A Business at a Glance
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PINNACLE WEST CAPITAL CORP
PNW
$12.9B
Mkt Cap
$105.38
-0.05%
PINNACLE WEST CAPITAL CORP (PNW) has a current P/E ratio of 20.9, compared to its historical median P/E of 14.1. The stock is currently considered Expensive based on its historical valuation range.
PINNACLE WEST CAPITAL CORP (PNW) has a 5-year average return on invested capital (ROIC) of 4.9%. This is below average and may indicate limited pricing power.
PINNACLE WEST CAPITAL CORP (PNW) has a market capitalization of $12.8B. It is classified as a large-cap stock.
Yes, PINNACLE WEST CAPITAL CORP (PNW) pays a dividend with a trailing twelve-month yield of 3.34%.
Based on historical P/E analysis, PINNACLE WEST CAPITAL CORP (PNW) appears expensive. The current P/E of 20.9 is 48% above its historical median of 14.1. The estimated fair value CAGR (P/E method) is -0.2%.
PINNACLE WEST CAPITAL CORP (PNW) operates in the Electric Services industry, within the Utilities sector.
PINNACLE WEST CAPITAL CORP (PNW) reported annual revenue of $5.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Pinnacle West is an investor-owned electric utility holding company based in Phoenix, Arizona, with consolidated assets of approximately $30 billion, deriving essentially all revenues and earnings from its principal subsidiary, Arizona Public Service Company (APS). APS is Arizona's largest and longest-serving electric company, providing electric service to approximately 1.4 million customers across 11 of Arizona's 15 counties through a regulated electricity segment encompassing traditional retail and wholesale electricity businesses, electricity generation, transmission, and distribution. APS owns or leases 6,257 MW of regulated generation capacity and holds a mix of long-term and short-term power purchase agreements; its diverse energy portfolio includes nuclear (Palo Verde, representing 1,146 MW of entitlement), natural gas, coal, solar, wind, geothermal, biogas, biomass, and energy storage, with approximately 58% of energy supply derived from clean resources in 2025. The company's unit economics are characterized by regulated cost-of-service recovery through the Arizona Corporation Commission, with no single purchaser accounting for more than 1.9% of electric revenues in 2025, and distribution occurs through APS's retail service territory spanning 11 Arizona counties. APS's competitive moat derives from its regulated utility status, long operational history since 1886, diverse generation portfolio including the nation's largest carbon-free producer (Palo Verde), and critical infrastructure position serving Arizona's growing population and expanding advanced manufacturing sector, particularly semiconductor and data center customers.
【Arizona growth momentum accelerating】 Management expects continued robust customer and sales growth driven by Arizona's population expansion and business investment, with weather-normalized sales growth guidance of 4%-6% for 2026 and long-term guidance of 5%-7% through 2030, supported by strong contributions from extra-high load factor customers in advanced manufacturing and data centers. The company is executing a multi-phase capital investment strategy focused on generation and transmission infrastructure to reliably serve committed growth, with phase one transmission expected to begin serving customers by late 2030 and generation projects like Desert Sun expected in service by 2030, while simultaneously working to contract additional capacity from a 20 GW uncommitted customer queue using subscription-model commercial constructs to ensure growth pays for growth. Management remains focused on cost efficiency with a goal of declining operating and maintenance costs per megawatt hour, maintaining financial discipline through a balanced debt and equity financing approach aligned with rate-based growth guidance of 7%-9% through 2028, and achieving a constructive regulatory outcome through the pending rate case that reduces regulatory lag and supports long-term affordability for customers.
| Metric | Target | Period |
|---|---|---|
| Earnings per share | $4.55–$4.75 | FY2026 |
| Weather-normalized sales growth | 4%-6% | FY2026 |
| Long-term sales growth | 5%-7% | Through 2030 |
| Rate-based growth | 7%-9% | Through 2028 |
| Customer growth | 1.5%-2.5% | FY2026 |
| Equity funding needs | $1 billion–$1.2 billion | 2026 through 2028 |
Earnings per share (FY2026): “we are reiterating all aspects of 2026 guidance provided on our third quarter 2025 call, including our annual earnings range of $4.55-$4.75 per share”
Weather-normalized sales growth (FY2026): “Our weather-normalized sales growth guidance for 2026 remains unchanged at 4%-6%”
Long-term sales growth (Through 2030): “Our longer-term sales growth guidance also remains unchanged at 5%- 7% through 2030”
Rate-based growth (Through 2028): “our rate-based growth guidance remains unchanged at 7% - 9% through 2028”
Customer growth (FY2026): “Customer growth next year is expected at 1.5%-2.5%”
Equity funding needs (2026 through 2028): “an additional $1 billion-$1.2 billion of Pinnacle West equity forecasted through 2028”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Electric and Transmission Service | $3.76B | $4.30B | $4.65B | $5.07B | $5.32B | 50% |
Non-Residential | $1.59B | $1.77B | $2.05B | $2.33B | $2.54B | 24% |
Residential | $1.91B | $2.05B | $2.29B | $2.56B | $2.54B | 24% |
Transmission Services for Others | $99M | $117M | $139M | $119M | $130M | 1% |
Wholesale Energy Sales | $188M | $383M | $209M | $97M | $109M | 1% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.5B | 5.3B | 5.1B | 4.7B | 4.3B | 3.8B |
| Net Income | 654M | 617M | 609M | 502M | 484M | 619M |
| EPS | $5.46 | $5.05 | $5.24 | $4.41 | $4.26 | $5.47 |
| Free Cash Flow | -992M | -820M | -639M | -639M | -466M | -613M |
| ROIC | 5.4% | 4.9% | 5.2% | 4.7% | 4.5% | 5.2% |
| Gross Margin | - | 39.9% | 40.4% | 37.9% | 85.4% | 84.9% |
| Debt/Equity | 1.56 | 2.03 | 1.64 | 1.67 | 1.47 | 1.39 |
| Dividends/Share | $3.52 | $3.61 | $3.55 | $3.49 | $3.43 | $3.36 |
| Operating Income | 1.1B | 1.1B | 1.0B | 825M | 732M | 805M |
| Operating Margin | 20.9% | 20.0% | 19.7% | 17.6% | 16.9% | 21.2% |
| ROE | 9.3% | 8.9% | 9.4% | 8.2% | 8.1% | 10.7% |
| Shares Outstanding | 121M | 122M | 116M | 114M | 114M | 113M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 3.5B | 3.5B | 3.5B | 3.6B | 3.7B | 3.5B | 3.6B | 3.8B | 4.3B | 4.7B | 5.1B | 5.3B | 5.5B |
| Gross Margin | 66.2% | 68.5% | 69.3% | 72.5% | 70.8% | 85.0% | 84.6% | 84.9% | 85.4% | 37.9% | 40.4% | 39.9% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 1.5B | 1.5B | 1.6B | 1.7B | 1.8B | 2.3B | 2.2B | 2.4B | 3.0B | 3.2B | 3.4B | 3.5B | 3.5B |
| EBIT | 811M | 855M | 836M | 910M | 774M | 672M | 788M | 805M | 732M | 825M | 1.0B | 1.1B | 1.1B |
| Op. Margin | 23.2% | 24.4% | 23.9% | 25.5% | 21.0% | 19.4% | 22.0% | 21.2% | 16.9% | 17.6% | 19.7% | 20.0% | 20.9% |
| Net Income | 398M | 437M | 442M | 488M | 511M | 538M | 551M | 619M | 484M | 502M | 609M | 617M | 654M |
| Net Margin | 11.4% | 12.5% | 12.6% | 13.7% | 13.8% | 15.5% | 15.3% | 16.3% | 11.2% | 10.7% | 11.9% | 11.5% | 12.0% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.4M | -21M | -3.4M | -1.4M | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 6.9% | 6.7% | 6.2% | 6.2% | 6.0% | 6.2% | 5.8% | 5.2% | 4.5% | 4.7% | 5.2% | 4.9% | 5.4% |
| ROE | 9.3% | 9.5% | 9.4% | 10.0% | 10.0% | 10.1% | 10.0% | 10.7% | 8.1% | 8.2% | 9.4% | 8.9% | 9.3% |
| ROA | 2.9% | 2.9% | 2.8% | 3.0% | 2.9% | 3.0% | 2.9% | 2.9% | 2.2% | 2.1% | 2.4% | 2.2% | 2.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.1B | 1.1B | 1.0B | 1.1B | 1.3B | 957M | 966M | 860M | 1.2B | 1.2B | 1.6B | 1.8B | 1.6B |
| Free Cash Flow | 189M | 18M | -252M | -291M | 99M | -235M | -360M | -613M | -466M | -639M | -639M | -820M | -992M |
| Owner Earnings | 570M | 504M | 439M | 487M | 607M | 274M | 262M | 122M | 408M | 336M | 630M | 808M | 631M |
| CapEx | 911M | 1.1B | 1.3B | 1.4B | 1.2B | 1.2B | 1.3B | 1.5B | 1.7B | 1.8B | 2.2B | 2.6B | 2.6B |
| Maint. CapEx | 496M | 572M | 565M | 611M | 651M | 664M | 686M | 719M | 818M | 854M | 956M | 970M | 979M |
| Growth CapEx | 414M | 504M | 710M | 798M | 527M | 527M | 640M | 754M | 890M | 992M | 1.3B | 1.7B | 1.7B |
| D&A | 496M | 572M | 565M | 611M | 651M | 664M | 686M | 719M | 818M | 854M | 956M | 970M | 979M |
| CapEx/OCF | 82.8% | 98.3% | 124.6% | 126.0% | 92.3% | 124.5% | 137.3% | 171.3% | 137.5% | 152.9% | 139.7% | 145.4% | 160.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 247M | 260M | 274M | 290M | 309M | 330M | 351M | 369M | 379M | 386M | 395M | 423M | 426M |
| Dividend Yield | 6.2% | 5.6% | 4.9% | 4.3% | 4.7% | 4.2% | 4.9% | 5.2% | 5.4% | 5.0% | 4.5% | 4.0% | 3.3% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.7M | 4.1M | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.1% | N/A | N/A | 0.0% |
| Stock-Based Comp | 33M | 19M | 19M | 21M | 20M | 18M | 18M | 18M | 16M | 17M | 24M | 27M | 29M |
| Debt Repayment | 653M | 416M | 370M | 125M | 182M | 600M | 915M | 0 | 150M | 33M | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 3.5B | 3.7B | 4.3B | 5.0B | 5.2B | 5.8B | 6.9B | 8.2B | 8.9B | 10.3B | 11.0B | 14.3B | 11.0B |
| Cash & Equiv. | 7.6M | 39M | 8.9M | 14M | 5.8M | 10M | 60M | 10.0M | 4.8M | 5.0M | 3.8M | 6.6M | 6.4M |
| Long-Term Debt | 3.0B | 3.5B | 4.0B | 4.8B | 4.6B | 4.8B | 6.3B | 6.9B | 7.7B | 7.5B | 8.1B | 9.2B | 9.8B |
| Debt/Equity | 0.81 | 0.83 | 0.90 | 0.99 | 1.00 | 1.07 | 1.23 | 1.39 | 1.47 | 1.67 | 1.64 | 2.03 | 1.56 |
| Interest Coverage | 4.4 | 4.8 | 4.5 | 4.6 | 3.5 | 3.1 | 3.4 | 3.5 | 2.9 | 2.5 | 2.7 | 2.5 | 2.6 |
| Equity | 4.4B | 4.6B | 4.8B | 5.0B | 5.2B | 5.4B | 5.6B | 5.9B | 6.0B | 6.2B | 6.8B | 7.0B | 7.1B |
| Total Assets | 14.3B | 15.0B | 16.0B | 17.0B | 17.7B | 18.5B | 20.0B | 22.0B | 22.7B | 24.7B | 26.1B | 30.0B | 30.7B |
| Total Liabilities | 5.2B | 10.3B | 5.8B | 5.9B | 6.0B | 6.0B | 6.6B | 7.3B | 7.1B | 7.9B | 8.3B | 10.6B | 11.1B |
| Intangibles | 120M | 124M | 90M | 257M | 263M | 291M | 283M | 274M | 259M | 267M | 591M | 576M | 540M |
| Retained Earnings | 1.9B | 2.1B | 2.3B | 2.4B | 2.6B | 2.8B | 3.0B | 3.3B | 3.4B | 3.5B | 3.7B | 3.9B | 3.9B |
| Working Capital | -586M | -552M | -471M | -182M | -724M | -1.0B | -162M | -206M | -12M | -962M | -1.2B | -1.5B | -1.1B |
| Current Assets | 973M | 891M | 822M | 1.0B | 925M | 1.0B | 1.2B | 1.6B | 1.8B | 1.9B | 1.7B | 1.7B | 1.6B |
| Current Liabilities | 1.6B | 1.4B | 1.3B | 1.2B | 1.6B | 2.1B | 1.4B | 1.8B | 1.8B | 2.9B | 2.8B | 3.2B | 2.7B |
| Per Share Data | |||||||||||||
| EPS | 3.58 | 3.92 | 3.95 | 4.35 | 4.54 | 4.77 | 4.87 | 5.47 | 4.26 | 4.41 | 5.24 | 5.05 | 5.46 |
| Owner EPS | 5.13 | 4.52 | 3.93 | 4.34 | 5.39 | 2.43 | 2.32 | 1.08 | 3.59 | 2.96 | 5.42 | 6.62 | 5.21 |
| Book Value | 39.33 | 41.09 | 42.92 | 44.59 | 46.40 | 48.12 | 49.83 | 52.22 | 53.28 | 54.32 | 58.13 | 57.72 | 58.30 |
| Cash Flow/Share | 9.90 | 9.81 | 9.14 | 9.96 | 11.35 | 8.48 | 8.55 | 7.60 | 10.94 | 10.62 | 13.86 | 14.79 | 13.47 |
| Dividends/Share | 2.33 | 2.44 | 2.56 | 2.70 | 2.87 | 3.04 | 3.23 | 3.36 | 3.43 | 3.49 | 3.55 | 3.61 | 3.52 |
| Shares Out. | 111.1M | 111.5M | 111.9M | 112.3M | 112.6M | 112.9M | 113.1M | 113.1M | 113.5M | 113.7M | 116.2M | 122.1M | 121.2M |
| Valuation | |||||||||||||
| P/E Ratio | 12.6 | 11.0 | 13.5 | 14.0 | 13.9 | 14.2 | 12.8 | 10.6 | 15.7 | 14.8 | 15.4 | 17.3 | 19.3 |
| P/FCF | 26.5 | 264.8 | N/A | N/A | 71.7 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EV/EBIT | 10.5 | 10.0 | 12.0 | 12.9 | 15.9 | 19.9 | 17.0 | 17.2 | 21.5 | 19.9 | 18.6 | 19.9 | 20.8 |
| Price/Book | 1.1 | 1.1 | 1.2 | 1.4 | 1.4 | 1.4 | 1.2 | 1.1 | 1.3 | 1.2 | 1.4 | 1.5 | 1.8 |
| Price/Sales | 1.1 | 1.3 | 1.6 | 1.9 | 1.8 | 2.3 | 2.0 | 1.9 | 1.6 | 1.7 | 1.7 | 2.0 | 2.3 |
| FCF Yield | 3.8% | 0.4% | -4.2% | -4.3% | 1.4% | -3.1% | -5.1% | -9.4% | -6.1% | -8.6% | -6.8% | -7.7% | -7.8% |
| Market Cap | 5.0B | 4.8B | 6.0B | 6.8B | 7.1B | 7.7B | 7.0B | 6.5B | 7.6B | 7.4B | 9.4B | 10.7B | 12.8B |
| Avg. Price | 35.73 | 41.30 | 50.33 | 60.16 | 58.81 | 69.59 | 63.35 | 62.55 | 61.90 | 68.60 | 74.77 | 87.53 | 105.38 |
| Year-End Price | 45.04 | 43.30 | 53.22 | 60.83 | 63.03 | 67.88 | 62.22 | 57.77 | 66.77 | 65.32 | 80.81 | 87.54 | 105.38 |
PINNACLE WEST CAPITAL CORP passes 3 of 9 quality checks, indicating weak fundamentals.
PINNACLE WEST CAPITAL CORP trades at 20.9x trailing earnings, compared to its 15-year median P/E of 14.1x, suggesting it is currently Expensive relative to its historical range. The company's 5-year average ROIC is 4.9% with a gross margin of 57.7%. Total shareholder yield (dividends) is 3.3%. At current prices, the estimated annualized return to fair value is -29.3%.
PINNACLE WEST CAPITAL CORP (PNW) has a net profit margin of 11.5%. This is a healthy margin.
PINNACLE WEST CAPITAL CORP (PNW) generated $-820 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
PINNACLE WEST CAPITAL CORP (PNW) has a debt-to-equity ratio of 2.03. This indicates higher leverage, which may increase financial risk.
PINNACLE WEST CAPITAL CORP (PNW) reported earnings per share (EPS) of $5.05 in its most recent fiscal year.
PINNACLE WEST CAPITAL CORP (PNW) has a return on equity (ROE) of 8.9%. This indicates moderate shareholder returns.
PINNACLE WEST CAPITAL CORP (PNW) has a 5-year average gross margin of 57.7%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for PINNACLE WEST CAPITAL CORP (PNW), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PINNACLE WEST CAPITAL CORP (PNW) has a book value per share of $57.72, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued robust customer and sales growth driven by Arizona's population expansion and business investment, with weather-normalized sales growth guidance of 4%-6% for 2026 and long-term guidance of 5%-7% through 2030, supported by strong contributions from extra-high load factor customers in advanced manufacturing and data centers. The company is executing a multi-phase capital investment strategy focused on generation and transmission infrastructure to reliably serve committed growth, with phase one transmission expected to begin serving customers by late 2030 and generation projects like Desert Sun expected in service by 2030, while simultaneously working to contract additional capacity from a 20 GW uncommitted customer queue using subscription-model commercial constructs to ensure growth pays for growth. Management remains focused on cost efficiency with a goal of declining operating and maintenance costs per megawatt hour, maintaining financial discipline through a balanced debt and equity financing approach aligned with rate-based growth guidance of 7%-9% through 2028, and achieving a constructive regulatory outcome through the pending rate case that reduces regulatory lag and supports long-term affordability for customers.
Based on recent SEC filings and earnings calls, PINNACLE WEST CAPITAL CORP (PNW) has provided the following forward guidance: Earnings per share: $4.55–$4.75 (FY2026); Weather-normalized sales growth: 4%-6% (FY2026); Long-term sales growth: 5%-7% (Through 2030); Rate-based growth: 7%-9% (Through 2028); Customer growth: 1.5%-2.5% (FY2026), plus 1 additional metric.