PINNACLE WEST CAPITAL (PNW) Fundamental Analysis & Valuation

NYSE:PNW • US7234841010

Current stock price

101.67 USD
-1.45 (-1.41%)
At close:
101.67 USD
0 (0%)
After Hours:

This PNW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. PNW Profitability Analysis

1.1 Basic Checks

  • PNW had positive earnings in the past year.
  • In the past year PNW had a positive cash flow from operations.
  • Each year in the past 5 years PNW has been profitable.
  • Each year in the past 5 years PNW had a positive operating cash flow.
PNW Yearly Net Income VS EBIT VS OCF VS FCFPNW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B

1.2 Ratios

  • The Return On Assets of PNW (2.05%) is worse than 80.85% of its industry peers.
  • PNW has a Return On Equity (8.75%) which is comparable to the rest of the industry.
  • PNW has a Return On Invested Capital of 3.10%. This is in the lower half of the industry: PNW underperforms 74.47% 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 4.52%.
Industry RankSector 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%
PNW Yearly ROA, ROE, ROICPNW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 11.55%, PNW is doing worse than 63.83% of the companies in the same industry.
  • PNW's Profit Margin has declined in the last couple of years.
  • PNW has a Operating Margin of 19.99%. This is comparable to the rest of the industry: PNW outperforms 42.55% of its industry peers.
  • PNW's Operating Margin has declined in the last couple of years.
Industry RankSector 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
PNW Yearly Profit, Operating, Gross MarginsPNW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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1

2. PNW Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PNW is destroying value.
  • PNW has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, PNW has more shares outstanding
  • The debt/assets ratio for PNW has been reduced compared to a year ago.
PNW Yearly Shares OutstandingPNW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
PNW Yearly Total Debt VS Total AssetsPNW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • PNW has an Altman-Z score of 0.74. This is a bad value and indicates that PNW is not financially healthy and even has some risk of bankruptcy.
  • PNW's Altman-Z score of 0.74 is in line compared to the rest of the industry. PNW outperforms 40.43% of its industry peers.
  • PNW has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
  • PNW has a Debt to Equity ratio (1.41) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 1.41
Debt/FCF N/A
Altman-Z 0.74
ROIC/WACC0.48
WACC6.4%
PNW Yearly LT Debt VS Equity VS FCFPNW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

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: 85.11% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.36 indicates that PNW may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.36, PNW is not doing good in the industry: 82.98% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.54
Quick Ratio 0.36
PNW Yearly Current Assets VS Current LiabilitesPNW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

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%.
  • PNW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.73% yearly.
  • The Revenue has been growing slightly by 4.20% in the past year.
  • 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 7.20% yearly.
  • Based on estimates for the next years, PNW will show a small growth in Revenue. The Revenue will grow by 5.21% on average per year.
EPS Next Y-6.19%
EPS Next 2Y5.8%
EPS Next 3Y6.71%
EPS Next 5Y7.2%
Revenue Next Year4.1%
Revenue Next 2Y5.49%
Revenue Next 3Y5.27%
Revenue Next 5Y5.21%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PNW Yearly Revenue VS EstimatesPNW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
PNW Yearly EPS VS EstimatesPNW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 4 6 8

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2

4. PNW Valuation Analysis

4.1 Price/Earnings Ratio

  • PNW is valuated rather expensively with a Price/Earnings ratio of 20.09.
  • PNW's Price/Earnings is on the same level as the industry average.
  • PNW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
  • PNW is valuated rather expensively with a Price/Forward Earnings ratio of 21.42.
  • Based on the Price/Forward Earnings ratio, PNW is valued a bit more expensive than 72.34% of the companies in the same industry.
  • PNW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.68.
Industry RankSector Rank
PE 20.09
Fwd PE 21.42
PNW Price Earnings VS Forward Price EarningsPNW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PNW is valued a bit cheaper than 65.96% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.94
PNW Per share dataPNW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)27.64
EPS Next 2Y5.8%
EPS Next 3Y6.71%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. PNW Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.52%, PNW has a reasonable but not impressive dividend return.
  • PNW's Dividend Yield is a higher than the industry average which is at 2.83.
  • Compared to an average S&P500 Dividend Yield of 1.82, PNW pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.52%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.48%
Div Incr Years14
Div Non Decr Years32
PNW Yearly Dividends per sharePNW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

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 2Y5.8%
EPS Next 3Y6.71%
PNW Yearly Income VS Free CF VS DividendPNW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M
PNW Dividend Payout.PNW Dividend Payout, showing the Payout Ratio.PNW Dividend Payout.PayoutRetained Earnings

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PNW Fundamentals: All Metrics, Ratios and Statistics

PINNACLE WEST CAPITAL

NYSE:PNW (4/29/2026, 8:04:00 PM)

After market: 101.67 0 (0%)

101.67

-1.45 (-1.41%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Industry Strength52.17
Industry Growth22.98
Earnings (Last)02-25
Earnings (Next)05-04
Inst Owners104.07%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner Change7.67%
Market Cap12.31B
Revenue(TTM)5.34B
Net Income(TTM)616.53M
Analysts70.91
Price Target104.44 (2.72%)
Short Float %5.71%
Short Ratio5.51
Dividend
Industry RankSector Rank
Dividend Yield 3.52%
Yearly Dividend3.52
Dividend Growth(5Y)2.48%
DP68.58%
Div Incr Years14
Div Non Decr Years32
Ex-Date02-02
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)6.4%
PT rev (3m)7.44%
EPS NQ rev (1m)-2.22%
EPS NQ rev (3m)-41.43%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.36%
Valuation
Industry RankSector Rank
PE 20.09
Fwd PE 21.42
P/S 2.3
P/FCF N/A
P/OCF 6.82
P/B 1.75
P/tB 1.9
EV/EBITDA 10.94
EPS(TTM)5.06
EY4.98%
EPS(NY)4.75
Fwd EY4.67%
FCF(TTM)-6.77
FCFYN/A
OCF(TTM)14.91
OCFY14.67%
SpS44.12
BVpS58.22
TBVpS53.46
PEG (NY)N/A
PEG (5Y)27.64
Graham Number81.4152 (-19.92%)
Profitability
Industry RankSector 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 RankSector 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
WACC6.4%
ROIC/WACC0.48
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-6.19%
EPS Next 2Y5.8%
EPS Next 3Y6.71%
EPS Next 5Y7.2%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y7.28%
Revenue growth 5Y8.28%
Sales Q2Q%2.99%
Revenue Next Year4.1%
Revenue Next 2Y5.49%
Revenue Next 3Y5.27%
Revenue Next 5Y5.21%
EBIT growth 1Y5.49%
EBIT growth 3Y13.41%
EBIT growth 5Y6.26%
EBIT Next Year96.78%
EBIT Next 3Y35.41%
EBIT Next 5Y23.19%
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 Fundamental Analysis 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.


Can you provide the profitability details for PINNACLE WEST CAPITAL?

PINNACLE WEST CAPITAL (PNW) has a profitability rating of 3 / 10.


What is the valuation of PINNACLE WEST CAPITAL based on its PE and PB ratios?

The Price/Earnings (PE) ratio for PINNACLE WEST CAPITAL (PNW) is 20.09 and the Price/Book (PB) ratio is 1.75.


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 -6.19% in the next year.