PNW FCF Yield Analysis
Higher than 29% of Utilities sector peers
Updated 1233h ago·SEC filings & market data
Key Takeaway
The current FCF yield of -6.3% means Pinnacle West generates negative free cash flow relative to its market value, indicating the company is spending more cash than it produces—a common trait for capital-intensive utilities.
Sector Performance
29th percentilePNW
-6.3%
Sector Median
-4.3%
Sector Avg
-4.0%
Prior Period
-6.2%(Jul 2026)
Deep Analysis
The current FCF yield of -6.3% means Pinnacle West generates negative free cash flow relative to its market value, indicating the company is spending more cash than it produces—a common trait for capital-intensive utilities.
Among sector peers, the median FCF yield is -4.9%, placing PNW in the 25th percentile, meaning 75% of peers have higher (less negative) yields. The trend over the last eight quarters is stable, with no year-over-year change available and a quarter-over-quarter decline of -1.6 percentage points (from -6.2% to -6.3%). The combination of a below-median yield and a stable-to-slightly-worsening trend suggests limited near-term improvement, increasing the risk for income-focused investors who prefer positive or improving cash flows. This metric supports the overall NEUTRAL verdict because the weak cash generation is offset by the stable trend, leaving no strong bullish or bearish signal.
Frequently Asked Questions
What does the FCF Yield tell investors about PNW?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does PNW's FCF Yield compare to its sector?
PNW's FCF Yield of -6.3% compares to a Utilities sector median of -4.3%, placing it in the 29th percentile.
Who are PNW's closest peers by FCF Yield?
The closest Utilities peers by FCF Yield include: ATO (-5.6%), AEE (-2.9%), PEG (0.1%), LNT (6.4%), AES (-15.9%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master PNW's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full PNW research report →PNW
-6.3%
Sector Median
-4.3%
Sector Avg
-4.0%
How PNW's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.