PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
USA - NYSE:PNW - US7234841010 - Common Stock
87.44 USD
-0.53 (-0.6%)
PNW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. Both the profitability and financial health of PNW have multiple concerns. 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.
Each year in the past 5 years PNW has been profitable.
PNW had a positive operating cash flow in each of the past 5 years.
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.
With a Return On Invested Capital value of 2.95%, PNW is not doing good in the industry: 80.85% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for PNW 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 has a Profit Margin of 10.96%. This is in the lower half of the industry: PNW underperforms 65.96% of its industry peers.
In the last couple of years the Profit Margin of PNW has declined.
PNW's Operating Margin of 18.96% is in line compared to the rest of the industry. PNW outperforms 40.43% of its industry peers.
In the last couple of years the Operating Margin of PNW has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PNW is destroying value.
The number of shares outstanding for PNW has been increased compared to 1 year ago.
Compared to 5 years ago, PNW has more shares outstanding
The debt/assets ratio for PNW has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.68, we must say that PNW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PNW (0.68) is worse than 70.21% of its industry peers.
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 of 1.47. This is comparable to the rest of the industry: PNW outperforms 48.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.68 |
ROIC/WACC0.48
WACC6.13%
2.3 Liquidity
A Current Ratio of 0.52 indicates that PNW may have some problems paying 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.
Looking at the Quick ratio, with a value of 0.37, PNW is doing worse than 89.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for PNW have decreased by -7.77% in the last year.
The Earnings Per Share has been growing slightly by 1.78% on average over the past years.
PNW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.13%.
The Revenue has been growing by 8.10% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.77%
EPS 3Y-1.55%
EPS 5Y1.78%
EPS Q2Q%0.59%
Revenue 1Y (TTM)9.13%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%2.94%
3.2 Future
The Earnings Per Share is expected to grow by 4.62% 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 5.00% yearly.
EPS Next Y-11.13%
EPS Next 2Y-4.39%
EPS Next 3Y2.65%
EPS Next 5Y4.62%
Revenue Next Year5.41%
Revenue Next 2Y4.94%
Revenue Next 3Y5.51%
Revenue Next 5Y5%
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
The Price/Earnings ratio is 17.95, which indicates a rather expensive current valuation of PNW.
PNW's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PNW to the average of the S&P500 Index (26.06), we can say PNW is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.32, the valuation of PNW can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNW is on the same level as its industry peers.
PNW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 18.32 |
4.2 Price Multiples
65.96% of the companies in the same industry are more expensive than PNW, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.11
EPS Next 2Y-4.39%
EPS Next 3Y2.65%
5. Dividend
5.1 Amount
PNW has a Yearly Dividend Yield of 4.14%, which is a nice return.
Compared to an average industry Dividend Yield of 3.23, PNW pays a better dividend. On top of this PNW pays more dividend than 85.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, PNW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
5.2 History
The dividend of PNW has a limited annual growth rate of 2.90%.
PNW has paid a dividend for at least 10 years, which is 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.
PNW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP70.92%
EPS Next 2Y-4.39%
EPS Next 3Y2.65%
NYSE:PNW (11/10/2025, 3:21:09 PM)
87.44
-0.53 (-0.6%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners99.27%
Inst Owner Change-0.07%
Ins Owners0.11%
Ins Owner Change0.1%
Market Cap10.44B
Revenue(TTM)5.12B
Net Income(TTM)576.06M
Analysts71.82
Price Target97.74 (11.78%)
Short Float %3.93%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
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)0.73%
PT rev (3m)-0.59%
EPS NQ rev (1m)3.96%
EPS NQ rev (3m)4.86%
EPS NY rev (1m)0.93%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 18.32 | ||
| P/S | 1.99 | ||
| P/FCF | N/A | ||
| P/OCF | 6.02 | ||
| P/B | 1.55 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 9.77 |
EPS(TTM)4.87
EY5.57%
EPS(NY)4.77
Fwd EY5.46%
FCF(TTM)-6.64
FCFYN/A
OCF(TTM)14.54
OCFY16.62%
SpS44
BVpS56.32
TBVpS51.56
PEG (NY)N/A
PEG (5Y)10.11
Graham Number78.56
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%
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-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 | 0.68 |
F-Score4
WACC6.13%
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)-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 5Y4.62%
Revenue 1Y (TTM)9.13%
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%
EBIT growth 1Y2.59%
EBIT growth 3Y7.91%
EBIT growth 5Y11.51%
EBIT Next Year102.02%
EBIT Next 3Y35.95%
EBIT Next 5Y23.35%
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%
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 17.95 and the Price/Book (PB) ratio is 1.55.
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.