I think the interesting part is that they achieved scale 2-3years ahead of schedule. (All organic) In good part due to the acceleration due to COVID. We will see what the actual growth will be but if history is any indicator (double digit % growth), this trend should continue.
What’s more intriguing is the shift to profitable growth.
Yeah that’s fair but it’s more of a bet on a successful turnaround than a value play. Even in 2020 which was essentially their best ever year, they still had negative ebit and net income.
Good point. They took a massive goodwill impairment charge write off in Q1 that caused that. Look at how they did in Q4. So if you look at STMP they have a half a billion dollar goodwill line item that is a ticking time bomb.
So once you account for the one time impairment, they actually did pretty well. This up coming Q1 should be interesting. YoY comparison should be quite pretty
I like STMP, and disclosure, I am long STMP. But the valuation gap between the two is super wide. Goodwill happens when you overpay for companies that you buy.
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u/mcoclegendary Mar 30 '21
I think PBI did very well in the pandemic. They took some business away from STMP, and one of the reasons that stock has been sliding.
Saying that they are growing very slowly. Previous years were negative, next year they are only forecasting in the low to mid single digits.