PNW Stock Fair Value Calculator – Investor Concerns Over Pinnacle West Capital’s Returns On Capital Grow

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Investors may be growing increasingly anxious about the returns on capital that Pinnacle West Capital ($NYSE:PNW) is producing. The Phoenix-based energy holding company is a publicly traded company operating through its regulated utility subsidiaries and non-utility subsidiaries. It is one of the largest investor-owned electric utilities in the United States, serving customers in Arizona, New Mexico, Nevada, and California. Despite its size and stability, investors have begun to express doubts over the company’s return on capital and its ability to deliver long-term value. The company’s return on capital has been much lower than the average for the electric utility and energy industries. This means that investors may not see the returns they desire over the long-term. Furthermore, the company has experienced several large losses in recent years, which has further put a damper on investor sentiment. These changes include cost-cutting initiatives, consolidation of its energy operations, and investments in renewable sources of energy. While these changes have helped to improve its returns on capital, the stock market has yet to respond in kind. This has caused investors to become increasingly antsy about investing in Pinnacle West Capital. Its long history of success suggests that it is well-positioned to deliver long-term value to its shareholders.

However, investors will likely remain cautious until they see tangible evidence of improved returns on capital and long-term stability.

Price History

Investor concerns over Pinnacle West Capital’s returns on capital have been increasing lately, as the stock opened on Tuesday at $76.9 and closed at $76.6, down 0.2% from the prior closing price of 76.8. The underperformance of Pinnacle West Capital may be due to any number of factors, including a weak outlook for the industry, macroeconomic conditions, or a decrease in the company’s competitive advantage. Investors may be worried about the company’s ability to generate returns on their capital investments, particularly in light of these uncertain conditions. As a result, Pinnacle West Capital must take proactive steps to address these concerns and ensure that their stock price remains competitive. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for PNW. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for PNW. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for PNW. More…

Key Ratios Snapshot

Some of the financial key ratios for PNW are shown below. More…

Analysis – PNW Stock Fair Value Calculator

At GoodWhale, we have been closely following the fundamentals of PINNACLE WEST CAPITAL. After careful analysis, we have established an intrinsic value of PINNACLE WEST CAPITAL’s share to be around $87.5 based on our proprietary Valuation Line. Currently, the stock is trading at $76.6, making it a fair price that is undervalued by 12.5%. This presents a great opportunity for investors looking for value in the market. 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

Pinnacle West Capital is a publicly-traded company which aims to provide shareholders with a strong and consistent return on their investments. To do this, the company is actively involved in various activities that provide investors with a level of security due to their diversified portfolio. Analyses of the company’s financials show that it is well-positioned to generate strong returns through capital appreciation. It has a strong balance sheet and maintains a solid track record of delivering on its promises to shareholders. Despite these positive indicators, some investors may still be concerned about Pinnacle West’s ability to generate returns on capital, particularly in the short term.

However, the company’s long-term outlook is likely to remain strong as it continues to focus on developing and employing strategies that will yield strong returns over the long-term.