PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNW - US7234841010 - Common Stock
87.3 USD
-1.25 (-1.41%)
87.3 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PNW. PNW was compared to 47 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. Profitability
1.1 Basic Checks
PNW had positive earnings in the past year.
PNW had a positive operating cash flow in the past year.
Each year in the past 5 years PNW has been profitable.
PNW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PNW has a Return On Assets of 1.99%. This is amonst the worse of the industry: PNW underperforms 85.42% of its industry peers.
The Return On Equity of PNW (8.29%) is worse than 70.83% of its industry peers.
PNW has a worse Return On Invested Capital (3.01%) than 75.00% of its industry peers.
PNW had an Average Return On Invested Capital over the past 3 years of 3.05%. This is in line with the industry average of 5.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 8.29% | ||
| ROIC | 3.01% |
ROA(3y)2.16%
ROA(5y)2.41%
ROE(3y)8.38%
ROE(5y)9.08%
ROIC(3y)3.05%
ROIC(5y)3.14%
1.3 Margins
PNW's Profit Margin of 11.20% is on the low side compared to the rest of the industry. PNW is outperformed by 64.58% of its industry peers.
PNW's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 19.43%, PNW perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
In the last couple of years the Operating Margin of PNW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.43% | ||
| PM (TTM) | 11.2% | ||
| GM | N/A |
OM growth 3Y-2.29%
OM growth 5Y3.15%
PM growth 3Y-9.95%
PM growth 5Y-5.19%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
PNW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PNW has more shares outstanding than it did 1 year ago.
PNW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PNW has an improved debt to assets ratio.
2.2 Solvency
PNW has an Altman-Z score of 0.72. This is a bad value and indicates that PNW is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PNW (0.72) is worse than 66.67% of its industry peers.
PNW has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
PNW has a Debt to Equity ratio of 1.38. This is comparable to the rest of the industry: PNW outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.49
WACC6.15%
2.3 Liquidity
PNW has a Current Ratio of 0.67. 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 Current ratio (0.67) than 81.25% of its industry peers.
PNW has a Quick Ratio of 0.67. This is a bad value and indicates that PNW is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.49, PNW is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
PNW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.77%.
PNW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.78% yearly.
The Revenue has been growing slightly by 5.70% in the past year.
The Revenue has been growing by 8.10% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.77%
EPS 3Y-1.55%
EPS 5Y1.78%
EPS Q2Q%0.59%
Revenue 1Y (TTM)5.7%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%2.94%
3.2 Future
PNW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.64% yearly.
PNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.02% yearly.
EPS Next Y-9.22%
EPS Next 2Y-4.19%
EPS Next 3Y2.62%
EPS Next 5Y4.64%
Revenue Next Year5.73%
Revenue Next 2Y4.94%
Revenue Next 3Y5.61%
Revenue Next 5Y5.02%
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.93, the valuation of PNW can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as PNW.
PNW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.39.
With a Price/Forward Earnings ratio of 18.22, PNW is valued on the expensive side.
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 64.58% of the companies listed in the same industry.
PNW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 18.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PNW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.09
EPS Next 2Y-4.19%
EPS Next 3Y2.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.11%, PNW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.95, PNW pays a better dividend. On top of this PNW pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, PNW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
5.2 History
The dividend of PNW has a limited annual growth rate of 2.90%.
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)2.9%
Div Incr Years13
Div Non Decr Years31
5.3 Sustainability
69.92% 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.
DP69.92%
EPS Next 2Y-4.19%
EPS Next 3Y2.62%
87.3
-1.25 (-1.41%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.93%
Inst Owner Change4.96%
Ins Owners0.11%
Ins Owner Change-1.01%
Market Cap10.45B
Revenue(TTM)5.31B
Net Income(TTM)594.30M
Analysts71.82
Price Target98.09 (12.36%)
Short Float %5.14%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend3.39
Dividend Growth(5Y)2.9%
DP69.92%
Div Incr Years13
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.06%
Min EPS beat(2)-1.6%
Max EPS beat(2)7.72%
EPS beat(4)2
Avg EPS beat(4)-64.2%
Min EPS beat(4)-321.25%
Max EPS beat(4)58.34%
EPS beat(8)5
Avg EPS beat(8)220.92%
EPS beat(12)6
Avg EPS beat(12)129.17%
EPS beat(16)10
Avg EPS beat(16)127.18%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)0.32%
Revenue beat(4)3
Avg Revenue beat(4)1.59%
Min Revenue beat(4)-0.38%
Max Revenue beat(4)4.23%
Revenue beat(8)4
Avg Revenue beat(8)-1.12%
Revenue beat(12)8
Avg Revenue beat(12)5.94%
Revenue beat(16)12
Avg Revenue beat(16)7.61%
PT rev (1m)0.36%
PT rev (3m)0.94%
EPS NQ rev (1m)42.28%
EPS NQ rev (3m)96.4%
EPS NY rev (1m)2.15%
EPS NY rev (3m)3.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 18.22 | ||
| P/S | 1.97 | ||
| P/FCF | N/A | ||
| P/OCF | 5.91 | ||
| P/B | 1.46 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 10.07 |
EPS(TTM)4.87
EY5.58%
EPS(NY)4.79
Fwd EY5.49%
FCF(TTM)-6.01
FCFYN/A
OCF(TTM)14.77
OCFY16.92%
SpS44.34
BVpS59.89
TBVpS55.34
PEG (NY)N/A
PEG (5Y)10.09
Graham Number81.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 8.29% | ||
| ROCE | 3.83% | ||
| ROIC | 3.01% | ||
| ROICexc | 3.01% | ||
| ROICexgc | 3.07% | ||
| OM | 19.43% | ||
| PM (TTM) | 11.2% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.16%
ROA(5y)2.41%
ROE(3y)8.38%
ROE(5y)9.08%
ROIC(3y)3.05%
ROIC(5y)3.14%
ROICexc(3y)3.05%
ROICexc(5y)3.14%
ROICexgc(3y)3.1%
ROICexgc(5y)3.19%
ROCE(3y)3.88%
ROCE(5y)3.97%
ROICexgc growth 3Y3.09%
ROICexgc growth 5Y3.77%
ROICexc growth 3Y2.69%
ROICexc growth 5Y3.62%
OM growth 3Y-2.29%
OM growth 5Y3.15%
PM growth 3Y-9.95%
PM growth 5Y-5.19%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.92 | ||
| Cap/Depr | 254.73% | ||
| Cap/Sales | 46.86% | ||
| Interest Coverage | 2.73 | ||
| Cash Conversion | 88.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.72 |
F-Score3
WACC6.15%
ROIC/WACC0.49
Cap/Depr(3y)220.06%
Cap/Depr(5y)211.68%
Cap/Sales(3y)40.9%
Cap/Sales(5y)39.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.77%
EPS 3Y-1.55%
EPS 5Y1.78%
EPS Q2Q%0.59%
EPS Next Y-9.22%
EPS Next 2Y-4.19%
EPS Next 3Y2.62%
EPS Next 5Y4.64%
Revenue 1Y (TTM)5.7%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%2.94%
Revenue Next Year5.73%
Revenue Next 2Y4.94%
Revenue Next 3Y5.61%
Revenue Next 5Y5.02%
EBIT growth 1Y2.92%
EBIT growth 3Y7.91%
EBIT growth 5Y11.51%
EBIT Next Year102.73%
EBIT Next 3Y35.25%
EBIT Next 5Y23.42%
FCF growth 1Y-2.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y69.42%
OCF growth 3Y23.24%
OCF growth 5Y10.97%
PINNACLE WEST CAPITAL / PNW FAQ
What is the fundamental rating for PNW stock?
ChartMill assigns a fundamental rating of 3 / 10 to PNW.
What is the valuation status for PNW stock?
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 PE and PB ratios for PNW stock?
The Price/Earnings (PE) ratio for PINNACLE WEST CAPITAL (PNW) is 17.93 and the Price/Book (PB) ratio is 1.46.
What is the earnings growth outlook for PINNACLE WEST CAPITAL?
The Earnings per Share (EPS) of PINNACLE WEST CAPITAL (PNW) is expected to decline by -9.22% in the next year.