Pinnacle West is a holding company whose principal subsidiary is Arizona Public Service, a vertically integrated electric utility serving approximately 1.4 million customers across a 35,000-square-mile territory in central Arizona, including the Phoenix area.
It is a $12.0B utility company. Revenue grew 5.7% over the last year, it keeps 12¢ of every dollar of sales as profit, and it carries $9.96B of net debt. It trades at 18.7× earnings — in the most expensive third of its own history.
- Website
- pinnaclewest.com
- Location
- Phoenix, AZ
- Employees
- 6 610
- Sector
- Utilities
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Valuation, Growth, Health and Moat lag behind.
Valuation45
- P/E vs own history72th pct · 5/25
- FCF yield-7.3% · 0/25
- P/S2.2x · 20/25
- EV/EBITDA11.3x · 20/25
Growth30
- Revenue CAGR8.9% · 12/25
- Net income CAGR-0.1% · 0/25
- EPS CAGR ~5Y0.7% · 6/25
- Fwd implied growth7.2% · 12/25
Profitability57
- ROIC3.6% · 5/25
- ROE9.0% · 12/25
- Net margin11.5% · 20/25
- Operating margin20.5% · 20/25
Health18
- Altman Z0.53 · 3/25
- Current ratio0.59 · 0/25
- Interest coverage3.3x · 10/25
- Net cash / debtD/A 33% · 5/25
Quality55
- Piotroski F4/9 · 10/25
- Beneish M-2.61 · 25/25
- FCF conversion-137% · 0/25
- Margin stabilityσ 6.8% · 20/25
Moat31
- ROIC >12% years0/9 yrs · 0/25
- Median gross margin20.0% · 6/25
- FCF-positive years1/9 yrs · 0/25
- Worst-year net marginworst 10.7% · 25/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2021FinancialBest year on record$619M net income
- FY2017FinancialProfitable every year on record9 consecutive profitable years in our data
- FY2017FinancialRevenue already above $1B$3.57B in first reported year
- 2010ProductPrior to 2010, Pinnacle West developed real estate through its Suncor subsidiary
- 1997MilestoneThe first solar plant in Arizona was opened by Pinnacle West in Flagstaff in 1997
- 1987MilestoneAZP Group changed its name to Pinnacle West Capital Corporation
- 1986AcquisitionPinnacle acquired MeraBank, a savings and loan association
- 1985MilestoneArizona Public Service Company reorganized as a holding company, AZP Group Inc
- 1952AcquisitionIt merged with Arizona Edison and changed its name to Arizona Public Service
- 1949AcquisitionIt merged with Northern Arizona Power and Light
- 1925MilestoneThe company became a subsidiary of the giant conglomerate American Power and Light in 1925, but became an…
- 1906MilestoneIt changed its name to Pacific Gas and Electric Company in 1906 and to Central Arizona Light and Power in 1920
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
No standout strengths in the available data.
Watch-outs
- Negative free cash flow (-$878.5M)
- Altman Z-Score 0.53 — elevated financial-distress risk
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+5.7% YoY
- Profitable — makes more than it spends$640M TTM
- Profit growing — earnings are higher than last year+5.8% YoY
- Generates cash — cash left after running and investing-$879M TTM
- Debt under control — could handle its obligationscurrent ratio 0.59
- Established company — not a micro-cap — lower blow-up risk$12.0B market cap
- Not printing shares — share count not ballooning — you keep your slice+8.0% shares over ~5y
- Proven track record — years of profitability behind it9/9 profitable years
- Financially stable — balance sheet not near distressAltman Z 0.5 — distress
- Pays a dividend — returns cash to shareholdersyield 3.60%
- Valuation not extreme — price not wildly above earningsP/E 18.7
Peer comparisonPinnacle West Capital Corporation vs 6 largest utilities peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| PNW this company | $12.0B | 18.7 | +5.7% | 11.5% | Strained |
| NEE NextEra Energy, Inc. | $161.3B | 17.4 | +10.8% | 32.4% | Strained |
| CEG Constellation Energy Corporation | $105.8B | 30.5 | +26.0% | 11.1% | Strained |
| SO The Southern Company | $99.1B | 21.3 | +6.4% | 15.4% | Strained |
| DUK Duke Energy Corporation | $90.9B | 17.3 | +6.3% | 15.8% | Strained |
| WMB Williams Companies Inc. | $89.2B | 29.0 | +8.7% | 25.2% | Strained |
| KMI Kinder Morgan, Inc. | $72.4B | 20.9 | +12.5% | 19.3% | Strained |
Head-to-head: PNW vs NEE · PNW vs CEG · PNW vs SO
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2017–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/PNW
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of PNW on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $98.92 · market cap $12.0B.