PINNACLE WEST CAPITAL (PNW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNW - US7234841010 - Common Stock
87.4 USD
-1.85 (-2.07%)
88.4275 USD
+1.03 (+1.18%)
PNW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. PNW may be in some trouble as it scores bad on both profitability and health. PNW is valied quite expensively at the moment, while 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.
In the past year PNW had a positive cash flow from operations.
Each year in the past 5 years PNW has 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 82.61% of the companies in the same industry.
PNW has a worse Return On Equity (8.29%) than 69.57% of its industry peers.
PNW has a worse Return On Invested Capital (3.01%) than 73.91% 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 4.58%.
| 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 65.22% of its industry peers.
In the last couple of years the Profit Margin of PNW has declined.
PNW has a Operating Margin of 19.43%. This is comparable to the rest of the industry: PNW outperforms 43.48% 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.
PNW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PNW has been increased compared to 5 years ago.
The debt/assets ratio for PNW has been reduced compared to a year ago.
2.2 Solvency
PNW has an Altman-Z score of 0.72. This is a bad value and indicates that PNW is not financially healthy and even 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 63.04% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that PNW has dependencies on debt financing.
PNW has a Debt to Equity ratio of 1.38. This is comparable to the rest of the industry: PNW outperforms 58.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.49
WACC6.16%
2.3 Liquidity
A Current Ratio of 0.67 indicates that PNW may have some problems paying its short term obligations.
With a Current ratio value of 0.67, PNW is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
A Quick Ratio of 0.49 indicates that PNW may have some problems paying its short term obligations.
PNW has a worse Quick ratio (0.49) than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
PNW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.77%.
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 5.70% in the last year.
Measured over the past years, PNW shows a quite strong growth in Revenue. The Revenue has been growing by 8.10% on average per year.
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
Based on estimates for the next years, PNW will show a small growth in Earnings Per Share. The EPS will grow by 4.64% on average per year.
Based on estimates for the next years, PNW will show a small growth in Revenue. The Revenue will grow by 5.02% on average per year.
EPS Next Y-8.11%
EPS Next 2Y-4.27%
EPS Next 3Y2.87%
EPS Next 5Y4.64%
Revenue Next Year5.91%
Revenue Next 2Y4.96%
Revenue Next 3Y5.71%
Revenue Next 5Y5.02%
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
PNW is valuated rather expensively with a Price/Earnings ratio of 17.95.
PNW's Price/Earnings ratio is in line with the industry average.
PNW is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.27, the valuation of PNW can be described as rather expensive.
PNW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PNW is more expensive than 60.87% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PNW to the average of the S&P500 Index (23.57), we can say PNW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 18.27 |
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 60.87% 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)10.1
EPS Next 2Y-4.27%
EPS Next 3Y2.87%
5. Dividend
5.1 Amount
PNW has a Yearly Dividend Yield of 4.10%, which is a nice return.
Compared to an average industry Dividend Yield of 3.05, PNW pays a better dividend. On top of this PNW pays more dividend than 82.61% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, PNW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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
69.92% 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.
DP69.92%
EPS Next 2Y-4.27%
EPS Next 3Y2.87%
87.4
-1.85 (-2.07%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners99.04%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change-1.01%
Market Cap10.46B
Revenue(TTM)5.31B
Net Income(TTM)594.30M
Analysts71.82
Price Target97.34 (11.37%)
Short Float %4.75%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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)-0.97%
PT rev (3m)0.32%
EPS NQ rev (1m)290.27%
EPS NQ rev (3m)111.74%
EPS NY rev (1m)1.22%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)3.51%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 18.27 | ||
| P/S | 1.97 | ||
| P/FCF | N/A | ||
| P/OCF | 5.92 | ||
| P/B | 1.46 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 10.08 |
EPS(TTM)4.87
EY5.57%
EPS(NY)4.78
Fwd EY5.47%
FCF(TTM)-6.01
FCFYN/A
OCF(TTM)14.77
OCFY16.9%
SpS44.34
BVpS59.89
TBVpS55.34
PEG (NY)N/A
PEG (5Y)10.1
Graham Number81.01
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
WACC6.16%
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-8.11%
EPS Next 2Y-4.27%
EPS Next 3Y2.87%
EPS Next 5Y4.64%
Revenue 1Y (TTM)5.7%
Revenue growth 3Y10.45%
Revenue growth 5Y8.1%
Sales Q2Q%2.94%
Revenue Next Year5.91%
Revenue Next 2Y4.96%
Revenue Next 3Y5.71%
Revenue Next 5Y5.02%
EBIT growth 1Y2.92%
EBIT growth 3Y7.91%
EBIT growth 5Y11.51%
EBIT Next Year103.64%
EBIT Next 3Y35.25%
EBIT Next 5Y23.42%
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.
Can you provide the valuation status for PINNACLE WEST CAPITAL?
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 financial health for PNW stock?
The financial health rating of PINNACLE WEST CAPITAL (PNW) is 1 / 10.
What is the expected EPS growth for PINNACLE WEST CAPITAL (PNW) stock?
The Earnings per Share (EPS) of PINNACLE WEST CAPITAL (PNW) is expected to decline by -8.11% in the next year.