Pinnacle Financial Partners (PNFP) AI Stock Analysis

• Market Cap: $9.14B
• Dividend Yield: 0.81%
• Average Volume (3M): 422.65K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.42
• Revenue Growth: 8.08%
• EPS Growth: -11.31%
• Country: US
• Employees: 3,595
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 1.90
• Shares Outstanding: 77,556,100
• 10 Day Avg. Volume: 612,291
• 30 Day Avg. Volume: 422,655
• PEG Ratio: 4.94
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.93
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: 2.67
• 1Y Price Target: $121.45
• Price Target Upside: 3.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 75 Outperform
• Price Target: $121.00 ▲(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 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 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.86B	2.85B	2.47B	1.55B	1.22B	1.20B
Gross Profit	1.45B	1.40B	1.29B	1.24B	1.10B	796.05M
EBITDA	703.11M	679.79M	792.70M	759.79M	705.16M	416.56M
Net Income	491.52M	475.06M	562.15M	560.74M	527.32M	312.32M
Balance Sheet
Total Assets	54.25B	52.59B	47.96B	41.97B	38.47B	34.93B
Cash, Cash Equivalents and Short-Term Investments	6.28B	8.92B	6.46B	4.70B	8.93B	7.31B
Total Debt	2.58B	2.53B	2.77B	1.08B	1.46B	1.89B
Total Liabilities	47.71B	46.16B	41.92B	36.45B	33.16B	30.03B
Stockholders Equity	6.54B	6.43B	6.04B	5.52B	5.31B	4.90B
Cash Flow
Free Cash Flow	584.29M	807.29M	400.15M	540.58M	634.27M	386.99M
Operating Cash Flow	685.33M	904.31M	478.40M	604.92M	657.44M	426.75M
Investing Cash Flow	-4.30B	-3.67B	-4.60B	-6.68B	-3.61B	-3.57B
Financing Cash Flow	4.79B	3.97B	5.18B	3.16B	3.10B	6.58B

Pinnacle Financial Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 117.83
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTFC	82 Outperform	$8.83B	13.04	11.58%	1.52%	7.10%	4.65%
CFR	78 Outperform	$8.76B	14.96	15.26%	2.94%	5.99%	7.75%
PNFP	75 Outperform	$9.14B	19.05	7.77%	0.81%	8.08%	-11.31%
WAL	74 Outperform	$9.40B	11.69	12.36%	1.79%	11.01%	6.63%
CMA	72 Outperform	$8.38B	12.09	11.11%	4.45%	-9.81%	5.22%
UMBF	72 Outperform	$8.38B	13.87	8.33%	1.45%	20.70%	5.69%
Sector *	58 Neutral	$12.97B	5.12	-2.61%	5.35%	5.83%	-54.44%

Pinnacle Financial Partners Corporate Events

Pinnacle Financial Partners Approves 2025 Cash Incentive Plan

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.