PINNACLE WEST CAPITAL (PNW)
US7234841010 - Common Stock
Taking everything into account, PNW scores 3 out of 10 in our fundamental rating. PNW was compared to 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of PNW while its profitability can be described as average. 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.
PNW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.34%, PNW perfoms like the industry average, outperforming 42.22% of the companies in the same industry.
PNW has a Return On Equity (9.30%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.41%, PNW is not doing good in the industry: 71.11% of the companies in the same industry are doing better.
PNW had an Average Return On Invested Capital over the past 3 years of 2.97%. This is in line with the industry average of 4.67%.
The 3 year average ROIC (2.97%) for PNW is below the current ROIC(3.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 9.3% | ||
| ROIC | 3.41% |
ROA(3y)2.32%
ROA(5y)2.53%
ROE(3y)8.86%
ROE(5y)9.25%
ROIC(3y)2.97%
ROIC(5y)3.04%
1.3 Margins
PNW's Profit Margin of 12.26% is in line compared to the rest of the industry. PNW outperforms 51.11% of its industry peers.
PNW's Profit Margin has declined in the last couple of years.
PNW has a Operating Margin (19.95%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PNW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.95% | ||
| PM (TTM) | 12.26% | ||
| GM | N/A |
OM growth 3Y-7.2%
OM growth 5Y-3.15%
PM growth 3Y-11.39%
PM growth 5Y-5.06%
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.
Compared to 1 year ago, PNW has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that PNW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PNW (0.77) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that PNW has dependencies on debt financing.
The Debt to Equity ratio of PNW (1.31) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.55
WACC6.26%
2.3 Liquidity
A Current Ratio of 0.71 indicates that PNW may have some problems paying its short term obligations.
PNW has a worse Current ratio (0.71) than 75.56% of its industry peers.
A Quick Ratio of 0.54 indicates that PNW may have some problems paying its short term obligations.
PNW has a Quick ratio of 0.54. This is in the lower half of the industry: PNW underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
PNW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.71%, which is quite impressive.
PNW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.58% yearly.
Looking at the last year, PNW shows a small growth in Revenue. The Revenue has grown by 6.52% in the last year.
PNW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.93% yearly.
EPS 1Y (TTM)25.71%
EPS 3Y-3.32%
EPS 5Y-0.58%
EPS Q2Q%-3.71%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y9.4%
Revenue growth 5Y4.93%
Sales Q2Q%8%
3.2 Future
The Earnings Per Share is expected to grow by 6.36% on average over the next years.
Based on estimates for the next years, PNW will show a small growth in Revenue. The Revenue will grow by 5.97% on average per year.
EPS Next Y14.99%
EPS Next 2Y3.04%
EPS Next 3Y5.74%
EPS Next 5Y6.36%
Revenue Next Year8.09%
Revenue Next 2Y5.57%
Revenue Next 3Y5.47%
Revenue Next 5Y5.97%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.09, PNW is valued correctly.
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 27.73.
A Price/Forward Earnings ratio of 18.14 indicates a rather expensive valuation of PNW.
PNW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PNW is more expensive than 71.11% of the companies in the same industry.
PNW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 18.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PNW indicates a somewhat cheap valuation: PNW is cheaper than 64.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
PNW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.07
PEG (5Y)N/A
EPS Next 2Y3.04%
EPS Next 3Y5.74%
5. Dividend
5.1 Amount
PNW has a Yearly Dividend Yield of 4.23%, which is a nice return.
PNW's Dividend Yield is a higher than the industry average which is at 3.66.
PNW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
5.2 History
The dividend of PNW has a limited annual growth rate of 4.34%.
PNW has been paying a dividend for at least 10 years, so it has 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)4.34%
Div Incr Years13
Div Non Decr Years31
5.3 Sustainability
PNW pays out 63.78% 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.
DP63.78%
EPS Next 2Y3.04%
EPS Next 3Y5.74%
PINNACLE WEST CAPITAL
NYSE:PNW (12/20/2024, 8:04:00 PM)
After market: 84.96 0 (0%)84.96
+0.36 (+0.43%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners102.27%
Inst Owner Change1.49%
Ins Owners0.15%
Ins Owner Change1.69%
Market Cap9.66B
Analysts76.19
Price Target93.68 (10.26%)
Short Float %3.6%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Dividend Growth(5Y)4.34%
DP63.78%
Div Incr Years13
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.41%
Min EPS beat(2)-4.36%
Max EPS beat(2)39.18%
EPS beat(4)3
Avg EPS beat(4)506.04%
Min EPS beat(4)-4.36%
Max EPS beat(4)1889.34%
EPS beat(8)4
Avg EPS beat(8)225.86%
EPS beat(12)8
Avg EPS beat(12)190.98%
EPS beat(16)11
Avg EPS beat(16)115.06%
Revenue beat(2)1
Avg Revenue beat(2)0.37%
Min Revenue beat(2)-6.56%
Max Revenue beat(2)7.29%
Revenue beat(4)1
Avg Revenue beat(4)-3.83%
Min Revenue beat(4)-12.02%
Max Revenue beat(4)7.29%
Revenue beat(8)5
Avg Revenue beat(8)8.12%
Revenue beat(12)9
Avg Revenue beat(12)9.62%
Revenue beat(16)12
Avg Revenue beat(16)7.74%
PT rev (1m)1.96%
PT rev (3m)6.46%
EPS NQ rev (1m)40.01%
EPS NQ rev (3m)-273.03%
EPS NY rev (1m)1.9%
EPS NY rev (3m)4.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.11%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 18.14 | ||
| P/S | 1.92 | ||
| P/FCF | N/A | ||
| P/OCF | 6.26 | ||
| P/B | 1.46 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 9.64 |
EPS(TTM)5.28
EY6.21%
EPS(NY)4.68
Fwd EY5.51%
FCF(TTM)-6.2
FCFYN/A
OCF(TTM)13.58
OCFY15.98%
SpS44.16
BVpS58.19
TBVpS53.03
PEG (NY)1.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 9.3% | ||
| ROCE | 4.33% | ||
| ROIC | 3.41% | ||
| ROICexc | 3.42% | ||
| ROICexgc | 3.51% | ||
| OM | 19.95% | ||
| PM (TTM) | 12.26% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.32%
ROA(5y)2.53%
ROE(3y)8.86%
ROE(5y)9.25%
ROIC(3y)2.97%
ROIC(5y)3.04%
ROICexc(3y)2.98%
ROICexc(5y)3.04%
ROICexgc(3y)3.01%
ROICexgc(5y)3.08%
ROCE(3y)3.75%
ROCE(5y)3.81%
ROICexcg growth 3Y-4.36%
ROICexcg growth 5Y-4.95%
ROICexc growth 3Y-4.26%
ROICexc growth 5Y-4.87%
OM growth 3Y-7.2%
OM growth 5Y-3.15%
PM growth 3Y-11.39%
PM growth 5Y-5.06%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 242% | ||
| Cap/Sales | 44.8% | ||
| Interest Coverage | 2.83 | ||
| Cash Conversion | 79.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.77 |
F-Score7
WACC6.26%
ROIC/WACC0.55
Cap/Depr(3y)209.95%
Cap/Depr(5y)200.51%
Cap/Sales(3y)39.18%
Cap/Sales(5y)37.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.71%
EPS 3Y-3.32%
EPS 5Y-0.58%
EPS Q2Q%-3.71%
EPS Next Y14.99%
EPS Next 2Y3.04%
EPS Next 3Y5.74%
EPS Next 5Y6.36%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y9.4%
Revenue growth 5Y4.93%
Sales Q2Q%8%
Revenue Next Year8.09%
Revenue Next 2Y5.57%
Revenue Next 3Y5.47%
Revenue Next 5Y5.97%
EBIT growth 1Y27.31%
EBIT growth 3Y1.52%
EBIT growth 5Y1.63%
EBIT Next Year127.16%
EBIT Next 3Y38.72%
EBIT Next 5Y26.83%
FCF growth 1Y-37.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.39%
OCF growth 3Y7.71%
OCF growth 5Y-1.11%