PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
USA - NYSE:PNW - US7234841010 - Common Stock
88.52 USD
-1.03 (-1.15%)
88.52 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 has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, PNW is valued expensive at the moment. PNW also has an excellent dividend rating.
1. Profitability
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.
1.2 Ratios
PNW's Return On Assets of 1.97% is on the low side compared to the rest of the industry. PNW is outperformed by 82.98% of its industry peers.
PNW's Return On Equity of 8.56% is on the low side compared to the rest of the industry. PNW is outperformed by 65.96% of its industry peers.
PNW has a Return On Invested Capital of 2.95%. This is amonst the worse of the industry: PNW underperforms 80.85% 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 4.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 8.56% | ||
| ROIC | 2.95% |
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
The Profit Margin of PNW (10.96%) is worse than 65.96% of its industry peers.
In the last couple of years the Profit Margin of PNW has declined.
With a Operating Margin value of 18.96%, PNW perfoms like the industry average, outperforming 40.43% of the companies in the same industry.
PNW's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.96% | ||
| PM (TTM) | 10.96% | ||
| 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
Compared to 1 year ago, PNW has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.68, we must say that PNW is in the distress zone and has some risk of bankruptcy.
PNW has a worse Altman-Z score (0.68) than 70.21% of its industry peers.
PNW has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
PNW's Debt to Equity ratio of 1.47 is in line compared to the rest of the industry. PNW outperforms 48.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.68 |
ROIC/WACC0.48
WACC6.14%
2.3 Liquidity
PNW has a Current Ratio of 0.52. 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's Current ratio of 0.52 is on the low side compared to the rest of the industry. PNW is outperformed by 89.36% of its industry peers.
A Quick Ratio of 0.37 indicates that PNW may have some problems paying its short term obligations.
PNW's Quick ratio of 0.37 is on the low side compared to the rest of the industry. PNW is outperformed by 89.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
PNW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.35%.
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 7.47% 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)-10.35%
EPS 3Y-1.55%
EPS 5Y1.78%
EPS Q2Q%-10.23%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%3.8%
3.2 Future
PNW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.51% yearly.
PNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.22% yearly.
EPS Next Y-11.22%
EPS Next 2Y-4.27%
EPS Next 3Y2.7%
EPS Next 5Y4.51%
Revenue Next Year5.08%
Revenue Next 2Y4.98%
Revenue Next 3Y5.49%
Revenue Next 5Y5.22%
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
PNW is valuated rather expensively with a Price/Earnings ratio of 18.25.
Compared to the rest of the industry, the Price/Earnings ratio of PNW is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PNW to the average of the S&P500 Index (26.11), we can say PNW is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.51, PNW is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as PNW.
PNW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 18.51 |
4.2 Price Multiples
PNW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PNW is cheaper than 63.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.27
EPS Next 2Y-4.27%
EPS Next 3Y2.7%
5. Dividend
5.1 Amount
PNW has a Yearly Dividend Yield of 4.06%, which is a nice return.
PNW's Dividend Yield is a higher than the industry average which is at 3.21.
Compared to an average S&P500 Dividend Yield of 2.37, PNW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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 70.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PNW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP70.92%
EPS Next 2Y-4.27%
EPS Next 3Y2.7%
88.52
-1.03 (-1.15%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners99.27%
Inst Owner Change-0.21%
Ins Owners0.11%
Ins Owner Change0.1%
Market Cap10.57B
Revenue(TTM)5.26B
Net Income(TTM)576.06M
Analysts73.68
Price Target97.74 (10.42%)
Short Float %3.93%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend3.39
Dividend Growth(5Y)2.9%
DP70.92%
Div Incr Years13
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-161.43%
Min EPS beat(2)-321.25%
Max EPS beat(2)-1.6%
EPS beat(4)1
Avg EPS beat(4)-67.22%
Min EPS beat(4)-321.25%
Max EPS beat(4)58.34%
EPS beat(8)5
Avg EPS beat(8)220.15%
EPS beat(12)6
Avg EPS beat(12)129.32%
EPS beat(16)10
Avg EPS beat(16)127.12%
Revenue beat(2)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)2.21%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-6.56%
Max Revenue beat(4)4.23%
Revenue beat(8)4
Avg Revenue beat(8)-0.75%
Revenue beat(12)8
Avg Revenue beat(12)6.81%
Revenue beat(16)12
Avg Revenue beat(16)7.86%
PT rev (1m)0.58%
PT rev (3m)-0.52%
EPS NQ rev (1m)3.96%
EPS NQ rev (3m)4.86%
EPS NY rev (1m)0.84%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 18.51 | ||
| P/S | 2.01 | ||
| P/FCF | N/A | ||
| P/OCF | 6.09 | ||
| P/B | 1.57 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)4.85
EY5.48%
EPS(NY)4.78
Fwd EY5.4%
FCF(TTM)-6.64
FCFYN/A
OCF(TTM)14.54
OCFY16.42%
SpS44
BVpS56.32
TBVpS51.56
PEG (NY)N/A
PEG (5Y)10.27
Graham Number78.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 8.56% | ||
| ROCE | 3.86% | ||
| ROIC | 2.95% | ||
| ROICexc | 2.95% | ||
| ROICexgc | 3.01% | ||
| OM | 18.96% | ||
| PM (TTM) | 10.96% | ||
| 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-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.01 | ||
| Cap/Depr | 257.36% | ||
| Cap/Sales | 48.13% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 87.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 0.68 |
F-Score4
WACC6.14%
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)-10.35%
EPS 3Y-1.55%
EPS 5Y1.78%
EPS Q2Q%-10.23%
EPS Next Y-11.22%
EPS Next 2Y-4.27%
EPS Next 3Y2.7%
EPS Next 5Y4.51%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%3.8%
Revenue Next Year5.08%
Revenue Next 2Y4.98%
Revenue Next 3Y5.49%
Revenue Next 5Y5.22%
EBIT growth 1Y2.59%
EBIT growth 3Y7.91%
EBIT growth 5Y11.51%
EBIT Next Year102.02%
EBIT Next 3Y35.95%
EBIT Next 5Y23.13%
FCF growth 1Y-14.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y59.15%
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 18.25 and the Price/Book (PB) ratio is 1.57.
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 -11.22% in the next year.