PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
USA - NYSE:PNW - US7234841010 - Common Stock
93.15 USD
+0.15 (+0.16%)
93.15 USD
0 (0%)
PNW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 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
In the past year PNW was profitable.
In the past year PNW had a positive cash flow from operations.
In the past 5 years PNW has always been profitable.
Each year in the past 5 years PNW had a positive operating cash flow.
1.2 Ratios
PNW has a worse Return On Assets (1.97%) than 82.98% of its industry peers.
The Return On Equity of PNW (8.56%) is worse than 65.96% of its industry peers.
PNW has a worse Return On Invested Capital (2.95%) than 80.85% of its industry peers.
PNW had an Average Return On Invested Capital over the past 3 years of 3.05%. This is in line with the industry average of 4.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 8.56% | ||
| ROIC | 2.95% |
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's Profit Margin of 10.96% is on the low side compared to the rest of the industry. PNW is outperformed by 65.96% of its industry peers.
In the last couple of years the Profit Margin of PNW has declined.
PNW has a Operating Margin of 18.96%. This is comparable to the rest of the industry: PNW outperforms 40.43% of its industry peers.
PNW's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.96% | ||
| PM (TTM) | 10.96% | ||
| 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
PNW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PNW has been increased compared to 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 0.70, 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 0.70, PNW is doing worse than 70.21% of the companies in the same industry.
PNW has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
PNW has a Debt to Equity ratio (1.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
ROIC/WACC0.48
WACC6.16%
2.3 Liquidity
A Current Ratio of 0.52 indicates that PNW may have some problems paying its short term obligations.
PNW has a Current ratio of 0.52. This is amonst the worse of the industry: PNW underperforms 89.36% of its industry peers.
A Quick Ratio of 0.37 indicates that PNW may have some problems paying its short term obligations.
The Quick ratio of PNW (0.37) is worse than 89.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
PNW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.35%.
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.
Looking at the last year, PNW shows a small growth in Revenue. The Revenue has grown by 7.47% in the last year.
The Revenue has been growing by 8.10% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.35%
EPS 3Y-1.55%
EPS 5Y1.78%
EPS Q2Q%-10.23%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%3.8%
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 4.51% on average per year.
Based on estimates for the next years, PNW will show a small growth in Revenue. The Revenue will grow by 5.22% on average per year.
EPS Next Y-11.96%
EPS Next 2Y-3.74%
EPS Next 3Y2.83%
EPS Next 5Y4.51%
Revenue Next Year5.2%
Revenue Next 2Y5.11%
Revenue Next 3Y5.54%
Revenue Next 5Y5.22%
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.21, the valuation of PNW can be described as rather expensive.
PNW's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PNW to the average of the S&P500 Index (27.40), we can say PNW is valued slightly cheaper.
With a Price/Forward Earnings ratio of 19.26, 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 61.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PNW to the average of the S&P500 Index (22.94), we can say PNW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 19.26 |
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 61.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.81
EPS Next 2Y-3.74%
EPS Next 3Y2.83%
5. Dividend
5.1 Amount
PNW has a Yearly Dividend Yield of 3.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.40, PNW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, PNW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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 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
70.92% 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.
DP70.92%
EPS Next 2Y-3.74%
EPS Next 3Y2.83%
93.15
+0.15 (+0.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners99.27%
Inst Owner Change-0.43%
Ins Owners0.11%
Ins Owner Change0.1%
Market Cap11.12B
Analysts73.68
Price Target97.03 (4.17%)
Short Float %4.78%
Short Ratio5.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend3.39
Dividend Growth(5Y)2.9%
DP70.92%
Div Incr Years13
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-161.43%
Min EPS beat(2)-321.25%
Max EPS beat(2)-1.6%
EPS beat(4)1
Avg EPS beat(4)-67.22%
Min EPS beat(4)-321.25%
Max EPS beat(4)58.34%
EPS beat(8)5
Avg EPS beat(8)220.15%
EPS beat(12)6
Avg EPS beat(12)129.32%
EPS beat(16)10
Avg EPS beat(16)127.12%
Revenue beat(2)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)2.21%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-6.56%
Max Revenue beat(4)4.23%
Revenue beat(8)4
Avg Revenue beat(8)-0.75%
Revenue beat(12)8
Avg Revenue beat(12)6.81%
Revenue beat(16)12
Avg Revenue beat(16)7.86%
PT rev (1m)-1.5%
PT rev (3m)-1.49%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 19.26 | ||
| P/S | 2.12 | ||
| P/FCF | N/A | ||
| P/OCF | 6.41 | ||
| P/B | 1.65 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 10.08 |
EPS(TTM)4.85
EY5.21%
EPS(NY)4.84
Fwd EY5.19%
FCF(TTM)-6.64
FCFYN/A
OCF(TTM)14.54
OCFY15.6%
SpS44
BVpS56.32
TBVpS51.56
PEG (NY)N/A
PEG (5Y)10.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 8.56% | ||
| ROCE | 3.86% | ||
| ROIC | 2.95% | ||
| ROICexc | 2.95% | ||
| ROICexgc | 3.01% | ||
| OM | 18.96% | ||
| PM (TTM) | 10.96% | ||
| 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%
ROICexcg growth 3Y3.09%
ROICexcg 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-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.01 | ||
| Cap/Depr | 257.36% | ||
| Cap/Sales | 48.13% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 87.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 0.7 |
F-Score4
WACC6.16%
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)-10.35%
EPS 3Y-1.55%
EPS 5Y1.78%
EPS Q2Q%-10.23%
EPS Next Y-11.96%
EPS Next 2Y-3.74%
EPS Next 3Y2.83%
EPS Next 5Y4.51%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%3.8%
Revenue Next Year5.2%
Revenue Next 2Y5.11%
Revenue Next 3Y5.54%
Revenue Next 5Y5.22%
EBIT growth 1Y2.59%
EBIT growth 3Y7.91%
EBIT growth 5Y11.51%
EBIT Next Year102.02%
EBIT Next 3Y35.95%
EBIT Next 5Y23.13%
FCF growth 1Y-14.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y59.15%
OCF growth 3Y23.24%
OCF growth 5Y10.97%