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.

CenterPoint Energy, Inc.

Avangrid, Inc.

Evergy, Inc.

Alliant Energy Corp.

Vistra Corp.

CMS Energy 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.

7.73%

0.84

17.09%

S&P 500

22.36%

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

2What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 0

-20What is not working for the Company

NET SALES(HY)

At USD 1,149.6 MM has Grown at -51.92%

ROCE(HY)

Lowest at 0%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 104.91% (YoY

CASH AND EQV(HY)

Lowest at USD 6.8 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

OPERATING PROFIT(Q)

Lowest at USD 0 MM

PRE-TAX PROFIT(Q)

Lowest at USD 0 MM

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

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

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

Net Sales

At USD 1,149.6 MM has Grown at -51.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 0 MM has Fallen at -100%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Profit

Lowest at USD 0 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 0 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Cash and Eqv

Lowest at USD 6.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 104.91% (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