Pinnacle Financial Partners, Inc.
Pinnacle Financial Partners, Inc. Fundamental Analysis
Pinnacle Financial Partners, Inc. (PNFP) shows strong financial fundamentals with a PE ratio of 11.99, profit margin of 21.97%, and ROE of 9.48%. The company generates $2.9B in annual revenue with strong year-over-year growth of 15.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PNFP's fundamental strength across five key dimensions:
Efficiency Score
WeakPNFP struggles to generate sufficient returns from assets.
Valuation Score
ModeratePNFP shows balanced valuation metrics.
Growth Score
ModeratePNFP shows steady but slowing expansion.
Financial Health Score
ExcellentPNFP maintains a strong and stable balance sheet.
Profitability Score
ModeratePNFP maintains healthy but balanced margins.
Key Financial Metrics
Is PNFP Expensive or Cheap?
P/E Ratio
PNFP trades at 11.99 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PNFP's PEG of 4.13 indicates potential overvaluation.
Price to Book
The market values Pinnacle Financial Partners, Inc. at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.43 times EBITDA. This signals the market has high growth expectations.
How Well Does PNFP Make Money?
Net Profit Margin
For every $100 in sales, Pinnacle Financial Partners, Inc. keeps $21.97 as profit after all expenses.
Operating Margin
Core operations generate 26.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.48 in profit for every $100 of shareholder equity.
ROA
Pinnacle Financial Partners, Inc. generates $1.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pinnacle Financial Partners, Inc. generates strong operating cash flow of $1.14B, reflecting robust business health.
Free Cash Flow
Pinnacle Financial Partners, Inc. generates strong free cash flow of $1.11B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $14.50 in free cash annually.
FCF Yield
PNFP converts 14.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How PNFP Stacks Against Its Sector Peers
| Metric | PNFP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.99 | 18.86 | Better (Cheaper) |
| ROE | 9.48% | 847.00% | Weak |
| Net Margin | 21.97% | 4202.00% | Weak |
| Debt/Equity | 0.36 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 1.07 | 667.17 | Neutral |
| ROA | 1.11% | -21543.00% (disorted) | Weak |
PNFP outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pinnacle Financial Partners, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
138.45%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
18.35%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
109.31%
Industry Style: Value, Dividend, Cyclical
High Growth