PNC Investment Analysis Report & Stock Research, PNC Financial Services Group

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PNC Financial Services Group (PNC)

PNC Stock Report

2-Year Price History

Recent Price
(7/2 4:15PM) -3.7%
$36.89
52-Week Price
$16.20 - $87.99
Market Capitalization
$16.4 Billion
Dividend Yield
1.10%
Most Recent Dividend
$2.61

Ockham's Rating

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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 2.57x and the low end of the range at 1.75x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for PNC of 1.55x is well below its normal historic Price to Sales levels. At a price of $36.89, PNC is 29% 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

Looking at PNC specifically in their Cash Earnings capabilities, Ockham views PNC as 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 12.52 and 19.51 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.

So when we look at PNC, what does this slightly higher than historical level of Price to Cash Earnings mean? From the Ockham perspective, it basically represents that the market has a higher stock price attributed to this level of Cash Earnings than compared to normal. So while we view this as a negative from a valuation perspective, it certainly doesn't mean that PNC couldn't rapidly improve in its value from other factors or a decline in stock price. The current Price to Cash Earnings level of 16.92 is 5% above the historical norm as calculated at Ockham. So a decline in stock price, or more hopefully, an increase in PNC's Cash Earnings levels would improve our outlook for the stock.

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 1.08%. 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 0.45%. It is never a good sign for a company to pay significantly lower dividends, in this case 69.66% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.

Peer Comparison

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PNC Financial Services Group Industry Grouping

(7/2/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding PNC) 15.39 5.99 » 48.81 1.96 0.86 » 4.64 27.55% 13.71%
*10 year range does not include current year values
State Street Corp. STT $20.1 Billion $46.23 11.64 6.65 » 37.19 1.65 0.93 » 3.74 18.79% 13.48%
ICICI Bank Ltd. ADS IBN $16.6 Billion $29.85 19.51 6.27 » 72.15 2.13 0.52 » 6.82 45.00% 8.44%
PNC Financial Services Group PNC $16.4 Billion $36.89 16.92 7.00 » 58.00 1.55 1.39 » 3.47 10.15% 13.80%
National Bank of Greece S.A. ADS NBG $12.5 Billion $5.05 6.16 3.66 » 64.37 1.36 0.46 » 4.26 24.85% 16.04%
HDFC Bank Ltd ADS HDB $12.0 Billion $101.96 36.68 12.13 » 52.32 3.35 1.89 » 5.52 43.94% 14.60%
KB Financial Group, Inc. -Shs Sponsored ADR Repr 1 Share KB $11.9 Billion $35.24 2.95 1.23 » 18.01 1.31 0.50 » 2.86 5.18% 16.01%
>
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The latest TV Media Discussion

9:36:12 AM PNC $38.97 PNC Financial Services Group
5 days ago (06/29)
“…Be concerned with. They're concerned about the bottom line and working through some of the troubled loans perhaps and digesting national city, which was a very troubled regional bank as you'll recall last fall and PNC swooped them guys, we'll leave it there. Thank you very much. Count down the seven early movers and contributor charles pape has that for us. >> good morning, alexis. …” …more details…
9:33:16 AM PNC $39.51 PNC Financial Services Group
5 days ago (06/29)
“…Isn't that bad of a performance in my opinion. Alexis: yeah, absolutely. Peter cook, performance trust advisors, great having you on once again. Let's open it up to round four. Wall street journal reports that PNC financial service ises in no rush to pay back tarp even though it probably could right is this had a smart play? And does it actually change the stigma associated with those tarp funds? …” …more details…
2:37:40 PM PNC $39.61 PNC Financial Services Group
8 days ago (06/25)
“…More days like this if they're long the market. Triple digit gains are nice. Here to guide you toward positive returns no matter what the indices are doing, bill stone, senior vice president and chief investment strategist at PNC wealth management with david stepherson, portfolio at hardesty capital management. Welcome. Bill, beginning with the macro picture and all you see …” …more details…
6:45:50 PM PNC $39.48 PNC Financial Services Group
Mad Money
15 days ago (06/18)
“…It when it was a two. I don't have conviction. Let's go to jim in illinois. Jim? This is jim from chicago. Boo-yah, jim! >> boo-yah. >> hey, how about PNC, jim? >> that stock has come down too much. I want to own PNC right here. They have a better balance I think that's a mistake. I like the bank group as it comes down. PNC is a winner. Let's go to -- what an insult. Let's go to brian in oregon. Brian. >> a big boo-yah from sunny southern oregon, jim. …” …more details…
11:06:08 AM PNC $37.89 PNC Financial Services Group
16 days ago (06/17)
“…Years off last year's humongous oil shock. Could this mean deflation is actually still a threat? >> so joining me is sue hoffman, chief economist, PNC financial, kay plants, founder of the plants company, and steve liesman. Steve, start us off. Tell us what this means for a federal policy in your view. >> I don't know why we're going …” …more details…
9:31:23 AM PNC $39.20 PNC Financial Services Group
17 days ago (06/17)
“…Down side and you'll see we're we'll take a look at some of the names, we just saw capital one on the list of more than 20 we know that u.S. Bancorp, wells fargo, PNC financial, some of the names on the list, but at the same time, I can tell you that u.S. Bankruptcy getting an upgrade from deutche bank, to buy from a hold. …” …more details…
12:27:52 PM PNC $39.91 PNC Financial Services Group
17 days ago (06/16)
“…Perhaps a signal to, I don't know, get back into the markets. Let's talk about it. Bring in shaffer senior equity analyst richard sparks and PNC senior economist robert dye. Sean o'hara with us. S & p can't get any steam going. What's going on? >> I think the market is taking a well-deserved pause at this …” …more details…
9:31:17 AM PNC $40.98 PNC Financial Services Group
18 days ago (06/16)
“…That people may have. That being said we're coming off yesterday's pullback and four weeks of gains for the dow jones so let's take a look how the banks are faring, dick bove coming out and talking about PNC financial and you may remember what we heard about the black rock barclays deal and PNC may be a britishry. Very different picture than yesterday when we saw down arrows and take a look at the commodities here. This is where we're seeing oil and gold higher as we have a …” …more details…
2:03:09 PM PNC $41.09 PNC Financial Services Group
21 days ago (06/12)
“…Large e money manager in the look at how the banks are bank of america, one of the name that was halted in the group of 240 stocks. PNC was another. Morgan stanley was on the last as well. A mixed bag for the banks. The home bhilders are dropping again. You may remember yesterday home builders were dropping because people start out with the rising mortgage rate. …” …more details…
1:29:30 PM PNC $41.12 PNC Financial Services Group
21 days ago (06/12)
“…That's my disclaimer. The one thing is it is essentially owned by three it's owned partially by PNC and now with t deal by barkley's. >> I was going to make the point there was controversy about …” …more details…
12:20:33 PM PNC $41.17 PNC Financial Services Group
21 days ago (06/12)
“…I just got it in my hand. So there you go. This is really the ticker I love the ticker challenge. These are some of the names we continue to watch here. PNC preferred. Yes, PNC bank. That was another one. Williams companies getting some indications up there as well. These are the names. …” …more details…
9:17:55 AM PNC $42.43 PNC Financial Services Group
22 days ago (06/12)
“…Now, remember, of course, barclays will owe $19.9 million. B of a through merrill lynch under very significant stake getting diluted down. PNC, a big stakeholder. The big deal was the merrill deal where they gave merrill 49.9 for ultimately ownership of merrill's asset management b of a still holds that large you've got PNC, merrill lynch, we'll see about valuation, as I said. 8.3 times as one analyst estimated on the call. Didn't really get a straight number as to whether that's the …” …more details…
8:46:40 AM PNC $42.43 PNC Financial Services Group
22 days ago (06/12)
“…See how they fare today. Those will be a few of the as I spoke to dick bove, he was talking about the benefits that PNC bank may find from the black rock deal. So we will watch PNC as well because he and I were discussing the fact they may see some money because of this and so PNC may be a mover as well to the upside so right now we have u.S. Stock index futures pointing to this lower open, but after six attempts I think everybody is waiting for the dow to move into …” …more details…
4:02:34 PM PNC $42.10 PNC Financial Services Group
23 days ago (06/10)
“…Rates, kind of an improving today rapidly rising rates threaten the housing recovery. Higher rates also hurt the financials, and we could see here as early on some of the big names like morgan stanley, PNC, zions corp. Were all -- they all ended down three, four, five, or six percent. Real estate companies are rolling over loans. Investment trusts, higher rates …” …more details…
3:32:31 PM PNC $41.46 PNC Financial Services Group
23 days ago (06/10)
“…A chunk of blackrock. As part of this deal. Apparently, I heard they're going to own a 20% stake. Bank of america owns a chunk of blackrock. PNC owns a chunk of blackrock. It's kind of interesting that all these firms that are kind of competing with each other own a piece of this money management I wonder how that all plays out in management. …” …more details…
9:48:45 AM PNC $43.70 PNC Financial Services Group
25 days ago (06/09)
“…>> well, our bias, mark, has been toward the largest tap, b of a, wells fargo, as well as PNC, from a capital perspective, these large banks have raised a ton of capital and they're actually in a better capital position than many of their mid or small cap piers, the small cap banks have exposure to areas …” …more details…
8:39:52 AM PNC $43.70 PNC Financial Services Group
29 days ago (06/05)
“…Going to kick in just as the recession seems to be coming to a halt and is ready to come up. I think it's been well played. Alexis: john, I was speaking to the chairman and ceo of PNC and the other day he said alexis one of the greatest stimulus in the economy has been what the fed has done because those have been able to refinance on average has saved about $300 on monthly …” …more details…
12:37:30 PM PNC $43.17 PNC Financial Services Group
29 days ago (06/04)
“…We've got positive news on the jobs front but the retailers still suffering. So let's bring in a panel of experts. We're joined by bill stone, chief investment strategiest for PNC wealth management and banking solutions. Bill, let's start with you. We've been talking all about these interest rates going higher, and it's because of the fact that the chinese were …” …more details…
7:15:09 AM PNC $41.87 PNC Financial Services Group
6/3/2009 7:15 AM
“…America's price target by $12, cut its 2009 loss per-share outlook to $0.15 a share. This io of PNC financial services says his group may recover from credit losses and earn profits that tree recession …” …more details…
3:03:05 PM PNC $44.08 PNC Financial Services Group
6/1/2009 3:03 PM
“…Stocks that were up like goldman didn't seem to have a lot of energy behind them. The last 20 minutes they moved to the downside. Some of the regional banks like key corp or PNC have been weak for the last several hours. Never had a lot of energy today. Never seemed like they were participating in the rally we saw in the broader markets here. That's what people are talking about late in the day. …” …more details…
6:35:39 PM PNC $45.55 PNC Financial Services Group
Mad Money
5/29/2009 6:35 PM
“…As a matter of fact, I don't know adam. Really like in terms of sports. But joe's got to take half of it off the table and let the rest this is the time to take -- I happen to like PNC, the old I think you take half off and literally let the rest run because joe is in clover and you know what? The pirates are awful. …” …more details…
6:34:53 PM PNC $45.55 PNC Financial Services Group
Mad Money
5/29/2009 6:34 PM
“…Let me give you a pirates boo-yah. They're really dynamite. >> caller: that's low, jim. >> you were right in my house go ahead. >> caller: my question is I bought PNC stock at 18.50 -- >> nice. >> caller: bought more at 22. >> caller: and have since doubled my position at 29. Now, it's hit the mid 50s, and …” …more details…
5:29:41 PM PNC $43.60 PNC Financial Services Group
Fast Money
5/28/2009 5:29 PM
“…Looking historically, there's not a strong relationship between bank share valuation and the yield curve. But the second point is there is not enough lending for the yield curve to member. Last week, the ceo of PNC, when they gave their conference call, talked about how much not just banks aren't willing to lend, but there's not consumer demand for lending, so the steep yield …” …more details…
3:46:18 PM PNC $43.23 PNC Financial Services Group
5/28/2009 3:46 PM
“…It down at the end of the year we have that behind it. We can take better cost and operating costs down in the next 18 months the economy comes back, it will be good for PNC >> talk to us about your capital -- after the stress test it was revealed PNC may need $600 million in capital. You completed a sale of 15 tell me what's next on the capital raising front? …” …more details…
3:45:37 PM PNC $43.21 PNC Financial Services Group
5/28/2009 3:45 PM
“…The next couple of quarters. We think it will be the slowing pace. >> how do you see your business changing to continue to react to the realities that we all face? >> well, we have some real levers at PNC. We acquired national citi at the end of the year. We look at the next 18 to 24 months, we'll be taking over $1.2 billion worth of operating expense out of the company. …” …more details…
3:42:36 PM PNC $43.40 PNC Financial Services Group
5/28/2009 3:42 PM
“…The market is up 105, but where are we in the banking slowdown? Where are we in the economic slowdown? Dark clouds on the horizon. Forecast from PNC financial ceo james roar, he says the unemployment rate in the united states will likely reach 10% and troubled commercial loans are just beginning. Confidence about the bank's ability to weather the storm. …” …more details…
3:39:06 PM PNC $43.38 PNC Financial Services Group
5/28/2009 3:39 PM
“…Airlines are lower across the whatever it is, the dow industrials have come off of a rally of about 140 or so on the upside to off about 90 points >>> the ceo of PNC financial says he's skittish about the economic outlook. We'll get his take on the that's coming up next. …” …more details…
3:16:00 PM PNC $43.02 PNC Financial Services Group
5/28/2009 3:16 PM
“…Is funding some of the hottest names in technology. He'll tell us about the ipo climate and which names could be the next big thing. >>> later on, one-on-one with the ceo of PNC financial. We'll find out how his company is weathering the recent storm in the banking sector. >>> after the bell, quarterly results from dell. Numbers and instant investor …” …more details…
3:03:22 PM PNC $42.89 PNC Financial Services Group
5/28/2009 3:03 PM
“…Take a look at the names inside the financials. Bank of america and citi, at least, among the best performers over the last month or so. Jpmorgan chase rising today along with key corp. PNC financial. Maybe a blip on the map today, the home builders. Home sales report was fairly 12% of all homeowners with a mortgage are delinquent. Foreclosure rates for prime …” …more details…
12:06:02 PM PNC $43.50 PNC Financial Services Group
5/27/2009 12:06 PM
“…The fdic showing problem banks up 40% in the prior quarter. Bank of america raising $46 million in capital. Jpmorgan is flat. PNC financial raising $6 million in common equity. Consumer discretionary stocks are big winners yesterday on the back of the consumer confidence number. …” …more details…
10:34:34 AM PNC $42.84 PNC Financial Services Group
5/27/2009 10:34 AM
“…Talking about that and the top at the market offerings. There they are. Bank of america, the biggest by 13 1/2 billion. Fifth third, suntrust, PNC is done, remember, $633 million. Completed its at the market but, you know, listen, the story here is a few weeks after the stress test, awful lot of …” …more details…
9:18:48 AM PNC $44.59 PNC Financial Services Group
5/27/2009 9:18 AM
“…Maybe also some future sales or future -- who knows, dealings. But they hope to give back to t.A.R.P. $7.6 billion as soon as, they say, as appropriate. We'll keep an eye on PNC shares as well this morning. Mark, back to you. >> thank you, david. >>> mcdonald's plans to open 700 mccafe stores in europe this year. …” …more details…
9:18:20 AM PNC $44.59 PNC Financial Services Group
5/27/2009 9:18 AM
“…As for the stress test, bank of america was asked to raise $39.9 they still have asset sales they can plan. Real quickly, let's update you on PNC as well. It's at the market offering has con k4r50uded. Sold $15 million shares. Raised over $600 million. Will expect to increase the …” …more details…
5:12:52 PM PNC $43.18 PNC Financial Services Group
Fast Money
5/26/2009 5:12 PM
“…Today, something we did not see. So it looks like the demand from foreign central banks appears to be a little closer in the curve. Obviously, that benefits the banks, but also, when you look at jpmorgan, wells fargo, bank of america, and also PNC financial, they are the and karen, you probably know this better than I do. Of this accounting rule that allows you to take the income a lot quicker on a lot of these bad loans that they acquired in …” …more details…
10:07:11 AM PNC $41.85 PNC Financial Services Group
5/26/2009 10:07 AM
“…We've seen j.P. Morgan higher up about 3% as if the other names thrown around that may benefit from this accounting rule change, wells fargo, bank of america and PNC. I threw citigroup in, it's a dow doing well today. More than 2% and some of the oil names worth watching, there's a lot of the talk has been about oil names. …” …more details…
9:31:24 AM PNC $41.41 PNC Financial Services Group
5/26/2009 9:31 AM
“…A loan that they gave. You see j.P. Morgan, that's one name that's been tossed around with the accounting rules and you see that up arrows, and wells fargo, bank of america, PNC financial and there you go up there and wells fargo. At least for now flip-flopping. And some of the names upgrades this morning, a slew of them in …” …more details…
8:49:43 AM PNC $40.88 PNC Financial Services Group
5/26/2009 8:49 AM
“…Billings ramsey, southwestern we will be looking at the banks just mentioned j.P. Morgan and the windfall they could be getting here because of new accounting rules. There are some other names that could be benefitting as well, wells fargo, bank of america PNC financial we will be watching some of those names because of that accounting rule change that could give those banks a boost. Also bank of america actually raised to market perform over at fbr. Fbr has been busy this morning …” …more details…
8:47:49 AM PNC $40.88 PNC Financial Services Group
5/26/2009 8:47 AM
“…Earlier this year it was outbid on indymac bank corp. J.P. Morgan could turn bad loans it bought from washington mutual into 29 billion dollars. This would be thanks to an accounting rule. Bloomberg.Com says wells fargo bank of america and PNC could also benefit from taking over home lenders the deals could provide the banks with combined 56 billion dollars in revenue. They are using purchase accounting rules which encourage …” …more details…
7:18:47 AM PNC $40.88 PNC Financial Services Group
5/26/2009 7:18 AM
“…Indymac bank corp. >>> j.P. Morgan could turn bad loans it bought from washington mutual into 29 billion dollars. This is thanks to an accounting rule. Bloomberg.Com says wells fargo bank of america and PNC could also benefit from taking also benefit from taking o a combined 56 billion they are using purchase accounting rules which encourage …” …more details…
9:56:02 AM PNC $40.88 PNC Financial Services Group
5/21/2009 9:56 AM
“…Stress tested that needs to we haven't heard from. Now we have. Going to be another one of those at the market offerings. The likes of which we saw from bank of america, PNC, key corp., now fifth third. An offer to exchange its series to preferred for enter common, I …” …more details…
View All PNC Financial Services Group News

Key Fundamentals

PNC - PNC Financial Services Group Fundamentals
Price (7/2 4:15PM) $36.89
Volume (7/2 4:15PM) 5.4 Million
Last Close Price $38.31
10 Day Average Volume 5.8 Million
13 Week Price Range $30.33 - $53.22
52 Week Price Range $16.20 - $87.99
LTM Revenue $12.1 Billion
 
Shares Outstanding (12/2008) 445.3 Million
Market Capitalization $16.4 Billion
Shares Held By Institutions 341.4 Million
Institutional Holders 814
% Shares Held By Institutions 76.70%
Earnings Per Share (EPS) $2.46
P/E Ratio 15.30
Book Value Per Share $59.46
 
Gross Margin n/a%
Annual Dividend 0.40
Dividend Yield 1.10%
Beta 1.24
Fiscal Year Ends December

About PNC Financial Services Group

PNC Financial Services Group is considered to operate in the Financial sector. They specifically operate in the Money Center Banks business segment contained within the Banking industry.

A financial services company, engaged in retail banking, corporate and institutional banking, asset management and global fund processing services.

NASDAQ 1796.52

-49.2  -2.67%
S&P; 500 896.42

-26.91  -2.91%
^DIA 82.99

-2.04  -2.4%