Pinnacle West Capital Corp (PNW)
Fair ValueFundamental
51
Price
$92.44
Market Cap
$11.07B
Part 1 · What the company is worth
Overview
Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using nuclear, gas, oil, coal, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables. The company also owns and maintains substations, including transmission and distribution yards; and owns energy storage facilities. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
SRP is the not-for-profit public power utility that serves roughly half of the Phoenix metropolitan area — the same fast-growing homes, businesses and data-center loads that Pinnacle West's Arizona Public Service serves in the other half.
TEP is the other large investor-owned electric utility in Arizona, serving more than 450,000 customers in the Tucson area and competing with APS for the same state regulatory approvals, generation projects and Arizona load growth.
TXNM Energy is the neighbouring regulated electric holding company, delivering power to more than 800,000 customers in New Mexico and Texas and competing with Pinnacle West in the same Southwestern wholesale power and transmission markets.
Balance Sheet & Liquidity
Revenue
$5.55B
Trailing 12 months (through 6/30/2026)
Net Income
$651M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$-820M
Total Equity
$7.05B
Total Liabilities
$22.94B
Current Ratio
0.59
Interest Coverage
2.46
Debt/EBITDA
8.10
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$80.22
Current Price
$92.44
Margin of Safety
-15.2%
Fair Value Range
$59.77 - $100.67
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
17.86
ROE
9.0%
P/B Ratio
1.60
P/FCF
-
Gross Margin
-
ROIC
3.1%
Profitability Radar
Value Creation (Economic Moat)
ROIC
3.1%
WACC
4.4%
ROIC − WACC
-1.3 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (11)
- EPS shows upward trend
- P/B Ratio 1.60
- Debt/Equity ratio
- Operating Margin 20.5%
- Interest Coverage
- Low reliance on intangibles
- ROE 9.0%
- Revenue Growth 5Y 8.3%
- Earnings Surprise avg 638.2%
- Earnings Quality (OCF/NI) 2.72
- Net Margin Trend 11.7% vs 11.3%
Failed (13)
- EPS CAGR 4.47%
- Price CAGR 2.11%
- ROIC 3.1%
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- Price below Graham Number
- DCF valuation (Overvalued)
- Analyst Consensus 33% Buy
- PEG Ratio 24.07
- Share Dilution 4.7%
- Piotroski F-Score 3/9
Unavailable (4)
- Gross Margin NaN%
- P/FCF NaN
- Dividend Payout NaN%
- CapEx intensity
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Theodore N. Geisler | Chairman of the Board, President & CEO | 46 |
| Mr. Andrew D. Cooper | Senior VP & CFO | 46 |
| Ms. Shirley A. Baum | Senior VP, Corporate Secretary & General Counsel | 51 |
| Mr. Adam C. Heflin | Executive VP & Chief Nuclear Officer of APS | 60 |
| Mr. Jacob Tetlow | Executive VP & COO of APS | 52 |
| Ms. Elizabeth A. Blankenship | VP, Controller & Chief Accounting Officer | 53 |
| Ms. Amanda Ho | Director of Investor Relations | - |
| Mr. Todd Horton | SVP of Nuclear Regulatory & Oversight of Palo Verde Generating Station for APS | - |
| Ms. Diane Wood | Assistant VP & Corporate Secretary | - |
| Mr. Christopher R. Bauer | VP & Treasurer | 49 |
Audit Risk
3
Board Risk
8
Compensation Risk
3
Shareholder Rights Risk
6
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-25
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-04
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-30
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for PNW, sourced from Markets Gazette.
- 6/4/2026POSITIVEPinnacle West CEO Says Arizona Grid Is Ready to Support AI Growth
Pinnacle West CEO Ted Geisler stated that the company's grid infrastructure is prepared to accommodate the burgeoning demand from AI-driven data centers. Geisler indicated that these data centers are expected to fund the necessary upgrades to the energy provider's grid. This development suggests a significant new revenue stream for Pinnacle West, driven by the substantial energy requirements of artificial intelligence technologies. Investors may view this as a positive catalyst for future growth and profitability, as the company positions itself to capitalize on the AI boom.
- 2/25/2026NEUTRALPinnacle West (PNW) Q4 2025 Earnings Transcript
Pinnacle West Capital Corporation (PNW) has announced the availability of its Q4 2025 earnings call transcript. However, the detailed content of this transcript has not yet been made public. Investors and analysts are keenly awaiting the company's financial data and future outlook, particularly regarding operational performance and growth strategies within the utility sector. The absence of concrete information prevents the market from forming immediate judgments, maintaining a cautious stance until official data is released, which could influence the stock's valuation.
via Markets Gazette