Electric Utilities
All research in Electric Utilities — 4 reports.
Pinnacle West Capital Corporation is a regulated Arizona electric utility with stable demand and a strong regulatory moat. The core thesis is that growth is real but depends heavily on financing, capital investment, and future rate recovery while free cash flow remains structurally negative. Research rating Watch: a defensible utility franchise, but the current price offers limited margin of safety and the ideal buy range is $75 to $85.
Alliant Energy is a regulated electric and natural gas utility in the U.S. Midwest, with its moat rooted in regulatory licenses and service territories. Earnings are stable and the dividend has increased for years, but free cash flow has remained negative for a long time and the valuation is not cheaper than higher-quality peers. Rating Watch: a defensible utility business, but the current price does not offer enough margin of safety.
New England's largest energy delivery system, a regulated electric/gas/water utility serving 4.6 million customers. Connecticut regulation, the FERC ROE dispute, and a massive capex program keep the valuation under pressure; ideal buy at $55-62. Rating Watch: a durable, defensive cash-distribution asset whose return ceiling is capped by regulators, trading near fair value with no meaningful margin of safety at the current price.
The leading regulated electric, gas, and steam utility serving the New York metro area, with a sturdy franchise and a deep moat, yet at the current 107.70 dollars the stock already sits near the top of its fair-value range; a 3.3% dividend yield trailing the 4.56% 10-year Treasury leaves little visible margin of safety. Rating Watch: a high-quality but capital-intensive city utility whose returns are capped by regulation, where today's price looks holdable rather than a deeply undervalued bargain.