PNC Financial Services Group Inc
Exchange: NYSESector: Financial ServicesIndustry: Banks - Regional
The PNC Financial Services Group, Inc. (PNC) is a financial service company. The Company has businesses engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing its products and services nationally and others in its markets located in Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana, Kentucky, Florida, Washington, D.C., Delaware, Virginia, Missouri, Wisconsin and Georgia. It also provides certain products and services internationally. As of December 31, 2011, its corporate legal structure consisted of one domestic subsidiary bank, including its subsidiaries, and approximately 141 active non-bank subsidiaries. On March 2, 2012, it acquired RBC Bank (USA). Effective October 26, 2012, PNC divested certain deposits and assets of the Smartstreet business unit, which was acquired by PNC as part of the RBC Bank (USA) acquisition, to Union Bank, N.A.
Did you know?
Earnings per share grew at a 4.4% CAGR.
Current Price
$220.89
-0.20%GoodMoat Value
$322.43
46.0% undervaluedProfile
Valuation (TTM)
Market Cap$86.62B
P/E13.09
EV$97.36B
P/B1.43
Shares Out392.16M
P/Sales3.75
Revenue$23.10B
EV/EBITDA11.81
PNC Financial Services Group Inc (PNC) Stock Analysis
GoodMoat Analysis
PNC Financial Services appears to be a high-quality regional bank with a moderate moat, trading at a valuation that suggests a significant margin of safety. Its strong profitability and capital position meet key quality thresholds, while the GoodMoat target price implies a substantial discount. This combination makes it a compelling candidate for further due diligence from a value perspective.
Read full analysis
PNC Financial Services Group is a major US regional bank providing a full suite of retail, corporate, and institutional banking services. Applying the GoodMoat framework, its primary competitive advantages (Section 1: Moat) stem from scale privilege in its regional footprint and regulatory barriers inherent to the banking industry, which create high entry costs. While it may score moderately on the moat checklist, its financial quality is robust. Key indicators from the provided data include a strong ROE of 11.4%, a healthy profit margin of 30.0%, and a manageable Debt/Equity ratio of 0.94, which suggests a solid balance sheet. The 5.4% FCF Yield and 3.26% Dividend Yield contribute to shareholder returns. According to the GoodMoat Decision Framework (Section 6), the business likely passes the 'Moat & Quality Gate' for further valuation analysis. The critical finding is the valuation: at a current price of $205.95, the stock trades at a P/E of 12.2x, which is reasonable for a bank. The GoodMoat Target of $322.43 implies a potential margin of safety of over 56%, which falls into the 'Deeply Undervalued' band (>40%) per the framework's valuation assessment. This significant discount to estimated intrinsic value, coupled with the company's fundamental strength, makes PNC a highly favourable subject for deeper investigation by a value investor. Analysis based on data as of 2024-05-15.
Market Cap$86.62B
Current Price$220.89
P/E Ratio13.09
Forward P/E—
PEG Ratio0.45
EPS$16.59
Book Value$154.49
P/B Ratio1.43
PNC Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -8.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 17.4B
Revenue
16.8B
FY19
16.9B
FY20
19.2B
FY21
21.1B
FY22
21.5B
FY23
21.6B
FY24
23.1B
FY25
Net Income
5.4B
FY19
7.5B
FY20
5.7B
FY21
6.0B
FY22
5.6B
FY23
5.9B
FY24
6.9B
FY25
PNC 52-Week Range
$155.38
$240.63
50-Day MA: $213.51200-Day MA: $201.56
Did you know?
Free cash flow has been growing at -8.3% annually.
PNC Financial Services Group Inc (PNC) Financial Summary
PNC Financial Services Group Inc (PNC) is a Financial Services company in the Banks - Regional industry, listed on NYSE. The stock currently trades at $220.89 with a market capitalization of $86.62B.
Key valuation metrics include a P/E ratio of 13.09, price-to-book ratio of 1.43, and EPS of $16.59. The company reports a profit margin of 30.0% and return on equity of 11.4%.
PNC Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $86.62B |
| P/E Ratio | 13.09 |
| EPS | $16.59 |
| P/B Ratio | 1.43 |
| P/S Ratio | 3.75 |
| EV/EBITDA | 11.81 |
| Dividend Yield | 3.04% |
| Profit Margin | 30.0% |
| Return on Equity | 11.4% |
| Debt/Equity | 0.94 |
PNC Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $16.84B | $5.37B |
| FY20 | $16.90B | $7.52B |
| FY21 | $19.21B | $5.67B |
| FY22 | $21.12B | $6.04B |
| FY23 | $21.49B | $5.58B |
| FY24 | $21.55B | $5.89B |
| FY25 | $23.10B | $6.94B |
PNC Financial Services Group Inc (PNC) Valuation
Based on GoodMoat's DCF model, PNC Financial Services Group Inc has a fair value estimate of $322.43. At the current price of $220.89, the stock appears 31.5% undervalued relative to our intrinsic value estimate.
PNC Quality Indicators
PNC Financial Services Group Inc maintains a profit margin of 30.0% and an operating margin of 40.1%. Return on equity stands at 11.4%. Debt-to-equity ratio is 0.94.
About PNC Financial Services Group Inc
The PNC Financial Services Group, Inc. (PNC) is a financial service company. The Company has businesses engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing its products and services nationally and others in its markets located in Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana, Kentucky, Florida, Washington, D.C., Delaware, Virginia, Missouri, Wisconsin and Georgia. It also provides certain products and services internationally. As of December 31, 2011, its corporate legal structure consisted of one domestic subsidiary bank, including its subsidiaries, and approximately 141 active non-bank subsidiaries. On March 2, 2012, it acquired RBC Bank (USA). Effective October 26, 2012, PNC divested certain deposits and assets of the Smartstreet business unit, which was acquired by PNC as part of the RBC Bank (USA) acquisition, to Union Bank, N.A.
PNC Free Cash Flow
PNC Financial Services Group Inc generated $4.38B in trailing twelve-month free cash flow, representing an FCF yield of 5.06%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
PNC Shares Outstanding
PNC Financial Services Group Inc has 0.39 billion shares outstanding at a share price of $220.89, giving it a market capitalization of $86.62B.
PNC Recent Insider Trades
Recent insider transactions at PNC Financial Services Group Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Medler Linda R | BUY | 20 | $4007.60 |
| DEMCHAK WILLIAM S (CEO) | SELL | 50,000 | $11.54M |
| Overstrom Alexander E. C. (Executive Vice President) | SELL | 2,500 | $584775.00 |