Pinnacle West Capital Corporation (PNW)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business at a sensible price. Pinnacle West is a regulated electric utility in Arizona, so demand is essential and the franchise has some protection. But the numbers are not those of a bargain. At the 2026-10-13 close of $101.58, FairStock calculates 19.50 times earnings, 1.75 times book, and a 3.86% dividend yield. Its Graham Number is $82.49, which gives a negative 23.14% margin of safety. Revenue has grown: fiscal 2025 revenue was $5.3B versus $5.1B in fiscal 2024 and $4.7B in fiscal 2023. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.5B, net income $180.8M, and diluted EPS $1.43. A year earlier, fiscal Q2 2025 had $1.4B revenue, $196.9M net income, and $1.58 EPS. Fiscal 2025 net income was $631.6M, or $5.05 per diluted share, while fiscal 2024 was $626.0M, or $5.24. The Lynch category is Slow Grower, with FairStock noting profit growth of 2.1% a year over five years. Returns are modest: ROE 9.37% and ROCE 2.33%. The biggest worry is cash. Trailing free cash flow is negative $878.5M, a -7.1% FCF yield, and debt-to-equity is 2.33; Altman Z-Score 0.48. FairStock Score is 49/100. This is a stable utility, but at this price the margin of safety is thin and the financial engine needs capital.

In plain English: Pinnacle West sells electricity in Arizona through regulated utilities. The business is steady and pays a solid dividend, but it earns modest profits, spends more cash than it brings in, and carries a lot of debt. At $101.58, the stock looks a bit expensive compared with the company's accounting value and earnings, with little cushion if growth disappoints.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer