Pinnacle West Capital Corporati

Pinnacle West Capital Corporation, headquartered in Phoenix, Arizona, is a holding company that primarily operates through its principal subsidiary, Arizona Public Service Company (APS). APS is the largest electric utility in Arizona, serving approximately 1.4 million customers across the state. The company is engaged in the generation, transmission, and distribution of electricity, with a focus on providing reliable and sustainable energy to residential, commercial, and industrial customers.

Pinnacle West generates revenue primarily through regulated electricity sales, with rates approved by the Arizona Corporation Commission. Its revenue streams include base rates, fuel and purchased power cost recovery mechanisms, and other regulatory adjustments. The company also earns income from wholesale power sales and other services. In the most recent fiscal year, revenue grew 11.36% year-over-year, driven by customer growth and increased demand. The company's gross margin stands at 41.60%, with an operating margin of 19.99% and a profit margin of 11.99%.

As a regulated electric utility, Pinnacle West operates in a capital-intensive industry with high barriers to entry. It competes primarily with other utilities in the region but benefits from a regulated monopoly status in its service territory. The company is positioned as a key player in the transition to cleaner energy, with investments in solar, battery storage, and grid modernization. Its EV/EBITDA of 12.80 and price-to-book ratio of 1.76 reflect a stable, income-oriented profile typical of the sector.

Pinnacle West's customer base is diverse, encompassing residential households, commercial businesses, and industrial clients across Arizona. The company's service area covers much of the state, including the Phoenix metropolitan area, which is one of the fastest-growing regions in the U.S. This growth drives increasing demand for electricity. The company also serves agricultural and governmental customers. Its dividend yield of 3.41% appeals to income-focused investors, while its focus on reliability and sustainability addresses the needs of its broad customer base.

An auto-generated descriptive profile based on company data, for informational purposes only.