Pinnacle Financial Partners (PNFP) AI Stock Analysis

• Market Cap: $7.51B
• Dividend Yield: 0.99%
• Average Volume (3M): 878.23K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.21
• Revenue Growth: 7.76%
• EPS Growth: 49.85%
• Country: US
• Employees: 3,595
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.27
• Shares Outstanding: 77,575,455
• 10 Day Avg. Volume: 787,181
• 30 Day Avg. Volume: 878,230
• PEG Ratio: -1.11
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 3.06
• P/FCF Ratio: 10.83
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 3.39
• Enterprise Value/Gross Profit: 5.38
• Enterprise Value/Ebitda: 11.39
• 1Y Price Target: $109.83
• Price Target Upside: 9.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $107.00 ▲(7.06% Upside)

Pinnacle Financial Partners scores well due to strong financial performance and positive corporate events, particularly the strategic merger with Synovus Financial Corp. However, technical indicators suggest caution due to potential overbought conditions. The valuation is fair, supporting a balanced investment outlook.

Positive Factors

Strategic Merger

The merger with Synovus Financial Corp. enhances Pinnacle's market positioning and operational capabilities, creating a larger, more competitive entity.

Cash Flow Management

Robust cash flow management indicates strong cash generation capabilities, supporting long-term financial stability and investment capacity.

Balanced Leverage

A moderate debt-to-equity ratio suggests a stable capital structure, providing financial flexibility and reducing risk.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can impact long-term profitability and market competitiveness, necessitating strategic adjustments.

Decreased Profit Margins

Decreased profit margins may indicate rising costs or pricing pressures, affecting the company's ability to sustain profitability.

Legal Challenges in Merger

Legal challenges can delay the merger process and increase costs, potentially impacting the strategic benefits of the merger.

Pinnacle Financial Partners Business Overview & Revenue Model

Company Description

Pinnacle 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 Money

Pinnacle Financial Partners generates revenue through several key streams. Primarily, the company earns interest income from loans provided to consumers and businesses, which constitutes a significant portion of its overall revenue. Additionally, it generates non-interest income through fees associated with banking services, wealth management, and investment products. The company also benefits from service charges on deposit accounts and transaction fees. Partnerships with other financial institutions and businesses enhance its service offerings and market reach, contributing to its earnings. Overall, Pinnacle's diversified revenue model, combining interest and non-interest income, supports its financial performance.

Pinnacle Financial Partners Financial Statement Overview

Summary

Pinnacle Financial Partners exhibits strong financial health with robust cash flow and profitability metrics, despite a recent decline in revenue growth. The company maintains a balanced leverage position and continues to generate solid returns for shareholders. However, the decrease in net profit margin and negative revenue growth rate highlight areas for potential improvement.

Income Statement

Pinnacle Financial Partners shows a strong gross profit margin of 63.06% TTM, indicating efficient cost management. However, the net profit margin has decreased to 22.10% TTM from 40.05% in 2022, reflecting potential challenges in maintaining profitability. The revenue growth rate is negative at -6.82% TTM, suggesting a decline in sales compared to the previous period. Despite these challenges, the EBIT and EBITDA margins remain healthy at 26.87% and 29.79% TTM, respectively.

Balance Sheet

The company's debt-to-equity ratio is 0.37 TTM, which is moderate and indicates a balanced approach to leveraging. Return on equity is 9.42% TTM, showing a reasonable return for shareholders. The equity ratio stands at 12.25% TTM, suggesting a stable capital structure, although there is room for improvement in asset management.

Cash Flow

Pinnacle Financial Partners demonstrates strong cash flow management with a free cash flow growth rate of 45.06% TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is high at 17.77 TTM, reflecting efficient conversion of income to cash. The free cash flow to net income ratio is 0.89 TTM, showing a solid ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.82B	2.85B	2.47B	1.55B	1.22B	1.20B
Gross Profit	1.78B	1.40B	1.29B	1.24B	1.10B	796.05M
EBITDA	840.66M	679.79M	792.70M	759.79M	705.16M	416.56M
Net Income	623.57M	475.06M	562.15M	560.74M	527.32M	312.32M
Balance Sheet
Total Assets	55.96B	52.59B	47.96B	41.97B	38.47B	34.93B
Cash, Cash Equivalents and Short-Term Investments	9.68B	8.92B	6.46B	4.70B	8.93B	7.31B
Total Debt	2.53B	2.53B	2.77B	1.08B	1.46B	1.89B
Total Liabilities	49.11B	46.16B	41.92B	36.45B	33.16B	30.03B
Stockholders Equity	6.86B	6.43B	6.04B	5.52B	5.31B	4.90B
Cash Flow
Free Cash Flow	1.12B	807.29M	400.15M	540.58M	634.27M	386.99M
Operating Cash Flow	1.14B	904.31M	478.40M	604.92M	657.44M	426.75M
Investing Cash Flow	-5.12B	-3.67B	-4.60B	-6.68B	-3.61B	-3.57B
Financing Cash Flow	4.41B	3.97B	5.18B	3.16B	3.10B	6.58B

Pinnacle Financial Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 99.94
• 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 PNFP, the sentiment is Positive. The current price of 99.94 is above the 20-day moving average (MA) of 91.65, above the 50-day MA of 89.45, and above the 200-day MA of 98.66, indicating a bullish trend. The MACD of 2.51 indicates Negative momentum. The RSI at 74.75 is Negative, neither overbought nor oversold. The STOCH value of 87.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNFP.

Pinnacle Financial Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFR	77 Outperform	$8.10B	13.03	14.68%	3.04%	2.85%	20.57%
SNV	74 Outperform	$7.08B	9.52	14.32%	3.07%	8.90%	142.83%
PNFP	73 Outperform	$7.51B	12.29	9.44%	0.99%	7.76%	49.85%
BOKF	73 Outperform	$7.32B	13.78	9.13%	2.02%	-2.81%	14.96%
CBSH	73 Outperform	$7.24B	13.07	15.45%	2.01%	12.63%	14.25%
CADE	72 Outperform	$7.58B	14.98	9.10%	2.49%	14.58%	-19.97%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Pinnacle Financial Partners Corporate Events

Pinnacle Financial Partners Announces Post-Merger Board

On December 1, 2025, Pinnacle Financial Partners and Synovus Financial Corp. announced the anticipated board of directors for their merged entity, Pinnacle Financial Partners, Inc., following their merger agreement on July 24, 2025. The merger, expected to close on January 1, 2026, will see the new board composed of eight directors from Pinnacle and seven from Synovus, with M. Terry Turner serving as non-executive chair and Tim E. Bentsen as lead independent director. This strategic merger aims to leverage the combined expertise of both firms to create a high-growth regional bank, enhancing their industry positioning and operational capabilities.

Pinnacle Financial Partners Merger Receives Regulatory Approval

On July 24, 2025, Pinnacle Financial Partners and Synovus Financial Corp. entered into a merger agreement to form a new entity, Steel Newco Inc., which will operate as Pinnacle Financial Partners, Inc. The merger, which includes the integration of Pinnacle Bank and Synovus Bank, received necessary regulatory approvals by November 26, 2025, with the transaction expected to close on January 1, 2026. This merger is significant for Pinnacle’s operations and market positioning, as it expands its banking capabilities and presence in the southeastern U.S., potentially impacting stakeholders positively by creating a larger, more competitive financial entity.

Pinnacle Financial Partners Merger with Synovus Approved

On November 6, 2025, Pinnacle Financial Partners and Synovus Financial Corp. shareholders approved the proposed merger of the two firms into Steel Newco Inc., a newly formed Georgia corporation. The merger aims to create a leading regional bank with significant growth potential in revenue and earnings per share. The merger is expected to close in the first quarter of 2026, pending regulatory approvals and other customary closing conditions. The integration management teams from both firms are working on combining organizational structures and systems to ensure a smooth transition.

Pinnacle Financial Faces Legal Challenges in Merger

On July 24, 2025, Pinnacle Financial Partners, Inc. entered into a merger agreement with Synovus Financial Corp. and Steel Newco Inc., aiming to merge into a single entity named Pinnacle Financial Partners, Inc. The merger, approved by the boards of all involved companies, will result in Pinnacle Bank becoming a member of the Federal Reserve System and merging with Synovus Bank. However, the merger faces legal challenges, with lawsuits filed alleging disclosure deficiencies in the joint proxy statement/prospectus. Despite these challenges, Pinnacle and Synovus are supplementing disclosures to avoid delays and minimize litigation risks.