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Pinnacle West Capital

PNW
NYSE
$103.31

Does Pinnacle West Capital have high-quality management?

Pinnacle West Capital's management score of 57/100 is average, reflecting a mixed performance. While the management team has overseen decent TTM Operating Margins of 19.7% and TTM Net Margins of 12.3%, along with robust 5Y Revenue CAGR of 8.3%, these positives are significantly overshadowed by critical financial weaknesses.

The stark contrast between the 5Y Revenue CAGR of 8.3% and the meager 5Y Net Income CAGR of 2.1% suggests challenges in translating top-line growth into bottom-line profitability. More concerning are the deeply negative TTM FCF of $-2.06B and the low Current Ratio of 0.67x, indicating significant issues with liquidity and cash generation.

While the TTM ROE of 20.1% seems strong, it is likely skewed by high debt, masking underlying operational cash flow deficiencies. Management's ability to navigate the complex regulatory environment and ensure sufficient returns on capital investments, while controlling costs effectively, appears inconsistent.

The average score suggests some operational competence or strategic vision, but their execution has demonstrably failed to generate adequate cash flows or strengthen the balance sheet, raising questions about their overall financial stewardship.