Pinnacle West Capital PNW
United StatesUtilities · Utilities - Regulated ElectricUSD
102.93 USD (+5.5%)
14 analysts
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Pinnacle West Capital Corporation is a public utility company that, through its subsidiary Arizona Public Service (APS), generates, transmits, and distributes electricity to approximately 1.4 million customers in Arizona, operating under a regulated business model.
Key points
from its scores- ✓Favourable backdrop8.1
- ✓Attractive dividend7.2
- ✕Little competitive advantage3.4
- ✕Fragile balance sheet4.0
- ✕Demanding valuation4.5
AI analysis
bottom line, main risk, context and newsHigh debt and negative free cash flow generation are concerning in a rising rate environment, but the dividend and regulated model offer some stability.
Pinnacle West presents weak financial health, with a Net Debt/EBITDA of 7.68 and negative free cash flow conversion, making it vulnerable to rising interest rates. Its valuation is average (P/E 18.72) and its dividend is attractive (net yield 3.73%), but earnings growth is negative (-9.50%).
The main risk is the high leverage (Net Debt/EBITDA of 7.68) and negative free cash flow conversion, which could limit the company's ability to finance its investments and maintain the dividend if interest rates continue to rise.
Context and risks
Pinnacle West operates in Arizona, a state with a regulatory framework that has been subject to scrutiny and where tariff decisions can be politically sensitive. Although it is a regulated utility with a stable business model, dependence on regulatory approval for its investments and tariffs introduces a moderate governance risk, reflected in the country reference. This risk is inherent to its operation and is not fully captured by financial metrics.
Is Pinnacle West Capital stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Utilities median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 18.7 | 19.1 | −2% |
| EV / EBITDA | 13.2 | 12.2 | +8% |
| Price / book | 1.7 | 1.9 | −13% |
| Price / sales | 2.1 | 2.6 | −18% |
Sector: median of the 92 Utilities companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.5 out of 10 (median for Utilities: 4.8).
Average analyst target: 102.93 USD, +5.5% versus the price.
Classic formulas with standard assumptions (7.2% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Utilities medianValuation
- P/E
- 18.7
- Forward P/E
- 17.5
- EV / EBITDA
- 13.2
- Price / book
- 1.7
- Price / sales
- 2.1
- PEG
- 3.76
- Market cap
- 11.8B USD
- Enterprise value
- 28.4B USD
Profitability
- ROE
- 9.4%
- ROA
- 2.3%
- ROIC (approx.)
- 5.0%
- Gross margin
- 43.4%
- Operating margin
- 21.3%
- Net margin
- 11.5%
- Free cash flow
- −929.5M USD
- FCF yield
- −7.9%
- Cash conversion
- −43%
Solvency
- Total debt
- 16.5B USD
- Net debt
- 16.5B USD
- Cash
- 9.1M USD
- EBITDA
- 2.1B USD
- Net debt / EBITDA
- 7.68
- Debt / equity
- 233.29
- Current ratio
- 0.59
- Quick ratio
- 0.31
Growth
- Revenue growth
- +7.1%
- Earnings growth
- −9.5%
- EPS (TTM)
- 5.21 USD
- EPS (forward)
- 5.59 USD
Dividend
- Dividend yield
- 3.7%
- Payout
- 69.6%
Risk and market
- Beta
- 0.42
- Analyst consensus
- Hold (14)
- Target price
- 102.93 USD
- 52-week range
- 86.18 – 111.16
Recent news
All PNW news →Compare it with its sector
All 92 in Utilities →Frequently asked questions about Pinnacle West Capital
Is Pinnacle West Capital stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Utilities median (within 15%). Valuation score: 4.5 out of 10 (median for Utilities: 4.8). Average analyst target: 102.93 USD, +5.5% versus the price. This is not investment advice.
What score does Pinnacle West Capital get on MeridIAn Screener?
It scores 5.4 out of 10, rank 1,495 of 2,130 (better than 29% of the companies analysed). Its strongest category is Risk & Context (8.1) and its weakest, Quality / Moat (3.4). Analysis of 08/10/2026.
What is Pinnacle West Capital's P/E ratio?
Its P/E is 18.7: the share price equals 18.7 times earnings per share over the last 12 months. The Utilities median is 19.1. Based on the earnings analysts expect, the forward P/E is 17.5.
How much is Pinnacle West Capital worth on the stock market?
Its market capitalisation is 11.8B USD and its enterprise value, debt included, is 28.4B USD.
How much debt does Pinnacle West Capital have?
Its net debt (debt minus cash) is 16.5B USD. That is 7.68 times its EBITDA; the Utilities median is 5.33.
Does Pinnacle West Capital pay a dividend?
Yes: its dividend yield is 3.73% and it pays out 70% of its earnings.
How has Pinnacle West Capital stock performed over the last year?
It has risen 9.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 86.18 and 111.16 USD. Past performance does not guarantee future results.
What do analysts think of Pinnacle West Capital?
14 analysts cover it; their average recommendation is “Hold” and their average target is 102.93 USD (+5.5% versus the price). It is an estimate, not market data.