CluenexPinnacle West Capital PNW
Pinnacle West Capital scores weak on business quality (4.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Pinnacle West Capital does
Pinnacle West Capital generates electricity and delivers power to over one million customers in Arizona through its primary subsidiary, Arizona Public Service Company. Regulated utility operations anchor its revenue base.
- What it does best
Operating as the dominant regulated electric utility in a high-growth state, Pinnacle West captures steady customer additions. Its geographic monopoly provides captive demand, supported by an operating margin of 20.5% that sits near the middle of its sector.
- The main risk
Heavy capital spending drives negative free cash flow of $879M, forcing continuous debt reliance in a capital-intensive utility model. Interest coverage sits thin at 2.9x, leaving earnings vulnerable to financing costs.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin rests at 20.5% while free cash flow margin is negative due to heavy infrastructure investments. Profitability remains constrained by massive capital requirements relative to generated revenue.
Regulatory asset protection creates a legal monopoly moat locking in residential and commercial customers within Arizona. Sector percentiles reflect a modest 32nd rank in ROE at 9.0%, limiting rapid competitive replication.
Revenue growth registers at 4.2%, placing the company in the bottom quartile at the 26th sector percentile. The top-line pace remains modest compared to broader utility peers.
Total debt stands at $10.6B against just $7M in cash, creating a high debt-to-equity ratio of 1.5. Free cash flow is negative $879M as capital spending reaches $2.6B, making the balance sheet softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $97K outside pre-planned sales.
Our sealed record on PNW
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Pinnacle West Capital scores weak on the Cluenex quality check (4.2 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $97K outside pre-planned sales.
Nov 3, 2026.
See PNW today
- Today's verdict on PNW, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Pinnacle West Capital (PNW)”, https://cluenex.com/stocks/pnw/, data as of Oct 10, 2026.