Pinnacle West Capital Corp (PNW)
Utilities · Multi-Utilities · US stock · S&P 500 component
$106.61
▲ +2.72 (2.62%)
Fair valueFair
$98 −8.0% to fair value
$49fair band $83–$119$147
Day's range
$104.37 – $106.72
52-week range
$86.18 – $111.16
About Pinnacle West Capital Corp
Pinnacle West Capital is the holding company for Arizona Public Service, a regulated electric utility that serves homes, businesses and industrial customers across much of Arizona. The utility generates power from natural gas, nuclear, solar and other sources, and it operates the transmission and distribution lines that deliver it. Its rates are set by the Arizona Corporation Commission and federal regulators.
Revenue comes from regulated charges paid by customers for electricity, which depend on rates approved by regulators and on usage. The last twelve months produced $5.6 billion, and revenue has grown at 7.3% a year across the last three years. The operating margin is 20.5%, and the business earns a profit of 4% on the capital invested in it. It carries net debt of 7.7 times EBITDA. The company pays a dividend with a yield of 3.4%. On the site's X-Ray Score it receives 40 out of 100.
Price chart
52-wk range $86.18 – $111.16Volume 1,372,119Daily, split-adjusted
Vitals
Market cap$13.3B
52-week range$86.18 – $111.16
Volume (last day)1,372,119
P/E (TTM)20.2
EBIT / EV yield3.8%
Free-cash-flow yield-6.6%
Dividend yield3.4%
Revenue (TTM)$5.6B
Net income (TTM)$651M
Operating margin20.5%
Return on capital3.8%
Debt incl. leases$16.5B
Cash & securities$9M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$98middle half of models $81 – $100
Fair
−8.0% to fair value
Average of the 10 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $107
Undervalued < $83Fair $83 – $119Overvalued > $119
P/E multiple
$104
P/B multiple
$95
P/S multiple
$101
EV/EBITDA multiple
$96
EV/EBIT multiple
$88
EV/revenue multiple
$86
10-year DCF, EBITDA exit · not used
$20
5-year DCF, EBITDA exit
$66
10-year DCF, revenue exit · not used
$19
5-year DCF, revenue exit
$65
5-year DCF, growth exit · not used
$31
Dividend discount, stable
$201
Dividend discount, multi-stage · not used
$424
Earnings power value
$79
Growth the price implies
15.3%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Utilities peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
25/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield3.8%
Free-cash-flow yield-6.6%
Fair value vs price0.9×
Growth
Fair
61/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)7.3%
EPS growth (3y)5.8%
Growth consistency100%
Profitability
Weak
41/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital3.8%
Operating margin20.5%
Financial health
Weak
32/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score5 / 9
Net debt / EBITDA7.7×
Interest cover2.5×
Dividends
Fair
55/100
Dividend is typical for its sector.
See the numbers →
Dividend yield3.4%
Dividend growth3.7%
Quarterly results: last 6 quarters
+8.5%
Mar '25
+3.8%
Jun '25
+2.9%
Sep '25
+3.0%
Dec '25
+11.4%
Mar '26
+7.1%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.5B, diluted EPS $1.43.
Compare with peers
ED Consolidated Edison In...70 NI Nisource Inc.54 AEE Ameren Corp54 DTB Dte Energy Co54Other Multi-Utilities companies by X-Ray Score.
SWOT analysis: Pinnacle West Capital Corp
Strengthsinside the company
- No standout strength in the figures we track.
Weaknessesinside the company
- Return on invested capital is only 3.8% (median 4.9% for industry peers), so the business earns little above its cost of capital.
- Free cash flow is negative, so spending or debt has to be financed from outside.
- Net debt is 7.7x EBITDA, above the 3x level that lenders usually watch.
- Operating profit covers interest only 2.5x.
Opportunitiesvaluation and setting
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
- Our Market Compass rates the backdrop for Utilities as unfavourable.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare PNW with peers and sector
Medians of 11 Multi-Utilities peers and of 30 Utilities stocks in our universe.
Largest peers (X-Ray Score): NEE 45, D 53, SRE 33, XEL 27, ED 70, AEE 54.
| Metric | PNW | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 40 | 46 | 51 |
| Valuation | 25 | 51 | 50 |
| Growth | 61 | 50 | 53 |
| Profitability | 41 | 40 | 50 |
| Financial health | 32 | 47 | 52 |
| Dividends | 55 | 48 | 53 |
Sector leaders: highest X-Ray Score in Utilities
PNW ranks #27 of 31 in Utilities and #8 of 12 in Multi-Utilities by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for PNW
Each factor is rated by where PNW stands among the 31 Utilities stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 4 Good · 6 Average · 9 Bad of 19
Growth: 1 · 1 · 1
Profitability: 0 · 1 · 3
Financial strength: 0 · 1 · 3
Valuation: 2 · 2 · 1
Cash flow: 1 · 1 · 1
| Factor | PNW | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +7.3% | Good beats 92% | +3.4% | – | – |
| Revenue growth, last year | +4.2% | Bad beats 22% | +9.6% | +8.6% | ▼ Worse |
| EPS growth, 3 years a year | +5.8% | Average beats 35% | +8.1% | – | – |
| Profitability | |||||
| Operating margin | 20.5% | Bad beats 32% | 22.9% | 19.7% | ≈ In line |
| Net margin | 11.7% | Average beats 38% | 14.4% | 11.8% | ≈ In line |
| Return on invested capital | 3.8% | Bad beats 5% | 5.5% | – | – |
| Return on equity | 9.3% | Bad beats 27% | 10.1% | 9.0% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 7.7x | Bad beats 18% | 5.8x | 5.2x | ▼ Worse |
| Interest cover | 2.5x | Average beats 53% | 2.5x | 2.7x | ≈ In line |
| Current ratio | 0.59 | Bad beats 27% | 0.78 | 0.67 | ≈ In line |
| Piotroski F-score | 5 / 9 | Bad beats 32% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 20.4x | Average beats 66% | 21.8x | 15.8x | ▼ Worse |
| Price / book | 1.9x | Good beats 69% | 2.1x | 1.4x | ▼ Worse |
| Price / sales | 2.4x | Good beats 72% | 2.9x | 2.0x | ▼ Worse |
| EV / EBITDA | 14.0x | Average beats 50% | 14.0x | 10.2x | ▼ Worse |
| Free cash flow yield | -6.6% | Bad beats 27% | -4.9% | -7.6% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | -15.8% | Bad beats 32% | -9.1% | -13.6% | ▼ Worse |
| Cash from operations / net income | 2.72 | Good beats 82% | 2.20 | 2.48 | ≈ In line |
| Accruals (lower is better) | −3.4% | Average beats 63% | −3.3% | – | – |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 2 Good · ● 3 Average · ● 9 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldBad
Risk models
Altman Z''Bad
Piotroski F-ScoreBad
Growth
EPS growth (3y)Average
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverAverage
Valuation
Fair value vs priceBad
EBIT / EV yieldBad
Profitability
Return on invested capitalBad
Operating marginBad
Each check is graded against the company's sector, not a fixed number. Checklist score 39/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $3.8B | $4.3B | $4.7B | $5.1B | $5.3B |
| Operating income | $805M | $732M | $825M | $1.0B | $1.1B |
| Net income | $636M | $501M | $519M | $626M | $632M |
| Operating cash flow | $860M | $1.2B | $1.2B | $1.6B | $1.8B |
| Operating margin | 21.2% | 16.9% | 17.6% | 19.7% | 20.0% |
| Free cash flow | −$613M | −$466M | −$639M | −$639M | −$820M |
| Diluted EPS | $5.47 | $4.26 | $4.41 | $5.24 | $5.05 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
12 bullish · 0 neutral · 4 bearish
Weekly
Strongly bullish
11 bullish · 1 neutral · 0 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 102.2 | Bullish |
| EMA 10 | 102.2 | Bullish |
| SMA 20 | 98.58 | Bullish |
| EMA 20 | 100.1 | Bullish |
| SMA 50 | 97.62 | Bullish |
| EMA 50 | 98.90 | Bullish |
| SMA 100 | 100.6 | Bullish |
| EMA 100 | 99.06 | Bullish |
| SMA 200 | 98.87 | Bullish |
| EMA 200 | 97.55 | Bullish |
Oscillators (daily)
| RSI (14) | 73.88 | Bearish |
| MACD (12, 26) | 2.22 | Bullish |
| Momentum (12) | 8.74 | Bullish |
| Stochastic %K (14) | 99.07 | Bearish |
| Williams %R (14) | -0.93 | Bearish |
| CCI (20) | 139.3 | Bearish |
Pivot points (classic, last session)
S3 102.7 | S2 103.6 | S1 105.1 | Pivot 105.9 | R1 107.4 | R2 108.2 | R3 109.8 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
3.64 USD
Yield on today's price
3.41%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.9100 | |
| 0.9100 | |
| 0.9100 | |
| 0.9100 | |
| 0.8950 | |
| 0.8950 | |
| 0.8950 | |
| 0.8950 | |
| 0.8800 | |
| 0.8800 | |
| 0.8800 | |
| 0.8800 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold PNW
| ETF | Share of the fund |
|---|---|
| SPHD Invesco S&P 500 High Dividend Low Vola... | 1.84% |
| PEY Invesco High Yield Equity Dividend Ach... | 1.40% |
| SPYD SPDR Portfolio S&P 500 High Dividend | 1.37% |
| SPLV Invesco S&P 500 Low Volatility | 1.19% |
| DVY iShares Select Dividend | 0.97% |
| XLU Utilities Select Sector SPDR | 0.91% |
| DON WisdomTree U.S. MidCap Dividend | 0.85% |
| FUTY Fidelity MSCI Utilities Index | 0.80% |
The eight funds with the largest weight in PNW among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
PNW SEC filings
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Current report
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Entered a material agreement
424B5SEC EDGAR
424B5
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.