Pinnacle West Capital Corp.

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PNW : NYSE : Utilities
$78.69 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 659300.0
02/16/18 - 4:02 PM ET

Financial Analysis

PINNACLE WEST CAPITAL CORP's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. PINNACLE WEST CAPITAL CORP has very weak liquidity. Currently, the Quick Ratio is 0.33 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.

During the same period, stockholders' equity ("net worth") has increased by 5.94% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)1183.321166.92
EBITDA ($mil)599.99571.69
EBIT ($mil)466.08451.26
Net Income ($mil)276.07263.03

Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)10.6748.27
Total Assets ($mil)16977.8715805.73
Total Debt ($mil)4829.454279.54
Equity ($mil)5142.074853.35

Profitability Q3 FY17 Q3 FY16
Gross Profit Margin50.748.99
EBITDA Margin50.748.99
Operating Margin39.3938.67
Sales Turnover0.210.22
Return on Assets3.062.71
Return on Equity10.118.85
Debt Q3 FY17 Q3 FY16
Current Ratio0.90.88
Interest Expense55.6451.29
Interest Coverage8.388.8

Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)111.66111.22
Div / share0.660.63
Book value / share46.0543.64
Institutional Own % n/a n/a
Avg Daily Volume669054.0670183.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 26.43 for the Electric Utilities industry and a discount compared to the S&P 500 average of 25.51. Conducting a second comparison, its price-to-book ratio of 1.70 indicates a significant discount versus the S&P 500 average of 3.26 and a discount 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. Upon assessment of these and other key valuation criteria, PINNACLE WEST CAPITAL CORP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PNW 16.86 Peers 26.43   PNW 8.46 Peers 8.02

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

PNW is trading at a significant 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
PNW 17.74 Peers 16.47   PNW 2.09 Peers 20.33

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.


Discount. 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 discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PNW 1.70 Peers 1.86   PNW 20.57 Peers 7.79

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PNW 2.46 Peers 2.20   PNW 1.45 Peers 10.13

Premium. 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 premium to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

PNW significantly trails its peers on the basis of sales growth



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