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Pinnacle West Capital Corporation

PNWUtilitiesNASDAQ

Utilities - Regulated Electric

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Financials · Annual
Revenue
$5.34B
+4.2% YoY
Net Income
$616.5M
+1.3% YoY
EBITDA
$2.13B
+2.9% YoY
Free Cash Flow
-$831.1M

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About Pinnacle West Capital Corporation

Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services in the state of Arizona. Valued at $12.09B, PNW is a large-cap name in its sector. The company engages in the generation, transmission, and distribution of electricity using nuclear, gas, oil, coal, and solar generating facilities.

Key stats
Market Cap$12.09B
P/E (TTM)18.61
Fwd P/E17.91
EPS$5.36
Beta0.46
52W Change+9.8%
Dividend Yield3.65%
ROE9.6%
Analysis

The company holds $6.4M in cash, though total debt stands at $15.14B. This level of leverage is common in the industry but worth monitoring as interest rate conditions evolve. The company is burning cash, with free cash flow at -$831.1M. This typically occurs when a company is investing aggressively in growth, but sustained cash burn can strain the balance sheet. Return on equity stands at 9.6%, which is decent for the sector. ROE measures how effectively a company uses shareholder capital to generate profits. ROA of 2.5% is on the lower side, which is common in asset-heavy industries. Revenue has grown from $4.32B (2022) to $5.34B (2025), reflecting a 23% increase over the period.

With a beta below 0.7, Pinnacle West Capital Corporation typically sees smaller price swings than the overall market, offering a degree of stability during turbulent periods. Pinnacle West Capital Corporation carries a heavier debt load relative to its cash position, which introduces financial risk that investors should weigh. The company is burning cash at the operating level, which is not unusual for growth-phase companies but adds risk if it persists. Understanding these risk dimensions helps frame what to watch going forward as conditions evolve for Pinnacle West Capital Corporation and its sector.

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