PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNW - US7234841010 - Common Stock
89.07 USD
-0.25 (-0.28%)
89.07 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. Both the profitability and financial health of PNW have multiple concerns. 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
In the past year PNW was profitable.
PNW had a positive operating cash flow in the past year.
PNW had positive earnings in each of the past 5 years.
PNW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PNW (1.99%) is worse than 82.61% of its industry peers.
PNW has a worse Return On Equity (8.29%) than 69.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.01%, PNW is doing worse than 73.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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 has a worse Profit Margin (11.20%) than 65.22% of its industry peers.
PNW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.43%, PNW is in line with its industry, outperforming 43.48% of the companies in the same 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
PNW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 0.72, we must say that PNW is in the distress zone and has some risk of bankruptcy.
PNW has a worse Altman-Z score (0.72) than 63.04% 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 (1.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.49
WACC6.19%
2.3 Liquidity
A Current Ratio of 0.67 indicates that PNW may have some problems paying its short term obligations.
With a Current ratio value of 0.67, PNW is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
A Quick Ratio of 0.49 indicates that PNW may have some problems paying its short term obligations.
PNW has a worse Quick ratio (0.49) than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.49 |
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.
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
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.
The Revenue is expected to grow by 5.16% on average over the next years.
EPS Next Y-8.11%
EPS Next 2Y-4.27%
EPS Next 3Y2.87%
EPS Next 5Y4.74%
Revenue Next Year5.91%
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 18.29, PNW is valued on the expensive side.
PNW's Price/Earnings ratio is in line with the industry average.
PNW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 18.62 indicates a rather expensive valuation of PNW.
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 63.04% of the companies listed in the same industry.
PNW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 18.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PNW is valued a bit cheaper than 63.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.29
EPS Next 2Y-4.27%
EPS Next 3Y2.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.08%, PNW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.46, PNW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, PNW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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 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
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%
89.07
-0.25 (-0.28%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners99.04%
Inst Owner Change0.47%
Ins Owners0.11%
Ins Owner Change-1.01%
Market Cap10.66B
Revenue(TTM)5.31B
Net Income(TTM)594.30M
Analysts71.82
Price Target97.34 (9.28%)
Short Float %4.75%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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)-0.76%
PT rev (3m)0.32%
EPS NQ rev (1m)290.27%
EPS NQ rev (3m)111.74%
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)0.17%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 18.62 | ||
| P/S | 2.01 | ||
| P/FCF | N/A | ||
| P/OCF | 6.03 | ||
| P/B | 1.49 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 10.18 |
EPS(TTM)4.87
EY5.47%
EPS(NY)4.78
Fwd EY5.37%
FCF(TTM)-6.01
FCFYN/A
OCF(TTM)14.77
OCFY16.58%
SpS44.34
BVpS59.89
TBVpS55.34
PEG (NY)N/A
PEG (5Y)10.29
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
WACC6.19%
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-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 Year5.91%
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.