Baseline equity research, all cap value, Long Only, Value
Contributor Since 2007
I manage Wax Ink, an equity research firm comprised of individual investors not licensed or registered with any government agency. I have been an all cap value investor and independent equity researcher for the past 30 years.
Texas (July 17, 2014) Wax Ink has issued a Negative Investment Interest opinion for Pitney Bowes, Inc. (NYE: PBI), based on a recent intrinsic value review that placed fair value for the company between $20-$26.
A Negative Investment Interest opinion (sell) means that the current key performance indicators (KPIs) and associated financial metrics do not favor a position in this stock as an active investment at this time.
The recent close of $28.13 is approximately 137% above a fair value buy target for the stock and approximately 15% above a fair value close target for the stock. The recent close is also 6% below analysts' twelve-month $30.00 median price target for the stock.
The recent close represents a 102% increase in the one-year price of the stock, while year-over-year sales decreased 1%, year-over-year earnings increased 62%, year-over-year debt decreased 17%, and year-over-year free cash flow increased 36%.
The company paid a dividend of $0.93, a year-over-year decline of 37%.
The stock currently has a trailing twelve-month PE Ratio of 14, and a PEG Ratio of (14) basis estimated forward earnings growth of (1%).
In the past 52 weeks, share prices have moved between a high of $28.24 and a low of $13.76, placing current equilibrium at $25.77. With the recent close, the stock is trading 0.4% below the 52 week high, 51% above the 52 week low, and 8% above current equilibrium.
The three-month average daily trading volume for this stock is approximately 1.73 million shares and the recent average daily trading volume is approximately 1.66 million shares. There are approximately 18.6 million short interest shares which places the days to cover at 13.8.
Pitney Bowes is a global provider of technology solutions helping small, mid-sized and large firms connect to customers to build loyalty and grow revenue.
The company's listed competitors include Neopost S.A., Xerox Corporation, and Canon, Inc..
Financial information contained herein, was extracted from the company's most recent annual SEC filing for year ending December 31, 2013 and all prices are per share unless otherwise noted.
At this time Wax Ink has no investment position in any company mentioned in this alert. This alert is for use by Accredited Investors as defined under Title 17, CFR §230.500, Regulation D.
Wax Ink is a baseline equity research company not licensed or registered with any government agency focusing on long-term investment opportunities.
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Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.