Fundamental Analysis
Stamps.com Company Information
Stamps.com (Nasdaq: STMP) is a leading provider of Internet-based postage services. Stamps.com’s online postage service enables small businesses, enterprises and online retailers to print U.S. Postal Service-approved postage with just a computer, printer and Internet connection, right from their home or office. The Company targets its services to small businesses and home offices, and currently has PC Postage partnerships with Avery, Microsoft, HP, the U.S. Postal Service and others.
Reasons to buy – STAMPS.COM
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see STAMPS.COM makes a margin of 81% on Gross Level and about 35% on Net level. This means that out of $1 that it makes $0.35 is being pocketed as profits. This is among the best margins across a ton of companies.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 27% in the revenue and the net profit figures grew by 42%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see STAMPS.COM makes a Return on Assets of 26% and Return of Equity of 34% which is pretty good. Even the Debt/Equity ratio is great.
Although you would notice very less chatter on the media on this stock you can be sure that the last 3 month/one year returns on this stock are amazing.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by STAMPS.COM to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
