Pinnacle West Capital Stock Buy Hold or Sell Recommendation
| PNW Stock | USD 73.69 0.51 0.69% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Pinnacle West Capital is 'Strong Hold'. Macroaxis provides Pinnacle West buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding PNW positions. The advice algorithm takes into account all of Pinnacle West's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Pinnacle West's buy or sell advice are summarized below:
Real Value 74.83 | Target Price 77.55 | Hype Value 73.64 | Market Value 73.69 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Pinnacle West Capital given historical horizon and risk tolerance towards Pinnacle West. When Macroaxis issues a 'buy' or 'sell' recommendation for Pinnacle West Capital, the advice is generated through an automated system that utilizes algorithms and statistical models.
Pinnacle |
Execute Pinnacle West Buy or Sell Advice
The Pinnacle recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Pinnacle West Capital. Macroaxis does not own or have any residual interests in Pinnacle West Capital or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Pinnacle West's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Very Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Pinnacle West Trading Alerts and Improvement Suggestions
| The company 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. Debt can assist Pinnacle West until it has trouble settling it off, either with new capital or with free cash flow. So, Pinnacle West's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Pinnacle West Capital sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Pinnacle to invest in growth at high rates of return. When we think about Pinnacle West's use of debt, we should always consider it together with cash and equity. | |
| Pinnacle West has a very strong financial position based on the latest SEC filings | |
| Over 94.0% of Pinnacle West shares are owned by institutional investors | |
| On 1st of March 2024 Pinnacle West paid $ 0.88 per share dividend to its current shareholders | |
| Latest headline from benzinga.com: FirstEnergy Q1 Earnings Beat Estimates, Revenues Lag |
Pinnacle West Returns Distribution Density
The distribution of Pinnacle West's historical returns is an attempt to chart the uncertainty of Pinnacle West's future price movements. The chart of the probability distribution of Pinnacle West daily returns describes the distribution of returns around its average expected value. We use Pinnacle West Capital price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Pinnacle West returns is essential to provide solid investment advice for Pinnacle West.
| Mean Return | 0.14 | Value At Risk | -2.04 | Potential Upside | 2.14 | Standard Deviation | 1.31 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Pinnacle West historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Pinnacle Stock 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 originates 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 | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 1.4 M | Goldman Sachs Group Inc | 2023-12-31 | 1.4 M | First Trust Advisors L.p. | 2023-12-31 | 1.2 M | Bank Of New York Mellon Corp | 2023-12-31 | 1.2 M | Franklin Resources Inc | 2023-12-31 | 1.1 M | Northern Trust Corp | 2023-12-31 | 1 M | Charles Schwab Investment Management Inc | 2023-12-31 | 991.4 K | Envestnet Asset Management Inc | 2023-12-31 | 984 K | Legal & General Group Plc | 2023-12-31 | 931.3 K | Vanguard Group Inc | 2023-12-31 | 14.3 M | Blackrock Inc | 2023-12-31 | 10 M |
Pinnacle West Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (51.8M) | 11.6M | (32.9M) | (83.5M) | (42.9M) | (40.8M) | |
| Change In Cash | 4.5M | 49.7M | (50.0M) | (5.1M) | 123K | 116.9K | |
| Free Cash Flow | (234.7M) | (360.2M) | (613.5M) | (466.0M) | (638.7M) | (606.7M) | |
| Other Non Cash Items | (64.4M) | (139.5M) | (254.1M) | (116.9M) | (170.7M) | (162.2M) | |
| Dividends Paid | 329.6M | 350.6M | 369.5M | 378.9M | (386.5M) | (367.2M) | |
| Capital Expenditures | 1.2B | 1.3B | 1.5B | 1.7B | 1.8B | 961.5M | |
| Net Income | 557.8M | 570.1M | 635.9M | 500.8M | 518.8M | 387.8M | |
| End Period Cash Flow | 10.3M | 60.0M | 10.0M | 4.8M | 5.0M | 4.7M | |
| Change To Netincome | 76.7M | (38.7M) | (60.6M) | (266.0M) | (239.4M) | (227.4M) | |
| Depreciation | 664.1M | 686.3M | 719.1M | 817.8M | 854.1M | 591.4M | |
| Investments | (3.1M) | (1.3B) | (1.4B) | (1.6B) | (1.6B) | (1.6B) | |
| Change Receivables | 37.5M | (12.8M) | (18.2M) | (72.6M) | (83.4M) | (79.3M) | |
| Net Borrowings | 530.5M | 662.5M | 728.0M | 774.3M | 890.4M | 495.8M |
Pinnacle West Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Pinnacle West or Electric Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Pinnacle West's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Pinnacle stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.07 | |
β | Beta against NYSE Composite | 0.87 | |
σ | Overall volatility | 1.26 | |
Ir | Information ratio | 0.04 |
Pinnacle West Volatility Alert
Pinnacle West Capital has relatively low volatility with skewness of -0.21 and kurtosis of -0.1. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Pinnacle West's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Pinnacle West's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Pinnacle West Fundamentals Vs Peers
Comparing Pinnacle West's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Pinnacle West's direct or indirect competition across all of the common fundamentals between Pinnacle West and the related equities. This way, we can detect undervalued stocks with similar characteristics as Pinnacle West or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Pinnacle West's fundamental indicators could also be used in its relative valuation, which is a method of valuing Pinnacle West by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Pinnacle West to competition |
| Fundamentals | Pinnacle West | Peer Average |
| Return On Equity | 0.0834 | -0.31 |
| Return On Asset | 0.0228 | -0.14 |
| Profit Margin | 0.11 % | (1.27) % |
| Operating Margin | 0.09 % | (5.51) % |
| Current Valuation | 18.76 B | 16.62 B |
| Shares Outstanding | 113.56 M | 571.82 M |
| Shares Owned By Insiders | 0.16 % | 10.09 % |
| Shares Owned By Institutions | 93.71 % | 39.21 % |
| Number Of Shares Shorted | 3.15 M | 4.71 M |
| Price To Earning | 16.12 X | 28.72 X |
| Price To Book | 1.33 X | 9.51 X |
| Price To Sales | 1.75 X | 11.42 X |
| Revenue | 4.7 B | 9.43 B |
| Gross Profit | 1.71 B | 27.38 B |
| EBITDA | 1.73 B | 3.9 B |
| Net Income | 518.78 M | 570.98 M |
| Cash And Equivalents | 4.83 M | 2.7 B |
| Cash Per Share | 0.06 X | 5.01 X |
| Total Debt | 10.3 B | 5.32 B |
| Debt To Equity | 1.35 % | 48.70 % |
| Current Ratio | 0.98 X | 2.16 X |
| Book Value Per Share | 54.47 X | 1.93 K |
| Cash Flow From Operations | 1.21 B | 971.22 M |
| Short Ratio | 2.92 X | 4.00 X |
| Earnings Per Share | 4.41 X | 3.12 X |
| Price To Earnings To Growth | 2.64 X | 4.89 X |
| Target Price | 75.82 | |
| Number Of Employees | 6.13 K | 18.84 K |
| Beta | 0.48 | -0.15 |
| Market Capitalization | 8.37 B | 19.03 B |
| Total Asset | 24.66 B | 29.47 B |
| Retained Earnings | 3.47 B | 9.33 B |
| Working Capital | (962.38 M) | 1.48 B |
Note: Acquisition by Tetlow Jacob of 1211 shares of Pinnacle West subject to Rule 16b-3 [view details]
Pinnacle West Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Pinnacle . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Pinnacle West Buy or Sell Advice
When is the right time to buy or sell Pinnacle West Capital? Buying financial instruments such as Pinnacle Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 8.2B | 8.9B | 10.3B | 10.8B | Total Assets | 22.0B | 22.7B | 24.7B | 14.0B |
Use Investing Ideas to Build Portfolios
In addition to having Pinnacle West in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Shipbuilding Railroad Equipment Thematic Idea Now
Shipbuilding Railroad Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipbuilding Railroad Equipment theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Shipbuilding Railroad Equipment Theme or any other thematic opportunities.
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Check out Pinnacle West Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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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.
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Is Pinnacle West's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pinnacle West. If investors know Pinnacle will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pinnacle West listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.215 | Dividend Share 3.475 | Earnings Share 4.41 | Revenue Per Share 41.396 | Quarterly Revenue Growth (0.02) |
The market value of Pinnacle West Capital is measured differently than its book value, which is the value of Pinnacle that is recorded on the company's balance sheet. Investors also form their own opinion of Pinnacle West's value that differs from its market value or its book value, called intrinsic value, which is Pinnacle West's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pinnacle West's market value can be influenced by many factors that don't directly affect Pinnacle West's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Pinnacle West's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pinnacle West is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pinnacle West's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.