Pinnacle West Capital (PNW)
Utilities · $11.3B market cap · SEC CIK 0000764622
fundamentals score out of 100
Next reports on Nov 2, 2026, with analysts expecting $3.17 in earnings per share.
The case for PNW
- Pays a 4.8% dividend while you wait.
- Reasonably priced at 17.6× earnings.
- Moves less than the market (beta 0.50).
The case against
- Burned $820M of free cash in FY2025.
- Long-term debt of $9.2B would take 5 years of operating cash flow to repay.
- Current liabilities exceed current assets (ratio 0.59).
- The price trend is weak (39/100): +7.8% over a year, -8.8% over three months, 29% of the way up its 52-week range.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Utilities companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 50 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 58 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 42 |
| Momentumhow the price has behaved lately | 39 |
| Stabilityhow violently it moves, what it owes and what it pays you | 65 |
- Each factor except momentum is half fixed thresholds, half rank among the 31 Utilities companies.
Key numbers
| Price / earnings | 17.6× |
|---|---|
| Price / book | 1.84× |
| Price / sales | 2.0× |
| Revenue growth (YoY) | +5.7% |
| EPS growth (YoY) | +7.4% |
| Gross margin | — |
| Operating margin | 21% |
| Net margin | 12% |
| Return on equity | 9% |
| Debt / equity | 1.62× |
| Current ratio | 0.59 |
| Dividend yield | 4.80% |
| Beta | 0.50 |
| 52-week range | $85.70 – $111.16 |
| Position in that range | 29% of the way up |
| 3-month return | -8.8% |
| 1-year return | +7.8% |
Five years of financials, as filed
Pulled from Pinnacle West Capital's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $5.3B | $5.1B | $4.7B | $4.3B | $3.8B |
| Operating income | $1.1B | $1.0B | $825M | $732M | $805M |
| Operating cash flow | $1.8B | $1.6B | $1.2B | $1.2B | $860M |
| Capital expenditure | $2.6B | $2.2B | $1.8B | $1.7B | $1.5B |
| Total assets | $30.0B | $26.1B | $24.7B | $22.7B | $22.0B |
| Shareholder equity | $7.0B | $6.8B | $6.2B | $6.0B | $5.9B |
| Cash | $6.6M | $3.8M | $5.0M | $4.8M | $10.0M |
| Long-term debt | $9.2B | $8.1B | $7.5B | $7.7B | $6.9B |
| Free cash flow | -$820M | -$639M | -$639M | -$466M | -$613M |
| Operating margin | 20.0% | 19.7% | 17.6% | 16.9% | 21.2% |
| Diluted shares | 122M | 116M | 114M | 113M | 113M |
Share count is up 7.8% over 4 years. Mild issuance.
What Pinnacle West Capital says it does
Pinnacle West Pinnacle West is an investor-owned electric utility holding company based in Phoenix, Arizona with consolidated assets of approximately $30 billion. We derive essentially all of our revenues and earnings from our principal subsidiary, APS. Since 1886, APS and its affiliates have provided energy and energy-related products to people and businesses throughout Arizona. APS is Arizona’s largest and longest-serving electric company and generates safe, affordable electricity in 11 of Arizona’s 15 counties. Our other active subsidiaries are El Dorado and PNW Power. Our reportable business segment is our regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities, and includes electricity generation, transmission, and distribution. Our reportable business segment activities are conducted primarily…
Risk factors PNW lists in its 10-K
- Our financial condition depends upon APS’s ability to recover costs in a timely manner from customers through regulated rates and otherwise execute its business strategy
- The operation of APS’s nuclear power plant exposes it to substantial regulatory oversight and potentially significant liabilities and capital expenditures
- APS is subject to numerous environmental laws and regulations, and changes in, or liabilities under, existing or new laws or regulations may increase APS’s cost of operations or impact its business plans
- APS faces potential financial risks resulting from climate change litigation and legislative and regulatory efforts to limit GHG emissions, as well as physical and operational risks related to climate effects
- Potential Financial Risks — GHG Regulation, the Clean Power Plan and Potential Litigation
- Deregulation or restructuring of the electric industry and other factors may result in increased competition, which could have a significant adverse impact on APS’s business and its results of operations
- APS’s results of operations can be adversely affected by various factors impacting demand for electricity
- Effects of Energy Conservation Measures and Distributed Energy Resources
- Actual and Projected Customer and Sales Growth
- The impact of wildfires could negatively affect APS’s results of operations
- The operation of power generation facilities and transmission systems involves risks that could result in reduced output or unscheduled outages or could otherwise significantly impact APS’s results of operations
- The lack of access to sufficient supplies of water could have a material adverse impact on APS’s business and results of operations
- We are subject to risk related to cybersecurity, IT systems, and unauthorized access to our systems that could adversely affect our business and financial condition
- Changes in technology could create challenges for APS’s existing business