NasdaqGS:PNFP

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 43.8% below its fair value

Earnings are forecast to grow 3.71% per year

Earnings have grown 36.9% per year over the past 5 years

Risk Analysis

No risks detected for PNFP from our risk checks.


Snowflake Analysis

Flawless balance sheet and undervalued.


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: PNFP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

PNFP

-1.0%

US Banks

0.5%

US Market


1 Year Return

6.3%

PNFP

10.6%

US Banks

20.3%

US Market

Return vs Industry: PNFP underperformed the US Banks industry which returned 10.6% over the past year.

Return vs Market: PNFP underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

PNFPIndustryMarket
7 Day0.8%-1.0%0.5%
30 Day0.5%-1.2%2.0%
90 Day2.4%0.4%9.4%
1 Year7.4%6.3%13.8%10.6%22.8%20.3%
3 Year-9.3%-11.9%23.5%14.6%50.1%40.4%
5 Year57.3%49.6%74.0%54.2%73.1%54.1%

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

Valuation

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

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PNFP ($62.35) is trading below our estimate of fair value ($110.99)

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


Price To Earnings Ratio

PE vs Industry: PNFP is good value based on its PE Ratio (11.9x) compared to the Banks industry average (12.6x).

PE vs Market: PNFP is good value based on its PE Ratio (11.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: PNFP is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: PNFP is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Pinnacle Financial Partners forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNFP's forecast earnings growth (3.7% per year) is above the savings rate (1.7%).

Earnings vs Market: PNFP's earnings (3.7% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: PNFP's revenue (9.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: PNFP's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PNFP's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

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

36.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNFP has high quality earnings.

Growing Profit Margin: PNFP's current net profit margins (40%) are higher than last year (39.8%).


Past Earnings Growth Analysis

Earnings Trend: PNFP's earnings have grown significantly by 36.9% per year over the past 5 years.

Accelerating Growth: PNFP's earnings growth over the past year (11.5%) is below its 5-year average (36.9% per year).

Earnings vs Industry: PNFP earnings growth over the past year (11.5%) underperformed the Banks industry 12.3%.


Return on Equity

High ROE: PNFP's Return on Equity (9.2%) 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: PNFP has a low level of unsold assets or inventory.

Debt Coverage by Assets: PNFP's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: PNFP has an appropriate level of bad loans (0.31%)


Next Steps

Dividend

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

1.03%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: PNFP's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: PNFP's dividend (1.03%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

Growing Dividend: PNFP'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 (12.2%), PNFP's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PNFP's dividends in 3 years are forecast to be thoroughly covered by earnings (12.5% payout ratio).


Next Steps

Management

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

19.8yrs

Average management tenure


CEO

Michael Turner (64yo)

20yrs

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 ($USD4.38M) is about average for companies of similar size in the US market ($USD4.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert McCabe
Co-Founder & Chairman20yrsUS$4.15m0.71% $33.7m
Michael Turner
President20yrsUS$4.38m0.52% $24.9m
Harold Carpenter
Executive VP & CFO20yrsUS$1.40m0.15% $7.2m
Hugh Queener
Executive VP & Chief Administrative Officer20.1yrsUS$1.43m0.36% $17.1m
Richard Callicutt
Chairman for the Carolinas & Virginia and Director2.7yrsUS$1.54m0.13% $6.0m
Mac Johnston
Chief Investment Officer0yrsno datano data
Dana Sanders
Principal Accounting Officer0.8yrsno data0.011% $512.3k
Randy Withrow
Chief Information Officer19.6yrsno datano data
Mary Schneider
Chief Compliance Officer1.1yrsno datano data
Patti Harris
Senior VP & Human Resources Manager0yrsno datano data

19.8yrs

Average Tenure

61.5yo

Average Age

Experienced Management: PNFP's management team is seasoned and experienced (19.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert McCabe
Co-Founder & Chairman20yrsUS$4.15m0.71% $33.7m
Michael Turner
President20yrsUS$4.38m0.52% $24.9m
Richard Callicutt
Chairman for the Carolinas & Virginia and Director2.7yrsUS$1.54m0.13% $6.0m
Gregory Burns
Independent Director18.7yrsUS$164.19k0.037% $1.8m
Reese Smith
Independent Director6.4yrsUS$153.19k0.086% $4.1m
Glenda Glover
Independent Director6.2yrsUS$138.69k0.010% $497.1k
Marty Dickens
Lead Independent Director2.9yrsUS$151.69k0.018% $831.1k
Gary Scott
Independent Director12.3yrsUS$153.19k0.058% $2.7m
Ronald Samuels
Vice Chairman3.6yrsno data0.024% $1.1m
Renda Burkhart
Independent Director4.7yrsUS$147.94k0.0091% $429.8k

6.3yrs

Average Tenure

67yo

Average Age

Experienced Board: PNFP's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

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


Key Information

  • Name: Pinnacle Financial Partners, Inc.
  • Ticker: PNFP
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$4.744b
  • Shares outstanding: 76.08m
  • 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, including savings, checking, interest-bearing checking, money market, and certificate of deposit accounts. Its loan products include commercial loans, such as equipment and working capital loans; commercial real estate loans comprising investment properties and business loans secured by real estate; and loans to individuals consisting of secured and unsecured installment and term loans, lines of credit, residential first mortgage loans, and home equity loans and lines of credit. The company also offers various securities and other financial products; investment products; brokerage and investment advisory programs; and fiduciary and investment management services, such as personal trust, endowments, foundations, individual retirement accounts, pensions, and custody. In addition, it provides insurance products primarily in the property and casualty area; merger and acquisition advisory services; and private debt, equity and mezzanine, interest rate derivatives, and other middle-market advisory services. Further, the company offers treasury management, telephone and online banking, mobile banking, debit and credit cards, direct and remote deposit, automated teller machine, and cash management services. It serves individuals, small-to medium-sized businesses, and professional entities. As of December 31, 2018, the company operates 114 offices, including 47 in Tennessee, 38 in North Carolina, 21 in South Carolina, and 8 in Virginia. Pinnacle Financial Partners, Inc. was founded in 2000 and is headquartered in Nashville, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:18
End of Day Share Price2020/02/19 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.