Pinnacle West CapitalMEX:PNW 72 Return-on-Tangible-Equity is 2.03% as of Mar. 2026, which is 80% below its 10-year median of 10.20. GuruFocus rates MEX:PNW with a GF Score™ of 72/100 and a GF Value™ of MXN1,505.20. The stock has 14 warning signs investors should review. Among 498 Utilities - Regulated companies, Pinnacle West Capital ranks worse than 52.01% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Pinnacle West Capital's annualized net income for the quarter that ended in Mar. 2026 was MXN2,375 Mil. Pinnacle West Capital's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN117,113 Mil. Therefore, Pinnacle West Capital's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 2.03%.
The historical rank and industry rank for Pinnacle West Capital's Return-on-Tangible-Equity or its related term are showing as below:
MEX:PNW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.47 Med: 10.2 Max: 11.27
Current: 10.23
During the past 13 years, Pinnacle West Capital's highest Return-on-Tangible-Equity was 11.27%. The lowest was 8.47%. And the median was 10.20%.
MEX:PNW's Return-on-Tangible-Equity is ranked worse than 52.01% of 498
companies
in the Utilities - Regulated industry
Industry Median: 10.91
vs MEX:PNW: 10.23
Pinnacle West Capital (MEX:PNW) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Pinnacle West Capital Return-on-Tangible-Equity Related Terms
Pinnacle West Capital Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Pinnacle West Capital's Return-on-Tangible-Equity 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.
Pinnacle West Capital Return-on-Tangible-Equity Chart
MEX:PNW vs OGE, IDA, TXNM: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Electric subindustry, Pinnacle West Capital's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pinnacle West Capital's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Pinnacle West Capital's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 2.03% mean?
Pinnacle West Capital (MEX:PNW) has a Return-on-Tangible-Equity of 2.03% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Pinnacle West Capital and its competitors. This is 80% below median its historical median of 10.20. Over the past decade, Pinnacle West Capital's Return-on-Tangible-Equity has ranged from 8.47 to 11.27. According to the industry distribution chart, Pinnacle West Capital ranks #259 out of 498 companies in the Utilities - Regulated industry, placing it in the top 52%.
Is Pinnacle West Capital's Return-on-Tangible-Equity too high?
Pinnacle West Capital's current Return-on-Tangible-Equity of 2.03% is 80% below median its 10-year median of 10.20. Over the past 10 years, this metric has ranged from a low of 8.47 to a high of 11.27. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.91. Pinnacle West Capital's value of 2.03% is 81.4% below this industry median. Based on the distribution chart, Pinnacle West Capital ranks #259 out of 498 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Pinnacle West Capital has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Pinnacle West Capital's Return-on-Tangible-Equity compare to OGE and IDA?
According to the Utilities - Regulated industry distribution chart, Pinnacle West Capital ranks #259 out of 498 companies for Return-on-Tangible-Equity. This places Pinnacle West Capital in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.91. Pinnacle West Capital's value of 2.03% is 81.4% below this benchmark. Historically, Pinnacle West Capital's own Return-on-Tangible-Equity has ranged from 8.47 to 11.27 over the past decade. While the company's 10-year median is 10.20 vs. the industry median of 10.91, 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 Return-on-Tangible-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.91, based on 498 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pinnacle West Capital's current Return-on-Tangible-Equity of 2.03% is 81.4% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Pinnacle West Capital and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pinnacle West Capital's current Return-on-Tangible-Equity is 2.03%, which is 80% below median its own 10-year median of 10.20. 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 (MEX:PNW) has a current Return-on-Tangible-Equity of 2.03%. The stock's GF Value™ is MXN1,505.20, compared to a current price of MXN1,787.81 — trading 18.8% above its estimated fair value. The current Return-on-Tangible-Equity is 2.03%, which is 80% below median its 10-year median of 10.20 and 81.4% below the Utilities - Regulated industry median of 10.91. Pinnacle West Capital's overall GF Score™ is 72/100 with 14 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Pinnacle West Capital (MEX:PNW), the current Return-on-Tangible-Equity is 2.03% 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 (MEX:PNW) Overvalued in 2026?
Based on GuruFocus' analysis, Pinnacle West Capital stock appears to be overvalued.
The current stock price of MXN1,787.81 is trading 18.8% above its estimated GF Value™ of MXN1,505.20.
Key valuation signals for MEX:PNW:
Return-on-Tangible-Equity: 2.03% (80% below median its 10-year median of 10.20)
GF Value™: MXN1,505.20 vs. price of MXN1,787.81 (18.8% above fair value)
Industry Position: 81.4% below the Utilities - Regulated median (#259 of 498)
No single metric tells the full story. See the MEX:PNW 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.
72GF Score
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