PINNACLE WEST CAPITAL (PNW) Fundamental Analysis & Valuation
NYSE:PNW • US7234841010
100.61 USD
-0.35 (-0.35%)
At close: Mar 11, 2026
100.61 USD
0 (0%)
After Hours: 3/11/2026, 8:19:53 PM
This PNW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 3 out of 10 to PNW. PNW was compared to 46 industry peers in the Electric Utilities industry. PNW may be in some trouble as it scores bad on both profitability and health. PNW is quite expensive at the moment. It does show a decent growth rate. PNW also has an excellent dividend rating.
1. PNW Profitability Analysis
1.1 Basic Checks
- PNW had positive earnings in the past year.
- PNW had a positive operating cash flow in the past year.
- In the past 5 years PNW has always been profitable.
- Each year in the past 5 years PNW had a positive operating cash flow.
1.2 Ratios
- PNW has a Return On Assets of 2.05%. This is amonst the worse of the industry: PNW underperforms 80.43% of its industry peers.
- Looking at the Return On Equity, with a value of 8.75%, PNW is doing worse than 63.04% of the companies in the same industry.
- PNW's Return On Invested Capital of 3.10% is on the low side compared to the rest of the industry. PNW is outperformed by 73.91% of its industry peers.
- PNW had an Average Return On Invested Capital over the past 3 years of 3.16%. This is in line with the industry average of 4.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 8.75% | ||
| ROIC | 3.1% |
ROA(3y)2.14%
ROA(5y)2.27%
ROE(3y)8.63%
ROE(5y)8.87%
ROIC(3y)3.16%
ROIC(5y)3.08%
1.3 Margins
- PNW has a Profit Margin of 11.55%. This is in the lower half of the industry: PNW underperforms 63.04% of its industry peers.
- In the last couple of years the Profit Margin of PNW has declined.
- Looking at the Operating Margin, with a value of 19.99%, PNW is in line with its industry, outperforming 45.65% of the companies in the same industry.
- PNW's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.99% | ||
| PM (TTM) | 11.55% | ||
| GM | N/A |
OM growth 3Y5.71%
OM growth 5Y-1.87%
PM growth 3Y1.07%
PM growth 5Y-5.54%
GM growth 3YN/A
GM growth 5YN/A
2. PNW Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PNW is destroying value.
- The number of shares outstanding for PNW has been increased compared to 1 year ago.
- The number of shares outstanding for PNW has been increased compared to 5 years ago.
- Compared to 1 year ago, PNW has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.74, we must say that PNW is in the distress zone and has some risk of bankruptcy.
- PNW has a worse Altman-Z score (0.74) than 60.87% of its industry peers.
- A Debt/Equity ratio of 1.41 is on the high side and indicates that PNW has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.41, PNW is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.5
WACC6.23%
2.3 Liquidity
- A Current Ratio of 0.54 indicates that PNW may have some problems paying its short term obligations.
- With a Current ratio value of 0.54, PNW is not doing good in the industry: 84.78% of the companies in the same industry are doing better.
- PNW has a Quick Ratio of 0.54. This is a bad value and indicates that PNW is not financially healthy enough and could expect problems in meeting its short term obligations.
- PNW has a worse Quick ratio (0.36) than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.36 |
3. PNW Growth Analysis
3.1 Past
- PNW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.07%.
- The Earnings Per Share has been growing slightly by 0.73% on average over the past years.
- PNW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.20%.
- PNW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.28% yearly.
EPS 1Y (TTM)-3.07%
EPS 3Y5.82%
EPS 5Y0.73%
EPS Q2Q%316.67%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y7.28%
Revenue growth 5Y8.28%
Sales Q2Q%2.99%
3.2 Future
- PNW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.74% yearly.
- PNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.03% yearly.
EPS Next Y-6.17%
EPS Next 2Y6.01%
EPS Next 3Y6.57%
EPS Next 5Y7.74%
Revenue Next Year4.17%
Revenue Next 2Y5.59%
Revenue Next 3Y5.26%
Revenue Next 5Y5.03%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. PNW Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.88, the valuation of PNW can be described as rather expensive.
- PNW's Price/Earnings ratio is in line with the industry average.
- PNW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
- A Price/Forward Earnings ratio of 21.19 indicates a rather expensive valuation of PNW.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PNW indicates a slightly more expensive valuation: PNW is more expensive than 73.91% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.27. PNW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 21.19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PNW is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)27.35
EPS Next 2Y6.01%
EPS Next 3Y6.57%
5. PNW Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.58%, PNW has a reasonable but not impressive dividend return.
- PNW's Dividend Yield is a higher than the industry average which is at 2.87.
- PNW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
- The dividend of PNW has a limited annual growth rate of 2.48%.
- PNW has been paying a dividend for at least 10 years, so it has a reliable track record.
- PNW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.48%
Div Incr Years13
Div Non Decr Years31
5.3 Sustainability
- 68.58% of the earnings are spent on dividend by PNW. This is not a sustainable payout ratio.
- PNW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP68.58%
EPS Next 2Y6.01%
EPS Next 3Y6.57%
PNW Fundamentals: All Metrics, Ratios and Statistics
100.61
-0.35 (-0.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-25 2026-02-25/bmo
Earnings (Next)04-29 2026-04-29
Inst Owners103.7%
Inst Owner Change-3.09%
Ins Owners0.12%
Ins Owner Change2.47%
Market Cap12.16B
Revenue(TTM)5.34B
Net Income(TTM)616.53M
Analysts69.52
Price Target98.16 (-2.44%)
Short Float %5.24%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend3.52
Dividend Growth(5Y)2.48%
DP68.58%
Div Incr Years13
Div Non Decr Years31
Ex-Date02-02 2026-02-02 (0.91)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)112.37%
Min EPS beat(2)7.72%
Max EPS beat(2)217.03%
EPS beat(4)2
Avg EPS beat(4)-24.53%
Min EPS beat(4)-321.25%
Max EPS beat(4)217.03%
EPS beat(8)5
Avg EPS beat(8)235.55%
EPS beat(12)7
Avg EPS beat(12)148.62%
EPS beat(16)10
Avg EPS beat(16)120.85%
Revenue beat(2)1
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)0.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)2.21%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)7
Avg Revenue beat(12)0.85%
Revenue beat(16)11
Avg Revenue beat(16)6.08%
PT rev (1m)0.77%
PT rev (3m)0.07%
EPS NQ rev (1m)-59.12%
EPS NQ rev (3m)-59.12%
EPS NY rev (1m)0.28%
EPS NY rev (3m)-0.91%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 21.19 | ||
| P/S | 2.28 | ||
| P/FCF | N/A | ||
| P/OCF | 6.74 | ||
| P/B | 1.73 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)5.06
EY5.03%
EPS(NY)4.75
Fwd EY4.72%
FCF(TTM)-6.78
FCFYN/A
OCF(TTM)14.93
OCFY14.84%
SpS44.16
BVpS58.28
TBVpS53.51
PEG (NY)N/A
PEG (5Y)27.35
Graham Number81.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 8.75% | ||
| ROCE | 3.97% | ||
| ROIC | 3.1% | ||
| ROICexc | 3.1% | ||
| ROICexgc | 3.17% | ||
| OM | 19.99% | ||
| PM (TTM) | 11.55% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.14%
ROA(5y)2.27%
ROE(3y)8.63%
ROE(5y)8.87%
ROIC(3y)3.16%
ROIC(5y)3.08%
ROICexc(3y)3.16%
ROICexc(5y)3.08%
ROICexgc(3y)3.22%
ROICexgc(5y)3.13%
ROCE(3y)4.04%
ROCE(5y)3.92%
ROICexgc growth 3Y4.3%
ROICexgc growth 5Y-1.53%
ROICexc growth 3Y4%
ROICexc growth 5Y-1.64%
OM growth 3Y5.71%
OM growth 5Y-1.87%
PM growth 3Y1.07%
PM growth 5Y-5.54%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.89 | ||
| Cap/Depr | 270.69% | ||
| Cap/Sales | 49.15% | ||
| Interest Coverage | 2.75 | ||
| Cash Conversion | 88.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 0.74 |
F-Score4
WACC6.23%
ROIC/WACC0.5
Cap/Depr(3y)240.69%
Cap/Depr(5y)227.15%
Cap/Sales(3y)44.12%
Cap/Sales(5y)42.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.07%
EPS 3Y5.82%
EPS 5Y0.73%
EPS Q2Q%316.67%
EPS Next Y-6.17%
EPS Next 2Y6.01%
EPS Next 3Y6.57%
EPS Next 5Y7.74%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y7.28%
Revenue growth 5Y8.28%
Sales Q2Q%2.99%
Revenue Next Year4.17%
Revenue Next 2Y5.59%
Revenue Next 3Y5.26%
Revenue Next 5Y5.03%
EBIT growth 1Y5.49%
EBIT growth 3Y13.41%
EBIT growth 5Y6.26%
EBIT Next Year96.69%
EBIT Next 3Y34.96%
EBIT Next 5Y23.17%
FCF growth 1Y-28.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.13%
OCF growth 3Y13.29%
OCF growth 5Y13.31%
PINNACLE WEST CAPITAL / PNW FAQ
What is the fundamental rating for PNW stock?
ChartMill assigns a fundamental rating of 3 / 10 to PNW.
Can you provide the valuation status for PINNACLE WEST CAPITAL?
ChartMill assigns a valuation rating of 2 / 10 to PINNACLE WEST CAPITAL (PNW). This can be considered as Overvalued.
How profitable is PINNACLE WEST CAPITAL (PNW) stock?
PINNACLE WEST CAPITAL (PNW) has a profitability rating of 3 / 10.
Can you provide the financial health for PNW stock?
The financial health rating of PINNACLE WEST CAPITAL (PNW) is 1 / 10.
What is the expected EPS growth for PINNACLE WEST CAPITAL (PNW) stock?
The Earnings per Share (EPS) of PINNACLE WEST CAPITAL (PNW) is expected to decline by -6.17% in the next year.