Pinnacle West Capital Corporation (PNW) Financial Ratios
30 years of historical data (1996–2025) · Utilities · Regulated Electric
EV/EBITDA
↑
14.36
↑+25% vs avg
5yr avg: 11.45
30Y Low2.9·High13.7
P/FCF
N/A
—
5yr avg: N/A
30Y Low5.7·High98.8
P/B Ratio
↑
1.72
↑+23% vs avg
5yr avg: 1.40
30Y Low0.9·High1.9
ROE
↓
8.8%
-1% vs avg
5yr avg: 8.9%
30Y Low2%·High13%
Debt/EBITDA
↑
8.55
↑+36% vs avg
5yr avg: 6.28
30Y Low1.2·High8.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
PNW Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Pinnacle West Capital Corporation trades at 19.8x earnings, 23% above its 5-year average of 16.2x, sitting at the 93rd percentile of its historical range. This is roughly in line with the Utilities sector median P/E of 19.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.1B | $10.8B | $9.9B | $8.2B | $8.6B | $8.0B | $9.0B | $10.1B | $9.6B | $9.6B | $8.7B |
| Enterprise Value | $30.0B | $28.7B | $20.9B | $18.5B | $17.5B | $16.2B | $15.9B | $15.9B | $14.8B | $14.5B | $13.1B |
| P/E Ratio → | 19.84 | 17.56 | 16.18 | 16.29 | 17.85 | 12.90 | 16.42 | 18.85 | 18.77 | 19.58 | 19.75 |
| P/S Ratio | 2.27 | 2.03 | 1.92 | 1.74 | 1.99 | 2.10 | 2.52 | 2.92 | 2.60 | 2.68 | 2.50 |
| P/B Ratio | 1.72 | 1.53 | 1.44 | 1.30 | 1.40 | 1.33 | 1.57 | 1.83 | 1.79 | 1.86 | 1.77 |
| P/FCF | — | — | — | — | — | — | — | — | 96.89 | — | — |
| P/OCF | 6.72 | 5.99 | 6.12 | 6.77 | 6.95 | 9.29 | 9.34 | 10.60 | 7.51 | 8.56 | 8.54 |
P/E links to full P/E history page with 30-year chart
PNW EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Pinnacle West Capital Corporation's enterprise value stands at 14.4x EBITDA, 25% above its 5-year average of 11.4x. The Utilities sector median is 11.5x, placing the stock at a 24% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.37 | 4.08 | 3.93 | 4.05 | 4.25 | 4.43 | 4.59 | 4.01 | 4.07 | 3.73 |
| EV / EBITDA | 14.36 | 13.73 | 10.62 | 11.00 | 11.29 | 10.60 | 10.78 | 11.93 | 10.39 | 9.55 | 9.32 |
| EV / EBIT | 26.81 | 24.70 | 18.76 | 19.93 | 21.05 | 16.51 | 18.11 | 21.01 | 16.76 | 15.07 | 14.78 |
| EV / FCF | — | — | — | — | — | — | — | — | 149.51 | — | — |
PNW Profitability
Margins and return-on-capital ratios measuring operating efficiency
Pinnacle West Capital Corporation earns an operating margin of 20.9%, roughly in line with the Utilities sector average. Operating margins have expanded from 17.6% to 20.9% over the past 3 years, signaling improving operational efficiency. ROE of 8.8% is modest, trailing the sector median of 9.4%. ROIC of 3.9% represents below-average returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.4% | 25.4% | 41.7% | 39.3% | 39.5% | 44.6% | 45.6% | 42.8% | 42.8% | 45.9% | 42.6% |
| Operating Margin | 20.9% | 20.9% | 19.7% | 17.6% | 16.9% | 21.2% | 22.0% | 19.4% | 21.0% | 25.5% | 23.9% |
| Net Profit Margin | 11.5% | 11.5% | 11.9% | 10.7% | 11.2% | 16.3% | 15.3% | 15.5% | 13.8% | 13.7% | 12.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.8% | 8.8% | 9.3% | 8.1% | 7.9% | 10.5% | 9.7% | 9.9% | 9.7% | 9.7% | 9.2% |
| ROA | 2.1% | 2.1% | 2.4% | 2.1% | 2.2% | 2.9% | 2.9% | 3.0% | 2.9% | 3.0% | 2.8% |
| ROIC | 3.9% | 3.9% | 4.4% | 3.9% | 3.8% | 4.5% | 4.9% | 4.6% | 5.6% | 7.1% | 7.1% |
| ROCE | 4.3% | 4.3% | 4.5% | 3.9% | 3.6% | 4.1% | 4.5% | 4.1% | 4.9% | 6.0% | 5.9% |
PNW Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Pinnacle West Capital Corporation carries a Debt/EBITDA ratio of 8.5x, which is highly leveraged (72% above the sector average of 5.0x). Net debt stands at $17.8B ($17.8B total debt minus $7M cash). Interest coverage of just 2.7x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.52 | 2.52 | 1.61 | 1.64 | 1.44 | 1.36 | 1.20 | 1.05 | 0.97 | 0.97 | 0.88 |
| Debt / EBITDA | 8.55 | 8.55 | 5.61 | 6.14 | 5.73 | 5.37 | 4.69 | 4.35 | 3.66 | 3.27 | 3.09 |
| Net Debt / Equity | — | 2.52 | 1.61 | 1.64 | 1.44 | 1.36 | 1.19 | 1.04 | 0.97 | 0.96 | 0.87 |
| Net Debt / EBITDA | 8.55 | 8.55 | 5.61 | 6.13 | 5.73 | 5.36 | 4.65 | 4.34 | 3.66 | 3.26 | 3.08 |
| Debt / FCF | — | — | — | — | — | — | — | — | 52.63 | — | — |
| Interest Coverage | 2.75 | 2.75 | 2.95 | 2.80 | 3.25 | 4.20 | 3.83 | 3.50 | 4.04 | 4.88 | 4.76 |
PNW Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.49x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 0.67x to 0.49x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.49 | 0.49 | 0.59 | 0.67 | 0.99 | 0.88 | 0.88 | 0.50 | 0.56 | 0.85 | 0.64 |
| Quick Ratio | 0.31 | 0.31 | 0.42 | 0.50 | 0.74 | 0.67 | 0.64 | 0.33 | 0.38 | 0.61 | 0.42 |
| Cash Ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.04 | 0.00 | 0.00 | 0.01 | 0.01 |
| Asset Turnover | — | 0.17 | 0.20 | 0.19 | 0.19 | 0.17 | 0.18 | 0.19 | 0.21 | 0.21 | 0.22 |
| Inventory Turnover | 7.05 | 7.05 | 5.96 | 5.78 | 5.81 | 5.74 | 5.84 | 5.74 | 7.18 | 6.67 | 7.10 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
PNW Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Pinnacle West Capital Corporation returns 3.5% to shareholders annually primarily through dividends. A payout ratio of 68.6% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 5.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.5% | 3.9% | 4.0% | 4.7% | 4.4% | 4.6% | 3.9% | 3.3% | 3.2% | 3.0% | 3.1% |
| Payout Ratio | 68.6% | 68.6% | 64.8% | 77.1% | 78.3% | 59.7% | 63.7% | 61.2% | 60.4% | 59.3% | 62.0% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.0% | 5.7% | 6.2% | 6.1% | 5.6% | 7.7% | 6.1% | 5.3% | 5.3% | 5.1% | 5.1% |
| FCF Yield | — | — | — | — | — | — | — | — | 1.0% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.1% | 0.1% |
| Total Shareholder Yield | 3.5% | 3.9% | 4.0% | 4.8% | 4.4% | 4.7% | 3.9% | 3.3% | 3.3% | 3.2% | 3.2% |
| Shares Outstanding | — | $122M | $116M | $114M | $113M | $113M | $113M | $113M | $113M | $112M | $112M |
Peer Comparison
Compare PNW with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 PNWYou | $12B | 19.8 | 14.4 | — | 25.4% | 20.9% | 8.8% | 3.9% | 8.5 |
 AEE | $30B | 20.5 | 13.6 | — | 29.6% | 23.0% | 11.3% | 4.7% | 5.4 |
 WEC | $37B | 23.6 | 15.4 | — | 50.5% | 24.2% | 11.6% | 5.1% | 5.8 |
 EVRG | $19B | 22.1 | 7.0 | — | 83.3% | 25.7% | 12.7% | 8.3% | 0.1 |
 NWE | $4B | 24.2 | 13.3 | — | 82.3% | 20.2% | 6.3% | 4.0% | 5.7 |
 IDA | $8B | 24.4 | 17.5 | — | 22.1% | 21.9% | 9.4% | 4.6% | 5.6 |
 POR | $6B | 17.7 | 9.8 | — | 33.6% | 16.4% | 7.7% | 4.5% | 4.9 |
 AVA | $3B | 17.1 | 10.4 | — | 24.2% | 18.0% | 7.3% | 4.5% | 5.3 |
 AES | $10B | 11.4 | 11.2 | — | 18.1% | 16.1% | 9.7% | 3.9% | 8.8 |
 NRG | $32B | 37.6 | 11.7 | 42.2 | 21.8% | 6.0% | 41.5% | 10.6% | 4.4 |
 ETR | $52B | 28.9 | 14.8 | — | 29.9% | 23.6% | 10.9% | 5.0% | 5.5 |
| Utilities Median | — | 19.7 | 11.5 | 15.4 | 40.7% | 19.8% | 9.4% | 4.9% | 5.0 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Full PNW Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
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Start ComparisonPNW — Frequently Asked Questions
Quick answers to the most common questions about buying PNW stock.
What is Pinnacle West Capital Corporation's P/E ratio?
Pinnacle West Capital Corporation's current P/E ratio is 19.8x. The historical average is 17.5x. This places it at the 93th percentile of its historical range.
What is Pinnacle West Capital Corporation's EV/EBITDA?
Pinnacle West Capital Corporation's current EV/EBITDA is 14.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.0x.
What is Pinnacle West Capital Corporation's ROE?
Pinnacle West Capital Corporation's return on equity (ROE) is 8.8%. The historical average is 8.9%.
Is PNW stock overvalued?
Based on historical data, Pinnacle West Capital Corporation is trading at a P/E of 19.8x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Pinnacle West Capital Corporation's dividend yield?
Pinnacle West Capital Corporation's current dividend yield is 3.46% with a payout ratio of 68.6%.
What are Pinnacle West Capital Corporation's profit margins?
Pinnacle West Capital Corporation has 25.4% gross margin and 20.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Pinnacle West Capital Corporation have?
Pinnacle West Capital Corporation's Debt/EBITDA ratio is 8.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.