PNW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. Both the profitability and financial health of PNW have multiple concerns. PNW is valied quite expensively at the moment, while it does show a decent growth rate. PNW also has an excellent dividend rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
PNW had positive earnings in each of the past 5 years.
Each year in the past 5 years PNW had a positive operating cash flow.

1.2 Ratios

PNW's Return On Assets of 1.99% is on the low side compared to the rest of the industry. PNW is outperformed by 82.61% of its industry peers.
Looking at the Return On Equity, with a value of 8.29%, PNW is doing worse than 69.57% of the companies in the same industry.
PNW has a Return On Invested Capital of 3.01%. This is in the lower half of the industry: PNW underperforms 73.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PNW is in line with the industry average of 4.57%.

		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 of 19.43%. This is comparable to the rest of the industry: PNW outperforms 43.48% of its industry peers.
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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
PNW has a better debt/assets ratio than last year.

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 Altman-Z score of 0.74. This is in the lower half of the industry: PNW underperforms 63.04% 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

WACC6.27%

2.3 Liquidity

A Current Ratio of 0.67 indicates that PNW may have some problems paying its short term obligations.
PNW's Current ratio of 0.67 is on the low side compared to the rest of the industry. PNW is outperformed by 78.26% of its industry peers.
A Quick Ratio of 0.49 indicates that PNW may have some problems paying its short term obligations.
The Quick ratio of PNW (0.49) is worse than 78.26% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.67
Quick Ratio	0.49

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The earnings per share for PNW have decreased by -7.77% in the last year.
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.
PNW shows a small growth in Revenue. In the last year, the Revenue has grown by 5.70%.
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

PNW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.74% yearly.
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-5.92%

EPS Next 2Y-4.77%

EPS Next 3Y2.85%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 18.83, the valuation of PNW can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PNW is on the same level as its industry peers.
PNW is valuated rather cheaply when we compare the Price/Earnings ratio to 28.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.37, which indicates a rather expensive current valuation of PNW.
PNW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PNW is more expensive than 69.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PNW to the average of the S&P500 Index (25.64), we can say PNW is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	18.83
Fwd PE	19.37

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	10.45

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)10.6

EPS Next 2Y-4.77%

EPS Next 3Y2.85%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

PNW has a Yearly Dividend Yield of 3.91%.
PNW's Dividend Yield is rather good when compared to the industry average which is at 2.90. PNW pays more dividend than 82.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.83, PNW pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	3.91%

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.
The dividend of PNW is growing, but earnings are growing more, so the dividend growth is sustainable.

DP69.92%

EPS Next 2Y-4.77%

EPS Next 3Y2.85%

More info and screens

Find the best dividend stocks

Show peers with best dividend

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 -5.92% in the next year.