NYSE:PNW

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Pinnacle West Capital

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 with solid track record.


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

-5.3%

PNW

-3.5%

US Electric Utilities

-1.4%

US Market


1 Year Return

-24.8%

PNW

-12.3%

US Electric Utilities

37.1%

US Market

Return vs Industry: PNW underperformed the US Electric Utilities industry which returned -12.7% over the past year.

Return vs Market: PNW underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

PNWIndustryMarket
7 Day-5.3%-3.5%-1.4%
30 Day-6.8%-7.6%1.6%
90 Day-15.6%-5.9%7.3%
1 Year-21.7%-24.8%-9.4%-12.3%40.2%37.1%
3 Year5.7%-5.1%24.1%13.7%62.5%52.1%
5 Year26.9%6.7%32.8%14.0%133.9%108.0%

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?

10.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PNW ($73.06) is trading below our estimate of fair value ($81.96)

Significantly Below Fair Value: PNW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PNW is good value based on its PE Ratio (13x) compared to the US Electric Utilities industry average (19.5x).

PE vs Market: PNW is good value based on its PE Ratio (13x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: PNW is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: PNW is good value based on its PB Ratio (1.4x) compared to the US Electric Utilities industry average (1.7x).


Next Steps

Future Growth

How is Pinnacle West Capital forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNW's forecast earnings growth (4.2% per year) is above the savings rate (2%).

Earnings vs Market: PNW's earnings (4.2% per year) are forecast to grow slower than the US market (20.4% per year).

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

Revenue vs Market: PNW's revenue (3.2% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: PNW's revenue (3.2% 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 (9.6%).


Next Steps

Past Performance

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

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNW has high quality earnings.

Growing Profit Margin: PNW's current net profit margins (18%) are higher than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: PNW's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: PNW's earnings growth over the past year (26.6%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: PNW earnings growth over the past year (26.6%) exceeded the Electric Utilities industry 2%.


Return on Equity

High ROE: PNW's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Pinnacle West Capital's financial position?


Financial Position Analysis

Short Term Liabilities: PNW's short term assets ($1.5B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: PNW's short term assets ($1.5B) do not cover its long term liabilities ($12.5B).


Debt to Equity History and Analysis

Debt Level: PNW's debt to equity ratio (106.8%) is considered high.

Reducing Debt: PNW's debt to equity ratio has increased from 77.8% to 106.8% over the past 5 years.

Debt Coverage: PNW's debt is not well covered by operating cash flow (14%).

Interest Coverage: PNW's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

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

4.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PNW's dividend (4.54%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: PNW's dividend (4.54%) is in the top 25% of dividend payers in the US market (3.75%)


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 (55.6%), 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 (68.2% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Jeff Guldner (54 yo)

1.25yrs

Tenure

US$3,893,048

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. He served as the President of Arizona Public Service Com...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD3.89M) is below average for companies of similar size in the US market ($USD6.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Guldner
Chairman1.25yrsUS$3.89m0.020%
$ 1.7m
James Hatfield
Executive VP1.08yrsUS$3.07m0.022%
$ 1.8m
Robert Smith
Senior VP & General Counsel2.5yrsUS$2.15m0.0016%
$ 130.0k
Daniel Froetscher
President & COO of Arizona Public Service Company1.08yrsUS$3.25m0.011%
$ 921.3k
Theodore Geisler
Senior VP & CFO1.08yrsno data0.0029%
$ 236.1k
Elizabeth Blankenship
VP, Controller & Chief Accounting Officer1.67yrsno data0.0013%
$ 108.6k
Stefanie Layton
Director of Investor Relationsno datano datano data
John Cadogan
Senior VP of Site Ops4.67yrsno datano data
Diane Wood
Assistant VP & Secretaryno datano datano data
Andrew Cooper
VP & Treasurer0.67yrno datano data
Paul Mountain
Vice President of Finance & Planningno datano datano data

1.2yrs

Average Tenure

52yo

Average Age

Experienced Management: PNW's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Guldner
Chairman1.25yrsUS$3.89m0.020%
$ 1.7m
Richard Fox
Independent Director7yrsUS$260.87k0.0047%
$ 390.8k
Kathryn Munro
Independent Lead Directorno dataUS$301.91k0.015%
$ 1.2m
Bruce Nordstrom
Independent Director21.08yrsUS$338.07k0.028%
$ 2.3m
Humberto Lopez
Independent Director26.08yrsUS$433.40k0.048%
$ 3.9m
Glynis Bryan
Independent Director1yrno data0.00046%
$ 37.8k
James Trevathan
Independent Director2.17yrsUS$292.07k0.00078%
$ 64.2k
Denis Cortese
Independent Director11.08yrsUS$225.23k0.014%
$ 1.2m
Paula Sims
Independent Director4.33yrsUS$230.74k0.0036%
$ 297.0k
Dale Klein
Independent Director10.67yrsUS$225.23k0.000090%
$ 7.4k
David Wagener
Independent Director7yrsUS$225.23k0.013%
$ 1.0m

7.0yrs

Average Tenure

70yo

Average Age

Experienced Board: PNW's board of directors are considered experienced (7 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.


Recent Insider Transactions

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$8.226b
  • Shares outstanding: 112.60m
  • Website: https://www.pinnaclewest.com

Number of Employees


Location

  • Pinnacle West Capital Corporation
  • 400 North 5th Street
  • PO Box 53999
  • Phoenix
  • Arizona
  • 85072-3999
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PNWNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
PWCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
PWCXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
0KITLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
P1NW34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

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 generates, transmit...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 23:35
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
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.