Pitney Bowes Summary
Pitney Bowes (PBI) was founded in 1920 the moment Arthur Pitney's American Postage Meter Company merged with Walter Bowes' Universal Rubber stamping Machine Organization. Pitney Bowes is based in Stamford, Conn. and employs a lot more than 30, 1000 worldwide. The organization has been on the New York Stock Exchange as 1950 because NYSE: PBI. Today, PBI offers a broad array of software program, hardware and services much more than 100 countries, providing 2 , 000, 000 customers. PBI provides email processing products and integrated mail alternatives worldwide. It includes a suite of equipment, supplies, application, services, and solutions intended for managing and integrating physical and digital communication stations. Pitney Bowes Valuation
PBI's current expansion is centered on potential financial recovery. PBI has incurred a slow down in revenue due to the drop of mail, and credit rating restraints facing business as well as the expansion of business. Cash flow currently exceeds dividend repayments, but has failed to develop over the last ten years. Earnings for PBI peaked in 2006 with a $4. twenty-one cash flow per share, but the dividends have continued to climb, containing also induced the payout ratio to rise. Therein lays the problem pertaining to ownership of PBI for long term buyers seeking stableness and dividend growth. The current payout ratio from EPS is 65% based on 2011 actual profits, and is a similar for 2012 estimations. The concern is if this is constantly on the rise, PBI may not be capable of continue to meet its requirement to yield dividends, and thus may be forced to use its influence, or simply lower the gross all together. This will likely result in reduced investor assurance, and reduction in equity. In addition , a great ailing US economy may possibly equate simply no dividend growth in future years. The postage meter market in general has become highly regulated by government authorities in their individual countries. This creates significant barriers to entry and limits competition worldwide. The only significant competitor worldwide is...