(PNW) Pinnacle West Capital - Overview
Sector: Utilities | Industry: Utilities - Regulated Electric | Exchange: NYSE (USA) | Market Cap: 12.475m USD | Total Return: 16.9% in 12m
Avg Turnover: 127M
EPS Trend: 71.6%
Qual. Beats: 1
Rev. Trend: 98.2%
Qual. Beats: 1
Warnings
High Debt while negative Cash Flow
Altman Z'' 0.78 < 1.0 - financial distress zone
Tailwinds
Avwap Ph Month
Pinnacle West Capital Corporation is a vertically integrated electric utility headquartered in Phoenix, Arizona. Operating primarily through its subsidiary, Arizona Public Service (APS), the company manages the full lifecycle of electricity from generation to retail distribution. Its energy portfolio is diversified across nuclear, natural gas, coal, and renewable sources, supported by a network of transmission lines, substations, and energy storage facilities.
The company operates within a regulated utility framework, where rates and capital investment returns are determined by the Arizona Corporation Commission. This business model provides a stable revenue stream but subjects the firm to regional regulatory risk and legislative shifts regarding carbon emissions. As Arizona experiences high population growth, the company must balance increasing demand with the infrastructure costs associated with extreme desert climates.
Investors can evaluate the long-term sustainability of these utility operations by reviewing the detailed financial breakdowns available on ValueRay. The firms infrastructure includes both overhead and underground primary cables to maintain service reliability across its service territory.
- Rate case outcomes and regulatory environment in Arizona impact authorized returns
- Population growth in Phoenix metropolitan area drives residential electricity demand
- Rising temperatures and extreme heat events increase peak load power consumption
- Capital expenditure on transmission and grid modernization affects rate base growth
- Clean energy transition costs and coal plant retirement timelines shift capital allocation
| Net Income: 654.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA -0.70 > 1.0 |
| NWC/Revenue: -19.81% < 20% (prev -30.33%; Δ 10.52% < -1%) |
| CFO/TA 0.05 > 3% & CFO 1.64b > Net Income 654.1m |
| Net Debt (19.3b) to EBITDA (2.18b): 8.83 < 3 |
| Current Ratio: 0.60 > 1.5 & < 3 |
| Outstanding Shares: last quarter (123.8m) vs 12m ago 3.50% < -2% |
| Gross Margin: 40.72% > 18% (prev 0.41%; Δ 4.03k% > 0.5%) |
| Asset Turnover: 18.84% > 50% (prev 19.11%; Δ -0.27% > 0%) |
| Interest Coverage Ratio: 2.76 > 6 (EBITDA TTM 2.18b / Interest Expense TTM 443.0m) |
| A: -0.04 (Total Current Assets 1.61b - Total Current Liabilities 2.70b) / Total Assets 30.7b |
| B: 0.13 (Retained Earnings 3.88b / Total Assets 30.7b) |
| C: 0.04 (EBIT TTM 1.22b / Avg Total Assets 29.0b) |
| D: 0.30 (Book Value of Equity 7.07b / Total Liabilities 23.6b) |
| Altman-Z'' = 0.78 = B |
| DSRI: 1.12 (Receivables 687.8m/584.5m, Revenue 5.46b/5.21b) |
| GMI: 1.02 (GM 40.72% / 41.36%) |
| AQI: 1.80 (AQ_t 0.28 / AQ_t-1 0.16) |
| SGI: 1.05 (Revenue 5.46b / 5.21b) |
| TATA: -0.03 (NI 654.1m - CFO 1.64b) / TA 30.7b) |
| Beneish M = -2.43 (Cap -4..+1) = BBB |
As of May 25, 2026, the stock is trading at USD 101.84 with a total of 1,182,325 shares traded.
Over the past week, the price has changed by +4.61%,
over one month by +1.52%,
over three months by +3.80% and
over the past year by +16.88%.
Pinnacle West Capital has received a consensus analysts rating of 3.41. Therefore, it is recommended to hold PNW.
- StrongBuy: 4
- Buy: 0
- Hold: 12
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 105 | 3.1% |
P/E Forward = 21.9298
P/S = 2.2859
P/B = 1.765
P/EG = 3.0914
Revenue TTM = 5.46b USD
EBIT TTM = 1.22b USD
EBITDA TTM = 2.18b USD
Long Term Debt = 9.80b USD (from longTermDebt, last quarter)
Short Term Debt = 1.33b USD (from shortTermDebt, last quarter)
Debt = 19.3b USD (from shortLongTermDebtTotal, last quarter) + Leases 4.15b
Net Debt = 19.3b USD (calculated: Debt 19.3b - CCE 6.41m)
Enterprise Value = 31.8b USD (12.5b + Debt 19.3b - CCE 6.41m)
Interest Coverage Ratio = 2.76 (Ebit TTM 1.22b / Interest Expense TTM 443.0m)
EV/FCF = -32.02x (Enterprise Value 31.8b / FCF TTM -991.9m)
FCF Yield = -3.12% (FCF TTM -991.9m / Enterprise Value 31.8b)
FCF Margin = -18.18% (FCF TTM -991.9m / Revenue TTM 5.46b)
Net Margin = 11.99% (Net Income TTM 654.1m / Revenue TTM 5.46b)
Gross Margin = 40.72% ((Revenue TTM 5.46b - Cost of Revenue TTM 3.24b) / Revenue TTM)
Gross Margin QoQ = 62.01% (prev 18.27%)
Tobins Q-Ratio = 1.03 (Enterprise Value 31.8b / Total Assets 30.7b)
Interest Expense / Debt = 2.30% (Interest Expense 443.0m / Debt 19.3b)
Taxrate = 3.22% (1.17m / 36.3m)
NOPAT = 1.18b (EBIT 1.22b * (1 - 3.22%))
Current Ratio = 0.60 (Total Current Assets 1.61b / Total Current Liabilities 2.70b)
Debt / Equity = 2.73 (Debt 19.3b / totalStockholderEquity, last quarter 7.07b)
Debt / EBITDA = 8.83 (Net Debt 19.3b / EBITDA 2.18b)
Debt / FCF = -19.44 (negative FCF - burning cash) (Net Debt 19.3b / FCF TTM -991.9m)
Total Stockholder Equity = 7.00b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.26% (Net Income 654.1m / Total Assets 30.7b)
RoE = 9.34% (Net Income TTM 654.1m / Total Stockholder Equity 7.00b)
RoCE = 7.29% (EBIT 1.22b / Capital Employed (Equity 7.00b + L.T.Debt 9.80b))
RoIC = 4.04% (NOPAT 1.18b / Invested Capital 29.3b)
WACC = 3.63% (E(12.5b)/V(31.8b) * Re(5.80%) + D(19.3b)/V(31.8b) * Rd(2.30%) * (1-Tc(0.03)))
Discount Rate = 5.80% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 89.57 | Cagr: 3.81%
[DCF] Fair Price = unknown (Cash Flow -991.9m)
EPS Correlation: 71.60 | EPS CAGR: 10.10% | SUE: 1.46 | # QB: 1
Revenue Correlation: 98.24 | Revenue CAGR: 6.87% | SUE: 1.10 | # QB: 1
EPS current Quarter (2026-06-30): EPS=1.47 | Chg30d=-3.03% | Revisions=-25% | Analysts=6
EPS next Quarter (2026-09-30): EPS=3.18 | Chg30d=-1.11% | Revisions=+0% | Analysts=6
EPS current Year (2026-12-31): EPS=4.70 | Chg30d=+0.41% | Revisions=+33% | GrowthEPS=-6.8% | GrowthRev=+3.5%
EPS next Year (2027-12-31): EPS=5.66 | Chg30d=+0.18% | Revisions=+33% | GrowthEPS=+20.2% | GrowthRev=+7.4%
[Analyst] Revisions Ratio: +33%