PNC Financial (PNC) AI Stock Analysis

• Market Cap: $65.51B
• Dividend Yield: 3.86%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.05
• Revenue Growth: 3.07%
• EPS Growth: 19.01%
• Country: US
• Employees: 53,686
• Sector: Financial
• Sector Strength: 86
• Industry: Banks - Regional
• EPS (TTM): 3.51
• Shares Outstanding: 395,749,570
• 10 Day Avg. Volume: 2,007,344
• 30 Day Avg. Volume: 2,990,960
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.34
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $194.25
• Price Target Upside: 18.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

PNC Financial demonstrates strong financial performance with effective cost management and profitability. The technical analysis suggests short-term challenges due to bearish momentum. Valuation is fair, supported by a reasonable P/E ratio and attractive dividend yield. Positive insights from the earnings call about net income growth and strategic capital return further boost the stock's outlook.

Positive Factors

Earnings

PNC's earnings beat expectations, its guide may remain about best-in-class for 2025 for operating leverage, and it has a runway for growth over the next decade as the nat'l “Main St.” bank.

Financial Performance

PNC well on the way to positive operating leverage and record NII this year with a ~290bp exit-rate NIM in a range of rate scenarios.

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 Risk

Credit losses are expected to drift higher, with stress in the commercial real estate office portfolio, which could apply upward pressure to credit losses.

Earnings Per Share

Higher tax rate, higher share count, and lower PPOP mainly drive the lowering of EPS estimates.

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.

PNC Financial Business Overview & Revenue Model

Company Description

PNC Financial Services Group, Inc. (PNC) is a diversified financial services company headquartered in Pittsburgh, Pennsylvania. It operates across various sectors, including retail banking, corporate and institutional banking, asset management, and residential mortgage banking. The company offers a wide range of services such as checking and savings accounts, personal and business loans, credit cards, wealth management, and investment services. PNC serves a broad customer base, including individuals, small businesses, corporations, and government entities.

How the Company Makes Money

PNC Financial makes money primarily through interest income, non-interest income, and fees. Interest income is generated from loans issued to consumers and businesses, including mortgages, credit cards, and commercial loans. Non-interest income comes from various services such as asset management, investment banking, and brokerage services. Fee income is derived from account maintenance fees, transaction fees, and service charges. PNC also benefits from strategic partnerships and acquisitions that expand its customer base and enhance service offerings. The company invests in technology and digital platforms to improve customer experience and operational efficiency, further contributing to its revenue streams.

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 underpin their financial stability, though 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.77B	21.51B	21.11B	19.21B	16.90B
	Gross Profit
20.77B	21.51B	21.11B	19.21B	16.90B
	EBIT
7.24B	6.74B	7.47B	6.99B	3.43B
	EBITDA
75.54B	6.95B	8.12B	8.76B	4.93B
	Net Income Common Stockholders
5.89B	5.58B	6.04B	5.67B	7.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.90B	61.46B	78.52B	213.79B	179.55B
	Total Assets
560.04B	561.58B	557.26B	558.45B	466.68B
	Total Debt
61.67B	72.74B	58.71B	33.00B	39.29B
	Net Debt
54.77B	22.01B	24.35B	-49.25B	-52.90B
	Total Liabilities
505.57B	510.44B	511.45B	30.78B	37.20B
	Stockholders Equity
54.42B	51.10B	45.77B	55.70B	54.01B
Cash Flow		Free Cash Flow
7.88B	10.11B	9.08B	7.21B	4.66B
	Operating Cash Flow
7.88B	10.11B	9.08B	7.21B	4.66B
	Investing Cash Flow
-3.23B	-6.38B	-13.43B	-2.79B	-51.12B
	Financing Cash Flow
-9.12B	-3.85B	3.38B	-3.43B	48.42B

PNC Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 163.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNC, the sentiment is Neutral. The current price of 163.53 is above the 20-day moving average (MA) of 156.80, below the 50-day MA of 166.85, and below the 200-day MA of 181.53, indicating a neutral trend. The MACD of -0.65 indicates Negative momentum. The RSI at 52.91 is Neutral, neither overbought nor oversold. The STOCH value of 82.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PNC.

PNC Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNC	77 Outperform	$65.51B	11.69	11.15%	3.86%	3.07%	19.01%
FCNCA	76 Outperform	$23.83B	10.56	11.46%	0.39%	0.33%	-3.13%
FITB	73 Outperform	$24.47B	11.84	11.71%	3.92%	6.12%	0.68%
MTB	72 Outperform	$27.70B	11.75	9.39%	3.08%	1.41%	1.12%
USB	71 Outperform	$63.85B	10.26	11.51%	4.80%	2.75%	34.00%
Sector *	64 Neutral	$12.52B	9.82	7.95%	16985.69%	12.70%	-4.60%
TFC	55 Neutral	$51.69B	11.63	0.10%	5.29%	-27.31%	―

PNC Financial Corporate Events

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.

Spark’s Take on PNC Stock

According to Spark, TipRanks’ AI Analyst, PNC is a Outperform.

PNC Financial’s stock score of 70 reflects a solid financial foundation with strong profitability and effective capital management. The positive earnings call insights and attractive valuation are slightly offset by bearish technical indicators and uncertainties in cash flow and loan growth. Overall, the company’s disciplined approach positions it well amidst market challenges.

To see Spark’s full report on PNC stock, click here.

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.

Spark’s Take on PNC Stock

According to Spark, TipRanks’ AI Analyst, PNC is a Outperform.

PNC Financial shows a solid financial foundation with strong profitability and effective management, as highlighted by its earnings call. However, challenges in cash flow and loan growth, along with bearish technical indicators, weigh down the overall stock score. The recent executive appointment adds a positive outlook for future strategic growth.

To see Spark’s full report on PNC stock, click here.

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.

Spark’s Take on PNC Stock

According to Spark, TipRanks’ AI Analyst, PNC is a Outperform.

PNC Financial’s stock score reflects its strong financial performance and positive earnings call insights, countered by technical analysis indicators suggesting short-term challenges. The valuation is fair, but uncertainties in cash flow and loan growth present risks.

To see Spark’s full report on PNC stock, click here.

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.

PNC Financial Enhances Executive Compensation Plan

On February 14, 2025, PNC Financial’s Human Resources Committee approved modifications to the restricted and performance share unit awards for certain officers under the 2016 Incentive Award Plan. These changes ensure that, upon a qualifying termination without cause or for good reason, the awards will continue to vest and be paid out as if the officer remained employed throughout the performance or service period, potentially enhancing job security and aligning executive interests with long-term company performance.