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Pinnacle Financial Partners (PNFP)
NASDAQ:PNFP

Pinnacle Financial Partners (PNFP) AI Stock Analysis

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Pinnacle Financial Partners

(NASDAQ:PNFP)

Rating:75Outperform
Price Target:
$121.00
â–²(2.69%Upside)
Pinnacle Financial Partners exhibits strong financial performance and positive earnings call insights, which are the most significant factors driving the score. The valuation is fair, and technical indicators suggest no immediate trend changes. The company's positive growth trajectory, strategic recruitment, and robust earnings call sentiment contribute positively to the overall stock score.
Positive Factors
Earnings Performance
EPS of $1.86 topped estimates by 18 cents and consensus by 9 cents reflecting better revenues.
Loan Growth
The next 2-3 year outlook of above peer lender additions is expected to continue supporting notably above peer loan growth trend.
Negative Factors
Expense Growth
Expenses growth is likely to stay elevated, with the incentive compensation accrual up to 90% and likely more upcoming RM hires.
Revenue Guidance
The bottom line shows a revenue beat largely mitigated by weaker guidance and full valuation.

Pinnacle Financial Partners (PNFP) vs. SPDR S&P 500 ETF (SPY)

Pinnacle Financial Partners Business Overview & Revenue Model

Company DescriptionPinnacle Financial Partners, Inc., together with its subsidiaries, operates as the bank holding company for Pinnacle Bank that provides various banking products and services in the United States. The company accepts various deposits, including savings, checking, noninterest-bearing and interest-bearing checking, money market, and certificate of deposit accounts. Its loan products include commercial loans, such as equipment and working capital loans; commercial real estate loans comprising investment properties and business loans secured by real estate; and loans to individuals consisting of secured and unsecured installment and term loans, lines of credit, residential first mortgage loans, and home equity loans and lines of credit, as well as provides credit cards for consumers and businesses. The company also offers various securities and other financial products; investment products; brokerage and investment advisory programs; and fiduciary and investment management services, such as personal trust, endowments, foundations, individual retirement accounts, pensions, and custody. In addition, it provides insurance agency services primarily in the property and casualty area; merger and acquisition advisory services; and private debt, equity and mezzanine, and other middle-market advisory services. Further, the company offers treasury management, telephone and online banking, mobile banking, debit cards, direct deposit and remote deposit capture, mobile deposit option, automated teller machine, and cash management services. It serves individuals, small to medium-sized businesses, and professional entities. As of December 31, 2020, the company operated 114 offices, including 48 in Tennessee, 36 in North Carolina, 20 in South Carolina, 9 in Virginia, and 1 in Georgia. Pinnacle Financial Partners, Inc. was incorporated in 2000 and is headquartered in Nashville, Tennessee.
How the Company Makes MoneyPinnacle Financial Partners generates revenue primarily through interest income from loans and investment securities, as well as non-interest income from fees and service charges. The company offers a variety of lending products, including commercial and industrial loans, real estate loans, and consumer loans, which contribute significantly to its interest income. Non-interest income is derived from services such as wealth management, mortgage banking, and treasury management. Pinnacle also benefits from strategic partnerships and a robust network of financial advisors, which enhance its ability to cross-sell products and deepen client relationships, thereby boosting its overall earnings.

Pinnacle Financial Partners Earnings Call Summary

Earnings Call Date:Apr 14, 2025
(Q1-2025)
|
% Change Since: 27.80%|
Next Earnings Date:Jul 15, 2025
Earnings Call Sentiment Positive
Pinnacle Financial Partners demonstrated strong financial performance with significant revenue, EPS, and deposit growth, supported by successful recruitment and BHG's robust quarter. Despite economic uncertainties and a slight increase in NPAs, the company maintains a positive outlook for the year.
Q1-2025 Updates
Positive Updates
Strong Revenue and EPS Growth
Pinnacle Financial Partners reported a 14.2% revenue growth and 24.2% adjusted EPS growth for Q1 2025 over Q1 2024, continuing a strong growth trajectory.
Record Recruitment of Revenue Producers
The firm set a new record for recruiting highly experienced revenue producers, with 37 brought in during Q1 2025, following 33 in Q1 2024, aiding substantial growth.
Deposit Growth Success
Deposits increased by $1.6 billion in Q1 2025, following a $1.9 billion increase in Q4 2024, driven by investments in deposit verticals and new associate contributions.
Positive Credit and BHG Performance
Net charge-offs dropped to 16 basis points in Q1 2025 from 24 basis points in Q4 2024. BHG had a strong quarter with fee revenues over $20 million, up from $12.1 million in Q4 2024.
Negative Updates
NPA Increase Due to Downgraded Loan
Non-performing assets ticked up due to a downgraded $35 million apartment loan in Atlanta, though an anticipated loss is already accounted for in the reserve.
Economic Uncertainty and Loan Demand
There is significant uncertainty in the broader economy, affecting client confidence and pipeline development, though Pinnacle remains optimistic about achieving growth targets.
Company Guidance
During the Pinnacle Financial Partners Q1 2025 earnings call, CEO Terry Turner highlighted key metrics demonstrating robust performance despite economic volatility. Revenue growth continued its double-digit trajectory, with a 14.2% increase from Q1 2024 to Q1 2025, and a compound annual growth rate (CAGR) of 10.1% over the past four years. Adjusted earnings per share (EPS) rose by 24.2% year-over-year, and tangible book value per share increased by 10.6% year-over-year and 10.3% over four years. Turner attributed this growth to the firm's strategy of recruiting top bankers who consolidate their business at Pinnacle, ensuring consistent client and balance sheet growth. CFO Harold Carpenter emphasized that loan growth was 7.3% annualized quarter-over-quarter, supported by strong recruitment and new market penetration. The bank maintained its guidance for 8% to 11% loan growth and 7% to 10% deposit growth for 2025, with a net interest margin (NIM) expected to remain stable. BHG, a subsidiary, also exceeded expectations, leading to a revised earnings growth estimate of 20% for 2025. Pinnacle's unique recruitment model and focus on high-quality growth underpin its strong performance and optimistic outlook.

Pinnacle Financial Partners Financial Statement Overview

Summary
Pinnacle Financial Partners demonstrates strong financial health across key metrics, with solid profitability and efficient cash flow management. The company's conservative leverage and stable equity position reduce financial risk, although slight declines in some ratios indicate areas for improvement. The overall financial performance is commendable, positioning the company well within the regional banking sector.
Income Statement
78
Positive
Pinnacle Financial Partners shows a solid financial performance with a healthy Gross Profit Margin of 50.83% in TTM (Trailing-Twelve-Months). The Net Profit Margin stands at 17.17%, indicating good profitability. Revenue growth has been steady, with a 15.61% increase from 2022 to 2023 and a modest 0.27% growth in TTM. The EBIT and EBITDA margins of 20.98% and 24.57% respectively in TTM indicate strong operational efficiency, although EBIT has slightly decreased compared to previous years.
Balance Sheet
75
Positive
The company's balance sheet is robust with an improving Equity Ratio of 12.06% in TTM, showing a stable financial structure. The Debt-to-Equity Ratio of 0.39 indicates a conservative leverage position, reducing financial risk. Return on Equity is strong at 7.51%, showcasing effective equity utilization. While the overall leverage is low, the slight decrease in Stockholders' Equity from prior periods requires monitoring.
Cash Flow
72
Positive
Cash flow generation is healthy, with Free Cash Flow of $584 million in TTM. However, Free Cash Flow has decreased compared to the prior period, suggesting potential fluctuations in cash generation. The Operating Cash Flow to Net Income Ratio is favorable at 1.39, indicating efficient conversion of income to cash. The Free Cash Flow to Net Income Ratio of 1.19 reflects good cash profitability, though it has declined slightly from previous years.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.86B2.85B2.47B1.55B1.22B1.20B
Gross Profit1.45B1.40B1.29B1.24B1.10B796.05M
EBITDA703.11M679.79M792.70M759.79M705.16M416.56M
Net Income491.52M475.06M562.15M560.74M527.32M312.32M
Balance Sheet
Total Assets54.25B52.59B47.96B41.97B38.47B34.93B
Cash, Cash Equivalents and Short-Term Investments6.28B8.92B6.46B4.70B8.93B7.31B
Total Debt2.58B2.53B2.77B1.08B1.46B1.89B
Total Liabilities47.71B46.16B41.92B36.45B33.16B30.03B
Stockholders Equity6.54B6.43B6.04B5.52B5.31B4.90B
Cash Flow
Free Cash Flow584.29M807.29M400.15M540.58M634.27M386.99M
Operating Cash Flow685.33M904.31M478.40M604.92M657.44M426.75M
Investing Cash Flow-4.30B-3.67B-4.60B-6.68B-3.61B-3.57B
Financing Cash Flow4.79B3.97B5.18B3.16B3.10B6.58B

Pinnacle Financial Partners Technical Analysis

Technical Analysis Sentiment
Positive
Last Price117.83
Price Trends
50DMA
106.76
Positive
100DMA
106.11
Positive
200DMA
109.41
Positive
Market Momentum
MACD
2.37
Negative
RSI
72.48
Negative
STOCH
93.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNFP, the sentiment is Positive. The current price of 117.83 is above the 20-day moving average (MA) of 108.00, above the 50-day MA of 106.76, and above the 200-day MA of 109.41, indicating a bullish trend. The MACD of 2.37 indicates Negative momentum. The RSI at 72.48 is Negative, neither overbought nor oversold. The STOCH value of 93.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNFP.

Pinnacle Financial Partners Risk Analysis

Pinnacle Financial Partners disclosed 52 risk factors in its most recent earnings report. Pinnacle Financial Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Pinnacle Financial Partners Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$8.83B13.0411.58%1.52%7.10%4.65%
CFCFR
78
Outperform
$8.76B14.9615.26%2.94%5.99%7.75%
75
Outperform
$9.14B19.057.77%0.81%8.08%-11.31%
WAWAL
74
Outperform
$9.40B11.6912.36%1.79%11.01%6.63%
CMCMA
72
Outperform
$8.38B12.0911.11%4.45%-9.81%5.22%
72
Outperform
$8.38B13.878.33%1.45%20.70%5.69%
58
Neutral
$12.97B5.12-2.61%5.35%5.83%-54.44%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PNFP
Pinnacle Financial Partners
117.83
41.19
53.74%
CMA
Comerica
63.78
16.09
33.74%
CFR
Cullen/Frost Bankers
136.19
41.41
43.69%
UMBF
UMB Financial
110.35
30.13
37.56%
WTFC
Wintrust Financial
131.92
37.02
39.01%
WAL
Western Alliance
85.10
25.05
41.72%

Pinnacle Financial Partners Corporate Events

Business Operations and Strategy
Pinnacle Financial Partners Approves 2025 Cash Incentive Plan
Neutral
Feb 28, 2025

On February 25, 2025, Pinnacle Financial Partners’ Board of Directors approved the 2025 Annual Cash Incentive Plan, which allows employees to earn cash incentives based on performance metrics such as earnings per share and total revenue goals. The plan, which applies to all salaried and hourly employees, offers payouts ranging from 10% to 125% of base salaries, with adjustments possible based on individual performance evaluations and the discretion of the committee.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025