Postal Realty Trust, Inc.
Postal Realty Trust, Inc. Fundamental Analysis
Postal Realty Trust, Inc. (PSTL) shows moderate financial fundamentals with a PE ratio of 38.75, profit margin of 15.84%, and ROE of 5.77%. The company generates $0.1B in annual revenue with strong year-over-year growth of 25.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PSTL's fundamental strength across five key dimensions:
Efficiency Score
WeakPSTL struggles to generate sufficient returns from assets.
Valuation Score
ModeratePSTL shows balanced valuation metrics.
Growth Score
ModeratePSTL shows steady but slowing expansion.
Financial Health Score
ModeratePSTL shows balanced financial health with some risks.
Profitability Score
ModeratePSTL maintains healthy but balanced margins.
Key Financial Metrics
Is PSTL Expensive or Cheap?
P/E Ratio
PSTL trades at 38.75 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PSTL's PEG of 0.45 indicates potential undervaluation.
Price to Book
The market values Postal Realty Trust, Inc. at 2.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.23 times EBITDA. This signals the market has high growth expectations.
How Well Does PSTL Make Money?
Net Profit Margin
For every $100 in sales, Postal Realty Trust, Inc. keeps $15.84 as profit after all expenses.
Operating Margin
Core operations generate 37.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.77 in profit for every $100 of shareholder equity.
ROA
Postal Realty Trust, Inc. generates $2.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Postal Realty Trust, Inc. generates strong operating cash flow of $56.96M, reflecting robust business health.
Free Cash Flow
Postal Realty Trust, Inc. generates strong free cash flow of $48.94M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.42 in free cash annually.
FCF Yield
PSTL converts 4.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How PSTL Stacks Against Its Sector Peers
| Metric | PSTL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.75 | 23.99 | Worse (Expensive) |
| ROE | 5.77% | 701.00% | Weak |
| Net Margin | 15.84% | -37102.00% (disorted) | Strong |
| Debt/Equity | 0.00 | -20.89 (disorted) | Distorted |
| Current Ratio | 0.00 | 26.96 | Weak Liquidity |
| ROA | 2.01% | -928.00% (disorted) | Weak |
PSTL outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Postal Realty Trust, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.92%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
1257.82%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
36.44%
Industry Style: Income, Inflation Hedge, REIT
High Growth