PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
USA - NYSE:PNW - US7234841010 - Common Stock
88.82 USD
-0.16 (-0.18%)
88.82 USD
0 (0%)
Overall PNW gets a fundamental rating of 3 out of 10. We evaluated PNW against 47 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. Finally PNW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PNW had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 1.99%, PNW is doing worse than 87.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.29%, PNW is doing worse than 68.09% of the companies in the same industry.
PNW has a Return On Invested Capital of 3.01%. This is amonst the worse of the industry: PNW underperforms 80.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PNW is in line with the industry average of 5.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 8.29% | ||
| ROIC | 3.01% |
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 worse Profit Margin (11.20%) than 68.09% of its industry peers.
PNW's Profit Margin has declined in the last couple of years.
PNW has a Operating Margin of 19.43%. This is comparable to the rest of the industry: PNW outperforms 42.55% of its industry peers.
In the last couple of years the Operating Margin of PNW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.43% | ||
| PM (TTM) | 11.2% | ||
| 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.
Compared to 5 years ago, PNW has more shares outstanding
Compared to 1 year ago, PNW has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that PNW is in the distress zone and has some risk of bankruptcy.
PNW has a Altman-Z score of 0.72. This is in the lower half of the industry: PNW underperforms 68.09% of its industry peers.
PNW has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
PNW has a Debt to Equity ratio (1.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.49
WACC6.13%
2.3 Liquidity
PNW has a Current Ratio of 0.67. 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 Current ratio of 0.67 is on the low side compared to the rest of the industry. PNW is outperformed by 76.60% of its industry peers.
PNW has a Quick Ratio of 0.67. 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 0.49, PNW is doing worse than 76.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for PNW have decreased by -7.77% in the last year.
PNW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.78% yearly.
PNW shows a small growth in Revenue. In the last year, the Revenue has grown by 5.70%.
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)5.7%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%2.94%
3.2 Future
PNW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.62% yearly.
Based on estimates for the next years, PNW will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.24, the valuation of PNW can be described as rather expensive.
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 (25.91), we can say PNW is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.61, which indicates a rather expensive current valuation of PNW.
The rest of the industry has a similar Price/Forward Earnings ratio as PNW.
The average S&P500 Price/Forward Earnings ratio is at 34.57. PNW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 18.61 |
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 | 10.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)10.26
EPS Next 2Y-4.39%
EPS Next 3Y2.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.15%, PNW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.22, 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 | 4.15% |
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 69.92% 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.
DP69.92%
EPS Next 2Y-4.39%
EPS Next 3Y2.65%
88.82
-0.16 (-0.18%)
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 Cap10.61B
Revenue(TTM)5.31B
Net Income(TTM)594.30M
Analysts71.82
Price Target97.74 (10.04%)
Short Float %3.93%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend3.39
Dividend Growth(5Y)2.9%
DP69.92%
Div Incr Years13
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.06%
Min EPS beat(2)-1.6%
Max EPS beat(2)7.72%
EPS beat(4)2
Avg EPS beat(4)-64.2%
Min EPS beat(4)-321.25%
Max EPS beat(4)58.34%
EPS beat(8)5
Avg EPS beat(8)220.92%
EPS beat(12)6
Avg EPS beat(12)129.17%
EPS beat(16)10
Avg EPS beat(16)127.18%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)0.32%
Revenue beat(4)3
Avg Revenue beat(4)1.59%
Min Revenue beat(4)-0.38%
Max Revenue beat(4)4.23%
Revenue beat(8)4
Avg Revenue beat(8)-1.12%
Revenue beat(12)8
Avg Revenue beat(12)5.94%
Revenue beat(16)12
Avg Revenue beat(16)7.61%
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 | 18.24 | ||
| Fwd PE | 18.61 | ||
| P/S | 2 | ||
| P/FCF | N/A | ||
| P/OCF | 6 | ||
| P/B | 1.48 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)4.87
EY5.48%
EPS(NY)4.77
Fwd EY5.37%
FCF(TTM)-6.02
FCFYN/A
OCF(TTM)14.8
OCFY16.67%
SpS44.44
BVpS60.02
TBVpS55.46
PEG (NY)N/A
PEG (5Y)10.26
Graham Number81.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 8.29% | ||
| ROCE | 3.83% | ||
| ROIC | 3.01% | ||
| ROICexc | 3.01% | ||
| ROICexgc | 3.07% | ||
| OM | 19.43% | ||
| PM (TTM) | 11.2% | ||
| 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-Score3
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.92 | ||
| Cap/Depr | 254.73% | ||
| Cap/Sales | 46.86% | ||
| Interest Coverage | 2.73 | ||
| Cash Conversion | 88.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.72 |
F-Score3
WACC6.13%
ROIC/WACC0.49
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)5.7%
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 1Y2.92%
EBIT growth 3Y7.91%
EBIT growth 5Y11.51%
EBIT Next Year102.02%
EBIT Next 3Y35.95%
EBIT Next 5Y23.35%
FCF growth 1Y-2.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y69.42%
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 18.24 and the Price/Book (PB) ratio is 1.48.
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.