Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Pinnacle West Capital Corporation (PNW)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$160.62 - $880.45$291.99
Multi-Stage$196.66 - $215.79$206.04
Blended Fair Value$249.02
Current Price$89.66
Upside177.74%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.67%4.81%3.303.243.173.092.942.762.592.432.302.18
YoY Growth--2.12%2.01%2.54%5.39%6.35%6.72%6.59%5.68%5.46%5.41%
Dividend Yield--3.47%4.37%4.00%3.96%3.61%3.64%2.73%3.04%2.75%2.90%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)594.30
(-) Cash Dividends Paid (M)415.54
(=) Cash Retained (M)178.76
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)118.8674.2944.57
Cash Retained (M)178.76178.76178.76
(-) Cash Required (M)-118.86-74.29-44.57
(=) Excess Retained (M)59.90104.48134.19
(/) Shares Outstanding (M)119.44119.44119.44
(=) Excess Retained per Share0.500.871.12
LTM Dividend per Share3.483.483.48
(+) Excess Retained per Share0.500.871.12
(=) Adjusted Dividend3.984.354.60
WACC / Discount Rate5.36%5.36%5.36%
Growth Rate2.81%3.81%4.81%
Fair Value$160.62$291.99$880.45
Upside / Downside79.15%225.67%881.99%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)594.30616.96640.47664.89690.23716.54738.04
Payout Ratio69.92%73.94%77.95%81.97%85.98%90.00%92.50%
Projected Dividends (M)415.54456.15499.26545.00593.49644.89682.69

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.36%5.36%5.36%
Growth Rate2.81%3.81%4.81%
Year 1 PV (M)428.78432.95437.12
Year 2 PV (M)441.13449.76458.46
Year 3 PV (M)452.64465.98479.58
Year 4 PV (M)463.34481.63500.46
Year 5 PV (M)473.25496.72521.11
PV of Terminal Value (M)21,229.4722,282.2023,376.27
Equity Value (M)23,488.6224,609.2325,773.00
Shares Outstanding (M)119.44119.44119.44
Fair Value$196.66$206.04$215.79
Upside / Downside119.34%129.80%140.67%

High-Yield Dividend Screener

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