Pinnacle West Capital Corporation Company Profile and SWOT Analysis Pinnacle West Capital Corporation Pinnacle West Capital by ICDResearch

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									Pinnacle West Capital Corporation

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Pinnacle West Capital Corporation                                      Financial Snapshot

                                                                       Operating Performance
Fast Facts
                                  400 North Fifth Street, Phoenix,     The company reported revenue of US$3,263.65
Headquarters Address
                                  85072,United States of America       million during the fiscal year 2010 (2010). The
                                                                       company's revenue grew at a CAGR of 0.43% during
Telephone                         + 1 602 2501000
                                                                       2006–2010, with an annual growth of 2.76% over
                                                                       2009. In 2010, the company recorded an operating
Fax                               N/A                                  margin of 22.18%, as against 19.21% in 2009.

Website                           www.pinnaclewest.com
                                                                       Revenue and Margins
Ticker Symbol, Stock Exchange     PNW, New York Stock Exchange

Number of Employees               80

Fiscal Year End                   December

Revenue (in US$ million)          3,263.65




SWOT Analysis

Strengths                         Weaknesses                           Return on Equity

Diversified fuel source           legal proceedings                    The company recorded a return on equity (ROE) of
                                                                       9.50% for 2010, as compared to its peers, Edison
                                                                       International (Ticker: EIX), Portland General Electric
Growth in top-line performance    Operational faults                   Company (Ticker: POR) and NV Energy, Inc. (Ticker:
                                                                       BDX), which recorded ROEs of 11.38%, 7.85% and
Strong customer base              Reliance on Few Suppliers            6.77% respectively. The company reported a net
                                                                       profit margin of 22.18% in 2010.
Opportunities                     Threats
                                                                       Return on Equity
Energy Efficiency Programs        Environmental Laws and Regulations

Energy out-look of the US         Volatility in price level

                                  Weather conditions and seasonal
Strong inorganic growth
                                  demand




                                                                       Liquidity Position

                                                                       The company reported a current ratio of 0.71 in 2010,
                                                                       as compared to its peers, Edison International,
                                                                       Portland General Electric Company and NV Energy,
                                                                       Inc., which recorded current ratios of 1.12, 1.35 and
                                                                       0.58 respectively. As of December 2010, the
                                                                       company recorded cash and short-term investments
                                                                       of worth US$110.19 million, against US$631.88
                                                                       million current debt. The company reported a debt to
                                                                       equity ratio of 1.00 in 2010 as compared to its peers,
                                                                       Edison International, Portland General Electric
                                                                       Company and NV Energy, Inc., which recorded debt
                                                                       to equity ratios of 1.09, 1.15 and 1.58 respectively.




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Pinnacle West Capital Corporation - SWOT Profile                                                               Page 1
Pinnacle West Capital Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................16
      2.3.2       Efficiency ..........................................................................................................................................................17
      2.3.3       Capital Expenditure..........................................................................................................................................18
      2.3.4       Valuation ..........................................................................................................................................................19
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................20
      2.3.6       Liquidity ............................................................................................................................................................21
3     Mergers & Acquisitions and Partnerships ........................................................................................... 22
    3.1       M&A and Partnerships Strategy ...........................................................................................................................
								
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