Pinnacle West CapitalSTU:PWC +0.66%77 Gross Margin % is 37.94% as of Mar. 2026, which is 11% below its 10-year median of 42.70. GuruFocus rates STU:PWC with a GF Score™ of 77/100 and a GF Value™ of €78.60. The stock has 14 warning signs investors should review. Among 491 Utilities - Regulated companies, Pinnacle West Capital ranks better than 70.88% on this metric.
STU:PWC's Gross Margin % is ranked better than 70.88% of 491
companies
in the Utilities - Regulated industry
Industry Median: 30.95
vs STU:PWC: 42.25
Pinnacle West Capital had a gross margin of 37.94% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Pinnacle West Capital was -1.90% per year.
Pinnacle West Capital (STU:PWC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Pinnacle West Capital had a gross margin of 37.94% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Pinnacle West Capital Gross Margin % Related Terms
Pinnacle West Capital Gross Margin % Historical Data
* Premium members only.
The historical data trend for Pinnacle West Capital's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:PWC vs OGE, IDA, TXNM: Gross Margin % Comparison
For the Utilities - Regulated Electric subindustry, Pinnacle West Capital's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Pinnacle West Capital Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pinnacle West Capital's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pinnacle West Capital's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Pinnacle West Capital (STU:PWC) has a Gross Margin % of 37.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pinnacle West Capital and its competitors. This is 11% below median its historical median of 42.70. Over the past decade, Pinnacle West Capital's Gross Margin % has ranged from 39.28 to 45.86. According to the industry distribution chart, Pinnacle West Capital ranks #143 out of 491 companies in the Utilities - Regulated industry, placing it in the top 29.1%.
Is Pinnacle West Capital's Gross Margin % too high?
Pinnacle West Capital's current Gross Margin % of 37.94% is 11% below median its 10-year median of 42.70. Over the past 10 years, this metric has ranged from a low of 39.28 to a high of 45.86. The Utilities - Regulated industry median Gross Margin % is 30.95. Pinnacle West Capital's value of 37.94% is 22.6% above this industry median. Based on the distribution chart, Pinnacle West Capital ranks #143 out of 491 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Pinnacle West Capital has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Pinnacle West Capital's Gross Margin % compare to OGE and IDA?
According to the Utilities - Regulated industry distribution chart, Pinnacle West Capital ranks #143 out of 491 companies for Gross Margin %. This puts Pinnacle West Capital in the upper half of its industry. The industry median Gross Margin % is 30.95. Pinnacle West Capital's value of 37.94% is 22.6% above this benchmark. Historically, Pinnacle West Capital's own Gross Margin % has ranged from 39.28 to 45.86 over the past decade. While the company's 10-year median is 42.70 vs. the industry median of 30.95, Pinnacle West Capital has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.95, based on 491 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pinnacle West Capital's current Gross Margin % of 37.94% is 22.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Pinnacle West Capital and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pinnacle West Capital's current Gross Margin % is 37.94%, which is 11% below median its own 10-year median of 42.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pinnacle West Capital stock overvalued right now?
Pinnacle West Capital (STU:PWC) has a current Gross Margin % of 37.94%. The stock's GF Value™ is €78.60, compared to a current price of €94.36 — trading 20.1% above its estimated fair value. The current Gross Margin % is 37.94%, which is 11% below median its 10-year median of 42.70 and 22.6% above the Utilities - Regulated industry median of 30.95. Pinnacle West Capital's overall GF Score™ is 77/100 with 14 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Pinnacle West Capital (STU:PWC), the current Gross Margin % is 37.94% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Pinnacle West Capital (STU:PWC) Overvalued in 2026?
Based on GuruFocus' analysis, Pinnacle West Capital stock appears to be overvalued.
The current stock price of €94.36 is trading 20.1% above its estimated GF Value™ of €78.60.
Key valuation signals for STU:PWC:
Gross Margin %: 37.94% (11% below median its 10-year median of 42.70)
GF Value™: €78.60 vs. price of €94.36 (20.1% above fair value)
Industry Position: 22.6% above the Utilities - Regulated median (#143 of 491)
No single metric tells the full story. See the STU:PWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pinnacle West is a holding company whose principal subsidiary is Arizona Public Service, a vertically integrated electric utility serving approximately 1.4 million customers across a 35,000-square-mile territory in central Arizona, including the Phoenix area. APS owns or leases 6.5 gigawatts of power generation capacity, including a 29% ownership stake in one of the largest nuclear plants in the US, Palo Verde. Half of the electricity that APS supplies to customers comes from clean energy sources, including nuclear.
77GF Score
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