Stock Analysis: Pitney Bowes Inc.
 Linked here is a PDF copy of my detailed analysis of
Pitney Bowes Inc. (PBI) (
alt.1,
alt.2). Below are some highlights from the above linked analysis:
Company Description: Pitney Bowes Inc. is the world's largest maker of mailing systems, also provides production and document management equipment and facilities management services.
Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description:
- Avg. High Yield Price
- 20-Year DCF Price
- Avg. P/E Price
- Graham Number
PBI is trading at a discount to only 1.) above. Since PBI's tangible book value is not meaningful, a Graham number can not be calculated. If I exclude the high and low valuations and average the remaining two, PBI is trading at a 73.2% premium. PBI had a Star deducted for trading at a premium in excess of 5%.
Dividend Analytical Data: In this section I consider five factors, see page 2 of the linked PDF for a detailed description:
- Rolling 4-yr Div. > 15%
- Dividend Growth Rate
- Years of Div. Growth
- 1-Yr. > 5-Yr Growth
- Payout 15% of avg.
PBI earned two Stars in this section for 3.) and 4.) above. PBI has paid a cash dividend to shareholders every year since 1934 and has increased its dividend payments for 26 consecutive years. It's one year dividend growth rate exceeded its 5-year growth rate. This could indicate the growth rate is accelerating. Last year's dividend payout was 81%, up from 51% in 2006. Since the increase was in excess of 15 points, a Star is deducted, leaving a net of one Star in this section.
Dividend Income vs.
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