NYSE:PNC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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


Market Performance


7 Day Return

1.2%

PNC

3.1%

US Banks

0.5%

US Market


1 Year Return

-12.6%

PNC

-15.2%

US Banks

18.7%

US Market

Return vs Industry: PNC exceeded the US Banks industry which returned -15.2% over the past year.

Return vs Market: PNC underperformed the US Market which returned 18.7% over the past year.


Shareholder returns

PNCIndustryMarket
7 Day1.2%3.1%0.5%
30 Day6.7%5.7%4.9%
90 Day14.1%20.1%19.8%
1 Year-9.2%-12.6%-12.2%-15.2%21.2%18.7%
3 Year-4.3%-12.7%-7.2%-14.8%46.2%36.8%
5 Year38.0%20.3%20.9%6.0%85.3%65.1%

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

Valuation

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

16.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PNC ($111.01) is trading above our estimate of fair value ($86.68)

Significantly Below Fair Value: PNC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PNC is poor value based on its PE Ratio (16.9x) compared to the US Banks industry average (10x).

PE vs Market: PNC is good value based on its PE Ratio (16.9x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PNC is overvalued based on its PB Ratio (1x) compared to the US 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 18 analysts?

-22.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNC's earnings are forecast to decline over the next 3 years (-22.4% per year).

Earnings vs Market: PNC's earnings are forecast to decline over the next 3 years (-22.4% per year).

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

Revenue vs Market: PNC's revenue (1.4% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: PNC's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PNC's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

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

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNC has high quality earnings.

Growing Profit Margin: PNC's current net profit margins (20.1%) are lower than last year (28.8%).


Past Earnings Growth Analysis

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

Accelerating Growth: PNC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PNC had negative earnings growth (-39.6%) over the past year, making it difficult to compare to the Banks industry average (-2.9%).


Return on Equity

High ROE: PNC's Return on Equity (6%) 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


Financial Institutions Analysis

Asset Level: PNC's Assets to Equity ratio (8.7x) is low.

Allowance for Bad Loans: PNC has a sufficient allowance for bad loans (316%).

Low Risk Liabilities: 85% of PNC's liabilities are made up of primarily low risk sources of funding.

Loan Level: PNC has an appropriate level of Loans to Assets ratio (55%).

Low Risk Deposits: PNC's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: PNC has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

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

4.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PNC's dividend (4.14%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: PNC's dividend (4.14%) is low compared to the top 25% of dividend payers in the US market (4.31%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.2%), PNC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PNC's dividends in 3 years are forecast to be covered by earnings (55.7% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

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

6.6yrs

Average management tenure


CEO

Bill Demchak (58 yo)

7.33yrs

Tenure

US$16,535,810

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 ($USD16.54M) is above average for companies of similar size in the US market ($USD11.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Demchak
Chairman7.33yrsUS$16.54m0.095%
$ 44.5m
Robert Reilly
Executive VP & CFO7yrsUS$5.51m0.028%
$ 13.2m
E. Parsley
Treasurer & Chief Investment Officer0.083yrUS$9.14m0.024%
$ 11.5m
Michael Lyons
Executive VP and Head of Corporate & Institutional Banking0.083yrUS$8.89m0.033%
$ 15.7m
Karen Larrimer
Executive VP7.25yrsUS$4.76m0.0066%
$ 3.1m
Steven Van Wyk
Executive VP and Head of Technology & Innovation3.33yrsUS$3.52m0.0077%
$ 3.6m
Gregory Jordan
Executive VP4.5yrsno data0.013%
$ 6.3m
Bryan Gill
EVP, Director of Investor Relationsno datano datano data
Vicki Henn
Executive VP & Chief Human Resources Officer6.17yrsno data0.0032%
$ 1.5m
Michael Hannon
Executive VP & Chief Credit Officer18.75yrsno data0.012%
$ 5.7m
Nicholas Marquis
Senior VP & Relationship Managerno datano datano data
Wayne Hunley
Executive VP & Corporate Banking Executive of Greater Washington D C15.42yrsno datano data

6.6yrs

Average Tenure

57yo

Average Age

Experienced Management: PNC's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Demchak
Chairman7.33yrsUS$16.54m0.095%
$ 44.5m
Michael Ward
Independent Director4.58yrsUS$272.26k0.00024%
$ 113.1k
Charles Bunch
Independent Director13.33yrsUS$367.70k0.0011%
$ 532.5k
Richard Harshman
Independent Director1.58yrsUS$261.41k0.00027%
$ 127.2k
Debra Cafaro
Independent Director3yrsUS$266.52kno data
Daniel Hesse
Independent Director4.58yrsUS$306.58k0.00026%
$ 122.5k
Martin Pfinsgraff
Independent Director2.58yrsUS$311.44k0.00037%
$ 174.4k
Joseph Alvarado
Independent Director1.58yrsUS$264.94k0.000030%
$ 14.1k
Andrew Feldstein
Independent Lead Director1.33yrsUS$361.56k0.037%
$ 17.6m
Toni Townes-Whitley
Independent Director1.58yrsUS$240.94k0.00024%
$ 113.1k
Marjorie Cheshire
Independent Director5.83yrsUS$319.36k0.000050%
$ 23.6k
Linda Medler
Independent Director2.58yrsUS$269.94k0.000010%
$ 4.7k

2.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: PNC's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: PNC 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

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: PNC
  • Exchange: NYSE
  • Founded: 1852
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$47.124b
  • Shares outstanding: 424.50m
  • 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
  • 15222-2401
  • 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 2 REPR 1 COMBRBRLMay 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 an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 12:07
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
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.