PINNACLE WEST CAPITAL (PNW) Fundamental Analysis & Valuation

NYSE:PNW • US7234841010

101.48 USD
+0.87 (+0.86%)
At close: Mar 12, 2026
101.48 USD
0 (0%)
After Hours: 3/12/2026, 4:03:57 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This PNW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

3

Overall PNW gets a fundamental rating of 3 out of 10. We evaluated PNW against 46 industry peers in the Electric Utilities industry. PNW has a bad profitability rating. Also its financial health evaluation is rather negative. PNW is valied quite expensively at the moment, while it does show a decent growth rate. PNW also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

1. PNW Profitability Analysis

1.1 Basic Checks

  • In the past year PNW was profitable.
  • In the past year PNW had a positive cash flow from operations.
  • PNW had positive earnings in each of the past 5 years.
  • Each year in the past 5 years PNW had a positive operating cash flow.
PNW Yearly Net Income VS EBIT VS OCF VS FCFPNW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B

1.2 Ratios

  • PNW has a worse Return On Assets (2.05%) than 80.43% of its industry peers.
  • The Return On Equity of PNW (8.75%) is worse than 63.04% of its industry peers.
  • The Return On Invested Capital of PNW (3.10%) is worse than 73.91% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for PNW is in line with the industry average of 4.49%.
Industry RankSector 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%
PNW Yearly ROA, ROE, ROICPNW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

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.
  • PNW has a Operating Margin (19.99%) which is comparable to the rest of the industry.
  • PNW's Operating Margin has declined in the last couple of years.
Industry RankSector 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
PNW Yearly Profit, Operating, Gross MarginsPNW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. PNW Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PNW is destroying value.
  • PNW has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for PNW has been increased compared to 5 years ago.
  • Compared to 1 year ago, PNW has an improved debt to assets ratio.
PNW Yearly Shares OutstandingPNW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
PNW Yearly Total Debt VS Total AssetsPNW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • PNW has an Altman-Z score of 0.73. This is a bad value and indicates that PNW is not financially healthy and even has some risk of bankruptcy.
  • PNW's Altman-Z score of 0.73 is on the low side compared to the rest of the industry. PNW is outperformed by 60.87% of its industry peers.
  • A Debt/Equity ratio of 1.41 is on the high side and indicates that PNW has dependencies on debt financing.
  • The Debt to Equity ratio of PNW (1.41) is better than 60.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.41
Debt/FCF N/A
Altman-Z 0.73
ROIC/WACC0.5
WACC6.23%
PNW Yearly LT Debt VS Equity VS FCFPNW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

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 84.78% of its industry peers.
  • PNW has a Quick 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.
  • PNW has a worse Quick ratio (0.36) than 82.61% of its industry peers.
Industry RankSector Rank
Current Ratio 0.54
Quick Ratio 0.36
PNW Yearly Current Assets VS Current LiabilitesPNW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. PNW Growth Analysis

3.1 Past

  • PNW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.07%.
  • The Earnings Per Share has been growing slightly by 0.73% on average over the past years.
  • The Revenue has been growing slightly by 4.20% in the past year.
  • 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

  • PNW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.74% yearly.
  • Based on estimates for the next years, PNW will show a small growth in Revenue. The Revenue will grow by 5.03% on average per year.
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.
  • 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.
PNW Yearly Revenue VS EstimatesPNW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
PNW Yearly EPS VS EstimatesPNW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 4 6 8

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Find the best growth stocksShow best growing peers

2

4. PNW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.06, which indicates a rather expensive current valuation of PNW.
  • PNW's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.15, PNW is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 21.37, PNW is valued on the expensive side.
  • 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.
  • When comparing the Price/Forward Earnings ratio of PNW to the average of the S&P500 Index (24.27), we can say PNW is valued inline with the index average.
Industry RankSector Rank
PE 20.06
Fwd PE 21.37
PNW Price Earnings VS Forward Price EarningsPNW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PNW is valued a bit cheaper than 60.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.78
PNW Per share dataPNW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)27.58
EPS Next 2Y6.01%
EPS Next 3Y6.57%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. PNW Dividend Analysis

5.1 Amount

  • PNW has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
  • PNW's Dividend Yield is a higher than the industry average which is at 2.87.
  • Compared to an average S&P500 Dividend Yield of 1.82, PNW pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.58%

5.2 History

  • The dividend of PNW has a limited annual growth rate of 2.48%.
  • 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)2.48%
Div Incr Years13
Div Non Decr Years31
PNW Yearly Dividends per sharePNW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 68.58% of the earnings are spent on dividend by PNW. 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 Yearly Income VS Free CF VS DividendPNW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M
PNW Dividend Payout.PNW Dividend Payout, showing the Payout Ratio.PNW Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

PNW Fundamentals: All Metrics, Ratios and Statistics

PINNACLE WEST CAPITAL

NYSE:PNW (3/12/2026, 4:03:57 PM)

After market: 101.48 0 (0%)

101.48

+0.87 (+0.86%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-25
Earnings (Next)04-29
Inst Owners103.7%
Inst Owner Change-3.09%
Ins Owners0.12%
Ins Owner Change2.47%
Market Cap12.27B
Revenue(TTM)5.34B
Net Income(TTM)616.53M
Analysts69.52
Price Target98.16 (-3.27%)
Short Float %5.24%
Short Ratio4.89
Dividend
Industry RankSector Rank
Dividend Yield 3.58%
Yearly Dividend3.52
Dividend Growth(5Y)2.48%
DP68.58%
Div Incr Years13
Div Non Decr Years31
Ex-Date02-02
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)0.77%
PT rev (3m)0.07%
EPS NQ rev (1m)-59.12%
EPS NQ rev (3m)-59.12%
EPS NY rev (1m)0.28%
EPS NY rev (3m)-0.91%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.46%
Valuation
Industry RankSector Rank
PE 20.06
Fwd PE 21.37
P/S 2.3
P/FCF N/A
P/OCF 6.8
P/B 1.74
P/tB 1.9
EV/EBITDA 10.78
EPS(TTM)5.06
EY4.99%
EPS(NY)4.75
Fwd EY4.68%
FCF(TTM)-6.78
FCFYN/A
OCF(TTM)14.93
OCFY14.71%
SpS44.16
BVpS58.28
TBVpS53.51
PEG (NY)N/A
PEG (5Y)27.58
Graham Number81.46
Profitability
Industry RankSector 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 RankSector 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 0.73
F-Score4
WACC6.23%
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.