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Pinnacle West Capital

Market Cap

US$8.3b

Last Updated

2021/09/18 22:03 UTC

Data Sources

Company Financials +

Executive Summary

Pinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. More Details


Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

How has Pinnacle West Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PNW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PNW's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.0%

PNW

-3.1%

US Electric Utilities

-0.6%

US Market


1 Year Return

4.8%

PNW

16.2%

US Electric Utilities

33.8%

US Market

Return vs Industry: PNW underperformed the US Electric Utilities industry which returned 16.2% over the past year.

Return vs Market: PNW underperformed the US Market which returned 33.8% over the past year.


Shareholder returns

PNWIndustryMarket
7 Day-1.0%-3.1%-0.6%
30 Day-7.8%-4.0%2.0%
90 Day-8.9%4.5%4.7%
1 Year9.2%4.8%20.0%16.2%35.8%33.8%
3 Year2.7%-8.0%23.3%13.1%60.0%50.1%
5 Year10.9%-7.0%30.8%12.7%123.0%98.7%

Long-Term Price Volatility Vs. Market

How volatile is Pinnacle West Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pinnacle West Capital undervalued compared to its fair value and its price relative to the market?

20.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PNW ($73.82) is trading below our estimate of fair value ($93.09)

Significantly Below Fair Value: PNW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PNW is good value based on its PE Ratio (14.4x) compared to the US Electric Utilities industry average (21.8x).

PE vs Market: PNW is good value based on its PE Ratio (14.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: PNW is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: PNW is good value based on its PB Ratio (1.5x) compared to the US Electric Utilities industry average (2x).


Future Growth

How is Pinnacle West Capital forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNW's forecast earnings growth (2.8% per year) is above the savings rate (2%).

Earnings vs Market: PNW's earnings (2.8% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: PNW's earnings are forecast to grow, but not significantly.

Revenue vs Market: PNW's revenue (2.9% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: PNW's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PNW's Return on Equity is forecast to be low in 3 years time (9.3%).


Past Performance

How has Pinnacle West Capital performed over the past 5 years?

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNW has high quality earnings.

Growing Profit Margin: PNW's current net profit margins (15.7%) are lower than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: PNW's earnings have grown by 5.9% per year over the past 5 years.

Accelerating Growth: PNW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PNW had negative earnings growth (-3.6%) over the past year, making it difficult to compare to the Electric Utilities industry average (1.6%).


Return on Equity

High ROE: PNW's Return on Equity (10.2%) is considered low.


Financial Health

How is Pinnacle West Capital's financial position?


Financial Position Analysis

Short Term Liabilities: PNW's short term assets ($1.5B) do not cover its short term liabilities ($2.0B).

Long Term Liabilities: PNW's short term assets ($1.5B) do not cover its long term liabilities ($13.2B).


Debt to Equity History and Analysis

Debt Level: PNW's debt to equity ratio (119.5%) is considered high.

Reducing Debt: PNW's debt to equity ratio has increased from 90.1% to 119.5% over the past 5 years.

Debt Coverage: PNW's debt is not well covered by operating cash flow (13.1%).

Interest Coverage: PNW's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Dividend

What is Pinnacle West Capital current dividend yield, its reliability and sustainability?

4.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PNW's dividend (4.5%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: PNW's dividend (4.5%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

Stable Dividend: PNW's dividends per share have been stable in the past 10 years.

Growing Dividend: PNW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.8%), PNW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PNW's dividends in 3 years are forecast to be covered by earnings (70.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Jeff Guldner (55 yo)

1.83yrs

Tenure

US$6,849,455

Compensation

Mr. Jeffrey B. Guldner, also known as Jeff, has been Chairman and Chief Executive Officer of Arizona Public Service Company since November 15, 2019 and serves as its President since August 13, 2021. He ser...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD6.85M) is about average for companies of similar size in the US market ($USD6.44M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: PNW's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: PNW's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pinnacle West Capital Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pinnacle West Capital Corporation
  • Ticker: PNW
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$8.326b
  • Shares outstanding: 112.79m
  • Website: https://www.pinnaclewest.com

Number of Employees


Location

  • Pinnacle West Capital Corporation
  • 400 North Fifth Street
  • P.O. Box 53999
  • Phoenix
  • Arizona
  • 85072-3999
  • United States

Listings


Biography

Pinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the gene...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.