Pinnacle West Capital Stock Investment Opportunities and Evaluation

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Pinnacle West Capital Corporation is the parent company of Arizona Public Service (APS), the largest electric utility in Arizona.

Pinnacle West is a well-established company with a long history of providing reliable electricity to its customers.

The company's primary business is generating and distributing electricity, but it also has a growing renewable energy portfolio.

Pinnacle West has a strong financial position, with a debt-to-equity ratio of 0.87 and a current ratio of 0.95, indicating a manageable level of debt and sufficient liquidity.

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Investment Analysis

Pinnacle West Capital Corporation has a Growth Score of 97, which is Very Strong. This indicates that the company has exhibited strong, consistent, and prolonged growth over the past few years.

The Growth Score is computed by adding the percentile ranks for three individual components: consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

Here are the specific metrics that contributed to Pinnacle West Capital Corporation's high Growth Score:

Growth Rank

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The Growth Rank is a crucial aspect of investment analysis, and it's essential to understand how to evaluate a company's growth prospects.

Pinnacle West Capital Corporation has a 3-Year Revenue Growth Rate of 9.1, outpacing the industry average.

A company's growth rank can be broken down into several key metrics, including 3-Year EBITDA Growth Rate, 3-Year EPS without NRI Growth Rate, 3-Year FCF Growth Rate, and 3-Year Book Growth Rate.

Pinnacle West Capital Corporation's 3-Year EBITDA Growth Rate is 4.2, while its 3-Year EPS without NRI Growth Rate is -4.6.

The company's 3-Year FCF Growth Rate is -20.7, indicating a decline in free cash flow.

On the other hand, Pinnacle West Capital Corporation's 3-Year Book Growth Rate is 2.9, showing a moderate increase in book value.

Looking ahead, analysts expect the company's Future 3-5Y EPS without NRI Growth Rate to be 7.23, indicating a potential rebound in earnings.

Similarly, the Future 3-5Y Total Revenue Growth Rate Estimate is 4.19, suggesting a gradual increase in revenue.

Momentum Rank

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Momentum Rank is a crucial aspect of investment analysis. It helps us identify stocks with high rates of return that are likely to continue outperforming the market.

The Momentum Rank is calculated using various metrics, including 5-Day RSI, 9-Day RSI, and 14-Day RSI. These metrics indicate the stock's current momentum and how it compares to the industry and historical averages.

Here's a breakdown of Pinnacle West Capital Corporation's Momentum Rank:

These metrics suggest that Pinnacle West Capital Corporation's momentum is relatively low compared to the industry and historical averages. This could indicate that the stock may be due for a rebound or that it's a good time to buy in.

Momentum Rank is just one aspect of investment analysis, but it's an important one. By considering multiple metrics and evaluating the stock's overall momentum, we can make more informed investment decisions.

GF Value Rank

The GF Value Rank is a crucial metric for investors to understand the value of a stock. It's calculated based on various valuation ratios, including the PE Ratio, which for the stock in question is 16.05.

Credit: youtube.com, Difference Between GF Value and Valuation Rank

The PE Ratio is a commonly used metric to determine a stock's value, but it's not the only one. The Forward PE Ratio, which is 18.46, gives us an idea of the stock's future earnings potential.

The GF Value Rank also takes into account the Shiller PE Ratio, which is 15.27. This ratio is a longer-term measure of a stock's value, giving us a more comprehensive view of the stock's worth.

Here's a breakdown of the GF Value Rank metrics:

The PEG Ratio, which is 5, indicates that the stock's earnings growth is in line with its price. This is a positive sign, suggesting that the stock is undervalued.

The GF Value Rank is an essential tool for investors to determine a stock's value. By analyzing these metrics, investors can make informed decisions about their investments.

Shareholder Returns

As we take a closer look at the shareholder returns of Pinnacle West Capital, it's clear that the company's performance has been a mixed bag. Over the past year, Pinnacle West Capital has returned 13.4%, which is actually lower than both the US Electric Utilities industry and the US Market as a whole.

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Credit: youtube.com, Pinnacle West (APS) Shareholder Protest Announcement

The company underperformed the US Electric Utilities industry, which returned a whopping 17.8% over the past year. This is a notable difference, and it's worth considering what might be driving this disparity.

Here's a breakdown of Pinnacle West Capital's shareholder returns over the past year, compared to the US Electric Utilities industry and the US Market:

It's worth noting that Pinnacle West Capital's returns have been underwhelming compared to the broader market, and it's something that investors may want to keep an eye on.

Frequently Asked Questions

What does Pinnacle West own?

Pinnacle West owns Arizona Public Service (APS), a major utility company. It also has a significant presence in the stock market through its listing on the New York Stock Exchange and inclusion in the S&P 500 index.

Is PNW a good stock to buy?

PNW is considered a good stock to buy, with a strong earnings outlook and improved analyst sentiment. Its Zacks Rank of #2 (Buy) suggests a promising investment opportunity.

How many customers does Pinnacle West have?

Pinnacle West serves approximately 1.4 million customers. We're working to meet their energy needs with a cleaner, more sustainable future.

What is the ticker symbol for Arizona Public Service?

The ticker symbol for Pinnacle West Capital Corporation, the parent company of Arizona Public Service, is PNW. This symbol was adopted in 1987 after the company's name change.

Teresa Halvorson

Senior Writer

Teresa Halvorson is a skilled writer with a passion for financial journalism. Her expertise lies in breaking down complex topics into engaging, easy-to-understand content. With a keen eye for detail, Teresa has successfully covered a range of article categories, including currency exchange rates and foreign exchange rates.

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