PINNACLE WEST CAPITAL (PNW) Fundamental Analysis & Valuation
NYSE:PNW • US7234841010
102.99 USD
+0.99 (+0.97%)
At close: Mar 4, 2026
102.99 USD
0 (0%)
After Hours: 3/4/2026, 5:50:07 PM
This PNW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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 may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, PNW is valued expensive at the moment. Finally PNW also has an excellent dividend rating.
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.
- 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
- PNW has a Return On Assets of 2.05%. This is amonst the worse of the industry: PNW underperforms 80.43% of its industry peers.
- The Return On Equity of PNW (8.75%) is worse than 65.22% of its industry peers.
- With a Return On Invested Capital value of 3.10%, PNW is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
- The Average Return On Invested Capital over the past 3 years for PNW is in line with the industry average of 4.48%.
| Industry Rank | Sector 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%
1.3 Margins
- With a Profit Margin value of 11.55%, PNW is not doing good in the industry: 63.04% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of PNW has declined.
- Looking at the Operating Margin, with a value of 19.99%, PNW is in line with its industry, outperforming 47.83% of the companies in the same industry.
- In the last couple of years the Operating Margin of PNW has declined.
| Industry Rank | Sector 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
2. PNW Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PNW is destroying value.
- PNW has more shares outstanding than it did 1 year ago.
- PNW has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for PNW has been reduced compared to a year ago.
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.
- With a Altman-Z score value of 0.74, PNW is not doing good in the industry: 63.04% of the companies in the same industry are doing better.
- PNW has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of PNW (1.41) is better than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.5
WACC6.22%
2.3 Liquidity
- PNW has a Current Ratio of 0.54. 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 (0.54) is worse than 82.61% of its industry peers.
- A Quick Ratio of 0.36 indicates that PNW may have some problems paying its short term obligations.
- PNW has a Quick ratio of 0.36. This is amonst the worse of the industry: PNW underperforms 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.36 |
3. PNW Growth Analysis
3.1 Past
- The earnings per share for PNW have decreased by -3.07% in the last year.
- The Earnings Per Share has been growing slightly by 0.73% on average over the past years.
- PNW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.20%.
- Measured over the past years, PNW shows a quite strong growth in Revenue. The Revenue has been growing by 8.28% on average per year.
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
- Based on estimates for the next years, PNW will show a small growth in Earnings Per Share. The EPS will grow by 7.74% on average per year.
- PNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.03% yearly.
EPS Next Y-6.17%
EPS Next 2Y6.01%
EPS Next 3Y6.57%
EPS Next 5Y7.74%
Revenue Next Year4.17%
Revenue Next 2Y5.59%
Revenue Next 3Y5.26%
Revenue Next 5Y5.03%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. PNW Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 20.35, which indicates a rather expensive current valuation of PNW.
- PNW's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.03. PNW is valued slightly cheaper when compared to this.
- PNW is valuated rather expensively with a Price/Forward Earnings ratio of 21.69.
- PNW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PNW is more expensive than 71.74% 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 25.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 21.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PNW is valued a bit cheaper than the industry average as 63.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)27.99
EPS Next 2Y6.01%
EPS Next 3Y6.57%
5. PNW Dividend Analysis
5.1 Amount
- PNW has a Yearly Dividend Yield of 3.62%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.15, PNW pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PNW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
- The dividend of PNW has a limited annual growth rate of 2.48%.
- 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)2.48%
Div Incr Years13
Div Non Decr Years31
5.3 Sustainability
- PNW pays out 68.58% 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.
DP68.58%
EPS Next 2Y6.01%
EPS Next 3Y6.57%
PNW Fundamentals: All Metrics, Ratios and Statistics
102.99
+0.99 (+0.97%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-25 2026-02-25/bmo
Earnings (Next)04-29 2026-04-29
Inst Owners99.04%
Inst Owner Change-3.28%
Ins Owners0.11%
Ins Owner Change2.47%
Market Cap12.45B
Revenue(TTM)5.34B
Net Income(TTM)616.53M
Analysts69.52
Price Target98.16 (-4.69%)
Short Float %5.24%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Yearly Dividend3.52
Dividend Growth(5Y)2.48%
DP68.58%
Div Incr Years13
Div Non Decr Years31
Ex-Date02-02 2026-02-02 (0.91)
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)0.98%
PT rev (3m)-0.14%
EPS NQ rev (1m)47.1%
EPS NQ rev (3m)958.35%
EPS NY rev (1m)0.01%
EPS NY rev (3m)5.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 21.69 | ||
| P/S | 2.33 | ||
| P/FCF | N/A | ||
| P/OCF | 6.9 | ||
| P/B | 1.77 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 10.86 |
EPS(TTM)5.06
EY4.91%
EPS(NY)4.75
Fwd EY4.61%
FCF(TTM)-6.78
FCFYN/A
OCF(TTM)14.93
OCFY14.5%
SpS44.16
BVpS58.28
TBVpS53.51
PEG (NY)N/A
PEG (5Y)27.99
Graham Number81.46
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC6.22%
ROIC/WACC0.5
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-6.17%
EPS Next 2Y6.01%
EPS Next 3Y6.57%
EPS Next 5Y7.74%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y7.28%
Revenue growth 5Y8.28%
Sales Q2Q%2.99%
Revenue Next Year4.17%
Revenue Next 2Y5.59%
Revenue Next 3Y5.26%
Revenue Next 5Y5.03%
EBIT growth 1Y5.49%
EBIT growth 3Y13.41%
EBIT growth 5Y6.26%
EBIT Next Year96.69%
EBIT Next 3Y34.96%
EBIT Next 5Y23.17%
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 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 -6.17% in the next year.