Pinnacle West Capital Corporation – Electric Stock Price
The most significant news in recent days has been the G20 summit and the 26th UN Climate Conference in Glasgow. Leaders from most major economies met and discussed how to address the important issue of climate change. Various countries have already announced certain targets that they are working towards achieving to limit the rise in temperature over the next few decades. Given all these developments, it is clear that governments will prod businesses and industries in their respective countries to shift towards clean energy and better environmental practices. Some of the biggest emitters of carbon are energy companies. Companies that generate and distribute electricity are also among them. Transport is also another area at the cusp of major transformation. We will focus this write-up on utility companies. More specifically, we will talk about Pinnacle West Capital Corporation, a utility company serving Phoenix and the central Arizona area. Utilities stock price for today are on an uptrend and it makes sense to look at the sector.
Pinnacle West Capital Corporation Financials
Pinnacle West Capital Corporation is a utility. The utility industry is a slow-growing mature one. Therefore, Pinnacle West Capital Corporation’s financials reflect the dynamics of the utility industry. The revenue growth has been modest over the past decade. Revenues have grown from $3.2 billion in 2011 to $3.58 billion in 2020. The gross margins have been quite consistent and hovered around the mid-40% level for the most part. The prices that utilities can charge are mostly regulated and therefore the gross margins tend to be quite stable for a utility business. The dividend per share has grown from $2.1 in 2011 to $3.18 in 2020. Meanwhile, earnings per share have grown from $3.09 in 2011 to $4.87 in 2020. Electric stock prices for electricity companies, namely utilities, have trended up in October 2021.
Dividends are a big part of the returns offered by a utility stock. In the case of Pinnacle West Capital Corporation, the dividend yield is well above 5% as of 1st November 2021. The dividend payout ratio has also stayed below the mid-60% level for the most part throughout the past decade.