The small, but valuable, office equipment industry is a solid place for investors to reap on capital gains. Only five companies above one billion dollars in market-cap encompass this industry, but only one of these companies really stands out with its business model and fundamental statistics. Pitney Bowes (PBI) acknowledges this required background. It is true that companies in this industry like Xerox and VeriFone may be more recognizable to the consumer, but regardless of brand, Pitney Bowes has the strong potential to continue its financial success and engender profits for investors.
Before researching the financial support, it is always important to examine the business model of a company. According to Reuters, Pitney Bowes, “is a provider of mail processing equipment and integrated mail solutions. The Company offers a full suite of equipment, supplies, software and services for end-to-end mail stream solutions, which enable its customers to optimize the flow of physical and electronic mail, documents and packages across their operations.” Performing these duties under two respective sects, Mailstream Solutions and Mailstream Services, Pitney Bowes controls a large market share of shipping supplies and equipment from company to company. More specifically, revenue from Mailstream Solutions comes from, “the sale, rental and financing of the Company’s mail finishing, mail creation and shipping equipment,” and revenue from Mailstream Services comes from, “secure mail services; reprographic, document management services, and litigation support and eDiscovery services (acquired in 2006).” With such a wide variety of inelastic services and solutions, Pitney Bowes’s business plan is strongly equipped to continuously do well, revenue-wise, during times of both economic recovery and recession.
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