NYSE:PNC

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.

Rewards

Trading at 11.2% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -0.8% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet average 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

3.9%

PNC

2.7%

US Banks

1.1%

US Market


1 Year Return

27.1%

PNC

22.7%

US Banks

17.8%

US Market

Return vs Industry: PNC exceeded the US Banks industry which returned 22.7% over the past year.

Return vs Market: PNC exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

PNCIndustryMarket
7 Day3.9%2.7%1.1%
30 Day2.2%0.9%1.4%
90 Day14.4%10.0%3.9%
1 Year31.1%27.1%26.3%22.7%20.3%17.8%
3 Year46.5%35.7%31.8%22.6%44.8%35.4%
5 Year102.7%79.2%80.2%60.2%71.3%52.4%

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?

11.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PNC ($155.6) is trading below our estimate of fair value ($175.32)

Significantly Below Fair Value: PNC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PNC is poor value based on its PE Ratio (13.9x) compared to the Banks industry average (12.7x).

PE vs Market: PNC is good value based on its PE Ratio (13.9x) compared to the US market (18.4x).


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 (1.5x) compared to the US Banks industry average (1.2x).


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?

-0.8%

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 (-0.8% per year).

Earnings vs Market: PNC's earnings are forecast to decline over the next 3 years (-0.8% per year).

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

Revenue vs Market: PNC's revenue (1.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: PNC's revenue (1.3% 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 (11.2%).


Next Steps

Past Performance

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

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNC has high quality earnings.

Growing Profit Margin: PNC's current net profit margins (30.1%) are lower than last year (34.7%).


Past Earnings Growth Analysis

Earnings Trend: PNC's earnings have grown by 8.3% 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 (-12.1%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: PNC's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


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: PNC has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: PNC has an appropriate level of bad loans (0.72%)


Next Steps

Dividend

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

2.96%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: PNC's dividend (2.96%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: PNC's dividend (2.96%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: PNC's dividend payments have been volatile 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 reasonably low payout ratio (35.7%), PNC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PNC's dividends in 3 years are forecast to be well covered by earnings (41% payout ratio).


Next Steps

Management

What is the CEO of PNC Financial Services Group's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Bill Demchak (57yo)

6.7yrs

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 ($USD15.68M) is above average for companies of similar size in the US market ($USD10.90M).

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


Management Age and Tenure

4.9yrs

Average Tenure

54yo

Average Age

Experienced Management: PNC's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

63yo

Average Age

Experienced Board: PNC's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$2,990,01605 Dec 19
E. Parsley
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares20,000
Max PriceUS$149.50
SellUS$911,21921 Nov 19
Vicki Henn
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Human Resources Officer
Shares6,000
Max PriceUS$151.96
SellUS$304,57913 Nov 19
Karen Larrimer
EntityIndividual
Shares2,000
Max PriceUS$152.29
SellUS$1,448,77713 Nov 19
Gregory Jordan
EntityIndividual
Role
Chief Administrative Officer
Executive VP
Shares9,500
Max PriceUS$152.50
SellUS$19,681,15613 Nov 19
William Demchak
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares129,400
Max PriceUS$152.68
SellUS$2,314,70913 Sep 19
William Demchak
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares17,132
Max PriceUS$135.29
BuyUS$124,38027 Aug 19
Charles Bunch
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$124.38
SellUS$1,110,52101 Aug 19
Karen Larrimer
EntityIndividual
Shares7,806
Max PriceUS$142.27
SellUS$496,31631 Jul 19
Gregory Kozich
EntityIndividual
Shares3,441
Max PriceUS$144.24
SellUS$100,74829 Jul 19
Stacy Juchno
EntityIndividual
Shares710
Max PriceUS$141.90
SellUS$1,983,33524 Jul 19
Michael Lyons
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares14,285
Max PriceUS$138.84
SellUS$692,07224 Jul 19
Michael Hannon
EntityIndividual
Shares5,000
Max PriceUS$138.41
BuyUS$62,84425 Feb 19
Martin Pfinsgraff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$125.69
SellUS$624,09924 Jan 19
Michael Hannon
EntityIndividual
Shares5,000
Max PriceUS$124.82

Ownership Breakdown

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


Management Team

  • Bill Demchak (57yo)

    Chairman

    • Tenure: 6.7yrs
    • Compensation: US$15.68m
  • Bill Parsley (53yo)

    Executive VP & COO

    • Tenure: 1.8yrs
    • Compensation: US$9.28m
  • Gagan Singh

    Chief Investment Officer

    • Tenure: 1.8yrs
  • Greg Jordan (59yo)

    Executive VP

    • Tenure: 3.8yrs
  • Steve Van Wyk (60yo)

    Executive VP and Head of Technology & Innovation

    • Tenure: 2.7yrs
    • Compensation: US$3.52m
  • Rob Reilly (54yo)

    Executive VP & CFO

    • Tenure: 6.3yrs
    • Compensation: US$4.91m
  • Mike Lyons (48yo)

    Executive VP

    • Tenure: 8.1yrs
    • Compensation: US$8.65m
  • Vicki Henn (50yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 5.5yrs
  • Joseph Rockey (54yo)

    Executive VP & Chief Risk Officer

    • Tenure: 4.9yrs
    • Compensation: US$4.29m
  • Bryan Gill

    EVP, Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Richard Kelson (72yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$398.66k
  • Michael Ward (69yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$265.05k
  • Charles Bunch (69yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$350.31k
  • Deb Cafaro (61yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$262.94k
  • Dan Hesse (65yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$296.61k
  • Martin Pfinsgraff (64yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$284.87k
  • Bill Demchak (57yo)

    Chairman

    • Tenure: 6.7yrs
    • Compensation: US$15.68m
  • Andrew Feldstein (54yo)

    Lead Director

    • Tenure: 0.7yrs
    • Compensation: US$338.90k
  • Marjorie Cheshire (50yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$322.21k
  • Linda Medler (62yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$261.22k

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$67.347b
  • Shares outstanding: 438.17m
  • 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 an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:45
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.