Now trading at a price of $53.64, Pinnacle Financial Partners has moved 4.1% so far today.
Pinnacle Financial Partners shares moved -34.6% over the last 52 weeks, with a high of $89.0 and a low of $51.15. During this time, the stock lagged the S&P 500 index by -32.0%. As of January 2022, the company's 50-day average price is $61.61. Pinnacle Financial Partners, Inc., together with its subsidiaries, operates as the bank holding company for Pinnacle Bank that provides various banking products and services to individuals, businesses, and professional entities in the United States. The mid-cap Finance company has 3,281 full time employees and is based in Nashville, TN. Pinnacle Financial Partners has returned a 1.7% dividend yield over the last 12 months.
Snapshot of the Company's Net Margins Consistently Higher Than the 26.96% Industry Average:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $940 | $1,056 | $1,206 | $1,400 |
| Revenue Growth | n/a | 12.37% | 14.18% | 16.1% |
| Net Margins | 42.65% | 29.57% | 43.73% | 40.05% |
| Net Margins Growth | n/a | -30.67% | 47.89% | -8.42% |
| Earnings Per Share | $5.22 | $4.03 | $6.75 | $7.28 |
| EPS Growth | n/a | -22.8% | 67.49% | 7.85% |
| Diluted Shares (MM) | 77 | 76 | 76 | 77 |
| Free Cash Flow (MM) | $392 | $388 | $634 | n/a |
| FCF Growth | n/a | -1.04% | 63.44% | n/a |
| Capital Expenditures (MM) | -$42 | -$40 | -$23 | n/a |
| Net Debt / EBITDA | 1.09 | -1.64 | -1.7 | -0.14 |
Pinnacle Financial Partners Shares Are Inexpensive:
Compared to the Finance sector's average of 14.34, Pinnacle Financial Partners has a trailing twelve month P/E ratio of 7.4 and, according to its EPS guidance of 6.93, an expected P/E ratio of 7.7. Pinnacle Financial Partners's PEG ratio is 1.45 based on its 5.8% compound average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 6.0%, because the growth rate implied by Pinnacle Financial Partners's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 1.41, which implies that the company's shares might in fact be fairly valued.
Furthermore, Pinnacle Financial Partners is likely undervalued in terms of its equity because its P/B ratio is 0.7 compared to its sector average of 1.57. The company's shares are currently trading -44.7% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 5.82 * 71.911) = $97.04
Pinnacle Financial Partners Benefits From Positive Market Indicators:
8 analysts are following Pinnacle Financial Partners and have set target prices ranging from $47.0 to $85.0 per share. On average, they have given the company a rating of buy. At the current price of $53.64, PNFP is trading -23.64% away from its average analyst target price of $70.25 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 2.5% of the company's shares are tied to short positions. Institutions own 85.2% of Pinnacle Financial Partners's shares, while the insider ownership rate stands at 2.21%. The biggest shareholder is Blackrock Inc. with a 9% stake in the company worth approximately $381,643,875.
