Is Pinnacle West Stock a Good Investment?
Pinnacle West Investment Advice | PNW |
- Examine Pinnacle West's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Pinnacle West's leadership team and their track record. Good management can help Pinnacle West navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Electric Utilities space and any emerging trends that could impact Pinnacle West's business and its evolving consumer preferences.
- Compare Pinnacle West's performance and market position to its competitors. Analyze how Pinnacle West is positioned in terms of product offerings, innovation, and market share.
- Check if Pinnacle West pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Pinnacle West's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Pinnacle West Capital stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Pinnacle West Capital is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Very Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Pinnacle West Stock
Researching Pinnacle West's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 100.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.56. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Pinnacle West Capital recorded earning per share (EPS) of 5.32. The entity last dividend was issued on the 4th of November 2024. The firm had 1:1 split on the 27th of November 2006.
To determine if Pinnacle West is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Pinnacle West's research are outlined below:
| Pinnacle West Capital has 10.3 B in debt with debt to equity (D/E) ratio of 1.35, which is OK given its current industry classification. Pinnacle West Capital has a current ratio of 0.96, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Pinnacle to invest in growth at high rates of return. | |
| Pinnacle West has a very strong financial position based on the latest SEC filings | |
| Over 100.0% of Pinnacle West shares are owned by institutional investors | |
| Latest headline from gurufocus.com: ADDINGand REPLACING APS Secures Its Largest-Ever Energy Supply |
Pinnacle West uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Pinnacle West Capital. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Pinnacle West's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 26th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 26th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Pinnacle West's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Pinnacle West's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-02-27 | 2022-12-31 | -0.18 | -0.21 | -0.03 | 16 | ||
2014-02-21 | 2013-12-31 | 0.19 | 0.22 | 0.03 | 15 | ||
2018-05-02 | 2018-03-31 | 0.07 | 0.03 | -0.04 | 57 | ||
2015-05-01 | 2015-03-31 | 0.18 | 0.14 | -0.04 | 22 | ||
2019-01-17 | 2018-12-31 | 0.18 | 0.23 | 0.05 | 27 | ||
2017-05-02 | 2017-03-31 | 0.16 | 0.21 | 0.05 | 31 | ||
2011-02-18 | 2010-12-31 | 0.01 | 0.06 | 0.05 | 500 | ||
2010-02-19 | 2009-12-31 | -0.11 | -0.16 | -0.05 | 45 |
Know Pinnacle West's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Pinnacle West is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Pinnacle West Capital backward and forwards among themselves. Pinnacle West's institutional investor refers to the entity that pools money to purchase Pinnacle West's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Massachusetts Financial Services Company | 2024-09-30 | 2.7 M | Norges Bank | 2024-06-30 | 2.1 M | Pictet Asset Manangement Sa | 2024-06-30 | 1.7 M | Deutsche Bank Ag | 2024-06-30 | 1.6 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.2 M | Reaves W H & Co Inc | 2024-09-30 | 1 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1 M | Empower Advisory Group Llc | 2024-09-30 | 973.4 K | Northern Trust Corp | 2024-09-30 | 955.5 K | Capital Research Global Investors | 2024-09-30 | 14.4 M | Vanguard Group Inc | 2024-09-30 | 14 M |
Pinnacle West's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 10.44 B.Market Cap |
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Pinnacle West's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.03 | |
| Return On Capital Employed | 0.04 | 0.07 | |
| Return On Assets | 0.02 | 0.03 | |
| Return On Equity | 0.08 | 0.10 |
Determining Pinnacle West's profitability involves analyzing its financial statements and using various financial metrics to determine if Pinnacle West is a good buy. For example, gross profit margin measures Pinnacle West's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Pinnacle West's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Pinnacle West's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Pinnacle West Capital. Check Pinnacle West's Beneish M Score to see the likelihood of Pinnacle West's management manipulating its earnings.
Evaluate Pinnacle West's management efficiency
Pinnacle West Capital has Return on Asset of 0.0258 % which means that on every $100 spent on assets, it made $0.0258 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0958 %, implying that it generated $0.0958 on every 100 dollars invested. Pinnacle West's management efficiency ratios could be used to measure how well Pinnacle West manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to climb to 0.03 in 2024. Return On Capital Employed is likely to climb to 0.07 in 2024. At this time, Pinnacle West's Other Current Assets are fairly stable compared to the past year. Other Assets is likely to climb to about 4 B in 2024, whereas Non Current Assets Total are likely to drop slightly above 12.9 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 55.40 | 29.60 | |
| Tangible Book Value Per Share | 53.05 | 28.71 | |
| Enterprise Value Over EBITDA | 10.73 | 6.19 | |
| Price Book Value Ratio | 1.32 | 1.13 | |
| Enterprise Value Multiple | 10.73 | 6.19 | |
| Price Fair Value | 1.32 | 1.13 | |
| Enterprise Value | 6.2 B | 4.9 B |
Leadership effectiveness at Pinnacle West Capital is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.
Dividend Yield 0.0394 | Forward Dividend Yield 0.0394 | Forward Dividend Rate 3.58 | Beta 0.518 |
Basic technical analysis of Pinnacle Stock
As of the 21st of November, Pinnacle West holds the Risk Adjusted Performance of 0.0797, semi deviation of 0.8043, and Coefficient Of Variation of 981.38. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Pinnacle West, as well as the relationship between them. Please check Pinnacle West Capital standard deviation, value at risk, as well as the relationship between the Value At Risk and kurtosis to decide if Pinnacle West Capital is priced some-what accurately, providing market reflects its current price of 93.62 per share. Given that Pinnacle West has jensen alpha of 0.0629, we recommend you to check out Pinnacle West Capital's recent market performance to make sure the company can sustain itself at a future point.Pinnacle West's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Pinnacle West insiders, such as employees or executives, is commonly permitted as long as it does not rely on Pinnacle West's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Pinnacle West insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Pinnacle West's Outstanding Corporate Bonds
Pinnacle West issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Pinnacle West Capital uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Pinnacle bonds can be classified according to their maturity, which is the date when Pinnacle West Capital has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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| MPLX LP 52 Corp BondUS55336VAL45 | View | |
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Understand Pinnacle West's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Pinnacle West's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0797 | |||
| Market Risk Adjusted Performance | 0.2479 | |||
| Mean Deviation | 0.7903 | |||
| Semi Deviation | 0.8043 | |||
| Downside Deviation | 0.9287 | |||
| Coefficient Of Variation | 981.38 | |||
| Standard Deviation | 1.06 | |||
| Variance | 1.13 | |||
| Information Ratio | 0.012 | |||
| Jensen Alpha | 0.0629 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0137 | |||
| Treynor Ratio | 0.2379 | |||
| Maximum Drawdown | 4.99 | |||
| Value At Risk | (1.48) | |||
| Potential Upside | 1.91 | |||
| Downside Variance | 0.8624 | |||
| Semi Variance | 0.6468 | |||
| Expected Short fall | (0.85) | |||
| Skewness | 0.8131 | |||
| Kurtosis | 2.01 |
| Risk Adjusted Performance | 0.0797 | |||
| Market Risk Adjusted Performance | 0.2479 | |||
| Mean Deviation | 0.7903 | |||
| Semi Deviation | 0.8043 | |||
| Downside Deviation | 0.9287 | |||
| Coefficient Of Variation | 981.38 | |||
| Standard Deviation | 1.06 | |||
| Variance | 1.13 | |||
| Information Ratio | 0.012 | |||
| Jensen Alpha | 0.0629 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0137 | |||
| Treynor Ratio | 0.2379 | |||
| Maximum Drawdown | 4.99 | |||
| Value At Risk | (1.48) | |||
| Potential Upside | 1.91 | |||
| Downside Variance | 0.8624 | |||
| Semi Variance | 0.6468 | |||
| Expected Short fall | (0.85) | |||
| Skewness | 0.8131 | |||
| Kurtosis | 2.01 |
Consider Pinnacle West's intraday indicators
Pinnacle West intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Pinnacle West stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Pinnacle West Corporate Filings
13A | 13th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
| 8th of November 2024 Other Reports | ViewVerify | |
8K | 6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Pinnacle Stock media impact
Far too much social signal, news, headlines, and media speculation about Pinnacle West that are available to investors today. That information is available publicly through Pinnacle media outlets and privately through word of mouth or via Pinnacle internal channels. However, regardless of the origin, that massive amount of Pinnacle data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Pinnacle West news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Pinnacle West relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Pinnacle West's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Pinnacle West alpha.
Pinnacle West Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Pinnacle West can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Pinnacle West Capital Historical Investor Sentiment
Investor biases related to Pinnacle West's public news can be used to forecast risks associated with an investment in Pinnacle. The trend in average sentiment can be used to explain how an investor holding Pinnacle can time the market purely based on public headlines and social activities around Pinnacle West Capital. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Pinnacle West's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Pinnacle West and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Pinnacle West news discussions. The higher the estimate score, the more favorable the investor's outlook on Pinnacle West.
Pinnacle West Corporate Directors
| Richard Fox | Independent Director | Profile | |
| Humberto Lopez | Independent Director | Profile | |
| William Spence | Independent Director | Profile | |
| David Wagener | Independent Director | Profile |
Additional Tools for Pinnacle Stock Analysis
When running Pinnacle West's price analysis, check to measure Pinnacle West's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Pinnacle West is operating at the current time. Most of Pinnacle West's value examination focuses on studying past and present price action to predict the probability of Pinnacle West's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pinnacle West's price. Additionally, you may evaluate how the addition of Pinnacle West to your portfolios can decrease your overall portfolio volatility.