NYSE:PNC
$50.98
(2/9 3:16PM)
+0.5%
| Open | $51.49 |
Mkt Cap | $23.4 Billion |
| High | $52.08 |
52Wk High | $58.94 |
| Low | $50.46 |
52Wk Low | $16.20 |
| Volume | 7.7 Million |
Avg Vol 10D | 14.9 Million |
Ockham's Rating/Recommendation Summary
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PNC Revenue
As a value investing shop, we are interested in seeing how PNC's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 2.73x and the low end of the range at 1.66x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for PNC of 1.16x is well below its normal historic Price to Sales levels. At a price of $51.79, PNC is 48% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
PNC Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of PNC, Ockham views their current Cash Earnings as significantly above its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from PNC. For example, PNC's Cash Earnings ratio per share has fluctuated between 12.76 and 24.13 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where PNC is with respect to prior business periods.
Just recall that when a stock's price, as in the cases of PNC, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for PNC's Price to Cash Earnings ratio is 73% below the current ratio of 31.97. That is not an insignificant amount, and diminishes our overall outlook on PNC. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.
PNC Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for PNC to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for PNC is $0.40 producing a current dividend yield of 0.77%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from PNC against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from PNC over previous years was 6.67% while the lowest dividend yield was 0.68%. It is never a good sign for a company to pay significantly lower dividends, in this case 79.05% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
The Latest News for PNC Was Just on The Call
The latest news on The Call in regards to PNC came through on RazorWire recently.
A significant sell off of $4.40 is underway right now, so investors in PNC should pay close attention to the news. We noticed recently that in comparison to all other stocks we analyze in the news; PNC has received less coverage from the financial media in business television and blogs. Please have a look at our report for our reasons to upgrade the stock to Fairly Valued on our report dated Saturday, January 30, 2010. PNC Financial Services Group receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… Joining me right now, bill stone, chief investment strategist at PNC weight management and research financial strategies, good to see you guys. > > good morning. > > …”
Delevoping Economies and Where PNC Fits In on Street Signs
There is no doubt that the emerging markets are where the growth is right now. The latest news mention of PNC on Street Signs was in relation to emerging markets.
While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; PNC has received less coverage from the financial media in business television and blogs. Please have a look at our report for our reasons to upgrade the stock to Fairly Valued on our report dated Saturday, January 30, 2010. PNC Financial Services Group receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… I happen to like PNC. That secondary was well placed. I thought PNC's first quarter was really good. People didn't understand why the stock didn't run and decided maybe it ... …”
PNC Financial Services Group News Appeared on Fox Business
News has broken via the television and viral blogs regarding PNC, so investors should take an interest in learning what was said.
PNC Financial Services Group receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Please have a look at our report for our reasons to upgrade the stock to Fairly Valued on our report dated Saturday, January 30, 2010. We noticed recently that in comparison to all other stocks we analyze in the news; PNC has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… We will watch bank of new york and PNC with their deal. Back to you. Cheryl: nicole, stay there. Let's bring in shibani. Microsofts, intel, major names today. …”
Imus In The Morning: What is Happening with PNC Financial Services Group Now?
As always, the latest news on PNC is available to Ockham clients through RazorWire, and it was mentioned recently on Imus In The Morning.
PNC Financial Services Group receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; PNC has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. Please have a look at our report for our reasons to upgrade the stock to Fairly Valued on our report dated Saturday, January 30, 2010.
“… 3 billion dollars for a unite of PNC financial services and the unit offers processing services for financial advisors, fund managers and brokers and PNC has reportedly been ... …”
Holding PNC Stock? See What Is Being Discussed on Imus In The Morning
PNC Financial Services Group is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Imus In The Morning.
PNC Financial Services Group receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; PNC has received less coverage from the financial media in business television and blogs. Please have a look at our report for our reasons to upgrade the stock to Fairly Valued on our report dated Saturday, January 30, 2010. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… 3 billion dollars for a unit of PNC financial services. The unite offing processing services for financial advisors, fund managers and brokers. …”
More News Than Normal on PNC from Seeking Alpha Wall St Breakfast
We are observing a lot of attention being paid to PNC in the news, so if you hold the stock you may want to take a look at what is going on.
The crowd at The Motley Fool does not like PNC and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on PNC. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, PNC has been less covered in the news compared to the rest of our universe of stocks. The improving valuation of PNC Financial Services Group has prompted us to upgrade this stock as of Saturday, January 30, 2010.
“… BNY Mellon/PNC strike $2. 3B deal. Bank of New York Mellon (BK) inked a $2. 3B all-cash deal to acquire PNC's (PNC) Global Investment Servicing unit, which provides back-office ... …”
Notice a Discussion Covering PNC Appeared Recently in the Financial News
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on PNC from Imus In The Morning.
The crowd at The Motley Fool does not like PNC and believes that it will Underperform. The improving valuation of PNC Financial Services Group has prompted us to upgrade this stock as of Saturday, January 30, 2010. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on PNC. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, PNC has been less covered in the news compared to the rest of our universe of stocks.
“… 3 billion for a unit of PNC financial services and offers processing service for financial advisors and fund managers and brokers and PNC has reportedly been shopping the unit for ... …”
Notice a Discussion Covering PNC Appeared Recently in the Financial News
The latest news on Squawk Box in regards to PNC came through on RazorWire recently.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, PNC has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like PNC and believes that it will Underperform. The improving valuation of PNC Financial Services Group has prompted us to upgrade this stock as of Saturday, January 30, 2010. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on PNC.
“… But bank of new york mellon is buying a unit of PNC. > > yes. The accounting and custody for fund managers -- > > this would be in the faber report and he would have ... …”
Check Out Fast Money and News on PNC
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to PNC Financial Services Group.
The crowd at The Motley Fool does not like PNC and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, PNC has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying PNC Financial Services Group at the current price level because according to our methodology it is not supported by the fundamentals.
“… what I thought was most interesting was back in new york buying a piece of PNC or maybe going after all of PNC, it was one of few that really had a great day. …”
Fox Business Brings News Related to PNC Financial Services Group
The latest news from Fox Business on PNC is available through Ockham's news analytics platform RazorWire.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that PNC Financial Services Group has been talked about more than normal recently. At Ockham, we are not advising buying PNC Financial Services Group at the current price level because according to our methodology it is not supported by the fundamentals. The crowd at The Motley Fool does not like PNC and believes that it will Underperform.
“… PNC sierra this is a chipmaker, saw profit up 72%. Sandisk disappointed with its results, that stock taking a huge hit down almost 10% on that news. Cheryl? …”