Ricardo Pillai
3 min read
In This Article:
We came across a bullish thesis on Pitney Bowes Inc. on Shareholdersunite Essentials’ Substack by Shareholdersunite. In this article, we will summarize the bull’s thesis on PBI. Pitney Bowes Inc.'s share was trading at $10.49 as of June 24th. PBI’s trailing and forward P/E were 18.40 and 8.39, respectively, according to Yahoo Finance.
A supply chain employee using the company's secure supply chain management software to update their customer's records.
Pitney Bowes is undergoing a major transformation, shedding legacy burdens and sharpening its focus on profitable operations. In August 2024, the company sold a controlling stake in its loss-making Global Ecommerce (GEC) unit, eliminating $136M in annual losses. Although this divestment incurred one-time exit costs of up to $150M, it has cleared the way for a return to profitability.
This move aligns with an ambitious cost-cutting program targeting $180M–$200M in annualized savings, up from a current $157M run rate. These savings stem from reduced indirect spend, vendor renegotiations, and leaner operations. As cost savings and asset sales boost cash flow, the company is aggressively deleveraging—having repurchased $37M in debt in Q1/25 and planning to fall below a 3x leverage ratio by Q3.
This shift unlocks flexibility in capital allocation, enabling more dividends and buybacks. Already, the dividend has risen twice in 2025, now yielding 3%, and $29M in buybacks were executed in Q1 and early Q2. Free cash flow guidance for FY25 is $330M–$370M, implying the stock trades at just 5x levered FCF despite a $1.6B market cap, presenting compelling upside. Moreover, the company’s low exposure to tariffs (85% U.S. revenue) and recession-resistant nature insulate it from macro shocks.
A potential USPS privatization could provide a multi-billion-dollar revenue opportunity, given Pitney’s alignment with USPS operations. Operationally, SendTech’s profitability remains strong, with rising margins and lease-driven cash flow stability, even amid declining mail revenue. The Global Financial Services arm, leveraging innovative programs like lease receivables sales, is further accelerating cash recovery.
Previously, we covered a bullish thesis on Pitney Bowes Inc. (PBI) by Unemployed Value Degen in March 2025, which highlighted activist involvement, a $150M buyback, and aggressive EBITDA targets. The stock has appreciated ~10% since then as restructuring gains traction. Shareholdersunite shares a similar view but emphasizes execution progress in cost-cutting, deleveraging, and improved free cash flow visibility.
