Pinnacle West Capital CorporationPNW
NYSE•Utilities•Utilities - Regulated Electric
Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using nuclear, gas, oil, coal, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables. The company also owns and maintains substations, including transmission and distribution yards; and owns energy storage facilities. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.
Pinnacle West Capital Corporati (PNW) reported trailing twelve months revenue of $5.46B as of March 2026, a 4.8% increase year-over-year. Quarterly revenue reached $1.15B, reflecting continued top-line momentum.
Pinnacle West Capital Corporati generated $654.10M in TTM net income, with quarterly EBITDA of $392.04M. The operating margin expanded from 5.5% to 34.9%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (34.9%) and net margin (2.9%) indicates significant non-operating expenses or interest burden. Net margin has improved from -0.4% a year ago, signaling stronger bottom-line efficiency.
PNW trades at a P/E of 19.0x (in line with broad market averages) and a P/S of 2.3x. The price-to-book ratio of 1.8x reflects a moderate premium to book value.
The company reported negative free cash flow of $-393.06M, indicating cash consumption over the period. The balance sheet shows $30.69B in total assets with $9.80B in long-term debt against $7.07B in stockholders equity for a debt-to-equity ratio of 1.4. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~21.8%, suggesting durable pricing power and cost discipline.
ROE is positive at ~9.0% on average, adequate but below the threshold typically associated with wide moats.
Only 1 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
TTM revenue has grown consistently (7 of 7 quarters up), with ~11.6% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~26.5% — no sign of cost or pricing stress.
Free cash flow has been negative in 7 of the last 8 quarters — earnings are not translating to cash.
D/E ratio is 1.4 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
The last 5 consecutive quarters had negative FCF — the company is burning cash and may need external funding.
Shares outstanding increased 6.9% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation