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, attractive valuation levels, expanding profit margins, good cash flow from operations and increase in net income. 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:
- PNC's revenue growth has slightly outpaced the industry average of 11.4%. 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 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. Along with this, the net profit margin of 21.54% is above that of the industry average.
- 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 -18.48%.
- 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.
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 $32.7 billion and is part of the financial sector and banking industry. The company has a P/E ratio of 11.7, below the S&P 500 P/E ratio of 17.7. Shares are up 6.1% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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