PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNW - US7234841010 - Common Stock
88.54 USD
-0.78 (-0.87%)
88.54 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PNW. PNW was compared to 48 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. Profitability
1.1 Basic Checks
PNW had positive earnings in the past year.
PNW had a positive operating cash flow in the past year.
In the past 5 years PNW has always been profitable.
In the past 5 years PNW always reported a positive cash flow from operatings.
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 87.50% of its industry peers.
With a Return On Equity value of 8.29%, PNW is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.01%, PNW is doing worse than 77.08% 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 4.92%.
| 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
The Profit Margin of PNW (11.20%) is worse than 64.58% of its industry peers.
PNW's Profit Margin has declined in the last couple of years.
PNW has a Operating Margin (19.43%) which is in line with 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.
PNW has more shares outstanding than it did 1 year ago.
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
PNW has an Altman-Z score of 0.72. This is a bad value and indicates that PNW is not financially healthy and even has some risk of bankruptcy.
PNW has a worse Altman-Z score (0.72) than 66.67% 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.
The Debt to Equity ratio of PNW (1.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.49
WACC6.11%
2.3 Liquidity
PNW has a Current Ratio of 0.67. 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 has a worse Current ratio (0.67) than 79.17% of its industry peers.
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 79.17% 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.
PNW shows a small growth in Revenue. In the last year, the Revenue has grown by 5.70%.
Measured over the past years, PNW shows a quite strong growth in Revenue. The Revenue has been growing by 8.10% on average per year.
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
The Earnings Per Share is expected to grow by 4.64% on average over the next years.
The Revenue is expected to grow by 5.02% on average over the next years.
EPS Next Y-11.13%
EPS Next 2Y-4.39%
EPS Next 3Y2.65%
EPS Next 5Y4.64%
Revenue Next Year5.41%
Revenue Next 2Y4.94%
Revenue Next 3Y5.51%
Revenue Next 5Y5.02%
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
A Price/Earnings ratio of 18.18 indicates a rather expensive valuation of PNW.
PNW's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.11, PNW is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.55 indicates a rather expensive valuation of PNW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNW is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.21. PNW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.18 | ||
| Fwd PE | 18.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PNW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.23
EPS Next 2Y-4.39%
EPS Next 3Y2.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, PNW is a good candidate for dividend investing.
PNW's Dividend Yield is a higher than the industry average which is at 3.33.
PNW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
The dividend of PNW has a limited annual growth rate of 2.90%.
PNW has been paying a dividend for at least 10 years, so it has 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-4.39%
EPS Next 3Y2.65%
88.54
-0.78 (-0.87%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners99.27%
Inst Owner Change4.96%
Ins Owners0.11%
Ins Owner Change-1.01%
Market Cap10.60B
Revenue(TTM)5.31B
Net Income(TTM)594.30M
Analysts71.82
Price Target98.29 (11.01%)
Short Float %4.43%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
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)1.3%
PT rev (3m)-0.14%
EPS NQ rev (1m)91.16%
EPS NQ rev (3m)90.15%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)2.53%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.18 | ||
| Fwd PE | 18.55 | ||
| P/S | 2 | ||
| P/FCF | N/A | ||
| P/OCF | 5.99 | ||
| P/B | 1.48 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 10.19 |
EPS(TTM)4.87
EY5.5%
EPS(NY)4.77
Fwd EY5.39%
FCF(TTM)-6.01
FCFYN/A
OCF(TTM)14.77
OCFY16.68%
SpS44.34
BVpS59.89
TBVpS55.34
PEG (NY)N/A
PEG (5Y)10.23
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
WACC6.11%
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-11.13%
EPS Next 2Y-4.39%
EPS Next 3Y2.65%
EPS Next 5Y4.64%
Revenue 1Y (TTM)5.7%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%2.94%
Revenue Next Year5.41%
Revenue Next 2Y4.94%
Revenue Next 3Y5.51%
Revenue Next 5Y5.02%
EBIT growth 1Y2.92%
EBIT growth 3Y7.91%
EBIT growth 5Y11.51%
EBIT Next Year102.02%
EBIT Next 3Y35.95%
EBIT Next 5Y23.42%
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.
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 18.18 and the Price/Book (PB) ratio is 1.48.
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 -11.13% in the next year.