PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
NYSE:PNW - US7234841010 - Common Stock
91.35 USD
+0.19 (+0.21%)
91.35 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. PNW is quite expensive at the moment. It does show a decent growth rate. 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 has a Return On Assets of 1.97%. This is amonst the worse of the industry: PNW underperforms 82.98% of its industry peers.
PNW has a worse Return On Equity (8.56%) than 65.96% of its industry peers.
With a Return On Invested Capital value of 2.95%, PNW is not doing good in the industry: 82.98% 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 below the industry average of 5.09%.
| 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
The Profit Margin of PNW (10.96%) is worse than 65.96% of its industry peers.
PNW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.96%, PNW is doing worse than 61.70% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PNW 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.
Compared to 1 year ago, PNW has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that PNW is in the distress zone and has some risk of bankruptcy.
PNW has a Altman-Z score of 0.69. This is in the lower half of the industry: PNW underperforms 68.09% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that PNW has dependencies on debt financing.
With a Debt to Equity ratio value of 1.47, PNW perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.69 |
ROIC/WACC0.47
WACC6.26%
2.3 Liquidity
PNW has a Current Ratio of 0.52. 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 (0.52) than 89.36% of its industry peers.
PNW has a Quick Ratio of 0.52. 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's Quick ratio of 0.37 is on the low side compared to the rest of the industry. PNW is outperformed by 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%.
The Earnings Per Share has been growing slightly by 1.78% on average over the past years.
PNW shows a small growth in Revenue. In the last year, the Revenue has grown by 7.47%.
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
The Earnings Per Share is expected to grow by 4.22% on average over the next years.
PNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.60% yearly.
EPS Next Y-12.03%
EPS Next 2Y-2.45%
EPS Next 3Y3.54%
EPS Next 5Y4.22%
Revenue Next Year5.08%
Revenue Next 2Y5.32%
Revenue Next 3Y5.58%
Revenue Next 5Y4.6%
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 18.84 indicates a rather expensive valuation of PNW.
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 (27.24), we can say PNW is valued slightly cheaper.
PNW is valuated rather expensively with a Price/Forward Earnings ratio of 18.39.
PNW's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, PNW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.84 | ||
| Fwd PE | 18.39 |
4.2 Price Multiples
PNW's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.98 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.6
EPS Next 2Y-2.45%
EPS Next 3Y3.54%
5. Dividend
5.1 Amount
PNW has a Yearly Dividend Yield of 3.93%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.53, PNW pays a bit more dividend than its industry peers.
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 | 3.93% |
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 70.92% 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.
DP70.92%
EPS Next 2Y-2.45%
EPS Next 3Y3.54%
91.35
+0.19 (+0.21%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change2.91%
Ins Owners0.11%
Ins Owner Change16.87%
Market Cap10.91B
Analysts73.33
Price Target98.43 (7.75%)
Short Float %4.42%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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)0.19%
PT rev (3m)-0.58%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-9.93%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.84 | ||
| Fwd PE | 18.39 | ||
| P/S | 2.08 | ||
| P/FCF | N/A | ||
| P/OCF | 6.28 | ||
| P/B | 1.62 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 9.98 |
EPS(TTM)4.85
EY5.31%
EPS(NY)4.97
Fwd EY5.44%
FCF(TTM)-6.64
FCFYN/A
OCF(TTM)14.54
OCFY15.91%
SpS44
BVpS56.32
TBVpS51.56
PEG (NY)N/A
PEG (5Y)10.6
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 | 0.69 |
F-Score4
WACC6.26%
ROIC/WACC0.47
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-12.03%
EPS Next 2Y-2.45%
EPS Next 3Y3.54%
EPS Next 5Y4.22%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%3.8%
Revenue Next Year5.08%
Revenue Next 2Y5.32%
Revenue Next 3Y5.58%
Revenue Next 5Y4.6%
EBIT growth 1Y2.59%
EBIT growth 3Y7.91%
EBIT growth 5Y11.51%
EBIT Next Year103.03%
EBIT Next 3Y35.93%
EBIT Next 5Y22.81%
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%