$Pinnacle West Capital Corp (PNW.US)$ Over the past 5 years,...

Over the past 5 years, revenue has shrunk by 6% in 2019, and has been growing for the remaining 4 years; operating profit shrank by 17.2% and 13.2% in 2018 and 2019, respectively, and increased for the remaining 3 years; and net profit continued to grow for 5 years. In Q1 2022, revenue grew by 12.5%, operating profit increased by 14.64%, but net profit decreased by 47.5%.

In 2018, the share of main business costs increased a lot, and operating expenses also exceeded the growth rate of revenue, so operating profit declined. In the face of shrinking revenue in 2019, operating expenses still increased slowly, mainly because operating expenses are mainly composed of depreciation and amortization and taxes, and this part is very flexible.

Non-operating profit and loss is 40 million to 130 million dollars every year, so the net profit curve is slightly different.

In the past 5 years, the average net profit growth rate was less than 10%. Currently, the 13.6 times price-earnings ratio discount is not enough.