PNC FINANCIAL SERVICES GROUP (PNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNC - US6934751057 - Common Stock
209.98 USD
-0.91 (-0.43%)
209.98 USD
0 (0%)
PNC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 385 industry peers in the Banks industry. While PNC is still in line with the averages on profitability rating, there are concerns on its financial health. PNC is not valued too expensively and it also shows a decent growth rate. PNC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PNC had positive earnings in the past year.
In the past year PNC had a positive cash flow from operations.
PNC had positive earnings in each of the past 5 years.
Each year in the past 5 years PNC had a positive operating cash flow.
1.2 Ratios
PNC has a better Return On Assets (1.08%) than 69.87% of its industry peers.
PNC's Return On Equity of 10.44% is fine compared to the rest of the industry. PNC outperforms 67.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.08% | ||
| ROE | 10.44% | ||
| ROIC | N/A |
ROA(3y)0.97%
ROA(5y)1.09%
ROE(3y)10.87%
ROE(5y)11.15%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 27.26%, PNC is doing good in the industry, outperforming 67.01% of the companies in the same industry.
In the last couple of years the Profit Margin of PNC has declined.
PNC does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 27.26% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-3.25%
PM growth 5Y-3.43%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
PNC does not have a ROIC to compare to the WACC, probably because it is not profitable.
PNC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PNC has been reduced compared to 5 years ago.
PNC has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of PNC is 8.52, which is on the high side as it means it would take PNC, 8.52 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.52, PNC is doing worse than 77.40% of the companies in the same industry.
A Debt/Equity ratio of 0.78 indicates that PNC is somewhat dependend on debt financing.
The Debt to Equity ratio of PNC (0.78) is worse than 83.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.71%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.08%, which is quite good.
PNC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.46% yearly.
PNC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.84%.
PNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.06% yearly.
EPS 1Y (TTM)14.08%
EPS 3Y-1.33%
EPS 5Y4.46%
EPS Q2Q%16%
Revenue 1Y (TTM)5.84%
Revenue growth 3Y3.91%
Revenue growth 5Y5.06%
Sales Q2Q%8.89%
3.2 Future
Based on estimates for the next years, PNC will show a small growth in Earnings Per Share. The EPS will grow by 4.79% on average per year.
The Revenue is expected to grow by 3.29% on average over the next years.
EPS Next Y13.08%
EPS Next 2Y12.52%
EPS Next 3Y12.05%
EPS Next 5Y4.79%
Revenue Next Year6.86%
Revenue Next 2Y7.36%
Revenue Next 3Y6.67%
Revenue Next 5Y3.29%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.56, which indicates a correct valuation of PNC.
Compared to the rest of the industry, the Price/Earnings ratio of PNC is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.43. PNC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.70 indicates a reasonable valuation of PNC.
The rest of the industry has a similar Price/Forward Earnings ratio as PNC.
PNC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 11.7 |
4.2 Price Multiples
62.86% of the companies in the same industry are cheaper than PNC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.17 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PNC's earnings are expected to grow with 12.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)3.04
EPS Next 2Y12.52%
EPS Next 3Y12.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.22%, PNC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.70, PNC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, PNC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
The dividend of PNC is nicely growing with an annual growth rate of 8.73%!
PNC has paid a dividend for at least 10 years, which is a reliable track record.
PNC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.73%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
47.44% of the earnings are spent on dividend by PNC. This is a bit on the high side, but may be sustainable.
The dividend of PNC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.44%
EPS Next 2Y12.52%
EPS Next 3Y12.05%
209.98
-0.91 (-0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners87.49%
Inst Owner Change1.4%
Ins Owners0.28%
Ins Owner Change-0.28%
Market Cap82.35B
Revenue(TTM)22.59B
Net Income(TTM)6.16B
Analysts78.57
Price Target225.18 (7.24%)
Short Float %1.8%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend7.28
Dividend Growth(5Y)8.73%
DP47.44%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.76%
Min EPS beat(2)6.35%
Max EPS beat(2)7.16%
EPS beat(4)4
Avg EPS beat(4)7.1%
Min EPS beat(4)2.77%
Max EPS beat(4)12.11%
EPS beat(8)8
Avg EPS beat(8)8.43%
EPS beat(12)11
Avg EPS beat(12)5.32%
EPS beat(16)14
Avg EPS beat(16)4.98%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)0.44%
Revenue beat(4)2
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)0.44%
Revenue beat(8)3
Avg Revenue beat(8)-0.48%
Revenue beat(12)3
Avg Revenue beat(12)-0.75%
Revenue beat(16)4
Avg Revenue beat(16)-0.8%
PT rev (1m)-0.49%
PT rev (3m)2.31%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.21%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 11.7 | ||
| P/S | 3.64 | ||
| P/FCF | 15.17 | ||
| P/OCF | 15.17 | ||
| P/B | 1.4 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | N/A |
EPS(TTM)15.48
EY7.37%
EPS(NY)17.95
Fwd EY8.55%
FCF(TTM)13.84
FCFY6.59%
OCF(TTM)13.84
OCFY6.59%
SpS57.62
BVpS150.42
TBVpS113.22
PEG (NY)1.04
PEG (5Y)3.04
Graham Number228.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.08% | ||
| ROE | 10.44% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 27.26% | ||
| GM | N/A | ||
| FCFM | 24.02% |
ROA(3y)0.97%
ROA(5y)1.09%
ROE(3y)10.87%
ROE(5y)11.15%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-3.25%
PM growth 5Y-3.43%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 88.12% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC12.71%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)166.59%
Profit Quality(5y)139.44%
High Growth Momentum
Growth
EPS 1Y (TTM)14.08%
EPS 3Y-1.33%
EPS 5Y4.46%
EPS Q2Q%16%
EPS Next Y13.08%
EPS Next 2Y12.52%
EPS Next 3Y12.05%
EPS Next 5Y4.79%
Revenue 1Y (TTM)5.84%
Revenue growth 3Y3.91%
Revenue growth 5Y5.06%
Sales Q2Q%8.89%
Revenue Next Year6.86%
Revenue Next 2Y7.36%
Revenue Next 3Y6.67%
Revenue Next 5Y3.29%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-41.6%
FCF growth 3Y2.99%
FCF growth 5Y1.37%
OCF growth 1Y-41.6%
OCF growth 3Y2.99%
OCF growth 5Y1.37%
PNC FINANCIAL SERVICES GROUP / PNC FAQ
Can you provide the ChartMill fundamental rating for PNC FINANCIAL SERVICES GROUP?
ChartMill assigns a fundamental rating of 3 / 10 to PNC.
What is the valuation status for PNC stock?
ChartMill assigns a valuation rating of 4 / 10 to PNC FINANCIAL SERVICES GROUP (PNC). This can be considered as Fairly Valued.
Can you provide the profitability details for PNC FINANCIAL SERVICES GROUP?
PNC FINANCIAL SERVICES GROUP (PNC) has a profitability rating of 4 / 10.
What is the expected EPS growth for PNC FINANCIAL SERVICES GROUP (PNC) stock?
The Earnings per Share (EPS) of PNC FINANCIAL SERVICES GROUP (PNC) is expected to grow by 13.08% in the next year.
Is the dividend of PNC FINANCIAL SERVICES GROUP sustainable?
The dividend rating of PNC FINANCIAL SERVICES GROUP (PNC) is 7 / 10 and the dividend payout ratio is 47.44%.