LSE:0KEF

Stock Analysis Report

PNC Financial Services Group

Executive Summary

The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has PNC Financial Services Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0KEF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

0KEF

-3.0%

GB Banks

-0.5%

GB Market


1 Year Return

20.4%

0KEF

-6.7%

GB Banks

6.0%

GB Market

Return vs Industry: 0KEF exceeded the UK Banks industry which returned -6.7% over the past year.

Return vs Market: 0KEF exceeded the UK Market which returned 6% over the past year.


Shareholder returns

0KEFIndustryMarket
7 Day-3.0%-3.0%-0.5%
30 Day-2.6%-3.2%-1.8%
90 Day-1.5%-3.9%2.4%
1 Year24.2%20.4%-2.0%-6.7%11.5%6.0%
3 Yearn/a-5.3%-16.2%18.2%3.5%
5 Yearn/a-3.1%-21.5%34.3%3.5%

Price Volatility Vs. Market

How volatile is PNC Financial Services Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is PNC Financial Services Group undervalued compared to its fair value and its price relative to the market?

28.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0KEF ($149.43) is trading below our estimate of fair value ($210.02)

Significantly Below Fair Value: 0KEF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0KEF is poor value based on its PE Ratio (13x) compared to the Banks industry average (8.9x).

PE vs Market: 0KEF is good value based on its PE Ratio (13x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: 0KEF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0KEF is overvalued based on its PB Ratio (1.3x) compared to the GB Banks industry average (0.8x).


Next Steps

Future Growth

How is PNC Financial Services Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0KEF's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: 0KEF's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: 0KEF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0KEF's revenue (3.9% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: 0KEF's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0KEF's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

How has PNC Financial Services Group performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0KEF has high quality earnings.

Growing Profit Margin: 0KEF's current net profit margins (30%) are lower than last year (30.1%).


Past Earnings Growth Analysis

Earnings Trend: 0KEF's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: 0KEF's earnings growth over the past year (1.3%) is below its 5-year average (8.5% per year).

Earnings vs Industry: 0KEF earnings growth over the past year (1.3%) underperformed the Banks industry 26.6%.


Return on Equity

High ROE: 0KEF's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is PNC Financial Services Group'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: 0KEF has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0KEF's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: 0KEF's level of assets compared to its equity is low.

Allowance for Bad Loans: 0KEF has a sufficient allowance for bad loans.

Low Risk Liabilities: 0KEF's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0KEF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0KEF's loans are broadly funded by customer deposits.

Level of Bad Loans: 0KEF has an appropriate level of bad loans (0.68%)


Next Steps

Dividend

What is PNC Financial Services Group's current dividend yield, its reliability and sustainability?

3.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0KEF's dividend (3.09%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: 0KEF's dividend (3.09%) is low compared to the top 25% of dividend payers in the UK market (5.03%).


Stability and Growth of Payments

Stable Dividend: 0KEF's dividends per share have been stable in the past 10 years.

Growing Dividend: 0KEF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.8%), 0KEF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0KEF's dividends in 3 years are forecast to be well covered by earnings (42.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Bill Demchak (57yo)

6.8yrs

Tenure

US$15,676,294

Compensation

Mr. William S. Demchak, also known as Bill, has been the President of The PNC Financial Services Group, Inc., since April 2012 and has been its Chief Executive Officer since April 2013 and its Chairman of  ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD15.68M) is above average for companies of similar size in the UK market ($USD4.67M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Demchak
Chairman6.8yrsUS$15.68m0.093% $61.7m
Robert Reilly
Executive VP & CFO6.5yrsUS$4.91m0.027% $18.2m
E. Parsley
Executive VP & COO2yrsUS$9.28m0.024% $15.9m
Michael Lyons
Executive VP8.3yrsUS$8.65m0.036% $24.2m
Joseph Rockey
Executive VP & Chief Risk Officer5.1yrsUS$4.29m0.0059% $3.9m
Gagan Singh
Chief Investment Officer2yrsno datano data
Steven Van Wyk
Executive VP and Head of Technology & Innovation2.8yrsUS$3.52m0.0076% $5.0m
Gregory Jordan
Executive VP4yrsno data0.013% $8.8m
Bryan Gill
EVP, Director of Investor Relations0yrsno datano data
Vicki Henn
Executive VP & Chief Human Resources Officer5.7yrsno data0.0032% $2.1m

5.1yrs

Average Tenure

54yo

Average Age

Experienced Management: 0KEF's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Demchak
Chairman6.8yrsUS$15.68m0.093% $61.7m
Richard Kelson
Independent Director18.1yrsUS$398.66k0.000030% $20.0k
Michael Ward
Independent Director4.1yrsUS$265.05k0.00023% $153.2k
Charles Bunch
Independent Director12.8yrsUS$350.31k0.0011% $732.5k
Debra Cafaro
Independent Director2.5yrsUS$262.94kno data
Daniel Hesse
Independent Director4.1yrsUS$296.61k0.00025% $166.5k
Martin Pfinsgraff
Independent Director2.1yrsUS$284.87k0.00036% $239.7k
Andrew Feldstein
Lead Director0.8yrsUS$338.90k0.019% $12.9m
Marjorie Cheshire
Independent Director5.3yrsUS$322.21k0.000050% $33.3k
Linda Medler
Independent Director2.1yrsUS$261.22kno data

4.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 0KEF's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 0KEF insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

The PNC Financial Services Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The PNC Financial Services Group, Inc.
  • Ticker: 0KEF
  • Exchange: LSE
  • Founded: 1852
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$66.595b
  • Shares outstanding: 433.00m
  • Website: https://www.pnc.com

Number of Employees


Location

  • The PNC Financial Services Group, Inc.
  • The Tower at PNC Plaza
  • 300 Fifth Avenue
  • Pittsburgh
  • Pennsylvania
  • 15222
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PNCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
PNPDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
PNC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969
0KEFLSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
PNPETLX (Eurotlx)YesCommon StockITEURJan 1969
PNCFWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1969
A1GT09DB (Deutsche Boerse AG)PERP SR -O NTDEUSDJul 2011
PNC.PRQNYSE (New York Stock Exchange)DEP REPSTG 1/400USUSDSep 2012
A188NKDB (Deutsche Boerse AG)5%-FRN PERP USD 'S'DEUSDOct 2016
PNCS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.5 COM USD5BRBRLMay 2019

Biography

The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. The Retail Banking segment offers deposit, lending, brokerage, insurance, and investment and cash management services to consumer and small business customers through a network of branches, ATMs, call centers, and online banking and mobile channels. The Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, and equipment leases; and cash and investment management, receivables management, disbursement, fund transfer, information reporting, and global trade services, as well as foreign exchange, derivative, security underwriting, loan syndication, merger and acquisition advisory, and equity capital market advisory related services for corporations, government, and not-for-profit entities. This segment also offers commercial loan servicing and technology solutions for the commercial real estate finance industry. The Asset Management Group segment provides investment and retirement planning, customized investment management, private banking, tailored credit, and trust management and administration solutions; and multi-generational family planning products, such as estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative, asset custody, and customized performance reporting services. This segment also provides chief investment officer, custody, private real estate, cash and fixed income client solutions, and retirement administration services; and mutual funds and investment strategies. The BlackRock segment offers single- and multi-asset class portfolios; and investment and risk management services technology platform. As of December 31, 2018, it operated 2,372 branches and 9,162 ATMs. The PNC Financial Services Group, Inc. was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:13
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.