Pinnacle West Capital Corp

Utilities
Electric Utilities: Central
www.pinnaclewest.com

Earnings Score
Moat Score
Safety Score

Market Cap $10.40B
PE 17
Debt $9.06B
Cash $49.17M
EV $19.41B
FCF -$705.28M

Earnings

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Sales & Net Margins

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Earnings	$615.61M
EBIT	$1.00B
ROE	9%
ROA	4%
FCF	-$705.28M
Equity	$6.73B
Growth Stability	85%
PE	16.9
PEG	-7.19
PB	1.55
P/FCF	-14.75
P/S	2.07
Price/Cash	0
Debt/Equity	1.35
Debt/FCF	-12.84
Net Margins	15%
Gross Margins	64%
Op. Margins	20%
Earnings CAGR	2%
Sales Growth YoY	8%
Sales Growth QoQ	35%
Sales CAGR	4%
FCF CAGR	0%
Equity CAGR	4%
Earnings Stability	0.26
Earnings Growth YoY	-1%
Earnings Growth QoQ	94%

Earnings CAGR 5Y	-2%
Sales CAGR 5Y	9%
Equity CAGR 5Y	3%
Earnings CAGR 3Y	11%
Sales CAGR 3Y	11%
Equity CAGR 3Y	3%
Market Cap	$10.40B
Revenue	$5.02B
Dividend Yield	4%
Payout Ratio	64%
Assets	$26.31B
Total Debt	$9.06B
Cash	$49.17M
Shares Outstanding	113.59M
EV	19.41B
Earnings Score	8%
Moat Score	74%
Safety Score	65%
Final Score	49%
Working Capital	-932.78M
Current Ratio	0.71
Gross Profit	$3.22B
Shares Growth 3y	0%
Equity Growth QoQ	6%
Equity Growth YoY	4%

Assets & ROA

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Stockholders Equity & ROE

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Pinnacle West is a holding company whose principal subsidiary is Arizona Public Service, a vertically integrated electric utility that serves 1.3 million customers across a 35,000-square-mile territory in central Arizona, including Phoenix. APS owns or leases more than 6 gigawatts of power generation capacity, including a 29% ownership stake in the largest nuclear plant in the U.S., Palo Verde. About half of the electricity that APS supplies to customers comes from clean energy sources, including nuclear.

SEC Filings

Direct access to Pinnacle West Capital Corp (PNW) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Pinnacle West Capital Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Pinnacle West Capital Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 2%

Stability 26%

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Pinnacle West Capital Corp Discounted Cash Flow

Fully customizable DCF calculator online for Pinnacle West Capital Corp.

Years

Calculation mode

= -$7.2B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$705M	-$707M	-$710M	-$712M	-$714M	-$716M	-$719M	-$721M	-$723M	-$725M	-$728M	-$7.3B
DCF		-$643M	-$587M	-$535M	-$488M	-$445M	-$406M	-$370M	-$337M	-$308M	-$280M	-$2.8B
Value	-$7.2B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	11%	13%	13%	14%	14%	16%	15%	16%	11%	11%	15%
ROA	-	6%	5%	5%	4%	4%	4%	4%	3%	3%	4%
ROE	-	9%	9%	10%	10%	10%	10%	10%	8%	8%	9%

Good Net Margins (15.28%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	209.43	-16.66	-16.8	51.91	-24	-18	-11.75	-17.34	-13.18	-12.84
Debt over Equity	0.76	0.81	0.85	0.95	0.96	1.01	1.13	1.2	1.31	1.34	1.35
Growth Stability	-	-	-	100%	100%	100%	100%	100%	85%	91%	85%

Good Debt/FCF ratio (-12.84)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Neutral Debt/Equity ratio (1.35)

The company has a balance between equity and debt that is not too good nor too bad.

Neutral Graham’s Stability (85%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	0%	0%	2%	4%	-6%	3%	6%	14%	9%	9%
Earnings YoY growth	-	10%	1%	11%	5%	5%	2%	12%	-22%	4%	-2%
Equity YoY growth	-	4%	5%	4%	4%	4%	4%	5%	2%	2%	3%
FCF YoY growth	-	-90%	-1K%	15%	-134%	-337%	53%	70%	-24%	37%	-