PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
USA - NYSE:PNW - US7234841010 - Common Stock
85.9 USD
-1.52 (-1.74%)
85.9 USD
0 (0%)
Taking everything into account, PNW scores 3 out of 10 in our fundamental rating. PNW was compared to 48 industry peers in the Electric Utilities industry. PNW has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, PNW is valued expensive at the moment. PNW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PNW was profitable.
PNW had a positive operating cash flow in the past year.
In the past 5 years PNW has always been profitable.
PNW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PNW has a Return On Assets of 1.97%. This is amonst the worse of the industry: PNW underperforms 83.33% of its industry peers.
PNW has a Return On Equity of 8.56%. This is in the lower half of the industry: PNW underperforms 66.67% of its industry peers.
PNW has a Return On Invested Capital of 2.95%. This is amonst the worse of the industry: PNW underperforms 83.33% of its industry peers.
PNW had an Average Return On Invested Capital over the past 3 years of 3.05%. This is below the industry average of 5.43%.
| 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 64.58% of its industry peers.
PNW's Profit Margin has declined in the last couple of years.
PNW has a worse Operating Margin (18.96%) than 60.42% 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
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.
The number of shares outstanding for PNW has been increased compared to 5 years ago.
PNW has a better debt/assets ratio than last year.
2.2 Solvency
PNW has an Altman-Z score of 0.68. This is a bad value and indicates that PNW is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.68, PNW is doing worse than 70.83% 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's Debt to Equity ratio of 1.47 is in line compared to the rest of the industry. PNW outperforms 45.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.68 |
ROIC/WACC0.49
WACC6.07%
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.
The Current ratio of PNW (0.52) is worse than 89.58% 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 has a worse Quick ratio (0.37) than 89.58% of its industry peers.
| 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 strongly by -10.35% in the last year.
The Earnings Per Share has been growing slightly by 1.78% on average over the past years.
Looking at the last year, PNW shows a small growth in Revenue. The Revenue has grown by 7.47% in the last year.
PNW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.10% yearly.
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 5.00% on average per year.
Based on estimates for the next years, PNW will show a small growth in Revenue. The Revenue will grow by 4.69% on average per year.
EPS Next Y-12.03%
EPS Next 2Y-2.45%
EPS Next 3Y3.54%
EPS Next 5Y5%
Revenue Next Year5.32%
Revenue Next 2Y5.32%
Revenue Next 3Y5.7%
Revenue Next 5Y4.69%
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 17.71, the valuation of PNW can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PNW is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.20. PNW is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.29, the valuation of PNW can be described as rather expensive.
PNW's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PNW to the average of the S&P500 Index (22.71), we can say PNW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 17.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PNW is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.74 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)9.97
EPS Next 2Y-2.45%
EPS Next 3Y3.54%
5. Dividend
5.1 Amount
PNW has a Yearly Dividend Yield of 4.05%, which is a nice return.
Compared to an average industry Dividend Yield of 3.47, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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
70.92% of the earnings are spent on dividend by PNW. 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%
85.9
-1.52 (-1.74%)
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 Change13.42%
Market Cap10.26B
Analysts74
Price Target97.18 (13.13%)
Short Float %4.48%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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)-1.17%
PT rev (3m)-1.48%
EPS NQ rev (1m)1.18%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 17.29 | ||
| P/S | 1.95 | ||
| P/FCF | N/A | ||
| P/OCF | 5.91 | ||
| P/B | 1.53 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 9.74 |
EPS(TTM)4.85
EY5.65%
EPS(NY)4.97
Fwd EY5.78%
FCF(TTM)-6.64
FCFYN/A
OCF(TTM)14.54
OCFY16.92%
SpS44
BVpS56.32
TBVpS51.56
PEG (NY)N/A
PEG (5Y)9.97
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 | 0.68 |
F-Score4
WACC6.07%
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)-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 5Y5%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%3.8%
Revenue Next Year5.32%
Revenue Next 2Y5.32%
Revenue Next 3Y5.7%
Revenue Next 5Y4.69%
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%