Pinnacle West Capital Corp (PNW)
NYSE:PNW
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Pinnacle West Capital
(NYSE:PNW)
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Rating:65Neutral
Price Target:
$108.00
â–²(7.20% Upside)
Action:ReiteratedDate:02/28/26
The score is led by solid technical momentum and constructive earnings-call outlook (reiterated guidance, strong demand growth and improved liquidity planning). Offsetting these positives are weaker cash-flow quality with reliance on external funding, leverage-related constraints and some uncertainty from abrupt 2025 statement shifts, while valuation is reasonable but not clearly cheap.
Positive Factors
Regulated franchise with durable load and customer growth
Steady weather-normalized sales growth (5% in 2025) and 2.4% customer growth reflect durable demand drivers, including accelerating commercial & industrial additions. Persistent load growth supports long-term rate-base expansion and predictable regulated revenue through 2028–2030.
Negative Factors
Elevated leverage and balance-sheet uncertainty
Meaningful leverage is typical for utilities but constrains financial flexibility; the noted abrupt 2025 balance-sheet shift creates uncertainty about reported obligations and asset base. High leverage can limit ability to absorb shocks or accelerate growth without more external funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated franchise with durable load and customer growth
Steady weather-normalized sales growth (5% in 2025) and 2.4% customer growth reflect durable demand drivers, including accelerating commercial & industrial additions. Persistent load growth supports long-term rate-base expansion and predictable regulated revenue through 2028–2030.
Read all positive factors
Pinnacle West Capital (PNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.18B
Dividend Yield4.15%
Average Volume (3M)1.39M
Price to Earnings (P/E)17.2
Beta (1Y)0.16
Revenue Growth5.70%
EPS Growth-8.25%
CountryUS
Employees94
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.13
Shares Outstanding120,905,390
10 Day Avg. Volume1,259,208
30 Day Avg. Volume1,387,514
Financial Highlights & Ratios
PEG Ratio-4.61
Price to Book (P/B)1.51
Price to Sales (P/S)1.99
P/FCF Ratio-12.95
Enterprise Value/Market Cap2.46
Enterprise Value/Revenue5.62
Enterprise Value/Gross Profit16.13
Enterprise Value/Ebitda14.10
Forecast
1Y Price Target
$102.38Price Target Upside1.62% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)4.69
Revenue Forecast (FY)$5.55B
Pinnacle West Capital Business Overview & Revenue Model
Company Description
Pinnacle 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 ...
How the Company Makes Money
Pinnacle West Capital generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers. The company's revenue model is largely based on regulated utility operations, where earnings are derived from t...
Pinnacle West Capital Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue from different business units, providing insight into which segments are driving growth and which may need strategic adjustments. This helps assess the company's diversification and resilience against market fluctuations.
Highlights revenue from different business units, providing insight into which segments are driving growth and which may need strategic adjustments. This helps assess the company's diversification and resilience against market fluctuations.
Data provided by:
The Fly
The FlyPinnacle West Capital Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution, durable demand growth, and meaningful progress on customer experience and liquidity de-risking, while acknowledging identifiable near-term headwinds (weather-driven EPS drag, higher financing and pension costs) and regulatory and uncommitted-load execution risks. Management reiterated guidance and outlined a clear pathway for capital and rate-case priorities, suggesting confidence in long-term prospects despite some short-term pressures.Positive Updates
Record System Peak and Strong Generation Performance
APS set a new system peak of 8,648 MW on August 7 (more than 400 MW higher than prior year). Palo Verde operated at 100% summertime capacity factor and received a 2025 INPO excellence award for safety, reliability and operational performance.
Negative Updates
Year-over-Year EPS Pressure and Weather Impact
Full-year EPS declined to $5.05 from $5.24 in 2024. Management identified a $0.71 year-over-year weather-driven headwind (prior year benefited from an extremely hot summer) and highlighted milder-than-normal 2025 weather as a drag on results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record System Peak and Strong Generation Performance
APS set a new system peak of 8,648 MW on August 7 (more than 400 MW higher than prior year). Palo Verde operated at 100% summertime capacity factor and received a 2025 INPO excellence award for safety, reliability and operational performance.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance with annual EPS of $4.55–$4.75 and weather‑normalized sales growth of 4%–6% (with extra‑high‑load‑factor C&I customers expected to contribute 3%–5% of that), reaffirmed longer‑term sales growth of 5%–7% through 2030 and rate base growth of 7%–9% through 2028, and said O&M/MWh—which fell 3.3% in 2025—should decline further in 2026. For context, 2025 results included full‑year EPS of $5.05 and Q4 EPS of $0.13 (vs. a $0.06 loss in Q4‑2024), 2025 weather‑normalized sales growth of 5% (2% residential, 7.5% C&I), total customer growth of 2.4%, a new system peak of 8,648 MW (+~400 MW year‑over‑year), >34,000 new meters installed, Palo Verde at 100% summertime capacity factor, and >400 MW of APS‑owned resources completed ahead of schedule. Financial posture: 2026 equity needs are largely derisked with nearly $500M already priced, core credit facilities extended to 2031 with revolving capacity up $550M, year‑end HoldCo debt ~17% (target mid‑teens), and FFO/debt in the high‑14s with an aim to maintain a 14%–16% band; the rate case remains on track (staff/intervener testimony next month, hearings in May).Pinnacle West Capital Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.34B | 5.12B | 4.70B | 4.32B | 3.80B |
| Gross Profit | 1.36B | 2.14B | 1.84B | 1.71B | 1.70B |
| EBITDA | 2.13B | 2.07B | 1.78B | 1.65B | 1.70B |
| Net Income | 616.53M | 608.81M | 501.56M | 483.60M | 618.72M |
Balance Sheet | |||||
| Total Assets | 31.68B | 26.10B | 24.66B | 22.72B | 22.00B |
| Cash, Cash Equivalents and Short-Term Investments | 9.85M | 3.84M | 4.96M | 4.83M | 9.97M |
| Total Debt | 17.85B | 11.05B | 10.30B | 8.88B | 8.18B |
| Total Liabilities | 24.60B | 19.25B | 18.38B | 16.56B | 15.98B |
| Stockholders Equity | 7.05B | 6.75B | 6.18B | 6.05B | 5.91B |
Cash Flow | |||||
| Free Cash Flow | -819.52M | -639.37M | -638.67M | -466.05M | -613.46M |
| Operating Cash Flow | 1.81B | 1.61B | 1.21B | 1.24B | 860.01M |
| Investing Cash Flow | -2.58B | -1.93B | -1.69B | -1.62B | -1.39B |
| Financing Cash Flow | 775.09M | 322.69M | 486.68M | 371.47M | 476.92M |
Pinnacle West Capital Technical Analysis
Positive
100.75
Price Trends
97.55
Positive
92.72
Positive
90.44
Positive
Market Momentum
0.28
Positive
55.80
Neutral
45.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNW, the sentiment is Positive. The current price of 100.75 is above the 20-day moving average (MA) of 100.62, above the 50-day MA of 97.55, and above the 200-day MA of 90.44, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 45.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNW.
Pinnacle West Capital Risk Analysis
Pinnacle West Capital disclosed 27 risk factors in its most recent earnings report. Pinnacle West Capital reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pinnacle West Capital Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $37.69B | 22.02 | 11.65% | 3.38% | 11.88% | 29.76% | |
66 Neutral | $18.86B | 19.53 | 8.47% | 3.72% | 0.11% | -0.52% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $12.18B | 17.22 | 8.91% | 4.15% | 5.70% | -8.25% | |
64 Neutral | $9.89B | 31.15 | 9.89% | 3.82% | 18.03% | 29.46% | |
62 Neutral | $18.45B | 20.63 | 11.22% | 3.11% | 7.76% | 23.48% | |
61 Neutral | $30.39B | 18.26 | 12.16% | 3.45% | 19.42% | -9.68% |
* Utilities Sector Average
PNW
Pinnacle West Capital
100.75
9.17
10.01%
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9.35
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146.22
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23.19%
Pinnacle West Capital Corporate Events
Business Operations and Strategy
Pinnacle West Highlights Growth and Clean-Energy Utility Franchise
Positive
Feb 27, 2026
In March 2026, Pinnacle West planned to meet with securities analysts and investors, using an investor presentation that highlighted the scale of its regulated electric utility operations and the strength of its Arizona franchise. The materials un...
Business Operations and StrategyFinancial Disclosures
Pinnacle West Capital posts stronger 2025 earnings, growth
Positive
Feb 25, 2026
Pinnacle West Capital reported that for 2025 it generated consolidated net income attributable to common shareholders of $616.5 million, or $5.05 per diluted share, modestly above the $608.8 million, or $5.24 per share, posted in 2024. For the fou...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Pinnacle West Expands Credit Facilities and Executive Incentives
Positive
Feb 19, 2026
On February 18, 2026, Pinnacle West Capital Corporation entered into a third amended and restated five-year unsecured revolving credit facility, increasing its borrowing capacity from $200 million to $300 million and extending maturity to February...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.