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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.39
PNC's Cash to Debt is ranked higher than
62% of the 1274 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.10 vs. PNC: 0.39 )
PNC' s 10-Year Cash to Debt Range
Min: 0.1   Max: 0.45
Current: 0.39

0.1
0.45
Equity to Asset 0.13
PNC's Equity to Asset is ranked higher than
85% of the 1589 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.10 vs. PNC: 0.13 )
PNC' s 10-Year Equity to Asset Range
Min: 0.07   Max: 0.13
Current: 0.13

0.07
0.13
Interest Coverage 6.47
PNC's Interest Coverage is ranked higher than
95% of the 1350 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.10 vs. PNC: 6.47 )
PNC' s 10-Year Interest Coverage Range
Min: 0.21   Max: 6.47
Current: 6.47

0.21
6.47
F-Score: 4
Z-Score: 0.30
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) 34.77
PNC's Operating margin (%) is ranked higher than
80% of the 1455 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 30.05 vs. PNC: 34.77 )
PNC' s 10-Year Operating margin (%) Range
Min: 12.15   Max: 46.72
Current: 34.77

12.15
46.72
Net-margin (%) 26.36
PNC's Net-margin (%) is ranked higher than
83% of the 1563 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 20.45 vs. PNC: 26.36 )
PNC' s 10-Year Net-margin (%) Range
Min: 7.57   Max: 30.27
Current: 26.36

7.57
30.27
ROE (%) 9.95
PNC's ROE (%) is ranked higher than
81% of the 1547 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 7.96 vs. PNC: 9.95 )
PNC' s 10-Year ROE (%) Range
Min: 3.47   Max: 24.05
Current: 9.95

3.47
24.05
ROA (%) 1.32
PNC's ROA (%) is ranked higher than
91% of the 1556 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.74 vs. PNC: 1.32 )
PNC' s 10-Year ROA (%) Range
Min: 0.3   Max: 2.55
Current: 1.32

0.3
2.55
ROC (Joel Greenblatt) (%) 99.11
PNC's ROC (Joel Greenblatt) (%) is ranked higher than
79% of the 1430 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 78.30 vs. PNC: 99.11 )
PNC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 37.3   Max: 315.9
Current: 99.11

37.3
315.9
Revenue Growth (%) 1.00
PNC's Revenue Growth (%) is ranked higher than
72% of the 1281 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.00 vs. PNC: 1.00 )
PNC' s 10-Year Revenue Growth (%) Range
Min: -6.3   Max: 18.6
Current: 1

-6.3
18.6
EBITDA Growth (%) 8.60
PNC's EBITDA Growth (%) is ranked higher than
74% of the 1123 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 7.20 vs. PNC: 8.60 )
PNC' s 10-Year EBITDA Growth (%) Range
Min: -22.8   Max: 35.2
Current: 8.6

-22.8
35.2
EPS Growth (%) 14.10
PNC's EPS Growth (%) is ranked higher than
78% of the 1105 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 9.50 vs. PNC: 14.10 )
PNC' s 10-Year EPS Growth (%) Range
Min: -29.3   Max: 49.5
Current: 14.1

-29.3
49.5
» PNC's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

PNC Guru Trades in Q2 2013

Paul Tudor Jones 2,900 sh (New)
Steven Cohen 37,066 sh (+7153.62%)
James Barrow 21,382,797 sh (+4.67%)
Charles Brandes 1,093,628 sh (+3.18%)
Richard Pzena 3,568,028 sh (+2.95%)
Mario Gabelli 995,307 sh (+2.79%)
John Buckingham 55,488 sh (+1.39%)
Jeremy Grantham 138,298 sh (+0.34%)
Brian Rogers 5,000,000 sh (unchged)
Tom Russo 26,551 sh (unchged)
Dodge & Cox 30,200 sh (unchged)
Arnold Schneider Sold Out
HOTCHKIS & WILEY Sold Out
Ronald Muhlenkamp Sold Out
RS Investment Management 288,300 sh (-0.79%)
Richard Snow 46,960 sh (-5.82%)
David Dreman 33,753 sh (-9.85%)
Diamond Hill Capital 2,238,677 sh (-10.36%)
Ray Dalio 6,400 sh (-12.33%)
Ken Fisher 10,386 sh (-13.32%)
Pioneer Investments 4,128,991 sh (-16.02%)
» More
Q3 2013

PNC Guru Trades in Q3 2013

Joel Greenblatt 2,911 sh (New)
John Rogers 8,264 sh (New)
Ray Dalio 13,800 sh (+115.63%)
RS Investment Management 411,800 sh (+42.84%)
Jeremy Grantham 161,198 sh (+16.56%)
Mario Gabelli 1,025,303 sh (+3.01%)
John Buckingham 56,200 sh (+1.28%)
James Barrow 21,583,688 sh (+0.94%)
Dodge & Cox 30,200 sh (unchged)
Brian Rogers 5,000,000 sh (unchged)
Paul Tudor Jones Sold Out
Richard Pzena 3,565,214 sh (-0.08%)
Richard Snow 46,600 sh (-0.77%)
Charles Brandes 1,079,979 sh (-1.25%)
Pioneer Investments 4,059,823 sh (-1.68%)
David Dreman 32,996 sh (-2.24%)
Tom Russo 25,644 sh (-3.42%)
Diamond Hill Capital 2,158,110 sh (-3.6%)
Ken Fisher 6,061 sh (-41.64%)
Steven Cohen 12,045 sh (-67.5%)
» More
Q4 2013

PNC Guru Trades in Q4 2013

Paul Tudor Jones 13,319 sh (New)
John Rogers 46,557 sh (+463.37%)
Joel Greenblatt 3,947 sh (+35.59%)
Jeremy Grantham 216,136 sh (+34.08%)
Steven Cohen 15,198 sh (+26.18%)
Richard Snow 48,550 sh (+4.18%)
Diamond Hill Capital 2,247,979 sh (+4.16%)
Mario Gabelli 1,064,707 sh (+3.84%)
James Barrow 22,164,387 sh (+2.69%)
John Buckingham 56,448 sh (+0.44%)
Richard Pzena 3,580,168 sh (+0.42%)
Brian Rogers 5,000,000 sh (unchged)
Tom Russo 25,644 sh (unchged)
Ray Dalio Sold Out
Dodge & Cox 30,100 sh (-0.33%)
RS Investment Management 404,900 sh (-1.68%)
Ken Fisher 5,684 sh (-6.22%)
Charles Brandes 1,003,988 sh (-7.04%)
Pioneer Investments 3,747,321 sh (-7.7%)
David Dreman 23,551 sh (-28.62%)
» More
Q1 2014

PNC Guru Trades in Q1 2014

Brian Rogers 5,000,000 sh (unchged)
» More
» Details

Insider Trades

Latest Guru Trades with PNC

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
David Dreman 2013-12-31 Reduce -28.62%0.06%$70.87 - $78.2 $ 83.7712%23551
Ray Dalio 2013-12-31 Sold Out 0.01%$70.87 - $78.2 $ 83.7712%0
Joel Greenblatt 2013-12-31 Add 35.59%$70.87 - $78.2 $ 83.7712%3947
Joel Greenblatt 2013-09-30 New Buy0.01%$72.24 - $77.65 $ 83.7712%2911
Ray Dalio 2013-09-30 Add 115.63%$72.24 - $77.65 $ 83.7712%13800
Ronald Muhlenkamp 2013-06-30 Sold Out 1.4%$63.75 - $73.63 $ 83.7721%0
James Barrow 2013-06-30 Add 4.67%0.12%$63.75 - $73.63 $ 83.7721%21382797
George Soros 2013-03-31 Sold Out 0.26%$58.31 - $66.8 $ 83.7733%0
Mario Gabelli 2013-03-31 Add 60.47%0.15%$58.31 - $66.8 $ 83.7733%968313
Ray Dalio 2013-03-31 Reduce -79.14%0.02%$58.31 - $66.8 $ 83.7733%7300
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Preferred stocks of PNC Financial Services Group Inc

SymbolPriceYieldDescription
PNCYL952.502.90
PNCFO570.000.30USD 1.80 Cum.Conv.Pfd Shs Series -B-
PNCPRQ0.006.09Deposit Shs Repr 1/4000th Non-Cum Perp Pfd Shs Series -Q-
PNCPRP0.005.81Perpetual Preferred Share class-P
PNCXL1101.006.101/100th Non-Cum Perp Pfd Shs Series -O-

Guru Investment Theses on PNC Financial Services Group Inc

Third Avenue Management Comments on PNC Warrants - Jul 05, 2013

To illustrate, here is our base case for the PNC warrants (PNC): The Fund purchased the warrants for approximately $11 each. Each warrant provides the Fund with the right to purchase one share of PNC Common stock at $67.33 per share at any time through December 31, 2018. PNC's book value is currently $68 per share, which we conservatively estimate will increase by 8% per year (net of dividends paid). At April 30, 2013, PNC Common traded at $67.88 per share (1 times book value). Simply compounding book value at 8% per year would result in a book value of about $105 per share at the end of 2018. We assume that PNC Common will continue to trade at1timesbookvalue,or$105pershare at expiration, resulting in each warrant having an intrinsic value of approximately $38 ($105 minus $67.33). Our base case would result in a 25% IRR over the life of the investment, or a 3.5 times multiple on the original $11 invested.

We believe our base case assumptions are fairly conservative in that we do not project increasing ROE or the common stock trading in excess of 1 times book value. It seems likely that if banking profits improve (higher ROE), stock prices could trade at 1.5 to 2 times book value, which would result in an exceptional return on the warrants. For example, if book value per share is $125 and PNC Common trades at 1.5 times book value at the end of 2018, each warrant would have an intrinsic value of about $120, or nearly an 11 times multiple on the original $11 investment (41% IRR over 5+ years).

The potential returns on TARP Warrants appear very compelling, but we also bear in mind that they could ultimately prove worthless should the banks record significant impairments, the ROEs fall further or the price-to-book multiples decline. However, we view the prospects of a "zero" to be quite remote given (i) the starting point of depressed ROEs and low price-to-book multiples and (ii) our focus on Wells Fargo and PNC, both of which are well-capitalized and well-managed banks with strong franchises that should allow them to continue compounding book value per share over the life of the warrants. Nevertheless, we have decided to limit the Fund's investment in TARP Warrants to 2% of the Fund at cost. While small today, they have the potential to grow into much larger positions over the next few years. We are always happy when a 2% position appreciates to become a top-ten holding in the Fund.

From Third Avenue Management's semi-annual 2013 letter.


Check out Third Avenue Management latest stock trades

Top Ranked Articles about PNC Financial Services Group Inc

Brian Rogers' Roundtable Year-End Report Card
Every year Barron’s gets its Roundtable team together and they discuss stock picks and the status of the economy in general.  Guru Brian Rogers (Trades, Portfolio) is a member of Barron’s Roundtable team, and the following stocks are his stock picks for 2013 and how they ended up doing for the year.  Read more...
Weekly Insider Sells Highlight: ARMK, PNC, FB, GOOG, MRVL
According to GuruFocus Insider Data, the largest insider sells during the past week were: ARAMARK Holdings Corp, PNC Financial Services Group Inc, Facebook Inc, Google Inc, and Marvell Technology Group Ltd. Read more...
Third Avenue Management Comments on PNC Warrants
To illustrate, here is our base case for the PNC warrants (PNC): The Fund purchased the warrants for approximately $11 each. Each warrant provides the Fund with the right to purchase one share of PNC Common stock at $67.33 per share at any time through December 31, 2018. PNC's book value is currently $68 per share, which we conservatively estimate will increase by 8% per year (net of dividends paid). At April 30, 2013, PNC Common traded at $67.88 per share (1 times book value). Simply compounding book value at 8% per year would result in a book value of about $105 per share at the end of 2018. We assume that PNC Common will continue to trade at1timesbookvalue,or$105pershare at expiration, resulting in each warrant having an intrinsic value of approximately $38 ($105 minus $67.33). Our base case would result in a 25% IRR over the life of the investment, or a 3.5 times multiple on the original $11 invested. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 11.30
PNC's P/E(ttm) is ranked higher than
80% of the 1452 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 13.70 vs. PNC: 11.30 )
PNC' s 10-Year P/E(ttm) Range
Min: 6.32   Max: 38.06
Current: 11.3

6.32
38.06
P/B 1.05
PNC's P/B is ranked higher than
69% of the 1477 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.10 vs. PNC: 1.05 )
PNC' s 10-Year P/B Range
Min: 0.31   Max: 2.45
Current: 1.05

0.31
2.45
P/S 2.78
PNC's P/S is ranked higher than
58% of the 1640 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 2.88 vs. PNC: 2.78 )
PNC' s 10-Year P/S Range
Min: 0.87   Max: 3.92
Current: 2.78

0.87
3.92
PFCF 8.03
PNC's PFCF is ranked higher than
57% of the 940 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 6.90 vs. PNC: 8.03 )
PNC' s 10-Year PFCF Range
Min: 0.87   Max: 35.02
Current: 8.03

0.87
35.02
EV-to-EBIT 15.55
PNC's EV-to-EBIT is ranked higher than
64% of the 1410 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 15.82 vs. PNC: 15.55 )
PNC' s 10-Year EV-to-EBIT Range
Min: 6.4   Max: 76.6
Current: 15.55

6.4
76.6
PEG 1.81
PNC's PEG is ranked higher than
55% of the 849 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.02 vs. PNC: 1.81 )
PNC' s 10-Year PEG Range
Min: 0.3   Max: 58.57
Current: 1.81

0.3
58.57
Shiller P/E 15.57
PNC's Shiller P/E is ranked higher than
73% of the 841 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 17.04 vs. PNC: 15.57 )
PNC' s 10-Year Shiller P/E Range
Min: 3.7   Max: 18.09
Current: 15.57

3.7
18.09

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.20
PNC's Dividend Yield is ranked lower than
53% of the 1315 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 2.40 vs. PNC: 2.20 )
PNC' s 10-Year Dividend Yield Range
Min: 0.57   Max: 14.26
Current: 2.2

0.57
14.26
Dividend Payout 0.25
PNC's Dividend Payout is ranked higher than
76% of the 1131 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.32 vs. PNC: 0.25 )
PNC' s 10-Year Dividend Payout Range
Min: 0.07   Max: 1.52
Current: 0.25

0.07
1.52
Dividend growth (3y) 62.60
PNC's Dividend growth (3y) is ranked higher than
96% of the 810 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 4.20 vs. PNC: 62.60 )
PNC' s 10-Year Dividend growth (3y) Range
Min: -45.3   Max: 62.6
Current: 62.6

-45.3
62.6
Yield on cost (5-Year) 7.77
PNC's Yield on cost (5-Year) is ranked higher than
91% of the 1328 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 2.62 vs. PNC: 7.77 )
PNC' s 10-Year Yield on cost (5-Year) Range
Min: 2.01   Max: 50.35
Current: 7.77

2.01
50.35
Share Buyback Rate -0.80
PNC's Share Buyback Rate is ranked higher than
78% of the 1172 Companies
in the Global Banks - Regional - US industry.

( Industry Median: -2.60 vs. PNC: -0.80 )
PNC' s 10-Year Share Buyback Rate Range
Min: 4.6   Max: -15.8
Current: -0.8

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.44
PNC's Price/Tangible Book is ranked higher than
61% of the 1362 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.24 vs. PNC: 1.44 )
PNC' s 10-Year Price/Tangible Book Range
Min: 1.09   Max: 5.12
Current: 1.44

1.09
5.12
Price/DCF (Projected) 0.48
PNC's Price/DCF (Projected) is ranked higher than
80% of the 904 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.60 vs. PNC: 0.48 )
PNC' s 10-Year Price/DCF (Projected) Range
Min: 0.36   Max: 0.99
Current: 0.48

0.36
0.99
Price/Median PS Value 1.09
PNC's Price/Median PS Value is ranked higher than
60% of the 1478 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.00 vs. PNC: 1.09 )
PNC' s 10-Year Price/Median PS Value Range
Min: 0.58   Max: 1.64
Current: 1.09

0.58
1.64
Price/Peter Lynch Fair Value 0.59
PNC's Price/Peter Lynch Fair Value is ranked higher than
86% of the 444 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.78 vs. PNC: 0.59 )
PNC' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.34   Max: 2.02
Current: 0.59

0.34
2.02
Price/Graham Number 0.82
PNC's Price/Graham Number is ranked higher than
74% of the 1341 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.90 vs. PNC: 0.82 )
PNC' s 10-Year Price/Graham Number Range
Min: 0.65   Max: 2.95
Current: 0.82

0.65
2.95
Earnings Yield (Greenblatt) 6.40
PNC's Earnings Yield (Greenblatt) is ranked higher than
69% of the 1411 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 6.40 vs. PNC: 6.40 )
PNC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.3   Max: 15.5
Current: 6.4

1.3
15.5
Forward Rate of Return (Yacktman) 32.44
PNC's Forward Rate of Return (Yacktman) is ranked higher than
87% of the 1095 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 14.48 vs. PNC: 32.44 )
PNC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -4.1   Max: 39.5
Current: 32.44

-4.1
39.5

Business Description

Industry: Banks » Banks - Regional - US
Compare:MTB, USB, PB, CFR, MWG » details
Traded in other countries:PNP.Germany, PNCYL.USA, PNCFO.USA, PNCXL.USA
PNC Financial Services Group Inc was incorporated under the laws of the Commonwealth of Pennsylvania in 1983 with the consolidation of Pittsburgh National Corporation and Provident National Corporation. The Company is a diversified financial services company in the United States. It is engaged in the business of retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing its products and services nationally, as well as products and services in its primary geographic markets located in Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana, North Carolina, Florida, Kentucky, Washington, D.C., Delaware, Alabama, Virginia, Georgia, Missouri, Wisconsin and South Carolina. It also provides products and services internationally. It operates in six reportable business segments: Retail Banking; Corporate & Institutional Banking; Asset Management Group; Residential Mortgage Banking; BlackRock; and Non-Strategic Assets Portfolio. The Retail Banking segment provides deposits, lending, brokerage, investment management and cash management services to consumer and small business customers within its primary geographic markets. The Corporate & Institutional Banking segment provides lending, treasury management and capital markets-related products and services to mid-sized corporations, government and not-for-profit entities and to large corporations. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Asset Management Group segment includes personal wealth management for high net worth and ultra-high net worth clients and institutional asset management. Wealth management products and services include investment and retirement planning, customized investment management, private banking, tailored credit solutions and trust management and administration for individuals and their families. Institutional asset management provides investment management, custody and retirement administration services. Institutional clients include corporations, unions, municipalities, non-profits, foundations and endowments, primarily located in its geographic footprint. The Residential Mortgage Banking segment directly originates primarily first lien residential mortgage loans on a nationwide basis with a significant presence within the retail banking footprint, and also originates loans through majority owned affiliates. Mortgage loans represent loans collateralized by one-to-four-family residential real estate. The BlackRock segment is an investment management, risk management and advisory services for institutional and retail clients. BlackRock provides diversified investment management services to institutional clients, intermediary and individual investors through various investment vehicles. Investment management services consist of the management of equity, fixed income, multi-asset class, alternative investment and cash management products. Blac

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