PNC Financial (PNC) AI Stock Analysis

• Market Cap: $70.97B
• Dividend Yield: 3.57%
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.04
• Revenue Growth: 3.07%
• EPS Growth: 19.01%
• Country: US
• Employees: 53,686
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 3.51
• Shares Outstanding: 395,567,020
• 10 Day Avg. Volume: 1,858,300
• 30 Day Avg. Volume: 1,888,709
• PEG Ratio: 1.19
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.16
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 4.41
• Enterprise Value/Ebitda: 3.16
• 1Y Price Target: $195.38
• Price Target Upside: 9.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 79 Outperform
• Price Target: $202.00 ▲(13.65%Upside)

PNC Financial Services demonstrates solid financial health and profitability, supported by strong earnings call outcomes and strategic corporate events. Despite mixed technical signals and challenges from market volatility, PNC's attractive valuation and disciplined management provide a stable outlook for growth.

Positive Factors

Earnings

PNC's earnings beat expectations, with an EPS of $3.51 versus the consensus of $3.38, driven by better net interest income, lower expenses, and lower provisions.

Growth Potential

PNC has an opportunity to grow more in its new SW markets, taking advantage of a faster growing pie.

Stock Valuation

Analyst recommends a buy rating with a price objective of $216, indicating confidence in the stock's potential to appreciate.

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.

Tariff Impact

The primary risk is a tariff-driven recession that causes higher reserves, especially given 70% C&I loan in mix.

PNC Financial Business Overview & Revenue Model

Company Description

The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. The company's Retail Banking segment offers checking, savings, and money market accounts, as well as certificates of deposit; residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans, and personal and small business loans and lines of credit; and brokerage, insurance, and investment and cash management services. This segment serves consumer and small business customers through a network of branches, ATMs, call centers, and online and mobile banking channels. Its Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, and equipment leases; cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services, and access to online/mobile information management and reporting; foreign exchange, derivatives, fixed income, securities underwriting, loan syndications, and mergers and acquisitions and equity capital markets advisory related services; and commercial loan servicing and technology solutions. It serves mid-sized and large corporations, and government and not-for-profit entities. The company's Asset Management Group segment offers investment and retirement planning, customized investment management, credit and cash management solutions, and trust management and administration services for high net worth and ultra high net worth individuals, and their families; and multi-generational family planning services for ultra high net worth individuals and their families. It also provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement advisory services for institutional clients. The company has 2,591 branches and 9,502 ATMs. The company was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

PNC Financial generates revenue primarily through interest income from its lending activities, including loans and mortgages to consumers and businesses. Additionally, PNC earns non-interest income through fees and commissions from various services such as asset management, investment banking, and transaction services. The company also benefits from income generated through its investment portfolio. Key revenue streams include retail banking, which offers traditional banking services to individual customers, and corporate and institutional banking, which provides financial solutions to larger businesses and government entities. Strategic partnerships and technological investments, such as in digital banking platforms, also contribute to its revenue streams by enhancing customer engagement and operational efficiency.

PNC Financial Financial Statement Overview

Summary

PNC Financial exhibits solid financial health with strong profitability metrics and a stable balance sheet. Effective cost management and cash flow generation underscore their financial stability, although attention to revenue growth and debt levels is advisable for sustaining long-term growth.

Income Statement

PNC Financial demonstrated strong profitability with a stable gross profit margin reflecting consistent performance in TTM (Trailing-Twelve-Months). The net profit margin and EBIT margin remained robust, showcasing efficient cost management. However, revenue growth was slightly negative in the most recent annual report, indicating some challenges in expanding their top line.

Balance Sheet

The balance sheet reveals a sound financial position with a moderate debt-to-equity ratio, indicating balanced leverage. Return on equity is healthy, reflecting effective use of shareholders' funds to generate profit. The equity ratio is stable, showcasing adequate equity financing, though the rising debt levels warrant monitoring.

Cash Flow

PNC's cash flow statement highlights a strong operating cash flow to net income ratio, implying efficient cash generation from operations. Free cash flow growth, however, has been inconsistent, suggesting potential volatility in capital expenditure or cash management strategies.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
33.41B	33.69B	31.90B	23.54B	19.70B	18.26B
	Gross Profit
20.25B	20.01B	20.75B	20.64B	19.99B	13.73B
	EBIT
7.43B	7.24B	6.74B	7.47B	6.99B	3.43B
	EBITDA
7.74B	7.50B	6.95B	8.12B	8.76B	4.93B
	Net Income Common Stockholders
6.04B	5.89B	5.58B	6.04B	5.67B	7.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.55B	55.64B	92.51B	78.52B	213.79B	179.55B
	Total Assets
554.72B	560.04B	561.58B	557.26B	557.19B	466.68B
	Total Debt
60.72B	61.67B	72.74B	58.71B	33.00B	39.29B
	Net Debt
22.32B	15.42B	22.01B	24.35B	-49.25B	-52.90B
	Total Liabilities
498.27B	505.57B	510.44B	511.45B	501.46B	412.64B
	Stockholders Equity
56.41B	54.42B	51.10B	45.77B	55.70B	54.01B
Cash Flow		Free Cash Flow
6.12B	7.88B	10.11B	9.08B	7.21B	4.66B
	Operating Cash Flow
6.12B	7.88B	10.11B	9.08B	7.21B	4.66B
	Investing Cash Flow
3.13B	-3.23B	-6.38B	-13.43B	-2.79B	-51.12B
	Financing Cash Flow
-12.74B	-9.12B	-3.85B	3.38B	-3.43B	48.42B

PNC Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 177.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNC, the sentiment is Positive. The current price of 177.74 is above the 20-day moving average (MA) of 176.17, above the 50-day MA of 166.39, and below the 200-day MA of 182.24, indicating a neutral trend. The MACD of 2.64 indicates Positive momentum. The RSI at 59.06 is Neutral, neither overbought nor oversold. The STOCH value of 80.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNC.

PNC Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNC	79 Outperform	$70.97B	12.67	11.15%	3.57%	3.07%	19.01%
FCNCA	76 Outperform	$24.54B	10.66	11.46%	0.42%	0.34%	-3.13%
MTB	76 Outperform	$29.82B	12.44	9.39%	2.91%	1.20%	1.12%
FITB	73 Outperform	$26.55B	12.64	11.71%	3.72%	5.75%	0.68%
USB	70 Outperform	$70.49B	11.20	11.50%	4.42%	2.19%	34.00%
TFC	67 Neutral	$53.34B	12.00	0.10%	5.11%	-27.31%	―
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%

PNC Financial Corporate Events

PNC Financial Completes $1.25 Billion Senior Notes Offering

On May 13, 2025, PNC Financial Services Group, Inc. successfully completed the public offering and sale of $1.25 billion in Fixed Rate/Floating Rate Senior Notes due in 2031. This issuance, underwritten by major financial institutions and governed by existing indentures, reflects PNC’s strategic financial maneuvers to enhance its capital structure and potentially strengthen its market position.

The most recent analyst rating on (PNC) stock is a Buy with a $184.00 price target. To see the full list of analyst forecasts on PNC Financial stock, see the PNC Stock Forecast page.

PNC Financial Announces COO Transition and Shareholder Meeting

On April 23, 2025, PNC Financial announced a reorganization of certain operating functions, resulting in E William Parsley, III stepping down as Chief Operating Officer effective July 1, 2025, transitioning to an Executive Advisor role until the end of the year. During this transition, Parsley will be eligible for severance benefits and equity awards, contingent on compliance with certain conditions. Additionally, PNC held its annual shareholder meeting on the same day, where all 13 director nominees were elected, PricewaterhouseCoopers LLP was ratified as the independent auditor for 2025, and the executive compensation was approved on an advisory basis.

PNC Financial Reports Strong Q1 2025 Earnings

On April 15, 2025, PNC Financial Services Group held a conference call to discuss its first-quarter earnings for 2025. The company reported solid financial results, including a net income of $1.5 billion and a diluted earnings per share of $3.51. PNC saw growth in customer relationships, increased commercial and industrial loan commitments, and an expanded net interest margin. Despite a slight decline in total loans, the company maintained strong credit quality and increased its capital position, demonstrating resilience in navigating the current economic environment.

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.

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.