PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNW - US7234841010 - Common Stock
93.71 USD
+1.02 (+1.1%)
93.71 USD
0 (0%)
PNW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. PNW has a bad profitability rating. Also its financial health evaluation is rather negative. 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
- In the past year PNW was profitable.
- PNW had a positive operating cash flow in the past year.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.99%, PNW is doing worse than 82.61% of the companies in the same industry.
- PNW's Return On Equity of 8.29% is on the low side compared to the rest of the industry. PNW is outperformed by 69.57% of its industry peers.
- The Return On Invested Capital of PNW (3.01%) is worse than 73.91% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PNW is in line with the industry average of 4.58%.
| 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 65.22% of its industry peers.
- PNW's Profit Margin has declined in the last couple of years.
- PNW has a Operating Margin (19.43%) which is comparable to the rest of the industry.
- PNW's Operating Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PNW is destroying value.
- Compared to 1 year ago, PNW has more shares outstanding
- Compared to 5 years ago, PNW has more shares outstanding
- PNW has a better debt/assets ratio than last year.
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 has a Altman-Z score of 0.74. This is in the lower half of the industry: PNW underperforms 60.87% of its industry peers.
- A Debt/Equity ratio of 1.38 is on the high side and indicates that PNW has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.38, PNW perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.48
WACC6.29%
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.
- The Current ratio of PNW (0.67) is worse than 78.26% 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 78.26% 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%.
- Measured over the past 5 years, PNW shows a small growth in Earnings Per Share. The EPS has been growing by 1.78% on average per year.
- The Revenue has been growing slightly by 5.70% in the past year.
- PNW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.10% yearly.
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
- Based on estimates for the next years, PNW will show a small growth in Earnings Per Share. The EPS will grow by 4.74% on average per year.
- Based on estimates for the next years, PNW will show a small growth in Revenue. The Revenue will grow by 5.16% on average per year.
EPS Next Y-8.11%
EPS Next 2Y-4.27%
EPS Next 3Y2.87%
EPS Next 5Y4.74%
Revenue Next Year5.97%
Revenue Next 2Y4.96%
Revenue Next 3Y5.71%
Revenue Next 5Y5.16%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 19.24, PNW is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as PNW.
- The average S&P500 Price/Earnings ratio is at 27.38. PNW is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 19.59, which indicates a rather expensive current valuation of PNW.
- Based on the Price/Forward Earnings ratio, PNW is valued a bit more expensive than 69.57% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. PNW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 19.59 |
4.2 Price Multiples
- PNW's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.83
EPS Next 2Y-4.27%
EPS Next 3Y2.87%
5. Dividend
5.1 Amount
- PNW has a Yearly Dividend Yield of 3.93%.
- Compared to an average industry Dividend Yield of 2.93, PNW pays a better dividend. On top of this PNW pays more dividend than 80.43% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, PNW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
5.2 History
- The dividend of PNW has a limited annual growth rate of 2.90%.
- PNW has paid a dividend for at least 10 years, which is 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)2.9%
Div Incr Years13
Div Non Decr Years31
5.3 Sustainability
- PNW pays out 69.92% of its income as dividend. 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-4.27%
EPS Next 3Y2.87%
93.71
+1.02 (+1.1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)11-03 2025-11-03/bmo
Earnings (Next)02-23 2026-02-23/amc
Inst Owners99.04%
Inst Owner Change0.43%
Ins Owners0.11%
Ins Owner Change-1.01%
Market Cap11.22B
Revenue(TTM)5.31B
Net Income(TTM)594.30M
Analysts71.82
Price Target97.21 (3.73%)
Short Float %4.75%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Yearly Dividend3.39
Dividend Growth(5Y)2.9%
DP69.92%
Div Incr Years13
Div Non Decr Years31
Ex-Date02-02 2026-02-02 (0.91)
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)-0.9%
PT rev (3m)0.18%
EPS NQ rev (1m)795.97%
EPS NQ rev (3m)617.71%
EPS NY rev (1m)1.22%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)3.51%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 19.59 | ||
| P/S | 2.11 | ||
| P/FCF | N/A | ||
| P/OCF | 6.34 | ||
| P/B | 1.56 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)4.87
EY5.2%
EPS(NY)4.78
Fwd EY5.11%
FCF(TTM)-6.01
FCFYN/A
OCF(TTM)14.77
OCFY15.76%
SpS44.34
BVpS59.89
TBVpS55.34
PEG (NY)N/A
PEG (5Y)10.83
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 | 0.74 |
F-Score3
WACC6.29%
ROIC/WACC0.48
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-8.11%
EPS Next 2Y-4.27%
EPS Next 3Y2.87%
EPS Next 5Y4.74%
Revenue 1Y (TTM)5.7%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%2.94%
Revenue Next Year5.97%
Revenue Next 2Y4.96%
Revenue Next 3Y5.71%
Revenue Next 5Y5.16%
EBIT growth 1Y2.92%
EBIT growth 3Y7.91%
EBIT growth 5Y11.51%
EBIT Next Year103.64%
EBIT Next 3Y35.25%
EBIT Next 5Y23.51%
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.
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 -8.11% in the next year.