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

We came across a bullish thesis on Pitney Bowes Inc. on Valueinvestorsclub.com by GoodHouse. In this article, we will summarize the bulls’ thesis on PBI. Pitney Bowes Inc.’s share was trading at $11.53 as of August 4^th. PBI’s trailing and forward P/E were 14.06 and 9.00, respectively according to Yahoo Finance.

Pitney Bowes (NYSE: PBI) represents a rare opportunity in today’s market: a near-monopoly business trading at roughly 5.4x free cash flow, with multiple catalysts to unlock value under the leadership of newly appointed CEO Kurt Wolf. Wolf, the company’s largest shareholder and architect of its turnaround following a successful 2023 proxy fight, brings a proven capital allocation track record and has committed to prioritizing shareholder returns.

After divesting its loss-making Global E-Commerce segment, Pitney Bowes now operates two core businesses: Presort and SendTech. Presort, which controls approximately 25% market share in mail sortation, generated $671 million in revenue and $217 million in EBITDA over the trailing twelve months, boasting strong margins despite being a low-growth business. The crown jewel is SendTech, a dominant equipment leasing, SaaS, and payments platform with 70% market share, producing $1.25 billion in revenue and $418 million in EBITDA at a 33.5% margin. SendTech’s integrated payments arm, PB Bank, amplifies profitability with an 80%+ return on equity, fueled by low-cost customer deposits.

The company expects $330–$370 million of free cash flow in 2025, or about $1.93 per share, implying an 18.6% levered FCF yield at current prices. Management plans to execute its full $150 million buyback authorization this year, with further repurchase capacity likely once leverage falls below 3.0x by Q2—earlier than anticipated. This disciplined capital allocation, combined with minimal competitive threats in a highly regulated market, creates significant upside potential. Even modest multiple expansion could drive shares toward $16–$19, while downside risk remains limited given Pitney Bowes’ entrenched market position and recurring cash flow profile.

Previously, we covered a bullish thesis on Pitney Bowes Inc. (PBI) by Unemployed Value Degen in March 2025, which highlighted activist involvement, restructuring benefits, and ambitious 2025 EBITDA targets. The company’s stock price has appreciated by approximately 21% since our coverage. This is because restructuring and divestiture efforts strengthened its financials. GoodHouse shares a similar view but emphasizes Kurt Wolf’s appointment as CEO and aggressive buybacks as key catalysts.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None.