Pinnacle Financial Partners Inc: A Strong Contender in the Banking Sector with Good ...

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Pinnacle Financial Partners Inc (NASDAQ:PNFP), a prominent player in the banking industry, is currently trading at $77.27 with a market cap of $5.93 billion. The stock has seen a gain of 3.57% today and a significant increase of 33.54% over the past four weeks. According to GuruFocus, PNFP has a GF Score of 82 out of 100, indicating good outperformance potential. The GF Score is a comprehensive ranking system that evaluates a company's financial strength, profitability, growth, value, and momentum, providing investors with a holistic view of the company's performance.

Pinnacle Financial Partners Inc: A Strong Contender in the Banking Sector with Good Outperformance Potential
Pinnacle Financial Partners Inc: A Strong Contender in the Banking Sector with Good Outperformance Potential

Financial Strength Analysis

PNFP's Financial Strength rank stands at 4 out of 10. This score is derived from several factors, including the company's debt burden, debt to revenue ratio, and Altman Z-Score. The company's debt to revenue ratio is 1.72, indicating a moderate level of debt relative to its revenue. However, the interest coverage and Altman Z-Score data are not available, limiting the comprehensiveness of this analysis.

Profitability Rank Analysis

The company's Profitability Rank is 6 out of 10. This score is influenced by factors such as the operating margin, Piotroski F-Score, and the trend of the operating margin over a 5-year period. PNFP has consistently demonstrated profitability over the past 10 years. However, the operating margin and its 5-year trend are not available. The Piotroski F-Score, a measure of the company's financial health, stands at 4.

Growth Rank Analysis

PNFP's Growth Rank is impressive at 9 out of 10. This high score is driven by a 5-year revenue growth rate of 12.10% and a 3-year revenue growth rate of 14.00%. However, the 5-year EBITDA growth rate is not available, which may limit the accuracy of this analysis.

GF Value Rank Analysis

The company's GF Value Rank is 9 out of 10, indicating that the stock is potentially undervalued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on the company's past returns and growth.

Momentum Rank Analysis

PNFP's Momentum Rank is 4 out of 10, indicating moderate momentum. This rank is determined using the standardized momentum ratio and other momentum indicators.

Competitor Analysis

When compared to its competitors, PNFP holds a strong position. Western Alliance Bancorp (NYSE:WAL) has a GF Score of 80, Zions Bancorp NA (NASDAQ:ZION) has a GF Score of 67, and SouthState Corp (NASDAQ:SSB) has a GF Score of 70. This comparison indicates that PNFP is a strong contender in the banking industry. More details about the competitors can be found here.

Conclusion

In conclusion, Pinnacle Financial Partners Inc demonstrates good outperformance potential with a GF Score of 82. Despite some data limitations, the company's high Growth Rank and GF Value Rank suggest promising future performance. However, investors should keep an eye on the company's Financial Strength and Momentum Rank for a more comprehensive understanding of its performance.

This article first appeared on GuruFocus.

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