PNC Bank Profitability Analysis

PNC
 Stock
  

USD 170.79  2.71  1.56%   

For PNC Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PNC Bank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PNC Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PNC Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PNC Bank over time as well as its relative position and ranking within its peers. Please check Your Equity Center.
  
As of August 19, 2022, Price to Sales Ratio is expected to decline to 3.91. In addition to that, Return on Sales is expected to decline to 0.29. PNC Bank Net Income to Non Controlling Interests is projected to increase significantly based on the last few years of reporting. The past year's Net Income to Non Controlling Interests was at 73.8 Million. The current year Preferred Dividends Income Statement Impact is expected to grow to about 275.6 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (257.3 M).

PNC Bank Revenues

17.84 Billion

Is PNC Bank's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PNC Bank. If investors know PNC Bank will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PNC Bank listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.39
Market Capitalization
71.2 B
Quarterly Revenue Growth YOY
0.16
Return On Assets
0.0105
Return On Equity
0.11
The market value of PNC Bank is measured differently than its book value, which is the value of PNC Bank that is recorded on the company's balance sheet. Investors also form their own opinion of PNC Bank's value that differs from its market value or its book value, called intrinsic value, which is PNC Bank's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PNC Bank's market value can be influenced by many factors that don't directly affect PNC Bank's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PNC Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine PNC Bank value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PNC Bank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

PNC Bank Price to Book vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining PNC Bank's current stock value. Our valuation model uses many indicators to compare PNC Bank value to that of its competitors to determine the firm's financial worth.
PNC Bank is rated top company in current valuation category among related companies. It is considered to be number one stock in price to book category among related companies . The ratio of Current Valuation to Price to Book for PNC Bank is about  66,601,398,601 . The current year Price to Book Value is expected to grow to 1.59. Comparative valuation analysis is a catch-all model that can be used if you cannot value PNC Bank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for PNC Bank's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the PNC Bank's earnings, one of the primary drivers of an investment's value.

PNC Bank Current Valuation vs. Competition

PNC Bank is rated top company in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Banks—Regional industry is at this time estimated at about 1.34 Trillion. PNC Bank holds roughly 95.24 Billion in current valuation claiming about 7% of stocks in Banks—Regional industry.

PNC Bank Price to Book vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
PNC Bank 
Enterprise Value 
 = 
Market Cap + Debt 
-  
Cash 
95.24 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
PNC Bank 
P/B 
 = 
MV Per Share 
BV Per Share 
1.43 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

PNC Bank Price to Book Comparison

PNC Bank is currently under evaluation in price to book category among related companies.

PNC Bank Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in PNC Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PNC Bank will eventually generate negative long term returns. The profitability progress is the general direction of PNC Bank's change in net profit over the period of time. It can combine multiple indicators of PNC Bank, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.

PNC Bank Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on PNC Bank. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of PNC Bank position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the PNC Bank's important profitability drivers and their relationship over time.

PNC Bank Profitability Trends

PNC Bank profitability trend refers to the progression of profit or loss within a business. An upward trend means that PNC Bank's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is PNC Bank's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

PNC Bank Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between PNC Bank different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards PNC Bank in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down PNC Bank's future profitability.

Use PNC Bank in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PNC Bank position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PNC Bank will appreciate offsetting losses from the drop in the long position's value.

PNC Bank Pair Trading

PNC Bank Pair Trading Analysis

The ability to find closely correlated positions to PNC Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PNC Bank when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PNC Bank - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PNC Bank to buy it.
The correlation of PNC Bank is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PNC Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PNC Bank moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PNC Bank can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your PNC Bank position

In addition to having PNC Bank in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Exotic
Exotic Theme
Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic theme has 40 constituents at this time.
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Please check Your Equity Center. Note that the PNC Bank information on this page should be used as a complementary analysis to other PNC Bank's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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To fully project PNC Bank's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PNC Bank at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include PNC Bank's income statement, its balance sheet, and the statement of cash flows.
Potential PNC Bank investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although PNC Bank investors may work on each financial statement separately, they are all related. The changes in PNC Bank's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on PNC Bank's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.