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
6 star dividend payer and undervalued.
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.
7 Day Return
US Electric Utilities
1 Year Return
US Electric Utilities
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.
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
2 weeks ago | Simply Wall StEstimating The Fair Value Of Pinnacle West Capital Corporation (NYSE:PNW)
1 month ago | Simply Wall StHow Did Pinnacle West Capital Corporation's (NYSE:PNW) 10% ROE Fare Against The Industry?
1 month ago | Simply Wall StThese 4 Measures Indicate That Pinnacle West Capital (NYSE:PNW) Is Using Debt Extensively
Is Pinnacle West Capital undervalued compared to its fair value and its price relative to the market?
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).
How is Pinnacle West Capital forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
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%).
How has Pinnacle West Capital performed over the past 5 years?
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.
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 ($13.2B).
Debt to Equity History and Analysis
Debt Level: PNW's debt to equity ratio (119.5%) is considered high.
Reducing Debt: PNW's debt to equity ratio has increased from 90.1% to 119.5% over the past 5 years.
Debt Coverage: PNW's debt is not well covered by operating cash flow (13.1%).
Interest Coverage: PNW's interest payments on its debt are well covered by EBIT (3.7x coverage).
What is Pinnacle West Capital current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PNW's dividend (4.5%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: PNW's dividend (4.5%) is in the top 25% of dividend payers in the US market (3.6%)
Stability and Growth of Payments
Stable Dividend: PNW's dividends per share have been stable in the past 10 years.
Growing Dividend: PNW's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (63.8%), PNW's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PNW's dividends in 3 years are forecast to be covered by earnings (70.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jeff Guldner (55 yo)
Mr. Jeffrey B. Guldner, also known as Jeff, has been Chairman and Chief Executive Officer of Arizona Public Service Company since November 15, 2019 and serves as its President since August 13, 2021. He ser...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($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.
Experienced Management: PNW's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: PNW's board of directors are considered experienced (6.3 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Pinnacle West Capital Corporation's company bio, employee growth, exchange listings and data sources
- 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
- Pinnacle West Capital Corporation
- 400 North Fifth Street
- P.O. Box 53999
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:03|
|End of Day Share Price||2021/09/17 00:00|
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.