NYSE
PNW
Last Price
US $106.30
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Pinnacle West Capital Corporation cash flow to debt ratio of 10.11% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Pinnacle West Capital Corporation's free cash flow has decreased 28.18% from $-639.37M last year to $-819.52M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Pinnacle West Capital Corporation's debt to equity ratio is 2.14, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Pinnacle West Capital Corporation's debt has increased relative to shareholder equity from 1.64 last year to 2.14 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Pinnacle West Capital Corporation has a net debt to EBITDA ratio of 8.38x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Pinnacle West Capital Corporation's interest coverage ratio of 3.39 indicates that earnings with margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Pinnacle West Capital Corporation's profit margin has increased (0.90%) in the last year from 11.88% to 11.99%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Pinnacle West Capital Corporation's short-term liabilities of $3.16G exceed its short-term assets of $1.55G, signaling financial risk
Decreasing performance - ROA.
Pinnacle West Capital Corporation's return on assets of 2.13% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Pinnacle West Capital Corporation's return on equity of 9.34%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Pinnacle West Capital Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Pinnacle West Capital Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Decreasing performance - Free cash flow.
Pinnacle West Capital Corporation has negative free cash flow, indicating the company is burning cash rather than generating it
Decreasing performance - FCF yield.
Pinnacle West Capital Corporation has negative free cash flow, indicating cash burn
Increasing performance - Healthy earnings growth.
Pinnacle West Capital Corporation's yearly earnings has increased 1.27% since last year from $608.81M to $616.53M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Pinnacle West Capital Corporation's yearly revenue has increased 4.20% since last year from $5.12G to $5.34G, signaling increasing performance
Decreasing performance - ROIC.
ROIC 4.38% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
Pinnacle West Capital Corporation's 3-year revenue CAGR of 7.28% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Pinnacle West Capital Corporation had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Pinnacle West Capital Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Pinnacle West Capital Corporation has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Pinnacle West Capital Corporation has an earnings yield of 4.99%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Pinnacle West Capital Corporation is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Pinnacle West Capital Corporation has an EV/EBITDA ratio of 12.93x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Pinnacle West Capital Corporation has a PEG-ratio over 1 which is considered overvalued
Undervalued - P/B ratio.
Pinnacle West Capital Corporation has a price-to-book ratio of 1.86x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Pinnacle West Capital Corporation has a price-to-sales ratio of 2.40x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
9.34%
Return on equity
ROIC: 4.38%
Valuation History
19.8X
Price to Earnings
EV/EBITDA: 12.9X
Cash flow
Profit margin
6.38%
(FY vs FY)
Cash flow Y/Y
-15.16%
(FY vs FY)
Fair Value
Market $106.30
78.89%
Default assumptions
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