# Pinnacle West Capital Corporation (PNW) — Stock CV

Pinnacle West Capital Corporation 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.

> 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.

## Identity

- **Ticker**: PNW
- **Sector**: Utilities
- **Industry**: Electric Services
- **Headquarters**: PHOENIX, AZ
- **Employees**: 6 610
- **Website**: https://www.pinnaclewest.com
- **Market cap**: $12.0B
- **Last price**: $98.92
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $5.55B
- **Net income**: $640M
- **Free cash flow**: -$879M
- **Net debt**: $9.96B
- **P/E**: 18.7
- **Revenue growth (YoY)**: 5.7%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 45 |
| Growth | 30 |
| Profitability | 57 |
| Health | 18 |
| Quality | 55 |
| Moat | 31 |

## Qualifications (beginner checklist) — 8 of 11 passed

- [x] Revenue growing — +5.7% YoY
- [x] Profitable — $640M TTM
- [x] Profit growing — +5.8% YoY
- [ ] Generates cash — -$879M TTM
- [ ] Debt under control — current ratio 0.59
- [x] Established company — $12.0B market cap
- [x] Not printing shares — +8.0% shares over ~5y
- [x] Proven track record — 9/9 profitable years
- [ ] Financially stable — Altman Z 0.5 — distress
- [x] Pays a dividend — yield 3.60%
- [x] Valuation not extreme — P/E 18.7

## Experience (career milestones)

- **FY2021** — Best year on record: $619M net income
- **FY2017** — Profitable every year on record: 9 consecutive profitable years in our data
- **FY2017** — Revenue already above $1B: $3.57B in first reported year
- **2010** — Prior to 2010, Pinnacle West developed real estate through its Suncor subsidiary
- **1997** — The first solar plant in Arizona was opened by Pinnacle West in Flagstaff in 1997
- **1987** — AZP Group changed its name to Pinnacle West Capital Corporation
- **1986** — Pinnacle acquired MeraBank, a savings and loan association
- **1985** — Arizona Public Service Company reorganized as a holding company, AZP Group Inc
- **1952** — It merged with Arizona Edison and changed its name to Arizona Public Service
- **1949** — It merged with Northern Arizona Power and Light
- **1925** — The company became a subsidiary of the giant conglomerate American Power and Light in 1925, but became an…
- **1906** — It changed its name to Pacific Gas and Electric Company in 1906 and to Central Arizona Light and Power in 1920

## Strengths

- None stand out in the data.

## Watch-outs

- Negative free cash flow (-$878.5M)
- Altman Z-Score 0.53 — elevated financial-distress risk

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $3.80B | $619M | -$613M |
| FY2022 | $4.32B | $484M | -$466M |
| FY2023 | $4.70B | $502M | -$639M |
| FY2024 | $5.12B | $609M | -$639M |
| FY2025 | $5.34B | $617M | -$820M |

---

Source: https://stockcv.com/PNW — derived from company filings; may be delayed or incomplete. Information, not investment advice.