PNC Financial (PNC) AI Stock Analysis

• Market Cap: $60.47B
• Dividend Yield: 4.16%
• Average Volume (3M): 2.64M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.16
• Revenue Growth: 7.24%
• EPS Growth: 7.51%
• Country: US
• Employees: 53,686
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 13.75
• Shares Outstanding: 395,749,570
• 10 Day Avg. Volume: 2,878,527
• 30 Day Avg. Volume: 2,642,222
• PEG Ratio: 1.48
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.30
• Price to Cash Flow (P/CF): 9.50
• P/FCF Ratio: 4.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $206.85
• Price Target Upside: 38.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

PNC Financial shows a solid financial foundation with strong profitability and effective management, as highlighted by its earnings call. However, challenges in cash flow and loan growth, along with bearish technical indicators, weigh down the overall stock score. The recent executive appointment adds a positive outlook for future strategic growth.

Positive Factors

Earnings

PNC shares outperformed peers after reporting adjusted EPS that beat estimates.

Financial Performance

Superior execution highlighted by better fee income, modest NII growth, and reduced noninterest expenses.

Negative Factors

Credit Losses

Credit losses are expected to drift higher, with stress in the commercial real estate office portfolio, which could apply upward pressure to credit losses.

Loan Growth

Loan growth has been disappointing, with a decrease in spot loans compared to the original forecast, which is seen as a downside risk.

PNC Financial Business Overview & Revenue Model

Company Description

PNC Financial Services Group, Inc. (PNC) is a diversified financial services company headquartered in Pittsburgh, Pennsylvania. It operates across various sectors, including retail banking, corporate and institutional banking, asset management, and residential mortgage banking. The company offers a wide range of services such as checking and savings accounts, personal and business loans, credit cards, wealth management, and investment services. PNC serves a broad customer base, including individuals, small businesses, corporations, and government entities.

How the Company Makes Money

PNC Financial makes money primarily through interest income, non-interest income, and fees. Interest income is generated from loans issued to consumers and businesses, including mortgages, credit cards, and commercial loans. Non-interest income comes from various services such as asset management, investment banking, and brokerage services. Fee income is derived from account maintenance fees, transaction fees, and service charges. PNC also benefits from strategic partnerships and acquisitions that expand its customer base and enhance service offerings. The company invests in technology and digital platforms to improve customer experience and operational efficiency, further contributing to its revenue streams.

PNC Financial Financial Statement Overview

Summary

PNC Financial shows a stable financial foundation with strong profitability and a balanced leverage profile. However, challenges include a decline in net income and uncertainties in cash flow generation, which could impact future performance.

Income Statement

PNC Financial has shown stable revenue generation with a moderate revenue growth rate of 3.87% in the most recent year. The gross profit margin and net profit margin stand strong at 100% and 28.36% respectively, reflecting efficient cost management. However, the slight decline in net income from the previous year indicates potential challenges in maintaining profit levels.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of 1.13, indicating a balanced approach to leverage. The equity ratio of 9.72% suggests a solid capital base, although there is room for improvement. The return on equity is impressive at 10.82%, highlighting effective use of shareholder funds.

Cash Flow

PNC Financial's cash flow position appears constrained with a significant drop in free cash flow and a lack of clear growth trajectory. The absence of operating cash flow in the latest period raises concerns about operational efficiency and cash generation capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.77B	21.51B	21.11B	19.21B	16.90B
	Gross Profit
20.77B	21.51B	21.11B	19.21B	16.90B
	EBIT
7.24B	6.74B	7.47B	6.99B	3.43B
	EBITDA
75.54B	6.95B	8.12B	8.76B	4.93B
	Net Income Common Stockholders
5.89B	5.58B	6.04B	5.67B	7.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.90B	61.46B	78.52B	213.79B	179.55B
	Total Assets
560.04B	561.58B	557.26B	558.45B	466.68B
	Total Debt
61.67B	72.74B	58.71B	33.00B	39.29B
	Net Debt
54.77B	22.01B	24.35B	-49.25B	-52.90B
	Total Liabilities
505.57B	510.44B	511.45B	30.78B	37.20B
	Stockholders Equity
54.42B	51.10B	45.77B	55.70B	54.01B
Cash Flow		Free Cash Flow
7.88B	10.11B	9.08B	7.21B	4.66B
	Operating Cash Flow
7.88B	10.11B	9.08B	7.21B	4.66B
	Investing Cash Flow
-3.23B	-6.38B	-13.43B	-2.79B	-51.12B
	Financing Cash Flow
-9.12B	-3.85B	3.38B	-3.43B	48.42B

PNC Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 149.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNC, the sentiment is Negative. The current price of 149.76 is below the 20-day moving average (MA) of 170.13, below the 50-day MA of 183.10, and below the 200-day MA of 183.32, indicating a bearish trend. The MACD of -3.25 indicates Negative momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of 36.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PNC.

PNC Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNC	73 Outperform	$60.47B	11.12	11.10%	4.16%	7.24%	7.51%
FCNCA	73 Outperform	$21.09B	8.30	12.77%	0.45%	18.05%	-75.88%
USB	70 Neutral	$57.38B	9.73	11.00%	5.41%	5.59%	15.52%
FITB	67 Neutral	$22.55B	10.76	11.92%	4.29%	11.21%	-2.26%
Sector *	64 Neutral	$12.70B	9.08	9.19%	4.89%	16.29%	-8.64%
MTB	63 Neutral	$25.80B	10.73	9.23%	3.42%	6.07%	-7.10%
TFC	54 Neutral	$45.87B	10.49	-0.11%	5.92%	-26.77%	―

PNC Financial Corporate Events

PNC Financial Appoints Mark Wiedman as President

On April 7, 2025, PNC Financial Services Group announced the appointment of Mark Wiedman as President, effective April 3, 2025. Wiedman, who previously held senior roles at BlackRock, brings extensive experience in driving growth and business transformation. His appointment aligns with PNC’s strategy to leverage technology and expand its client base through diversified products and services. Wiedman will report to CEO William S. Demchak and oversee PNC’s primary operating lines and Regional Presidents Office. This strategic move aims to accelerate PNC’s growth and strengthen its leadership team, positioning the company to better navigate the evolving banking landscape.

Spark’s Take on PNC Stock

According to Spark, TipRanks’ AI Analyst, PNC is a Outperform.

PNC Financial’s stock score reflects its strong financial performance and positive earnings call insights, countered by technical analysis indicators suggesting short-term challenges. The valuation is fair, but uncertainties in cash flow and loan growth present risks.

To see Spark’s full report on PNC stock, click here.

PNC Financial Implements Executive Severance Plan

On March 21, 2025, PNC Financial Services Group, Inc. implemented an Executive Severance Plan to offer payments and benefits to certain employees, including named executive officers, upon specified employment terminations. This plan, developed with an independent consultant, aims to provide a standardized severance framework, ensuring certainty and protection for both the executives and the corporation in non-change in control scenarios.

PNC Financial Enhances Executive Compensation Plan

On February 14, 2025, PNC Financial’s Human Resources Committee approved modifications to the restricted and performance share unit awards for certain officers under the 2016 Incentive Award Plan. These changes ensure that, upon a qualifying termination without cause or for good reason, the awards will continue to vest and be paid out as if the officer remained employed throughout the performance or service period, potentially enhancing job security and aligning executive interests with long-term company performance.

PNC Financial Appoints Douglas Dachille to Board

On January 31, 2025, PNC Financial Services Group’s Board of Directors expanded to 13 members and appointed Douglas Dachille to the Board, effective February 3, 2025. Dachille, considered independent by NYSE standards, will join the Risk Committee and PNC Bank’s Board, aligning with PNC’s governance practices.

PNC Financial President Michael P. Lyons Resigns

On January 23, 2025, PNC Financial Services announced the resignation of its President, Michael P. Lyons, who has been with the company since 2011 and was named president in 2024. Lyons is leaving to take on the role of President & CEO-Elect at Fiserv. PNC’s Chairman and CEO, William S. Demchak, acknowledged Lyons’s contributions to the company’s growth and expressed confidence in the existing leadership team to continue the bank’s trajectory towards becoming one of the largest and most successful banks in the country.

PNC Financial Reports Record Revenue and Strong Performance

On January 16, 2025, PNC Financial Services Group reported its financial performance for the fourth quarter and full year of 2024. PNC achieved record revenue with strong credit quality, growing net income to $6.0 billion, and increasing capital position. Despite challenges, the company maintained stable loan balances and deposits, demonstrating effective management of interest rate sensitivity and operating leverage.