PNC Financial Services Group, Inc. (PNC) stock analysis

P/E below its 5-year median

PNC Financial Services's P/E of 12.8 is below its own 5-year median of 12.8.

P/E above the industry

PNC Financial Services's P/E of 12.8 is above the Commercial Banks median of 12.1.

P/S above the industry

PNC Financial Services's price-to-sales of 3.70 is above the Commercial Banks median of 3.60.

P/B above the industry

PNC Financial Services's price-to-book of 1.45 is above the Commercial Banks median of 1.29.

Trading above fair value

The share price of $232.00 is above our fair value estimate of $219.99.

Margin of safety under 20%

The price is 5.5% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 6.2% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 13.2% over the last twelve months; the Commercial Banks median is 11.3%.

Guidance issued

The latest outlook (second quarter of 2026 Share repurchase activity, Apr 15, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on assets

Needs net income and total assets.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

Well capitalized

Equity is 10.4% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 80.8% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.3% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 59.7% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 5.4% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

PNC Financial Services paid dividends worth 3.2% of the share price over the last twelve months.

Yield below Treasuries

The 3.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; PNC Financial Services yields 3.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 7 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.