Pinnacle West Capital Corp

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PNW : NYSE : Utilities
$74.88 -0.28 | -0.37%
Today's Range: 74.56 - 75.27
Avg. Daily Volume: 673,800
10/27/16 - 4:02 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
Interest Expense52.8548.33
Interest Coverage4.394.8

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)111.17110.81
Div / share0.630.6
Book value / share41.2439.64
Institutional Own % n/a n/a
Avg Daily Volume670481.0801290.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.78 for the Electric Utilities industry and a discount compared to the S&P 500 average of 24.64. Conducting a second comparison, its price-to-book ratio of 1.81 indicates a discount versus the S&P 500 average of 2.73 and a premium versus the industry average of 1.73. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PNW 19.72 Peers 24.78   PNW 7.40 Peers 7.25

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
PNW 17.80 Peers 16.99   PNW 9.67 Peers 6.10

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

PNW is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PNW 1.81 Peers 1.73   PNW 8.59 Peers -5.83

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 2.36 Peers 2.16   PNW 1.88 Peers -4.73

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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