PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNW - US7234841010 - Common Stock
92.95 USD
-0.76 (-0.81%)
92.95 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. Finally 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.
- PNW had a positive operating cash flow in each of the past 5 years.
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.
- PNW has a Return On Equity of 8.29%. This is in the lower half of the industry: PNW underperforms 69.57% of its industry peers.
- With a Return On Invested Capital value of 3.01%, PNW is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
- 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 has a worse Profit Margin (11.20%) than 65.22% of its industry peers.
- In the last couple of years the Profit Margin of PNW has declined.
- PNW's Operating Margin of 19.43% is in line compared to the rest of the industry. PNW outperforms 43.48% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PNW is destroying value.
- Compared to 1 year ago, PNW has more shares outstanding
- The number of shares outstanding for PNW has been increased compared to 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.
- Looking at the Altman-Z score, with a value of 0.74, PNW is doing worse than 60.87% of the companies in the same industry.
- A Debt/Equity ratio of 1.38 is on the high side and indicates that PNW has dependencies on debt financing.
- PNW has a Debt to Equity ratio of 1.38. This is comparable to the rest of the industry: PNW outperforms 58.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.48
WACC6.28%
2.3 Liquidity
- A Current Ratio of 0.67 indicates that PNW may have some problems paying its short term obligations.
- PNW has a worse Current ratio (0.67) than 78.26% of its industry peers.
- A Quick Ratio of 0.49 indicates that PNW may have some problems paying its short term obligations.
- With a Quick ratio value of 0.49, PNW is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
| 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.
- PNW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.78% yearly.
- Looking at the last year, PNW shows a small growth in Revenue. The Revenue has grown by 5.70% in the last 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
- PNW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.74% yearly.
- PNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.16% yearly.
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
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.09, the valuation of PNW can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as PNW.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, PNW is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 19.43, the valuation of PNW can be described as rather expensive.
- 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 65.22% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, PNW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 19.43 |
4.2 Price Multiples
- 60.87% of the companies in the same industry are more expensive than PNW, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.41 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.74
EPS Next 2Y-4.27%
EPS Next 3Y2.87%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.93%, PNW has a reasonable but not impressive dividend return.
- PNW's Dividend Yield is rather good when compared to the industry average which is at 2.93. PNW pays more dividend than 80.43% of the companies in the same industry.
- PNW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| 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%
92.95
-0.76 (-0.81%)
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 Cap11.13B
Revenue(TTM)5.31B
Net Income(TTM)594.30M
Analysts71.82
Price Target97.21 (4.58%)
Short Float %4.74%
Short Ratio4.45
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 | 19.09 | ||
| Fwd PE | 19.43 | ||
| P/S | 2.1 | ||
| P/FCF | N/A | ||
| P/OCF | 6.29 | ||
| P/B | 1.55 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 10.41 |
EPS(TTM)4.87
EY5.24%
EPS(NY)4.78
Fwd EY5.15%
FCF(TTM)-6.01
FCFYN/A
OCF(TTM)14.77
OCFY15.89%
SpS44.34
BVpS59.89
TBVpS55.34
PEG (NY)N/A
PEG (5Y)10.74
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
WACC6.28%
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 1 / 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.