Pinnacle West Capital Corporation Fundamental Analysis
Pinnacle West Capital Corporation (PNW) shows weak financial fundamentals with a PE ratio of 19.13, profit margin of 11.99%, and ROE of 9.34%. The company generates $5.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PNW's fundamental strength across five key dimensions:
Efficiency Score
WeakPNW struggles to generate sufficient returns from assets.
Valuation Score
ModeratePNW shows balanced valuation metrics.
Growth Score
ModeratePNW shows steady but slowing expansion.
Financial Health Score
WeakPNW carries high financial risk with limited liquidity.
Profitability Score
WeakPNW struggles to sustain strong margins.
Key Financial Metrics
Is PNW Expensive or Cheap?
P/E Ratio
PNW trades at 19.13 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PNW's PEG of 3.29 indicates potential overvaluation.
Price to Book
The market values Pinnacle West Capital Corporation at 1.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.21 times EBITDA. This is generally considered low.
How Well Does PNW Make Money?
Net Profit Margin
For every $100 in sales, Pinnacle West Capital Corporation keeps $11.99 as profit after all expenses.
Operating Margin
Core operations generate 27.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.34 in profit for every $100 of shareholder equity.
ROA
Pinnacle West Capital Corporation generates $2.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pinnacle West Capital Corporation generates strong operating cash flow of $1.64B, reflecting robust business health.
Free Cash Flow
Pinnacle West Capital Corporation generates weak or negative free cash flow of $-990.52M, restricting financial flexibility.
FCF Per Share
Each share generates $-8.17 in free cash annually.
FCF Yield
PNW converts -7.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How PNW Stacks Against Its Sector Peers
| Metric | PNW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.13 | 22.56 | Better (Cheaper) |
| ROE | 9.34% | 938.00% | Weak |
| Net Margin | 11.99% | 437.00% | Weak |
| Debt/Equity | 2.14 | 1.47 | Weak (High Leverage) |
| Current Ratio | 0.60 | 1.72 | Weak Liquidity |
| ROA | 2.13% | 2216.00% | Weak |
PNW outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pinnacle West Capital Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income