PNC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 383 industry peers in the Banks industry. PNC has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, PNC is valued expensive at the moment.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Each year in the past 5 years PNC has been profitable.
Of the past 5 years PNC 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of PNC (1.08%) is better than 69.97% of its industry peers.
The Return On Equity of PNC (10.44%) is better than 66.84% of its industry peers.

		Industry Rank	Sector Rank
ROA	1.08%
ROE	10.44%
ROIC	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

PNC's Profit Margin of 27.26% is fine compared to the rest of the industry. PNC outperforms 66.32% 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)	27.26%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y1.75%

PM growth 5Y-7.93%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

PNC does not have a ROIC to compare to the WACC, probably because it is not profitable.
There is no outstanding debt for PNC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

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.
PNC has a worse Debt to FCF ratio (8.52) than 77.28% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that PNC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, PNC is not doing good in the industry: 82.77% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.78
Debt/FCF	8.52
Altman-Z	N/A

ROIC/WACCN/A

WACC12.53%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 17.00% over the past year.
PNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.88% yearly.
The Revenue has been growing slightly by 7.16% in the past year.
Measured over the past years, PNC shows a small growth in Revenue. The Revenue has been growing by 6.45% on average per year.

EPS 1Y (TTM)17%

EPS 3Y6.15%

EPS 5Y19.88%

EPS Q2Q%29.44%

Revenue 1Y (TTM)7.16%

Revenue growth 3Y3.03%

Revenue growth 5Y6.45%

Sales Q2Q%9.05%

3.2 Future

The Earnings Per Share is expected to grow by 3.61% on average over the next years.
Based on estimates for the next years, PNC will show a small growth in Revenue. The Revenue will grow by 2.33% on average per year.

EPS Next Y9.62%

EPS Next 2Y10.05%

EPS Next 3Y7.08%

EPS Next 5Y3.61%

Revenue Next Year8.6%

Revenue Next 2Y6.72%

Revenue Next 3Y1.93%

Revenue Next 5Y2.33%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.38, PNC is valued correctly.
PNC's Price/Earnings ratio is in line with the industry average.
PNC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.32.
A Price/Forward Earnings ratio of 12.21 indicates a correct valuation of PNC.
PNC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, PNC is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	13.38
Fwd PE	12.21

4.2 Price Multiples

65.01% 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	16.04
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.

PEG (NY)1.39

PEG (5Y)0.67

EPS Next 2Y10.05%

EPS Next 3Y7.08%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.02%, PNC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.84, PNC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.83, PNC pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	3.02%

5.2 History

The dividend of PNC is nicely growing with an annual growth rate of 8.73%!
PNC has been paying a dividend for at least 10 years, so it has a reliable track record.
PNC has not decreased their dividend for at least 10 years, which is a reliable track record.

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 2Y10.05%

EPS Next 3Y7.08%

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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.

Can you provide the valuation status for PNC FINANCIAL SERVICES GROUP?

ChartMill assigns a valuation rating of 3 / 10 to PNC FINANCIAL SERVICES GROUP (PNC). This can be considered as Overvalued.

Can you provide the profitability details for PNC FINANCIAL SERVICES GROUP?

PNC FINANCIAL SERVICES GROUP (PNC) has a profitability rating of 3 / 10.

What are the PE and PB ratios of PNC FINANCIAL SERVICES GROUP (PNC) stock?

The Price/Earnings (PE) ratio for PNC FINANCIAL SERVICES GROUP (PNC) is 13.38 and the Price/Book (PB) ratio is 1.48.

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 9.62% in the next year.