Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 29.9%. Since the same quarter one year prior, revenues rose by 11.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 13.1% when compared to the same quarter one year prior, going from $830.00 million to $939.00 million.
- Net operating cash flow has significantly increased by 105.90% to $1,812.00 million when compared to the same quarter last year. In addition, PNC FINANCIAL SVCS GROUP INC has also vastly surpassed the industry average cash flow growth rate of -7.30%.
- The gross profit margin for PNC FINANCIAL SVCS GROUP INC is currently very high, coming in at 88.60%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 21.50% trails the industry average.
- PNC FINANCIAL SVCS GROUP INC has improved earnings per share by 5.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, PNC FINANCIAL SVCS GROUP INC increased its bottom line by earning $5.64 versus $4.99 in the prior year. For the next year, the market is expecting a contraction of 0.3% in earnings ($5.62 versus $5.64).
The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States and internationally. The company's Retail Banking segment provides deposit, lending, brokerage, investment management, and cash management services. PNC Financial Services Group has a market cap of $29.04 billion and is part of the financial sector and banking industry. The company has a P/E ratio of 11.2, below the S&P 500 P/E ratio of 17.7. Shares are down 5% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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