PNC

PNC Financial Services GroupNYSE:PNC Stock Report

Market Cap

US$80.7b

7D

-1.2%

1Y

69.7%

Updated

16 Sep, 2021

Data

Company Financials +
PNC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends5/6

PNC Overview

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

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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PNC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

PNC

-0.1%

US Banks

-0.6%

US Market


1 Year Return

69.7%

PNC

62.5%

US Banks

33.6%

US Market

Return vs Industry: PNC exceeded the US Banks industry which returned 62.7% over the past year.

Return vs Market: PNC exceeded the US Market which returned 33.7% over the past year.


Shareholder returns

PNCIndustryMarket
7 Day-1.2%-0.1%-0.6%
30 Day1.1%-0.9%1.3%
90 Day6.5%4.6%5.3%
1 Year75.0%69.7%66.8%62.5%35.6%33.6%
3 Year45.3%31.5%21.1%10.7%60.9%51.0%
5 Year143.6%111.0%94.1%69.6%123.4%99.1%

Long-Term 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

PNC Financial Services Group Fundamentals Summary

How do PNC Financial Services Group's earnings and revenue compare to its market cap?
PNC fundamental statistics
Market CapUS$80.71b
Earnings (TTM)US$5.63b
Revenue (TTM)US$17.83b

14.3x

P/E Ratio

1.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PNC income statement (TTM)
RevenueUS$17.83b
Cost of RevenueUS$0
Gross ProfitUS$17.83b
ExpensesUS$12.20b
EarningsUS$5.63b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 15, 2021

Earnings per share (EPS)13.21
Gross Margin100.00%
Net Profit Margin31.56%
Debt/Equity Ratio65.0%

How did PNC perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

35%

Payout Ratio

Valuation

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

31.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PNC ($189.9) is trading below our estimate of fair value ($277.96)

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


Price To Earnings Ratio

PE vs Industry: PNC is poor value based on its PE Ratio (14.3x) compared to the US Banks industry average (10.8x).

PE vs Market: PNC is good value based on its PE Ratio (14.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: PNC is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: PNC is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.1x).


Future Growth

How is PNC Financial Services Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNC's forecast earnings growth (3% per year) is above the savings rate (2%).

Earnings vs Market: PNC's earnings (3% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: PNC's revenue (5.8% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: PNC's revenue (5.8% 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 (11.9%).


Past Performance

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

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNC has high quality earnings.

Growing Profit Margin: PNC's current net profit margins (31.6%) are higher than last year (15.3%).


Past Earnings Growth Analysis

Earnings Trend: PNC's earnings have declined by 2.1% per year over the past 5 years.

Accelerating Growth: PNC's earnings growth over the past year (178.5%) exceeds its 5-year average (-2.1% per year).

Earnings vs Industry: PNC earnings growth over the past year (178.5%) exceeded the Banks industry 36%.


Return on Equity

High ROE: PNC's Return on Equity (10.8%) is considered low.


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 (10.1x) is moderate.

Allowance for Bad Loans: PNC has a sufficient allowance for bad loans (206%).

Low Risk Liabilities: 91% 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 (52%).

Low Risk Deposits: PNC's Loans to Deposits ratio (64%) is appropriate.

Level of Bad Loans: PNC has an appropriate level of bad loans (0.9%).


Dividend

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

2.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PNC's dividend (2.63%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: PNC's dividend (2.63%) is low compared to the top 25% of dividend payers in the US market (3.58%).


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 reasonably low payout ratio (34.8%), 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 (35.9% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Bill Demchak (59 yo)

8.42yrs

Tenure

US$15,879,053

Compensation

Mr. William S. Demchak, also known as Bill, is a Member & Past Chairman of Board of Allegheny Conference on Community Development. He has been the President of The PNC Financial Services Group, Inc., since...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD15.88M) is above average for companies of similar size in the US market ($USD11.33M).

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


Leadership Team

Experienced Management: PNC's management team is seasoned and experienced (7.3 years average tenure).


Board Members

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


Ownership

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


Insider Trading Volume

Insider Buying: PNC insiders have only sold shares 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$80.706b
  • Shares outstanding: 424.99m
  • 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


Biography

The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. It operates through three segments: Retail Banking, Corporate & Institutional Banking, and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:49
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.