Pinnacle West Capital Corp. (PNW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The AES Corp.

PPL Corp.

Pinnacle West Capital Corp.

Ameren Corp.

CMS Energy Corp.

Alliant Energy Corp.

Avangrid, Inc.

CenterPoint Energy, Inc.

Evergy, Inc.

Vistra Corp.

NRG Energy, Inc.

Why is Pinnacle West Capital Corp. ?

Poor long term growth as Operating profit has grown by an annual rate 0.91% of over the last 5 years

OPERATING CASH FLOW(Y) Highest at USD 1,736.01 MM
DIVIDEND PER SHARE(HY) Highest at USD 6.23
INVENTORY TURNOVER RATIO(HY) Highest at 7.79 times

With ROCE of 5.56%, it has a expensive valuation with a 1.24 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.41%, its profits have fallen by -28.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.41% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Pinnacle West Capital Corp. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Pinnacle West Capital Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Pinnacle West Capital Corp.

16.06%

0.84

17.09%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.28%

EBIT Growth (5y)

4.07%

EBIT to Interest (avg)

3.21

Debt to EBITDA (avg)

4.97

Net Debt to Equity (avg)

1.45

Sales to Capital Employed (avg)

0.31

Tax Ratio

14.25%

Dividend Payout Ratio

71.12%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

5.89%

ROE (avg)

9.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.71

EV to EBIT

23.59

EV to EBITDA

11.78

EV to Capital Employed

1.28

EV to Sales

4.27

PEG Ratio

Dividend Yield

ROCE (Latest)

5.43%

ROE (Latest)

7.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 8.52

PRE-TAX PROFIT(Q)

At USD 62.18 MM has Grown at 150.46%

NET PROFIT(Q)

At USD 57.98 MM has Grown at 147.78%

RAW MATERIAL COST(Y)

Fallen by -2,009.38% (YoY

-3What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 214.15 %

CASH AND EQV(HY)

Lowest at USD 16.65 MM

Here's what is working for Pinnacle West Capital Corp.

Pre-Tax Profit

At USD 62.18 MM has Grown at 150.46%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 57.98 MM has Grown at 147.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Dividend per share

Highest at USD 8.52 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -2,009.38% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 259.84 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Pinnacle West Capital Corp.

Debt-Equity Ratio

Highest at 214.15 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at USD 16.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents