Stamps com vs pitney bowes vs endicia software#
Stamps com vs pitney bowes vs endicia Pc#

Pricing for each of ’s software solutions is subscription-based with multiple pricing tiers dependent upon the features or transaction volumes required. Recurring revenue stream with built-in growth. ShippingEasy was acquired in 2017, bringing yet another fast-growing multi-carrier shipping brand into the fold, and more recently, completed the acquisition of MetaPack, accelerating its push into international markets.

Stamps com vs pitney bowes vs endicia Pc#

The company’s late 2015 acquisition of its primary competitor, Endicia, cemented its dominance in the PC Postage market and all but ensured the company had successfully transitioned from a mailing-oriented company to shipping. In 2014, the company acquired ShipStation, a leader in the emerging market for multi-carrier shipping software, and quickly followed that with the purchase of ShipWorks, another multi-carrier shipping software provider catering to e-commerce merchants, warehouse operators and distributors. The 800-Pound Gorilla in SMB Shipping launched the first USPS-approved PC Postage solution in 1999, and quickly captured a significant share of the nascent market with its focus on small office and home office (SOHO) customers. Considering current peer group multiples, the company’s historical valuation range and our DCF analysis, we set our price target at $320.00, representing a FY ’19 EV/EBITDA multiple of ~20x. Our non-GAAP EPS estimates include $10.63 for FY ’19 and $12.08 for FY ’20, both of which assume a more normalized tax rate of 28%. We note that our estimates may well prove conservative considering management’s targeted five-year growth rate of 20% and the 49% adjusted EBITDA margin posted in FY ‘17. We assume adjusted EBITDA margins expand in each of the next two years to 45% and 47%. We project revenue growth of 15.6% and 13.6% in FY ’19 and FY ‘20, respectively, to $670.9MM and $762.4MM. In our view, the combination of steady subscription fees and transaction revenues tied to e-commerce provides a solid foundation for consistent double-digit organic growth and significant free cash flow generation. In addition to providing the company with a significant recurring revenue stream, these solutions also leverage ’s strategic relationship with the United States Postal Service (USPS), enabling the company to monetize a portion of its customers’ shipping volumes. (STMP) has amassed a stable of highly regarded software solutions targeted at e-commerce merchants and other high-volume shippers.