# Pitney Bowes (PBI.US)

Canonical: https://gigainvestors.com/s/PBI

Analysis as of: 2026-10-16T07:31:04.841Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $17.29 per share; close as of 2026-10-15.

Estimated value: low $3.19 per share, central $3.63 per share, high $4.22 per share. Buy at or below the central value $3.63 per share. Valuation as of 2026-10-16T07:31:04.841Z; scenarios are not confidence intervals.

Expected annual return: 4.4% at the stated quote. About 4.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 7 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 7

- Years with a net loss: 2

- Operating margin variation: 1.05×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.12×

- FY2019: 0.07×

- FY2020: 0.04×

- FY2021: 0.04×

- FY2022: 0.05×

- FY2023: -0.12×

- FY2024: 0.15×

- FY2025: 0.20×

- LTM to Jun 2026: 0.23×

### moat: pass

- ROIC, median of available years: 27.0%

- ROIC, second-lowest year: 14.0%

- Typical minus recent gross margin: -6.2 pp

- Typical gross margin (annual median): 47.9%

- Recent gross margin (lower of latest and 3-year median): 54.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.7%

- ROIC including acquisitions, ten-year median: 4.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 28.7%

- FY2018: 29.9%

- FY2019: 25.3%

- FY2020: 14.3%

- FY2021: 15.6%

- FY2022: 14.0%

- FY2023: -55.6%

- FY2024: 94.3%

- FY2025: 77.6%

- LTM to Jun 2026: >100%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$6.3M

- Net income, five-year total: -$190M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -1.6 pp

- Working capital / revenue, change between three-year averages: -11.0 pp

- Working capital / revenue, final three-year average: 6.7%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $3.5M

- FY2022: $76M

- FY2023: -$328M

- FY2024: $52M

- FY2025: $190M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 29.9% vs 77.6%

- Per-share earnings: 1.39 to 0.06 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.5%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: -$1.0B

- Cumulative retained earnings: -$2.5B

- Diluted shares, 10-year annual growth: -1.5%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -33.1%

- Per-share value change: -$1.34

- Per-share value, starting three-year median: $1.39

- Per-share value, ending three-year median: $0.06

- Buybacks concentrated in cheaper years (correlation): 0.60

- Average buyback yield: 9.1%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: $582M

- Cumulative net income, 10 years: $187M

- ROIC, first three-year median: 29.9%

- ROIC, last three-year median: 77.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.59

- FY2017: $1.39

- FY2018: $0.96

- FY2019: $0.07

- FY2020: -$1.11

- FY2021: $0.02

- FY2022: $0.21

- FY2023: -$2.20

- FY2024: $0.06

- FY2025: $0.84

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -7.0%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 3.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.53×

- Accounting red flags: 1

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.5%

- FY2017: -3.5%

- FY2018: -2.8%

- FY2019: -4.4%

- FY2020: -9.4%

- FY2021: -6.0%

- FY2022: -2.9%

- FY2023: -10.9%

- FY2024: -6.4%

- FY2025: -7.0%

## Holders

## Price story

Price needs cash profits to grow 20.8% a year for ten years · "In addition, the company has revised up its annual earnings outlook." (nasdaq.com, Apr 2026) · sales -1.4%

Story as of 2026-10-16T09:59:22.388Z; price observation 2026-10-15.

Price needs cash profits to grow 20.8% a year for ten years

- 2025-07-30: Pitney Bowes shares rise as profit doubles despite revenue miss ([investing.com](https://www.investing.com/news/earnings/pitney-bowes-shares-rise-as-profit-doubles-despite-revenue-miss-93CH-4161466))

- 2025-10-30: PBI Q3 Deep Dive: Forecasting Challenges Overshadow Profitability Gains, Cost Cuts Accelerate ([finance.yahoo.com](https://finance.yahoo.com/news/pbi-q3-deep-dive-forecasting-131620657.html))

- 2026-02-18: PBI Q4 Deep Dive: Restructuring, New Leadership, and Competitive Pricing Shape Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/pbi-q4-deep-dive-restructuring-163048335.html))

- 2026-04-21: Pitney Bowes Announces Strong Preliminary Results for Q1 2026 and Raises Full-Year Financial Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/pitney-bowes-announces-strong-preliminary-120000093.html))

### Sales · FY2025–2026

sales -1.4%; source https://www.sec.gov/Archives/edgar/data/78814/000162828026009650/pbi-20251231.htm; observed 2026-02-19.

- FY2017: $3.6B 

- FY2018: $3.2B 

- FY2019: $3.2B 

- FY2020: $3.6B 

- FY2021: $3.7B 

- FY2022: $3.5B 

- FY2023: $3.3B 

- FY2024: $2.0B 

- FY2025: $1.9B 

- FY2026: $1.9B 

### Gross margin · FY2026

gross margin 54.1%; source https://www.sec.gov/Archives/edgar/data/78814/000162828026009650/pbi-20251231.htm; observed 2026-02-19.

- FY2017: 51.5% 

- FY2018: 44.3% 

- FY2019: 40.0% 

- FY2020: 32.3% 

- FY2021: 30.5% 

- FY2022: 30.5% 

- FY2023: 92.5% 

- FY2024: 52.4% 

- FY2025: 54.1% 

- FY2026: 54.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in integrated freight & logistics; annual sales are USD 1.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/78814/000162828026009650/pbi-20251231.htm (filed 2026-02-19); FY2025: revenue 1892629000; grossProfit 1023862000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PBI.US: Pitney Bowes Inc. provides digital shipping solutions, mailing innovation, and financial services worldwide. It operates through SendTech Solutions and Presort Services segments. The SendTech Solutions segment offers physical and digital shipping and mailing technology solutions and other applications for sending, tracking, and receiving of letters, parcels and flats, as well as supplies and maintenance services. This segment also provides financing alternatives to finance other manufacturers' equipment and product purchases. The Presort Services segment operates as a workshare partner of the United States Postal Service; and offers mail sortation services. It markets its products, solutions, and services through direct and inside sales force, partner channels, direct mailings, and digital channels. The company was formerly known as Pitney Bowes Postage Meter Company. Pitney Bowes Inc. was incorporated in 1920 and is headquartered in Shelton, Connecticut.

### Why customers stay

Margins ranged from 52.4% to 92.5% during 2023–25; it earns 27% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 92.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 52.4%.

- Source: https://www.sec.gov/Archives/edgar/data/78814/000162828026009650/pbi-20251231.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 54.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2017,0.28682419386613217],[2018,0.2992804144872001],[2019,0.25327080773492366],[2020,0.14316062422726028],[2021,0.15606364969663386],[2022,0.14032411364494157],[2023,-0.5562954699390414],[2024,0.9425201231060606],[2025,0.7761148056685926],[2026,1.155213086220961]]; median 0.2700475008005279. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 1.2% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2016: growth capex 0; upkeep 160831000; cash acquisitions 37842000; owner earnings 129505000. Growth capex plus acquisitions / owner earnings = 0.29220493417242577.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2017: growth capex 0; upkeep 170990000; cash acquisitions 482853000; owner earnings 272685999. Growth capex plus acquisitions / owner earnings = 1.7707289768111636.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2018: growth capex 0; upkeep 137810000; cash acquisitions 10484000; owner earnings 191854000. Growth capex plus acquisitions / owner earnings = 0.054645720183055864.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2019: growth capex 0; upkeep 137253000; cash acquisitions 22100000; owner earnings 35185000. Growth capex plus acquisitions / owner earnings = 0.6281085689924684.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 21183000; upkeep 162859000; cash acquisitions 14996000; owner earnings 3507000. Growth capex plus acquisitions / owner earnings = 10.316224693470202.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2022: growth capex 0; upkeep 124840000; cash acquisitions 5139000; owner earnings 75916000. Growth capex plus acquisitions / owner earnings = 0.06769323989672796.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: growth capex 0; upkeep 72403000; cash acquisitions 0; owner earnings 52327000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/78814/000162828026009650/pbi-20251231.htm (filed 2026-02-19); FY2025: growth capex 0; upkeep 66278000; cash acquisitions 2200000; owner earnings 189994000. Growth capex plus acquisitions / owner earnings = 0.011579313030937819.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,140608000],[2017,139490000],[2018,140498000],[2019,35361000],[2020,34291000],[2021,34800000],[2022,34718000],[2023,35215000],[2024,35956000],[2025,51059000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/78814/000162828026009650/pbi-20251231.htm (filed 2026-02-19); FY2025: cash repurchases 378361000 USD.

### Are managers owners

Insiders own 1.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PBI.US SharesStats.PercentInsiders = 1.7000000000000002 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 20.8% yearly over ten years; actual decline was 6.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Ten-year compound average after fade. Initial solved rate 0.2902339948819156. Price 17.29; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.0627982781358085 → FY2025 1.0979773462783171. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $17.84 per share

- 2016-11: $14.35 per share

- 2016-12: $15.19 per share

- 2017-01: $15.92 per share

- 2017-02: $13.64 per share

- 2017-03: $13.11 per share

- 2017-04: $13.29 per share

- 2017-05: $14.87 per share

- 2017-06: $15.10 per share

- 2017-07: $15.74 per share

- 2017-08: $12.85 per share

- 2017-09: $14.01 per share

- 2017-10: $13.74 per share

- 2017-11: $10.67 per share

- 2017-12: $11.18 per share

- 2018-01: $14.11 per share

- 2018-02: $12.40 per share

- 2018-03: $10.89 per share

- 2018-04: $10.22 per share

- 2018-05: $8.90 per share

- 2018-06: $8.57 per share

- 2018-07: $8.73 per share

- 2018-08: $7.26 per share

- 2018-09: $7.08 per share

- 2018-10: $6.62 per share

- 2018-11: $8.44 per share

- 2018-12: $5.91 per share

- 2019-01: $7.21 per share

- 2019-02: $7.19 per share

- 2019-03: $6.87 per share

- 2019-04: $7.11 per share

- 2019-05: $3.65 per share

- 2019-06: $4.28 per share

- 2019-07: $4.05 per share

- 2019-08: $3.56 per share

- 2019-09: $4.57 per share

- 2019-10: $4.40 per share

- 2019-11: $4.71 per share

- 2019-12: $4.03 per share

- 2020-01: $3.74 per share

- 2020-02: $3.42 per share

- 2020-03: $2.04 per share

- 2020-04: $3.53 per share

- 2020-05: $2.37 per share

- 2020-06: $2.60 per share

- 2020-07: $3.34 per share

- 2020-08: $5.49 per share

- 2020-09: $5.31 per share

- 2020-10: $5.31 per share

- 2020-11: $5.70 per share

- 2020-12: $6.16 per share

- 2021-01: $9.34 per share

- 2021-02: $8.48 per share

- 2021-03: $8.24 per share

- 2021-04: $7.47 per share

- 2021-05: $8.38 per share

- 2021-06: $8.77 per share

- 2021-07: $8.00 per share

- 2021-08: $7.47 per share

- 2021-09: $7.21 per share

- 2021-10: $6.94 per share

- 2021-11: $6.83 per share

- 2021-12: $6.63 per share

- 2022-01: $6.16 per share

- 2022-02: $4.98 per share

- 2022-03: $5.20 per share

- 2022-04: $5.27 per share

- 2022-05: $4.68 per share

- 2022-06: $3.62 per share

- 2022-07: $3.27 per share

- 2022-08: $2.89 per share

- 2022-09: $2.33 per share

- 2022-10: $3.11 per share

- 2022-11: $3.82 per share

- 2022-12: $3.80 per share

- 2023-01: $4.31 per share

- 2023-02: $4.34 per share

- 2023-03: $3.89 per share

- 2023-04: $3.51 per share

- 2023-05: $3.32 per share

- 2023-06: $3.54 per share

- 2023-07: $3.94 per share

- 2023-08: $3.29 per share

- 2023-09: $3.02 per share

- 2023-10: $3.23 per share

- 2023-11: $4.04 per share

- 2023-12: $4.40 per share

- 2024-01: $4.11 per share

- 2024-02: $4.03 per share

- 2024-03: $4.33 per share

- 2024-04: $4.26 per share

- 2024-05: $5.42 per share

- 2024-06: $5.08 per share

- 2024-07: $6.60 per share

- 2024-08: $7.07 per share

- 2024-09: $7.13 per share

- 2024-10: $7.21 per share

- 2024-11: $8.06 per share

- 2024-12: $7.24 per share

- 2025-01: $8.91 per share

- 2025-02: $10.83 per share

- 2025-03: $9.05 per share

- 2025-04: $8.68 per share

- 2025-05: $10.30 per share

- 2025-06: $10.91 per share

- 2025-07: $11.36 per share

- 2025-08: $12.12 per share

- 2025-09: $11.41 per share

- 2025-10: $9.88 per share

- 2025-11: $9.86 per share

- 2025-12: $10.57 per share

- 2026-01: $10.43 per share

- 2026-02: $10.73 per share

- 2026-03: $11.05 per share

- 2026-04: $15.46 per share

- 2026-05: $16.10 per share

- 2026-06: $17.52 per share

- 2026-07: $17.53 per share

- 2026-08: $17.13 per share

- 2026-09: $16.32 per share

- 2026-10: $17.29 per share

## Annual estimated value (USD per share)

- FY2016: low $18.78 per share, central $20.97 per share, high $23.88 per share

- FY2017: low $20.00 per share, central $22.19 per share, high $25.11 per share

- FY2018: low $18.89 per share, central $20.86 per share, high $23.49 per share

- FY2019: low $15.50 per share, central $17.13 per share, high $19.30 per share

- FY2020: low $12.35 per share, central $13.71 per share, high $15.51 per share

- FY2021: low $3.33 per share, central $3.67 per share, high $4.12 per share

- FY2022: low $2.87 per share, central $3.20 per share, high $3.64 per share

- FY2023: low $1.24 per share, central $1.26 per share, high $1.30 per share

- FY2024: low $0.12 per share, central $0.13 per share, high $0.15 per share

- FY2025: low $2.57 per share, central $2.92 per share, high $3.39 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/78814/000162828026009650/pbi-20251231.htm); period 2025-12-31, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.