Pinnacle West Capital Corporation (PNW) 10-Year Financial Performance & Capital Metrics

PNW • • Utilities

UtilitiesElectric UtilitiesRegional Electric UtilitiesSingle-State Electric Utilities

AboutPinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include approximately 5,814 pole miles of overhead lines and approximately 74 miles of underground lines; and distribution facilities comprise approximately 11,258 miles of overhead lines and approximately 22,821 miles of underground primary cable, as well as owns and maintains 475 transmission and distribution substations. The company also owns or leases approximately 6,323 megawatts of regulated generation capacity. It serves approximately 1.3 million customers. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.Show more

Revenue $5.12B +9.1%
EBITDA $1.97B +17.2%
Net Income $609M +21.4%
Free Cash Flow -$639M -0.1%
EBITDA Margin 38.41% +7.4%
Net Margin 11.88% +11.2%
ROE 9.26% +14.9%
Interest Coverage 2.68 +7.7%
Debt/Equity 1.61 -1.7%
Net Debt/EBITDA 5.61 -8.5%
CapEx / Revenue 43.89% +11.6%
CapEx Coverage 0.72 +9.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Healthy dividend yield of 3.7%
✓Trading near 52-week high

✗Weaknesses

✗High leverage: 5.6x Debt/EBITDA

Price & Volume

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Growth Metrics

Revenue CAGR

10Y3.91%

5Y8.1%

3Y10.45%

TTM5.7%

Profit (Net Income) CAGR

10Y4.35%

5Y2.49%

3Y-0.54%

TTM-3.46%

EPS CAGR

10Y3.88%

5Y1.9%

3Y-1.42%

TTM-7.76%

ROCE

10Y Avg4.79%

5Y Avg4.11%

3Y Avg3.97%

Latest4.5%

Peer Comparison

Single-State Electric Utilities

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	Debt/Equity
IDAIDACORP, Inc.	7.17B	132.73	24.13	3.41%	17.59%	9.11%	0.92
TXNMTXNM Energy, Inc.	6.43B	59.03	22.11	1.65%	8.41%	5.11%	2.25
EVRGEvergy, Inc.	17.45B	75.78	19.99	6.17%	14.41%	8.4%	1.41
OGEOGE Energy Corp.	9.01B	43.72	19.96	11.63%	15.28%	10.49%	1.19
EIXEdison International	23.67B	61.52	18.59	7.72%	17.61%	16.48%	2.13
PNWPinnacle West Capital Corporation	11.09B	92.69	17.69	9.13%	11.2%	8.24%	1.61
PORPortland General Electric Company	5.55B	49.30	16.38	17.69%	8.82%	7.67%	1.36
PCGPacific Gas & Electric Co.	34.68B	15.78	13.72	-0.04%	10.93%	8.4%	1.92

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	3.5B	3.5B	3.57B	3.69B	3.47B	3.59B	3.8B	4.32B	4.7B	5.12B
Revenue Growth %	0%	0%	0.02%	0.04%	-0.06%	0.03%	0.06%	0.14%	0.09%	0.09%
Cost of Revenue	1.97B	2.01B	1.93B	2.11B	1.98B	1.95B	2.11B	2.62B	2.85B	2.99B
Gross Profit+	1.53B	1.49B	1.63B	1.58B	1.49B	1.63B	1.7B	1.71B	1.84B	2.14B
Gross Margin %	-	-	-	-	-	-	-	-	-	-
Gross Profit Growth %	0.09%	-0.02%	0.1%	-0.03%	-0.06%	0.1%	0.04%	0.01%	0.08%	0.16%
Operating Expenses+	671.17M	655.87M	725.13M	804.7M	815.4M	846.5M	891.91M	976.06M	1.02B	1.13B
Other Operating Expenses	-	-	-	-	-	-	-	-	-	-
EBITDA+	1.43B	1.4B	1.52B	1.42B	1.34B	1.47B	1.52B	1.55B	1.68B	1.97B
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
EBITDA Growth %	0.09%	-0.02%	0.09%	-0.06%	-0.06%	0.1%	0.03%	0.02%	0.08%	0.17%
Depreciation & Amortization+	571.66M	565.01M	610.63M	650.96M	664.14M	686.25M	719.14M	817.81M	854.14M	956.18M
D&A / Revenue %	-	-	-	-	-	-	-	-	-	-
Operating Income (EBIT)+	854.6M	835.61M	909.76M	773.69M	671.96M	788.15M	805.31M	731.91M	824.64M	1.01B
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.05%	-0.02%	0.09%	-0.15%	-0.13%	0.17%	0.02%	-0.09%	0.13%	0.23%
Interest Expense+	178.71M	185.75M	197.68M	218.28M	216.72M	228.97M	233.26M	255.54M	331.32M	377.47M
Interest Coverage	4.78x	4.50x	4.60x	3.54x	3.10x	3.44x	3.45x	2.86x	2.49x	2.68x
Interest / Revenue %	-	-	-	-	-	-	-	-	-	-
Non-Operating Income	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K
Pretax Income+	693.91M	697.94M	766.22M	664.44M	542.04M	648.23M	746.03M	575.65M	595.69M	736.56M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	237.72M	236.41M	258.27M	133.9M	-15.77M	78.17M	110.09M	74.83M	76.91M	110.53M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	437.26M	442.03M	488.46M	511.05M	538.32M	550.56M	618.72M	483.6M	501.56M	608.81M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.1%	0.01%	0.11%	0.05%	0.05%	0.02%	0.12%	-0.22%	0.04%	0.21%
EPS (Diluted)+	3.92	3.95	4.35	4.54	4.77	4.87	5.47	4.26	4.41	5.24
EPS Growth %	0.09%	0.01%	0.1%	0.04%	0.05%	0.02%	0.12%	-0.22%	0.04%	0.19%
EPS (Basic)	3.94	3.97	4.37	4.56	4.79	4.89	5.48	4.27	4.42	5.35
Diluted Shares Outstanding	111.55M	112.05M	112.37M	112.55M	112.76M	112.94M	113.19M	113.42M	113.8M	116.23M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	15.03B	16B	17.02B	17.66B	18.48B	20.02B	22B	22.72B	24.66B	26.1B
Asset Growth %	0.05%	0.06%	0.06%	0.04%	0.05%	0.08%	0.1%	0.03%	0.09%	0.06%
PP&E (Net)+	11.68B	12.62B	13.19B	13.77B	14.38B	15.38B	16.6B	17.4B	19.02B	20.21B
PP&E / Total Assets %	-	-	-	-	-	-	-	-	-	-
Total Current Assets+	890.52M	822.22M	1.02B	924.99M	1.03B	1.2B	1.55B	1.75B	1.93B	1.69B
Cash & Equivalents	39.49M	8.88M	13.89M	5.77M	10.28M	59.97M	9.97M	4.83M	4.96M	3.84M
Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Inventory	279.93M	282.59M	289.27M	294.09M	345.92M	334.3M	367.17M	450.64M	493.55M	501.44M
Other Current Assets	202.7M	171.6M	298.06M	224.14M	265.68M	371.27M	665.9M	686.8M	769.12M	506.46M
Long-Term Investments	735.2M	779.59M	903.54M	1.09B	1.26B	1.39B	1.65B	1.42B	1.56B	1.69B
Goodwill	0	0	0	0	0	0	0	0	0	0
Intangible Assets	123.97M	90.02M	257.19M	262.9M	290.56M	282.57M	273.69M	258.88M	267.11M	591.31M
Other Assets	1.59B	1.69B	1.65B	1.62B	1.52B	1.76B	1.92B	1.9B	1.88B	1.92B
Total Liabilities	10.31B	11.07B	11.88B	12.32B	12.93B	14.27B	15.98B	16.56B	18.38B	19.25B
Total Debt+	3.82B	4.32B	4.97B	5.21B	5.81B	6.92B	8.18B	8.88B	10.3B	11.05B
Net Debt	3.78B	4.32B	4.95B	5.21B	5.8B	6.86B	8.17B	8.87B	10.3B	11.04B
Long-Term Debt	3.46B	4.02B	4.79B	4.64B	4.83B	6.31B	6.91B	7.74B	7.54B	8.06B
Short-Term Borrowings	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Capital Lease Obligations	0	0	0	0	64.58M	436.12M	828.84M	744.46M	1.28B	1.62B
Total Current Liabilities+	1.44B	1.29B	1.2B	1.65B	2.08B	1.36B	1.76B	1.76B	2.89B	2.84B
Accounts Payable	297.48M	264.63M	256.44M	277.34M	346.45M	318.58M	393.08M	430.43M	442.45M	485.43M
Accrued Expenses	56.3M	52.84M	56.4M	61.11M	53.53M	56.96M	57.33M	61.22M	72.92M	81.8M
Deferred Revenue	73.07M	82.52M	70.39M	91.17M	64.91M	48.34M	42.29M	41.77M	42.04M	44.34M
Other Current Liabilities	449.92M	378.87M	410.61M	405.45M	453.21M	439.68M	457.08M	469.78M	512.91M	480.95M
Deferred Taxes	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Liabilities	2.37B	2.5B	3.87B	3.86B	3.55B	3.68B	3.83B	3.43B	3.53B	3.56B
Total Equity+	4.72B	4.94B	5.14B	5.35B	5.55B	5.75B	6.02B	6.16B	6.28B	6.86B
Equity Growth %	0.04%	0.05%	0.04%	0.04%	0.04%	0.04%	0.05%	0.02%	0.02%	0.09%
Shareholders Equity	4.58B	4.8B	5.01B	5.22B	5.43B	5.63B	5.91B	6.05B	6.18B	6.75B
Minority Interest	135.54M	132.29M	129.04M	125.79M	122.54M	119.29M	115.26M	111.23M	107.2M	103.17M
Common Stock	2.54B	2.6B	2.61B	2.63B	2.66B	2.68B	2.7B	2.72B	2.75B	3.12B
Additional Paid-in Capital	2.54B	2.6B	2.61B	2.63B	0	0	0	0	0	0
Retained Earnings	2.09B	2.26B	2.44B	2.64B	2.84B	3.03B	3.26B	3.36B	3.47B	3.67B
Accumulated OCI	-44.75M	-43.82M	-45M	-47.71M	-57.1M	-62.8M	-54.86M	-31.43M	-33.14M	-30.94M
Return on Assets (ROA)	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.02%	0.02%	0.02%
Return on Equity (ROE)	0.09%	0.09%	0.1%	0.1%	0.1%	0.1%	0.11%	0.08%	0.08%	0.09%
Debt / Equity	0.81x	0.88x	0.97x	0.97x	1.05x	1.20x	1.36x	1.44x	1.64x	1.61x
Debt / Assets	0.25%	0.27%	0.29%	0.3%	0.31%	0.35%	0.37%	0.39%	0.42%	0.42%
Net Debt / EBITDA	2.65x	3.08x	3.26x	3.66x	4.34x	4.65x	5.36x	5.73x	6.13x	5.61x
Book Value per Share	42.31	44.05	45.7	47.52	49.25	50.94	53.2	54.31	55.23	59

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	1.09B	1.02B	1.12B	1.28B	956.73M	966.37M	860.01M	1.24B	1.21B	1.61B
Operating CF Growth %	-0%	-0.06%	0.09%	0.14%	-0.25%	0.01%	-0.11%	0.44%	-0.03%	0.33%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	456.19M	461.53M	507.95M	530.54M	557.81M	570.05M	635.94M	500.83M	518.78M	626.03M
Depreciation & Amortization	571.66M	565.01M	610.63M	650.96M	664.14M	686.25M	719.14M	817.81M	854.14M	956.18M
Deferred Taxes	245.29M	229.95M	243.58M	112.19M	-5.42M	64.37M	112.67M	37.31M	52.76M	-29.18M
Other Non-Cash Items	-18.6M	-64.69M	-110.56M	-13.85M	-64.4M	-139.47M	-254.05M	-116.9M	-62.95M	137.52M
Working Capital Changes	-159.84M	-187.29M	-154.06M	-22.24M	-213.78M	-233.13M	-372.15M	-13.55M	-172.36M	-80.74M
Capital Expenditures+	-1.08B	-1.28B	-1.41B	-1.18B	-1.19B	-1.33B	-1.47B	-1.71B	-1.85B	-2.25B
CapEx / Revenue %	-	-	-	-	-	-	-	-	-	-
CapEx / D&A	-	-	-	-	-	-	-	-	-	-
CapEx Coverage (OCF/CapEx)	-	-	-	-	-	-	-	-	-	-
Cash from Investing+	-1.07B	-1.25B	-1.43B	-1.19B	-1.13B	-1.28B	-1.39B	-1.62B	-1.69B	-1.93B
Acquisitions	-4.03M	-27.46M	-26.84M	1.18B	1.19B	1.33B	1.47B	0	23.4M	84.32M
Purchase of Investments	-496.06M	-635.69M	-544.53M	-672.16M	-722.18M	-822.61M	-1.73B	-1.21B	-1.68B	-1.71B
Sale of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Investing	31.14M	53.14M	9.36M	-1.17B	-1.13B	-1.27B	-1.38B	93.79M	130.84M	254.68M
Cash from Financing+	3.79M	198.08M	315.51M	-92.45M	178.77M	361.14M	476.92M	371.47M	486.68M	322.69M
Dividends Paid	-260.03M	-274.23M	-289.79M	-308.89M	-329.64M	-350.58M	-369.48M	-378.88M	-386.49M	-394.66M
Dividend Payout Ratio %	0.59%	0.62%	0.59%	0.6%	0.61%	0.64%	0.6%	0.78%	0.77%	0.65%
Debt Issuance (Net)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Stock Issued	0	0	0	0	0	0	0	0	0	341.43M
Share Repurchases	0	-4.87M	-13.39M	-5.05M	692K	-1.39M	-2.35M	-2.65M	-4.09M	0
Other Financing	-35M	-22.74M	-22.74M	-22.74M	-22.74M	-22.74M	-21.25M	-21.25M	-21.25M	-21.25M
Net Change in Cash+	31.88M	-30.61M	5.01M	-8.13M	4.52M	49.69M	-50M	-5.14M	123K	-1.12M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	7.6M	39.49M	8.88M	13.89M	5.77M	10.28M	59.97M	9.97M	4.83M	4.96M
Cash at End	39.49M	8.88M	13.89M	5.77M	10.28M	59.97M	9.97M	4.83M	4.96M	3.84M
Free Cash Flow+	18.24M	-252.08M	-290.74M	98.97M	-234.72M	-360.22M	-613.46M	-466.05M	-638.67M	-639.37M
FCF Growth %	-0.9%	-14.82%	-0.15%	1.34%	-3.37%	-0.53%	-0.7%	0.24%	-0.37%	-0%
FCF Margin %	-	-	-	-	-	-	-	-	-	-
FCF / Net Income %	-	-	-	-	-	-	-	-	-	-

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	9.47%	9.16%	9.7%	9.75%	9.88%	9.74%	10.51%	7.94%	8.06%	9.26%
EBITDA Margin	40.8%	40.03%	42.64%	38.6%	38.49%	41.1%	40.08%	35.84%	35.75%	38.41%
Net Debt / EBITDA	2.65x	3.08x	3.26x	3.66x	4.34x	4.65x	5.36x	5.73x	6.13x	5.61x
Interest Coverage	4.78x	4.50x	4.60x	3.54x	3.10x	3.44x	3.45x	2.86x	2.49x	2.68x
CapEx / Revenue	30.79%	36.46%	39.51%	31.92%	34.32%	36.98%	38.74%	39.49%	39.32%	43.89%
Dividend Payout Ratio	59.47%	62.04%	59.33%	60.44%	61.24%	63.68%	59.72%	78.35%	77.06%	64.83%
Debt / Equity	0.81x	0.88x	0.97x	0.97x	1.05x	1.20x	1.36x	1.44x	1.64x	1.61x
EPS Growth	9.5%	0.77%	10.13%	4.37%	5.07%	2.1%	12.32%	-22.12%	3.52%	18.82%

Revenue by Segment

	2011	2012	2018	2019	2020	2021	2022	2023	2024
Electric Service	-	-	109.2M	121.81M	1.93B	1.91B	2.05B	2.29B	2.56B
Electric Service Growth	-	-	-	11.55%	1483.82%	-0.82%	6.94%	11.88%	11.95%
Electric and Transmission Service	-	-	-	-	65.86M	99.28M	116.63M	138.63M	119.04M
Electric and Transmission Service Growth	-	-	-	-	-	50.75%	17.47%	18.87%	-14.13%
Wholesale Energy	-	-	-	-	-	-	383.13M	208.99M	96.86M
Wholesale Energy Growth	-	-	-	-	-	-	-	-45.45%	-53.65%
Transmission Services	-	-	60.26M	62.46M	-	-	-	-	-
Transmission Services Growth	-	-	-	3.65%	-	-	-	-	-
Other Services	-	-	25.53M	16.31M	-	-	-	-	-
Other Services Growth	-	-	-	-36.11%	-	-	-	-	-
Regulated Operation	3.24B	3.29B	-	-	-	-	-	-	-
Regulated Operation Growth	-	1.76%	-	-	-	-	-	-	-
All Others	4M	8M	-	-	-	-	-	-	-
All Others Growth	-	100.00%	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Pinnacle West Capital Corporation (PNW) has a price-to-earnings (P/E) ratio of 17.7x. This is roughly in line with market averages.

Growth & Financials

Pinnacle West Capital Corporation (PNW) reported $5.31B in revenue for fiscal year 2024. This represents a 64% increase from $3.24B in 2011.

Pinnacle West Capital Corporation (PNW) grew revenue by 9.1% over the past year. This is steady growth.

Yes, Pinnacle West Capital Corporation (PNW) is profitable, generating $594.3M in net income for fiscal year 2024 (11.9% net margin).

Dividend & Returns

Yes, Pinnacle West Capital Corporation (PNW) pays a dividend with a yield of 3.66%. This makes it attractive for income-focused investors.

Pinnacle West Capital Corporation (PNW) has a return on equity (ROE) of 9.3%. This is below average, suggesting room for improvement.

Pinnacle West Capital Corporation (PNW) had negative free cash flow of $718.9M in fiscal year 2024, likely due to heavy capital investments.

Industry Metrics

Pinnacle West Capital Corporation (PNW) has a dividend payout ratio of 65%. This suggests the dividend is well-covered and sustainable.

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