PNWNEUTRAL

Return on Equity (ROE)

9.6%

Higher than 50% of Utilities sector peers

Updated 126h ago

Sector Performance

50th percentile

PNW

9.6%

Sector Median

9.6%

Sector Avg

8.1%

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Deep Analysis

Pinnacle West's Return on Equity (ROE) of 9.6% means that for every dollar of shareholder equity, the company generated 9.6 cents in profit over the past year, a common measure of profitability.

This result lands exactly at the sector median of 9.6%, placing the company in the 50th percentile among its utility peers. Trend data is not available: year-over-year and quarter-over-quarter changes are both listed as N/A, and no historical trend beyond the current value is provided. With an ROE precisely matching the sector average and no discernible direction, the metric implies neither a clear investment risk nor a distinct opportunity—performance is simply in line with the industry. This level and the lack of trend support the overall NEUTRAL verdict, as nothing in this metric suggests the stock is outperforming or underperforming its peer group.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PNW?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does PNW's Return on Equity (ROE) compare to its sector?

PNW's Return on Equity (ROE) of 9.6% compares to a Utilities sector median of 9.6%, placing it in the 50th percentile.

Who are PNW's closest peers by Return on Equity (ROE)?

The closest Utilities peers by Return on Equity (ROE) include: PCG (8.8%), ATO (8.8%), PPL (8.3%), AEE (10.9%), LNT (11.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.