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 A-. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, growth in earnings per share and attractive valuation levels. 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 1.8%. Since the same quarter one year prior, revenues slightly increased by 3.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Banks industry average. The net income increased by 25.8% when compared to the same quarter one year prior, rising from $805.00 million to $1,013.00 million.
- The gross profit margin for PNC FINANCIAL SVCS GROUP INC is currently very high, coming in at 89.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.25% significantly outperformed against the industry average.
- PNC FINANCIAL SVCS GROUP INC has improved earnings per share by 22.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PNC FINANCIAL SVCS GROUP INC reported lower earnings of $5.30 versus $5.64 in the prior year. This year, the market expects an improvement in earnings ($6.63 versus $5.30).
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 $36.3 billion and is part of the financial sector and banking industry. The company has a P/E ratio of 12.00, below the S&P 500 P/E ratio of 18.00. Shares are up 16.8% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.
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