Pinnacle West CapitalFRA:PWC +0.36%77 Operating Margin % is 11.41% as of Mar. 2026, which is 44% below its 10-year median of 20.48. GuruFocus rates FRA:PWC with a GF Score™ of 77/100 and a GF Value™ of €77.04. The stock has 14 warning signs investors should review. Among 499 Utilities - Regulated companies, Pinnacle West Capital ranks better than 66.53% on this metric.
Pinnacle West Capital Corp operating margin has been in a 5-year decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Pinnacle West Capital's Operating Margin % or its related term are showing as below:
FRA:PWC'
s Operating Margin % Range Over the Past 10 Years
Min: 16.93 Med: 20.48 Max: 25.52
Current: 20.92
FRA:PWC's Operating Margin % is ranked better than 66.53% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs FRA:PWC: 20.92
Pinnacle West Capital's 5-Year Average Operating Margin % Growth Rate was -1.80% per year.
Pinnacle West Capital (FRA:PWC) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Pinnacle West Capital Operating Margin % Related Terms
Pinnacle West Capital Operating Margin % Historical Data
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The historical data trend for Pinnacle West Capital's Operating 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.
FRA:PWC vs OGE, IDA, TXNM: Operating Margin % Comparison
For the Utilities - Regulated Electric subindustry, Pinnacle West Capital's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pinnacle West Capital's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pinnacle West Capital's Operating Margin % falls into.
Pinnacle West Capital Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Pinnacle West Capital's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Pinnacle West Capital (FRA:PWC) has a Operating Margin % of 11.41% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pinnacle West Capital and its competitors. This is 44% below median its historical median of 20.48. Over the past decade, Pinnacle West Capital's Operating Margin % has ranged from 16.93 to 25.52. According to the industry distribution chart, Pinnacle West Capital ranks #167 out of 499 companies in the Utilities - Regulated industry, placing it in the top 33.5%.
Is Pinnacle West Capital's Operating Margin % too high?
Pinnacle West Capital's current Operating Margin % of 11.41% is 44% below median its 10-year median of 20.48. Over the past 10 years, this metric has ranged from a low of 16.93 to a high of 25.52. The Utilities - Regulated industry median Operating Margin % is 14.97. Pinnacle West Capital's value of 11.41% is 23.8% below this industry median. Based on the distribution chart, Pinnacle West Capital ranks #167 out of 499 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 Operating Margin % compare to OGE and IDA?
According to the Utilities - Regulated industry distribution chart, Pinnacle West Capital ranks #167 out of 499 companies for Operating Margin %. This puts Pinnacle West Capital in the upper half of its industry. The industry median Operating Margin % is 14.97. Pinnacle West Capital's value of 11.41% is 23.8% below this benchmark. Historically, Pinnacle West Capital's own Operating Margin % has ranged from 16.93 to 25.52 over the past decade. While the company's 10-year median is 20.48 vs. the industry median of 14.97, Pinnacle West Capital has consistently been below 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 Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pinnacle West Capital's current Operating Margin % of 11.41% is 23.8% below 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Pinnacle West Capital and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pinnacle West Capital's current Operating Margin % is 11.41%, which is 44% below median its own 10-year median of 20.48. 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 (FRA:PWC) has a current Operating Margin % of 11.41%. The stock's GF Value™ is €77.04, compared to a current price of €89.02 — trading 15.6% above its estimated fair value. The current Operating Margin % is 11.41%, which is 44% below median its 10-year median of 20.48 and 23.8% below the Utilities - Regulated industry median of 14.97. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Pinnacle West Capital (FRA:PWC), the current Operating Margin % is 11.41% 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 (FRA:PWC) Overvalued in 2026?
Based on GuruFocus' analysis, Pinnacle West Capital stock appears to be overvalued.
The current stock price of €89.02 is trading 15.6% above its estimated GF Value™ of €77.04.
Key valuation signals for FRA:PWC:
Operating Margin %: 11.41% (44% below median its 10-year median of 20.48)
GF Value™: €77.04 vs. price of €89.02 (15.6% above fair value)
Industry Position: 23.8% below the Utilities - Regulated median (#167 of 499)
No single metric tells the full story. See the FRA: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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