risk relative to the market. Let's try to break down what Pitney's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Pitney Bowes will likely underperform. Although it is vital to follow Pitney Bowes current trending patterns, it is good to be conservative about what you can do with the information regarding equity existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Pitney Bowes technical indicators, you can presently evaluate if the expected return of 0.31% will be sustainable into the future. Please employ Pitney Bowes skewness, and the relationship between the potential upside and rate of daily change to make a quick decision on whether Pitney Bowes historical price patterns will revert.

And What about dividends?

A dividend is the distribution of a portion of Pitney Bowes earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Pitney Bowes dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Pitney one year expected dividend income is about $0.12 per share.
Pitney Bowes Dividend Yield is most likely to slightly decrease in the upcoming years. The last year's value of Dividend Yield was reported at 0.05. The current Dividends per Basic Common Share is estimated to increase to 0.21, while Preferred Dividends Income Statement Impact is projected to decrease to roughly 17 M.
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact17.1 M17 M
Payment of Dividends and Other Cash Distributions-35.4 M-38.2 M
Dividend Yield 0.05  0.05 
Dividends per Basic Common Share 0.20  0.21 
Investing in dividend-paying stocks, such as Pitney Bowes is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Pitney Bowes must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Pitney Bowes. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Pitney Bowes's Liquidity

Pitney Bowes financial leverage refers to using borrowed capital as a funding source to finance Pitney Bowes ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pitney Bowes financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Pitney Bowes's total debt and its cash.

How Pitney utilizes its cash?

To perform a cash flow analysis of Pitney Bowes, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Pitney Bowes is receiving and how much cash it distributes out in a given period. The Pitney Bowes cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Pitney Bowes Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 252.21 Million

Purchase by Linda Sanford of 8000 shares of Pitney Bowes

Legal trades by Pitney Bowes insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Pitney insider trading alert for perchase of common stock by Linda Sanford, the corporate stakeholder, on 9th of September 2020. This event was filed by Pitney Bowes Inc with SEC on 2020-09-09. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Pitney Bowes Investor Appetite?

Pitney Bowes owns a total of one hundred seventy-three million eighty thousand outstanding shares. The majority of Pitney Bowes outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Pitney Bowes to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Pitney Bowes. Please pay attention to any change in the institutional holdings of Pitney Bowes as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.
 2017 2018 2019 2020 (projected)
Consolidated Income243.53 M241.81 M194.61 M239.71 M
Direct Expenses1.67 B1.84 B1.88 B2.09 B

Ownership Breakdown

Retail Investors
18.52%
Institutions
80.82%
Retail Investors18.52
Insiders0.66
Institutions80.82

Time to bail out on Pitney Bowes is now

Variance is down to 65.52. It may hint to a possible volatility drop. Pitney Bowes is displaying above-average volatility over the selected time horizon. Investors should scrutinize Pitney Bowes independently to ensure intended market timing strategies are aligned with expectations about Pitney Bowes volatility.

Our Conclusion on Pitney Bowes

While some companies within the business equipment & supplies industry are still a little expensive, even after the recent corrections, Pitney Bowes may offer a potential longer-term growth to stockholders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take up new shares of Pitney nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Pitney Bowes.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Pitney Bowes. Please refer to our Terms of Use for any information regarding our disclosure principles.

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