PNC FINANCIAL SERVICES GROUP (PNC)
US6934751057 - Common Stock
We assign a fundamental rating of 3 out of 10 to PNC. PNC was compared to 406 industry peers in the Banks industry. Both the profitability and financial health of PNC have multiple concerns. PNC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PNC was profitable.
PNC had a positive operating cash flow in the past year.
In the past 5 years PNC has always been profitable.
Each year in the past 5 years PNC had a positive operating cash flow.
1.2 Ratios
PNC's Return On Assets of 0.84% is in line compared to the rest of the industry. PNC outperforms 56.44% of its industry peers.
PNC has a Return On Equity (8.50%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 8.5% | ||
| ROIC | N/A |
ROA(3y)0.97%
ROA(5y)1.14%
ROE(3y)10.74%
ROE(5y)11.21%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PNC has a Profit Margin of 22.16%. This is comparable to the rest of the industry: PNC outperforms 50.49% of its industry peers.
In the last couple of years the Profit Margin of PNC has declined.
The Operating Margin and Gross Margin are not available for PNC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 22.16% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-17.85%
PM growth 5Y-5.2%
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.
Compared to 5 years ago, PNC has less shares outstanding
The debt/assets ratio for PNC is higher compared to a year ago.
2.2 Solvency
PNC has a debt to FCF ratio of 3.66. This is a good value and a sign of high solvency as PNC would need 3.66 years to pay back of all of its debts.
PNC's Debt to FCF ratio of 3.66 is in line compared to the rest of the industry. PNC outperforms 44.06% of its industry peers.
PNC has a Debt/Equity ratio of 0.72. This is a neutral value indicating PNC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, PNC is doing worse than 81.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.69%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for PNC have decreased by -2.86% in the last year.
Measured over the past 5 years, PNC shows a small growth in Earnings Per Share. The EPS has been growing by 4.97% on average per year.
PNC shows a decrease in Revenue. In the last year, the revenue decreased by -2.48%.
Measured over the past years, PNC shows a small growth in Revenue. The Revenue has been growing by 5.83% on average per year.
EPS 1Y (TTM)-2.86%
EPS 3Y26.8%
EPS 5Y4.97%
EPS Q2Q%18.67%
Revenue 1Y (TTM)-2.48%
Revenue growth 3Y8.34%
Revenue growth 5Y5.83%
Sales Q2Q%1.32%
3.2 Future
The Earnings Per Share is expected to grow by 5.67% on average over the next years.
The Revenue is expected to grow by 2.59% on average over the next years.
EPS Next Y0.89%
EPS Next 2Y5.34%
EPS Next 3Y7.84%
EPS Next 5Y5.67%
Revenue Next Year-0.09%
Revenue Next 2Y2.59%
Revenue Next 3Y3.34%
Revenue Next 5Y2.59%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.20, the valuation of PNC can be described as correct.
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 27.73. PNC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.72, the valuation of PNC can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.83. PNC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.2 | ||
| Fwd PE | 12.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PNC indicates a rather cheap valuation: PNC is cheaper than 86.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.99 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)16.02
PEG (5Y)2.86
EPS Next 2Y5.34%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
PNC has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
PNC's Dividend Yield is a higher than the industry average which is at 3.15.
PNC's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
On average, the dividend of PNC grows each year by 12.77%, which is quite nice.
PNC has been paying a dividend for at least 10 years, so it has 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)12.77%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
61.15% of the earnings are spent on dividend by PNC. This is not a sustainable payout ratio.
PNC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.15%
EPS Next 2Y5.34%
EPS Next 3Y7.84%
PNC FINANCIAL SERVICES GROUP
NYSE:PNC (12/20/2024, 8:04:00 PM)
After market: 192.76 0 (0%)192.76
+2.73 (+1.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners85.74%
Inst Owner Change1.65%
Ins Owners0.39%
Ins Owner Change-2.98%
Market Cap76.48B
Analysts76.43
Price Target208.77 (8.31%)
Short Float %1.3%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Dividend Growth(5Y)12.77%
DP61.15%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.1%
Min EPS beat(2)9.54%
Max EPS beat(2)12.65%
EPS beat(4)4
Avg EPS beat(4)9.77%
Min EPS beat(4)6.3%
Max EPS beat(4)12.65%
EPS beat(8)7
Avg EPS beat(8)4.44%
EPS beat(12)10
Avg EPS beat(12)4.27%
EPS beat(16)14
Avg EPS beat(16)10.51%
Revenue beat(2)0
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)-0.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)0.26%
Revenue beat(8)1
Avg Revenue beat(8)-0.99%
Revenue beat(12)2
Avg Revenue beat(12)-0.97%
Revenue beat(16)6
Avg Revenue beat(16)-0.14%
PT rev (1m)2.61%
PT rev (3m)9.54%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)2.82%
EPS NY rev (1m)0.35%
EPS NY rev (3m)3.98%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.2 | ||
| Fwd PE | 12.72 | ||
| P/S | 3.58 | ||
| P/FCF | 6.99 | ||
| P/OCF | 6.99 | ||
| P/B | 1.37 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | N/A |
EPS(TTM)13.57
EY7.04%
EPS(NY)15.16
Fwd EY7.86%
FCF(TTM)27.58
FCFY14.31%
OCF(TTM)27.58
OCFY14.31%
SpS53.81
BVpS140.35
TBVpS103.97
PEG (NY)16.02
PEG (5Y)2.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 8.5% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.16% | ||
| GM | N/A | ||
| FCFM | 51.26% |
ROA(3y)0.97%
ROA(5y)1.14%
ROE(3y)10.74%
ROE(5y)11.21%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-17.85%
PM growth 5Y-5.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.66 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 231.33% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC10.69%
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)163.25%
Profit Quality(5y)139.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.86%
EPS 3Y26.8%
EPS 5Y4.97%
EPS Q2Q%18.67%
EPS Next Y0.89%
EPS Next 2Y5.34%
EPS Next 3Y7.84%
EPS Next 5Y5.67%
Revenue 1Y (TTM)-2.48%
Revenue growth 3Y8.34%
Revenue growth 5Y5.83%
Sales Q2Q%1.32%
Revenue Next Year-0.09%
Revenue Next 2Y2.59%
Revenue Next 3Y3.34%
Revenue Next 5Y2.59%
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 1Y28.29%
FCF growth 3Y29.47%
FCF growth 5Y5.22%
OCF growth 1Y28.29%
OCF growth 3Y29.47%
OCF growth 5Y5.22%