PNC Financial (PNC) AI Stock Analysis

• Market Cap: $81.17B
• Dividend Yield: 3.13%
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.94
• Revenue Growth: 1.79%
• EPS Growth: 30.93%
• Country: US
• Employees: 53,686
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 4.35
• Shares Outstanding: 392,158,450
• 10 Day Avg. Volume: 1,578,818
• 30 Day Avg. Volume: 1,781,182
• PEG Ratio: 1.74
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 9.76
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 4.24
• Enterprise Value/Gross Profit: 6.58
• Enterprise Value/Ebitda: 17.25
• 1Y Price Target: $223.16
• Price Target Upside: 5.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $233.00 ▲(10.64% Upside)

PNC Financial's overall score reflects strong earnings performance and strategic growth initiatives, particularly the FirstBank acquisition. While technical indicators suggest bullish momentum, caution is warranted due to overbought signals. The valuation is fair, and the earnings call provided a positive outlook despite some challenges.

Positive Factors

Strategic Expansion

The acquisition of FirstBank expands PNC's presence in key regions, enhancing its capabilities in treasury management and digital banking, which strengthens its competitive position and growth prospects.

Strong Loan and Deposit Growth

Consistent growth in loans and deposits reflects PNC's robust customer base and market position, supporting future revenue generation and financial stability.

Stable Credit Quality

Maintaining low net charge-offs indicates effective risk management and strong credit quality, which supports long-term financial health and profitability.

Negative Factors

Revenue Decline

A significant revenue decline poses challenges to sustaining growth and profitability, potentially impacting long-term financial performance.

Pressure on Net Interest Margin

Decreasing net interest margins can reduce profitability, especially in a competitive banking environment, affecting future earnings potential.

Increased Non-Interest Expense

Rising non-interest expenses can pressure profit margins, requiring effective cost management to maintain financial performance over the long term.

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 generates revenue primarily through interest income from loans, fees from various banking services, and investment income. Key revenue streams include interest earned on commercial and consumer loans, mortgage origination fees, and service charges on deposit accounts. Additionally, PNC benefits from wealth management fees and asset management services. The bank has established significant partnerships, including collaborations with fintech companies, which enhance its service offerings and customer reach. Market factors such as interest rate fluctuations and economic conditions also play a critical role in influencing its overall earnings.

PNC Financial Financial Statement Overview

Summary

PNC Financial exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is stable with a reasonable debt level, although vigilance is required due to potential economic fluctuations. Cash flow generation is robust, supporting the company's operational and strategic initiatives. While there are areas for improvement, such as enhancing cash conversion efficiency, the company's financial position is sound and well-managed.

Income Statement

PNC Financial demonstrates strong revenue growth with a consistent upward trend in total revenue over the years, highlighted by a TTM revenue growth rate of 1.31%. The company maintains healthy profitability margins, with a gross profit margin of 62.74% and a net profit margin of 18.34% in the TTM period. EBIT and EBITDA margins are also robust, indicating efficient operational management. However, the slight decline in gross profit margin from previous periods suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 1.05 in the TTM period, showing improvement from previous years. Return on equity remains strong at 11.08%, indicating effective use of equity capital. The equity ratio is stable, suggesting a balanced capital structure. However, the relatively high level of total debt could pose risks if interest rates rise or if there is an economic downturn.

Cash Flow

PNC Financial's cash flow statement shows positive trends, with a notable 7.93% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is low, which may indicate challenges in converting income into cash. However, the free cash flow to net income ratio of 1.0 suggests that the company is effectively generating cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.80B	33.69B	31.90B	23.54B	19.70B	18.26B
Gross Profit	21.80B	20.01B	20.75B	20.64B	19.99B	13.73B
EBITDA	8.32B	7.50B	6.95B	8.12B	8.76B	4.93B
Net Income	6.53B	5.89B	5.58B	6.04B	5.67B	7.52B
Balance Sheet
Total Assets	568.77B	560.04B	561.58B	557.26B	557.19B	466.68B
Cash, Cash Equivalents and Short-Term Investments	107.17B	55.64B	92.51B	78.52B	213.79B	179.55B
Total Debt	62.34B	61.67B	72.74B	58.71B	33.00B	39.29B
Total Liabilities	509.73B	505.57B	510.44B	511.45B	501.46B	412.64B
Stockholders Equity	58.99B	54.42B	51.10B	45.77B	55.70B	54.01B
Cash Flow
Free Cash Flow	5.43B	7.88B	10.11B	9.08B	7.21B	4.66B
Operating Cash Flow	5.43B	7.88B	10.11B	9.08B	7.21B	4.66B
Investing Cash Flow	-6.37B	-3.23B	10.11B	-60.36B	-2.79B	-51.12B
Financing Cash Flow	-1.37B	-9.12B	-3.85B	3.38B	-3.43B	48.42B

PNC Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 210.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 210.59 is above the 20-day moving average (MA) of 193.39, above the 50-day MA of 188.20, and above the 200-day MA of 181.97, indicating a bullish trend. The MACD of 5.79 indicates Negative momentum. The RSI at 78.42 is Negative, neither overbought nor oversold. The STOCH value of 93.61 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
HBAN	80 Outperform	$27.65B	12.34	10.37%	3.48%	5.73%	38.39%
MTB	76 Outperform	$31.45B	12.61	9.60%	2.80%	-0.81%	20.34%
USB	76 Outperform	$83.26B	12.26	11.69%	3.77%	2.91%	33.77%
FITB	71 Outperform	$31.43B	14.22	11.52%	3.14%	0.15%	11.62%
TFC	71 Outperform	$63.40B	13.29	7.98%	4.17%	22.02%	―
PNC	71 Outperform	$81.17B	13.36	11.31%	3.13%	1.79%	30.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

PNC Financial Corporate Events

PNC Financial Receives Approval for FirstBank Acquisition

On December 12, 2025, PNC Financial Services Group announced it received regulatory approvals to complete its acquisition of FirstBank Holding Company, with the transaction expected to close on January 5, 2026. This acquisition marks a significant milestone for PNC, expanding its presence in the Rocky Mountain region and the Southwest, and integrating FirstBank’s operations into PNC’s national platform, enhancing its treasury management, payments, and digital banking capabilities.

PNC Financial Reports Strong Q3 2025 Results

On October 15, 2025, PNC Financial Services Group, Inc. reported strong financial results for the third quarter of 2025, with a net income of $1.8 billion and earnings per share of $4.35. The company achieved record revenue driven by increased net interest income and fee growth, while maintaining well-controlled expenses. PNC also announced an agreement to acquire FirstBank, which is expected to accelerate growth in strategic markets. The company demonstrated strong credit quality and increased liquidity and capital positions, with significant growth in loans and deposits.