Pitney Bowes Grapples With Debt Amid Mixed Analyst Sentiment

Despite reporting a significant annual profit increase, shares of mailing and shipping services provider Pitney Bowes continue to face pressure. The company's latest financial statements reveal deep-seated structural challenges, leaving market experts divided on its outlook.

Even as it navigates financial headwinds, Pitney Bowes remains committed to returning capital to shareholders. The firm has raised its quarterly dividend for a fourth consecutive time. The current payout stands at $0.09 per share, translating to an annual dividend yield of 3.7 percent.

Wall Street's view of the stock is not uniform. The consensus rating among analysts is "Hold," with an average price target of $12.33. A more bullish stance is held by Citizens JMP and Citigroup, which have issued "Outperform" ratings. In contrast, Goldman Sachs maintains a neutral position on the equity.

Should investors sell immediately? Or is it worth buying Pitney Bowes?

Third Quarter Performance Falls Short

The company's financial results for the third quarter of 2025, released in late October, disappointed market observers. Revenue declined by 8.0 percent year-over-year to $459.68 million, missing expectations. Adjusted earnings per share came in at $0.31, also slightly below forecasts. Management, however, reaffirmed its full-year EPS guidance of $1.30.

A Precarious Balance Sheet

The core concern for Pitney Bowes is its strained financial position. The company carries a substantial debt burden of approximately $2.1 billion. This sits alongside a negative shareholder equity position of around -$661.5 million, resulting in an extreme debt-to-equity ratio of -318.1 percent. Furthermore, an Altman Z-Score of about 2.19 indicates an elevated risk of bankruptcy.

To address its long-term debt structure, the company initiated a bond buyback offer in November. This tender offer, which runs until December 19, aims to repurchase up to $75 million worth of outstanding notes.