PNW Intrinsic Stock Value – Pinnacle West Capital Reports FY2023 Q2 Earnings Results for June 30 2023
August 23, 2023
🌥️Earnings Overview
On August 3 2023, PINNACLE WEST CAPITAL ($NYSE:PNW) reported their Q2 fiscal year 2023 earnings results ending June 30 2023. Compared to the same period in the previous year, total revenue increased by 5.7% to USD 1121.7 million, however, net income decreased by 35.1% to USD 106.7 million.
Market Price
Pinnacle West Capital Corporation reported its financial results for the second quarter of FY2023 on Thursday. The company’s stock opened at $81.9 and closed at $79.3, a 4.0% decrease from its prior closing price of 82.6. This marks a significant shift in the stock’s performance since the beginning of the quarter. Overall, Pinnacle West Capital Corporation reported a strong quarter financially, evidenced by its revenue and earnings growth.
The company has been able to maintain its competitiveness due to its cost-saving strategies and improved operational strategies, as well as its focus on developing new services and technology for its customers. Investors should watch Pinnacle West Capital as they continue to report their financials for the remainder of FY2023. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for PNW. More…
| Total Revenues | Net Income | Net Margin |
| 4.55k | 405.7 | 8.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PNW. More…
| Operations | Investing | Financing |
| 1.09k | -1.71k | 595.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for PNW. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 23.98k | 17.9k | 52.66 |
Key Ratios Snapshot
Some of the financial key ratios for PNW are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.6% | -1.4% | 17.0% |
| FCF Margin | ROE | ROA |
| -15.2% | 8.0% | 2.0% |
Analysis – PNW Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of PINNACLE WEST CAPITAL’s financials. After a thorough examination of the company’s information, we have determined that the fair value of its shares is around $87.1, calculated via our proprietary Valuation Line. Currently, the stock is trading at $79.3, which is a fair price that is undervalued by 9.0%. Our analysis shows that investors can take advantage of this current price discrepancy and purchase the stock at the discounted rate. More…
Peers
It faces competition from other major energy providers, such as Entergy Corp, Evergy Inc, and Xcel Energy Inc. Each of these companies has its own unique strategies for navigating the energy market, but all are focused on providing reliable, cost-effective solutions to their customers.
– Entergy Corp ($NYSE:ETR)
Entergy Corporation is a Fortune 500 integrated energy company that provides electric power and natural gas services to 2.9 million customers in the US. The company has a market cap of 24.98B as of 2022, making it one of the largest integrated energy companies in the country. Entergy’s Return on Equity (ROE) is 11.07%, which is above average for utilities stocks. This indicates that Entergy’s management is able to efficiently generate returns from its shareholders’ investments. The company’s ROE provides investors with assurance that their money is being used wisely and that their investments are in good hands.
– Evergy Inc ($NYSE:EVRG)
Evergy Inc is a leading energy company that delivers electricity and natural gas to customers in the Midwest. As of 2022, the company has a market capitalization of 14.49 billion, making it one of the largest companies in the energy sector. Evergy Inc’s Return on Equity (ROE) is 8.52%, indicating that it is creating value for its shareholders by generating profits from its investments. The company has also made great strides in investing in renewable energy sources, ensuring that its customers receive a reliable and sustainable energy source.
– Xcel Energy Inc ($NASDAQ:XEL)
Xcel Energy Inc is an American energy company that provides electricity and natural gas services to residential, commercial, and industrial customers in eight states in the United States. With a market cap of 39.18B as of 2022, Xcel Energy Inc is one of the largest publicly-traded utilities in the United States. The company has a strong Return on Equity (ROE) of 9.4%, which indicates that the company is generating a solid return on its invested capital. This is a positive sign for investors and suggests that the company is well managed.
Summary
Investors have been closely watching the financial performance of PINNACLE WEST CAPITAL since the release of their FY2023 Q2 earnings results. Total revenue for the quarter was USD 1121.7 million, a 5.7% increase from the same period last year, however net income was down 35.1% to USD 106.7 million. As a result, the stock price dropped on the same day of the announcement.
Investors should be cautious and take into account all the factors that could influence the company’s future performance. An in-depth analysis of the company’s financials is recommended before making any investment decisions.
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