Pitney Bowes Inc. (PBI): A Bull Case Theory

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 24^th. PBI’s trailing and forward P/E were 18.40 and 8.39, respectively, according to Yahoo Finance.

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.

Pitney Bowes Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held PBI at the end of the first quarter, which was 34 in the previous quarter. While we acknowledge the risk and potential of PBI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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