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Pinnacle West Capital (PNW) Stock Analysis

This is a peer-relative look at Pinnacle West Capital (PNW): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Utilities peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Pinnacle West Capital (PNW)
Profile ItemPNW
NamePinnacle West Capital Corporation
Country/RegionUnited States
GICS SectorUtilities
GICS Industry GroupUtilities
GICS IndustryElectric Utilities
GICS Sub-IndustryElectric Utilities
Market Capitalization12.63 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateFebruary 21, 1973
Security TypeCommon Stock

Price Performance

Cumulative Growth

PNW
GSPC
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Pinnacle West Capital (PNW) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Pinnacle West Capital (PNW) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Pinnacle West Capital (PNW) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Pinnacle West Capital (PNW) metric values compared with Utilities industry-group medians
MetricCurrent stock: PNWIndustry group median
Total Return (1Y)24.23%5.85%
Total Return (3Y, Annualized)18.78%15.48%
Total Return (5Y, Annualized)15.87%8.14%

Risk Profile

Drawdown History

PNW
GSPC
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Pinnacle West Capital (PNW) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Pinnacle West Capital (PNW) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Pinnacle West Capital (PNW) metric values compared with Utilities industry-group medians
MetricCurrent stock: PNWIndustry group median
Volatility (1Y, Annualized)17.21%22.23%
Beta (5Y)0.480.53
Max Drawdown (5Y)-24.02%-36.85%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. PNW is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Pinnacle West Capital (PNW) metric values compared with Utilities industry-group medians
MetricCurrent stock: PNWIndustry group median
Sharpe Ratio (1Y)1.160.08
Sortino Ratio (1Y)1.770.12

Profitability

ROE (TTM)

Pinnacle West Capital (PNW) posts ROE of 9.09%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

PNW

Utilities industry group

9.09%

Group distribution
Max
17.99%
Q3
12.01%
Median
9.44%
PNW
9.09%
Q1
7.56%
Min
2.17%
Largest peers
CEG
15.06%
NEE
14.06%
SO
11.90%
AEP
10.60%
NGG
10.31%
DUK
10.10%
PNW
9.09%
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Where Pinnacle West Capital (PNW) stands on ROE within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Pinnacle West Capital (PNW) keeps 11.59% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

PNW

Utilities industry group

11.59%

Group distribution
Max
28.78%
Q3
17.30%
Median
12.73%
PNW
11.59%
Q1
9.18%
Min
-0.20%
Largest peers
NEE
40.37%
NGG
21.15%
DUK
16.16%
SO
16.00%
AEP
14.21%
PNW
11.59%
CEG
11.08%
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Where Pinnacle West Capital (PNW) stands on net margin within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Pinnacle West Capital (PNW) turns 31.70% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

PNW

Utilities industry group

31.70%

Group distribution
Max
53.83%
PNW
31.70%
Q3
31.12%
Median
23.62%
Q1
15.45%
Min
-4.90%
Largest peers
SO
36.92%
NEE
33.00%
PNW
31.70%
DUK
30.03%
NGG
28.64%
AEP
26.89%
CEG
8.66%
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Where Pinnacle West Capital (PNW) stands on operating margin within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Pinnacle West Capital (PNW) metric values compared with Utilities industry-group medians
MetricCurrent stock: PNWIndustry group median
ROE (TTM)9.09%9.44%
ROA (TTM)2.36%3.08%
Net Margin (TTM)11.59%12.73%
Operating Margin (TTM)31.70%23.62%
Gross Margin (TTM)43.84%44.03%

Growth

Revenue Growth

Pinnacle West Capital (PNW) grew revenue 4.20%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Pinnacle West Capital (PNW): Revenue Growth across different time periods, set against Utilities industry-group medians.

EPS Growth

Pinnacle West Capital (PNW) grew earnings per share -3.63%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Pinnacle West Capital (PNW): EPS Growth across different time periods, set against Utilities industry-group medians.

Growth Metrics

Pinnacle West Capital (PNW) metric values compared with Utilities industry-group medians
MetricCurrent stock: PNWIndustry group median
Revenue Growth (YoY)4.20%8.45%
Revenue Growth (3Y CAGR)7.28%3.87%
EPS Growth (YoY)-3.63%3.93%
EPS Growth (3Y CAGR)5.83%5.25%

Financial Strength

Current Ratio (MRQ)

Pinnacle West Capital (PNW) has current ratio of 0.71, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

PNW

Utilities industry group

0.71

Group distribution
Max
1.90
Q3
1.17
Median
0.88
PNW
0.71
Q1
0.66
Min
0.29
Largest peers
CEG
1.46
SO
0.84
PNW
0.71
DUK
0.68
NGG
0.62
NEE
0.53
AEP
0.51
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Where Pinnacle West Capital (PNW) stands on current ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Pinnacle West Capital (PNW) has debt-to-equity ratio of 2.26, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

PNW

Utilities industry group

2.26

Group distribution
Max
2.63
PNW
2.26
Q3
1.77
Median
1.35
Q1
0.84
Min
0.00
Largest peers
PNW
2.26
SO
1.68
DUK
1.63
AEP
1.62
NEE
1.53
NGG
1.32
CEG
0.76
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Where Pinnacle West Capital (PNW) stands on debt-to-equity ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Pinnacle West Capital (PNW) metric values compared with Utilities industry-group medians
MetricCurrent stock: PNWIndustry group median
Current Ratio (MRQ)0.710.88
Debt / Equity (MRQ)2.261.35
Net Debt / EBITDA7.675.31

Dividends

Dividend Yield (TTM)

Pinnacle West Capital (PNW) has dividend yield of 3.51%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

PNW

Utilities industry group

3.51%

Group distribution
Max
6.66%
Q3
3.58%
PNW
3.51%
Median
2.85%
Q1
0.66%
Min
0.00%
Largest peers
PNW
3.51%
DUK
3.29%
SO
3.21%
AEP
3.00%
NEE
2.76%
CEG
0.68%
NGG
0.57%
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Where Pinnacle West Capital (PNW) stands on dividend yield within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Pinnacle West Capital (PNW) has payout ratio of 68.42%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

PNW

Utilities industry group

68.42%

Group distribution
Max
113.04%
Q3
68.72%
PNW
68.42%
Median
56.38%
Q1
32.38%
Min
0.00%
Largest peers
NGG
71.97%
SO
68.49%
PNW
68.42%
DUK
62.76%
AEP
62.09%
NEE
43.89%
CEG
15.92%
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Where Pinnacle West Capital (PNW) stands on payout ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Pinnacle West Capital (PNW) metric values compared with Utilities industry-group medians
MetricCurrent stock: PNWIndustry group median
Dividend Yield (TTM)3.51%2.85%
Dividend Payout Ratio (TTM)68.42%56.38%

Valuation

P/E Ratio (TTM)

Pinnacle West Capital (PNW) trades at P/E ratio of 19.59, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

PNW

Utilities industry group

19.59

Group distribution
Max
31.22
Q3
23.30
Median
19.64
PNW
19.59
Q1
15.17
Min
3.34
Largest peers
CEG
24.43
SO
21.08
AEP
20.67
PNW
19.59
DUK
18.74
NEE
15.67
NGG
15.54
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Where Pinnacle West Capital (PNW) stands on P/E ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Pinnacle West Capital (PNW) trades at 2.21 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

PNW

Utilities industry group

2.21

Group distribution
Max
6.35
Q3
3.63
Median
2.63
PNW
2.21
Q1
1.52
Min
0.00
Largest peers
NEE
6.33
NGG
4.46
SO
3.45
DUK
2.99
AEP
2.92
CEG
2.83
PNW
2.21
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Where Pinnacle West Capital (PNW) stands on P/S ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Pinnacle West Capital (PNW) trades at 1.69 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

PNW

Utilities industry group

1.69

Group distribution
Max
3.12
Q3
2.21
Median
1.83
PNW
1.69
Q1
1.46
Min
0.34
Largest peers
NGG
9.36
NEE
2.97
CEG
2.78
SO
2.56
AEP
2.10
DUK
1.83
PNW
1.69
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Where Pinnacle West Capital (PNW) stands on P/B ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Pinnacle West Capital (PNW) metric values compared with Utilities industry-group medians
MetricCurrent stock: PNWIndustry group median
P/E Ratio (TTM)19.5919.64
P/S Ratio (TTM)2.212.63
P/B Ratio (MRQ)1.691.83
Free Cash Flow Yield (TTM)-7.90%-7.11%