Pinnacle West Capital Corp

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PNW : NYSE : Utilities
$75.33 up 0.50 | 0.67%
Today's Range: 75.04 - 75.81
Avg. Daily Volume: 714,000
08/29/16 - 2:53 PM ET

Financial Analysis


PINNACLE WEST CAPITAL CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. PINNACLE WEST CAPITAL CORP has very weak liquidity. Currently, the Quick Ratio is 0.22 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.38% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)915.39890.65
EBITDA ($mil)354.82354.71
EBIT ($mil)231.75231.97
Net Income ($mil)121.31122.9


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)43.0413.56
Total Assets ($mil)15538.5714701.48
Total Debt ($mil)4255.563826.08
Equity ($mil)4585.274392.84


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin38.7639.83
EBITDA Margin38.7639.82
Operating Margin25.3226.05
Sales Turnover0.230.24
Return on Assets2.722.64
Return on Equity9.248.84
Debt Q2 FY16 Q2 FY15
Current Ratio0.650.77
Debt/Capital0.480.47
Interest Expense52.8548.33
Interest Coverage4.394.8


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)111.17110.81
Div / share0.630.6
EPS1.081.1
Book value / share41.2439.64
Institutional Own % n/a n/a
Avg Daily Volume711281.0805495.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 25.23 for the Electric Utilities industry and a discount compared to the S&P 500 average of 25.13. Conducting a second comparison, its price-to-book ratio of 1.86 indicates a discount versus the S&P 500 average of 2.82 and a premium versus the industry average of 1.86. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PNW 20.25 Peers 25.23   PNW 7.60 Peers 7.91

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

PNW is trading at a discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

PNW is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PNW 18.27 Peers 17.26   PNW 9.93 Peers 5.85

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

PNW is trading at a premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

PNW trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PNW 1.86 Peers 1.86   PNW 8.59 Peers -3.97

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

PNW is trading at a valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

PNW is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PNW 2.42 Peers 2.28   PNW 1.88 Peers -4.65

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

PNW is trading at a valuation on par with its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

PNW has a sales growth rate that significantly exceeds its peers.

 

 

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