Pitney Bowes Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the small size, low current ratio, insufficient earnings growth over the last ten years, and the high PB ratio.
Pitney Bowes Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings growth over the last ten years, and the high PB ratio.
We evaluated 23 different companies this week to determine whether they are suitable for Defensive Investors, those unwilling to do substantial research, or Enterprising Investors, those who are willing to do such research. We also put each company through the ModernGraham valuation model based on Benjamin Graham’s value investing formulas in order to determine an intrinsic value for each. Here’s a summary of the ModernGraham Valuations.
Pitney Bowes Inc. is not suitable for the Enterprising Investor or for the Defensive Investor. The Defensive Investor is concerned by the the low current ratio, the insufficient earnings growth over the last ten years, and the high PB ratio. The Enterprising Investor is concerned by the level of debt relative to the current assets.
We looked at 16 different companies this week.  Here’s a summary of the ModernGraham Valuations.  For more detailed analysis, click on the name of the company.  To see screens of all of our valuations, be sure to get a copy of this month’s edition of ModernGraham Stocks and Screens! The Elite (Defensive or Enterprising and Undervalued) […]
Pitney Bowes is not suitable for either the Defensive Investor or the Enterprising Investor. For the Defensive Investor, the company’s current ratio is too low, there has not been sufficient earnings growth over the ten year historical period, and the PB ratio is too high.