Pinnacle West Capital Corp

Find Ratings Reports
PNW : NYSE : Utilities
$85.09 | %
Today's Range: 84.72 - 86.06
Avg. Daily Volume: 678000.0
04/28/17 - 4:03 PM ET

Financial Analysis


PINNACLE WEST CAPITAL CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. PINNACLE WEST CAPITAL CORP has very weak liquidity. Currently, the Quick Ratio is 0.20 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.79% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)739.2734.43
EBITDA ($mil)245.67234.94
EBIT ($mil)122.82109.83
Net Income ($mil)53.2541.12


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)8.8839.49
Total Assets ($mil)16004.2515028.26
Total Debt ($mil)4323.993819.97
Equity ($mil)4803.624583.92


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin33.2331.99
EBITDA Margin33.2331.98
Operating Margin16.6114.95
Sales Turnover0.220.23
Return on Assets2.762.9
Return on Equity9.29.53
Debt Q4 FY16 Q4 FY15
Current Ratio0.640.62
Debt/Capital0.470.45
Interest Expense50.8348.9
Interest Coverage2.422.25


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)111.34110.98
Div / share0.660.63
EPS0.470.37
Book value / share43.1441.3
Institutional Own % n/a n/a
Avg Daily Volume647645.0702127.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.34 for the Electric Utilities industry and a discount compared to the S&P 500 average of 24.92. Conducting a second comparison, its price-to-book ratio of 1.98 indicates a discount versus the S&P 500 average of 2.99 and a premium versus the industry average of 1.92. The current price-to-sales ratio is well above the S&P 500 average and above 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 21.65 Peers 22.34   PNW 9.28 Peers 7.73

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

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

 

Premium. 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 premium 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 19.22 Peers 17.28   PNW 3.17 Peers 2.10

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 1.98 Peers 1.92   PNW 0.76 Peers -22.33

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 2.72 Peers 2.28   PNW 0.09 Peers 12.84

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

 

 

Latest Stock Upgrades/Downgrades