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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ameren Corp.

The AES Corp.

Evergy, Inc.

Alliant Energy Corp.

Pinnacle West Capital Corp.

PPL Corp.

Avangrid, Inc.

CMS Energy Corp.

Vistra Corp.

CenterPoint Energy, Inc.

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 -2.91%, its profits have fallen by -28.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.91% 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.

-4.35%

0.98

17.18%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.76%

EBIT Growth (5y)

0.91%

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

67.49%

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

1.58

EV to EBIT

22.22

EV to EBITDA

10.75

EV to Capital Employed

1.24

EV to Sales

3.92

PEG Ratio

Dividend Yield

ROCE (Latest)

5.56%

ROE (Latest)

7.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bearish

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

6What is working for the Company

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

-15What is not working for the Company

NET PROFIT(Q)

At USD 128.1 MM has Fallen at -37.87%

RAW MATERIAL COST(Y)

Grown by 26.78% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 207.75 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.23 times

INTEREST(Q)

Highest at USD 101.97 MM

PRE-TAX PROFIT(Q)

Fallen at -35.9%

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

Operating Cash Flow

Highest at USD 1,736.01 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 6.23 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Inventory Turnover Ratio

Highest at 7.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Net Profit

At USD 128.1 MM has Fallen at -37.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

Highest at USD 101.97 MM

in the last five periods and Increased by 7.51% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Fallen at -35.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Debt-Equity Ratio

Highest at 207.75 %

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

Debtors Turnover Ratio

Lowest at 6.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 26.78% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.11 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income