DB:PFZ

Stock Analysis Report

Pinnacle Financial Partners

Executive Summary

Pinnacle Financial Partners, Inc. operates as a bank holding company for Pinnacle Bank that provides various banking products and services in the United States.

Rewards

Trading at 53.7% below its fair value

Earnings are forecast to grow 5.09% per year

Earnings grew by 37.5% over the past year

Risk Analysis

No risks detected for PFZ from our risk checks.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Pinnacle Financial Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PFZ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

PFZ

0.4%

DE Banks

1.0%

DE Market


1 Year Return

26.9%

PFZ

-15.4%

DE Banks

16.4%

DE Market

Return vs Industry: PFZ exceeded the German Banks industry which returned -15.4% over the past year.

Return vs Market: PFZ exceeded the German Market which returned 16.4% over the past year.


Shareholder returns

PFZIndustryMarket
7 Day2.7%0.4%1.0%
30 Day3.7%-6.5%-0.4%
90 Day12.5%-3.3%6.5%
1 Year28.3%26.9%-12.7%-15.4%20.0%16.4%
3 Year-8.9%-11.6%-22.0%-25.6%19.9%9.3%
5 Year98.8%89.0%-2.4%-26.1%40.8%21.7%

Price Volatility Vs. Market

How volatile is Pinnacle Financial Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Pinnacle Financial Partners undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PFZ (€56.5) is trading below our estimate of fair value (€121.94)

Significantly Below Fair Value: PFZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PFZ is good value based on its PE Ratio (12x) compared to the Banks industry average (16.2x).

PE vs Market: PFZ is good value based on its PE Ratio (12x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: PFZ is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: PFZ is overvalued based on its PB Ratio (1.1x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is Pinnacle Financial Partners forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFZ's forecast earnings growth (5.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: PFZ's earnings (5.1% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: PFZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: PFZ's revenue (7.6% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: PFZ's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFZ's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Pinnacle Financial Partners performed over the past 5 years?

37.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFZ has high quality earnings.

Growing Profit Margin: PFZ's current net profit margins (40.3%) are higher than last year (33.5%).


Past Earnings Growth Analysis

Earnings Trend: PFZ's earnings have grown significantly by 37.6% per year over the past 5 years.

Accelerating Growth: PFZ's earnings growth over the past year (37.5%) is below its 5-year average (37.6% per year).

Earnings vs Industry: PFZ earnings growth over the past year (37.5%) exceeded the Banks industry 3.9%.


Return on Equity

High ROE: PFZ's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pinnacle Financial Partners's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PFZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: PFZ's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: PFZ's level of assets compared to its equity is low.

Allowance for Bad Loans: PFZ has a sufficient allowance for bad loans.

Low Risk Liabilities: PFZ's liabilities are made up of primarily low risk sources of funding.

Loan Level: PFZ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PFZ's loans are broadly funded by customer deposits.

Level of Bad Loans: PFZ has an appropriate level of bad loans (0.38%)


Next Steps

Dividend

What is Pinnacle Financial Partners's current dividend yield, its reliability and sustainability?

1.02%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.6%industryaverage3.8%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: PFZ's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: PFZ's dividend (1.02%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PFZ has been paying a dividend for less than 10 years.

Growing Dividend: PFZ's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.3%), PFZ's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PFZ's dividends in 3 years are forecast to be thoroughly covered by earnings (12.6% payout ratio).


Next Steps

Management

What is the CEO of Pinnacle Financial Partners's salary, the management and board of directors tenure and is there insider trading?

19.6yrs

Average management tenure


CEO

Michael Turner (64yo)

19.8yrs

Tenure

US$4,376,775

Compensation

Mr. Michael Terry Turner has been the Chief Executive Officer and President of Pinnacle Financial Partners, Inc. and Pinnacle Bank (Nashville TN) since 2000. Mr. Turner worked for Arthur Andersen & Company ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD4.38M) is above average for companies of similar size in the German market ($USD2.52M).

Compensation vs Earnings: Michael's compensation has increased by more than 20% in the past year.


Management Age and Tenure

19.6yrs

Average Tenure

61.5yo

Average Age

Experienced Management: PFZ's management team is seasoned and experienced (19.6 years average tenure).


Board Age and Tenure

6.1yrs

Average Tenure

67yo

Average Age

Experienced Board: PFZ's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: PFZ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,354,53104 Nov 19
Richard Callicutt
EntityIndividual
Role
Member of the Board of Directors
Chairman for the Carolinas & Virginia and Director
Shares25,000
Max PriceUS$54.23
SellUS$552,10629 Oct 19
Hugh Queener
EntityIndividual
Role
Chief Administrative Officer
Executive VP & Chief Administrative Officer
Shares10,101
Max PriceUS$54.66
SellUS$377,17825 Oct 19
Gary Scott
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$53.88
SellUS$157,15716 Sep 19
Harold Carpenter
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,006
Max PriceUS$52.28
SellUS$376,91713 Sep 19
Hugh Queener
EntityIndividual
Role
Chief Administrative Officer
Executive VP & Chief Administrative Officer
Shares7,295
Max PriceUS$51.67
SellUS$899,38813 Sep 19
Michael Turner
EntityIndividual
Role
Chief Executive Officer
President
Shares17,304
Max PriceUS$51.98
SellUS$1,533,58113 Sep 19
Michael Turner
EntityIndividual
Role
Chief Executive Officer
President
Shares29,870
Max PriceUS$51.34
SellUS$307,82812 Sep 19
Thomas Sloan
EntityIndividual
Shares6,000
Max PriceUS$51.30
BuyUS$1,162,12707 Aug 19
David Ingram
EntityIndividual
Shares24,100
Max PriceUS$48.71
SellUS$99,08811 Jun 19
Charles Brock
EntityIndividual
Shares2,000
Max PriceUS$49.54
SellUS$911,68501 May 19
Richard Callicutt
EntityIndividual
Role
Member of the Board of Directors
Chairman for the Carolinas & Virginia and Director
Shares17,500
Max PriceUS$52.67
SellUS$775,81315 Mar 19
Richard Callicutt
EntityIndividual
Role
Member of the Board of Directors
Chairman for the Carolinas & Virginia and Director
Shares15,000
Max PriceUS$51.72
SellUS$177,23814 Mar 19
Gregory Burns
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,454
Max PriceUS$51.31
SellUS$514,68814 Mar 19
Harold Carpenter
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,075
Max PriceUS$51.09
SellUS$111,35307 Mar 19
Robert McCabe
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares2,184
Max PriceUS$50.99
SellUS$530,96205 Mar 19
Robert McCabe
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares10,275
Max PriceUS$51.68

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rob McCabe (68yo)

    Co-Founder & Chairman

    • Tenure: 19.8yrs
    • Compensation: US$4.15m
  • Michael Turner (64yo)

    President

    • Tenure: 19.8yrs
    • Compensation: US$4.38m
  • Hugh Queener (63yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 19.9yrs
    • Compensation: US$1.43m
  • Harold Carpenter (59yo)

    Executive VP & CFO

    • Tenure: 19.8yrs
    • Compensation: US$1.40m
  • Rick Callicutt (60yo)

    Chairman for the Carolinas & Virginia and Director

    • Tenure: 2.5yrs
    • Compensation: US$1.54m
  • Mary Schneider

    Chief Compliance Officer

    • Tenure: 0.9yrs
  • Randy Withrow

    Chief Information Officer

    • Tenure: 19.4yrs
  • Patti Harris

    Senior VP & Human Resources Manager

    • Tenure: 0yrs
  • Mac Johnston

    Chief Investment Officer

    • Tenure: 0yrs
  • Dana Sanders (39yo)

    Principal Accounting Officer

    • Tenure: 0.7yrs

Board Members

  • Greg Burns (64yo)

    Independent Director

    • Tenure: 18.5yrs
    • Compensation: US$164.19k
  • Rob McCabe (68yo)

    Co-Founder & Chairman

    • Tenure: 19.8yrs
    • Compensation: US$4.15m
  • Michael Turner (64yo)

    President

    • Tenure: 19.8yrs
    • Compensation: US$4.38m
  • Reese Smith (70yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$153.19k
  • Glenda Glover (66yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$138.69k
  • Marty Dickens (72yo)

    Lead Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$151.69k
  • Rick Callicutt (60yo)

    Chairman for the Carolinas & Virginia and Director

    • Tenure: 2.5yrs
    • Compensation: US$1.54m
  • Gary Scott (72yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$153.19k
  • Ron Samuels (72yo)

    Vice Chairman

    • Tenure: 3.4yrs
  • Renda Burkhart (64yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$147.94k

Company Information

Pinnacle Financial Partners, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pinnacle Financial Partners, Inc.
  • Ticker: PFZ
  • Exchange: DB
  • Founded: 2000
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$4.763b
  • Listing Market Cap: US$4.293b
  • Shares outstanding: 76.15m
  • Website: https://www.pnfp.com

Number of Employees


Location

  • Pinnacle Financial Partners, Inc.
  • 150 Third Avenue South
  • Suite 900
  • Nashville
  • Tennessee
  • 37201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PNFPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2000
PFZDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2000

Biography

Pinnacle Financial Partners, Inc. operates as a bank holding company for Pinnacle Bank that provides various banking products and services in the United States. The company accepts various deposits, includ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 22:36
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.