Until 2021, Pinnacle West had been earning solid returns and rewarding shareholders with dividend increases as customer and energy usage growth in Arizona outpaced most other utilities. But regulatory setbacks have made it difficult for Pinnacle West to turn those favorable fundamentals into earnings and dividend growth.
Pinnacle West should benefit from investing in the infrastructure that will be needed to support renewable energy targets in Arizona and surrounding states.
Utility regulation in Arizona has a history of political influence, subjecting regulatory decisions to uncertainty and raising risk for shareholders, as 2021 rate negotiations showed.
|
Metric
|
PNW
|
OGE
|
POR
|
|---|---|---|---|
Price/Earnings (Normalized) | 17.65 | 16.73 | 18.04 |
Price/Book Value | 1.32 | 1.53 | 1.25 |
Price/Sales | 1.79 | 2.48 | 1.35 |
Price/Cash Flow | 5.15 | 9.49 | 5.85 |
|
Metric
|
PNW
|
OGE
|
POR
|
|---|---|---|---|
Quick Ratio | 0.45 | 0.45 | 0.65 |
Current Ratio | 1.10 | 0.82 | 1.14 |
Interest Coverage | 2.71 | 3.31 | 2.45 |
|
Metric
|
PNW
|
OGE
|
POR
|
|---|---|---|---|
Return on Assets (Normalized) | 2.01% | 3.28% | 2.10% |
Return on Equity (Normalized) | 7.71% | 9.38% | 7.13% |
Return on Invested Capital (Normalized) | 4.63% | 6.52% | 5.21% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
NEE
| NextEra Energy Inc | Gdmhqx | $119.7 Bil | |
SO
| Southern Co | Nbkkpk | $76.6 Bil | |
DUK
| Duke Energy Corp | Sdkpkh | $69.9 Bil | |
NGG
| National Grid PLC ADR | Rzp | $47.7 Bil | |
PCG
| PG&E Corp | Szvkn | $43.7 Bil | |
AEP
| American Electric Power Co Inc | Yycbc | $41.7 Bil | |
D
| Dominion Energy Inc | Btdnqj | $39.1 Bil | |
EXC
| Exelon Corp | Qbchy | $38.2 Bil | |
XEL
| Xcel Energy Inc | Dhqzv | $33.1 Bil | |
PEG
| Public Service Enterprise Group Inc | Vlcnzly | $31.5 Bil |
:quality(80)/s3.amazonaws.com/arc-authors/morningstar/ea0fcfae-4dcd-4aff-b606-7b0799c93519.jpg)