PNM RESOURCES INC (PNM) Fundamental Analysis & Valuation

NYSE:PNM • US69349H1077

Current stock price

41.77 USD
-0.44 (-1.04%)
At close:
41.77 USD
0 (0%)
After Hours:

This PNM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. PNM Profitability Analysis

1.1 Basic Checks

  • In the past year PNM was profitable.
  • In the past year PNM had a positive cash flow from operations.
  • Each year in the past 5 years PNM has been profitable.
  • In the past 5 years PNM always reported a positive cash flow from operatings.
PNM Yearly Net Income VS EBIT VS OCF VS FCFPNM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M

1.2 Ratios

  • PNM's Return On Assets of 0.78% is on the low side compared to the rest of the industry. PNM is outperformed by 93.33% of its industry peers.
  • PNM has a worse Return On Equity (3.38%) than 93.33% of its industry peers.
  • PNM has a worse Return On Invested Capital (2.70%) than 77.78% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for PNM is in line with the industry average of 4.49%.
Industry RankSector Rank
ROA 0.78%
ROE 3.38%
ROIC 2.7%
ROA(3y)1.65%
ROA(5y)1.64%
ROE(3y)6.8%
ROE(5y)6.67%
ROIC(3y)3.42%
ROIC(5y)3.56%
PNM Yearly ROA, ROE, ROICPNM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8

1.3 Margins

  • With a Profit Margin value of 4.37%, PNM is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
  • PNM's Profit Margin has declined in the last couple of years.
  • PNM's Operating Margin of 15.79% is on the low side compared to the rest of the industry. PNM is outperformed by 66.67% of its industry peers.
  • In the last couple of years the Operating Margin of PNM has declined.
Industry RankSector Rank
OM 15.79%
PM (TTM) 4.37%
GM N/A
OM growth 3Y-5.96%
OM growth 5Y-5.73%
PM growth 3Y-26.37%
PM growth 5Y-5.34%
GM growth 3YN/A
GM growth 5YN/A
PNM Yearly Profit, Operating, Gross MarginsPNM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

0

2. PNM Health Analysis

2.1 Basic Checks

  • PNM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • PNM has more shares outstanding than it did 1 year ago.
  • The debt/assets ratio for PNM is higher compared to a year ago.
PNM Yearly Shares OutstandingPNM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
PNM Yearly Total Debt VS Total AssetsPNM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

  • Based on the Altman-Z score of 0.59, we must say that PNM is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 0.59, PNM is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
  • PNM has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
  • PNM's Debt to Equity ratio of 1.95 is on the low side compared to the rest of the industry. PNM is outperformed by 88.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.95
Debt/FCF N/A
Altman-Z 0.59
ROIC/WACC0.49
WACC5.53%
PNM Yearly LT Debt VS Equity VS FCFPNM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 0.37 indicates that PNM may have some problems paying its short term obligations.
  • The Current ratio of PNM (0.37) is worse than 95.56% of its industry peers.
  • A Quick Ratio of 0.27 indicates that PNM may have some problems paying its short term obligations.
  • PNM's Quick ratio of 0.27 is on the low side compared to the rest of the industry. PNM is outperformed by 93.33% of its industry peers.
Industry RankSector Rank
Current Ratio 0.37
Quick Ratio 0.27
PNM Yearly Current Assets VS Current LiabilitesPNM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. PNM Growth Analysis

3.1 Past

  • PNM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.22%.
  • Measured over the past 5 years, PNM shows a small growth in Earnings Per Share. The EPS has been growing by 7.11% on average per year.
  • PNM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.80%.
  • Measured over the past years, PNM shows a small growth in Revenue. The Revenue has been growing by 6.18% on average per year.
EPS 1Y (TTM)5.22%
EPS 3Y7.34%
EPS 5Y7.11%
EPS Q2Q%0%
Revenue 1Y (TTM)-13.8%
Revenue growth 3Y8.39%
Revenue growth 5Y6.18%
Sales Q2Q%N/A

3.2 Future

  • The Earnings Per Share is expected to grow by 4.62% on average over the next years.
  • Based on estimates for the next years, PNM will show a small growth in Revenue. The Revenue will grow by 4.85% on average per year.
EPS Next Y-3.73%
EPS Next 2Y0.39%
EPS Next 3Y2.6%
EPS Next 5Y4.62%
Revenue Next Year0.38%
Revenue Next 2Y3.29%
Revenue Next 3Y4.25%
Revenue Next 5Y4.85%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PNM Yearly Revenue VS EstimatesPNM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B 2.5B
PNM Yearly EPS VS EstimatesPNM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3

More info and screens

Find the best growth stocksShow best growing peers

2

4. PNM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.81, which indicates a correct valuation of PNM.
  • Based on the Price/Earnings ratio, PNM is valued a bit cheaper than the industry average as 64.44% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.96. PNM is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 14.70, PNM is valued correctly.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PNM.
  • The average S&P500 Price/Forward Earnings ratio is at 24.04. PNM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.81
Fwd PE 14.7
PNM Price Earnings VS Forward Price EarningsPNM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PNM indicates a slightly more expensive valuation: PNM is more expensive than 68.89% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.79
PNM Per share dataPNM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)2.08
EPS Next 2Y0.39%
EPS Next 3Y2.6%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. PNM Dividend Analysis

5.1 Amount

  • PNM has a Yearly Dividend Yield of 3.71%.
  • Compared to an average industry Dividend Yield of 2.87, PNM has a dividend in line with its industry peers.
  • PNM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 3.71%

5.2 History

  • On average, the dividend of PNM grows each year by 6.18%, which is quite nice.
  • PNM has paid a dividend for at least 10 years, which is a reliable track record.
  • PNM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.18%
Div Incr Years12
Div Non Decr Years14
PNM Yearly Dividends per sharePNM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1

5.3 Sustainability

  • PNM pays out 162.66% of its income as dividend. This is not a sustainable payout ratio.
  • PNM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP162.66%
EPS Next 2Y0.39%
EPS Next 3Y2.6%
PNM Yearly Income VS Free CF VS DividendPNM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 -200M -400M
PNM Dividend Payout.PNM Dividend Payout, showing the Payout Ratio.PNM Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

PNM Fundamentals: All Metrics, Ratios and Statistics

PNM RESOURCES INC

NYSE:PNM (8/2/2024, 8:26:38 PM)

After market: 41.77 0 (0%)

41.77

-0.44 (-1.04%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)07-31
Earnings (Next)10-25
Inst Owners95.18%
Inst Owner Change3.18%
Ins Owners0.68%
Ins Owner Change0%
Market Cap3.77B
Revenue(TTM)1.94B
Net Income(TTM)79.99M
Analysts76.67
Price Target45.61 (9.19%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.71%
Yearly Dividend1.44
Dividend Growth(5Y)6.18%
DP162.66%
Div Incr Years12
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.9%
Min EPS beat(2)2.36%
Max EPS beat(2)21.44%
EPS beat(4)3
Avg EPS beat(4)7.91%
Min EPS beat(4)-2.8%
Max EPS beat(4)21.44%
EPS beat(8)6
Avg EPS beat(8)7.92%
EPS beat(12)10
Avg EPS beat(12)24.06%
EPS beat(16)13
Avg EPS beat(16)22.18%
Revenue beat(2)0
Avg Revenue beat(2)-21.59%
Min Revenue beat(2)-24.65%
Max Revenue beat(2)-18.54%
Revenue beat(4)1
Avg Revenue beat(4)-15.15%
Min Revenue beat(4)-24.65%
Max Revenue beat(4)5.75%
Revenue beat(8)5
Avg Revenue beat(8)16.69%
Revenue beat(12)8
Avg Revenue beat(12)15.79%
Revenue beat(16)10
Avg Revenue beat(16)11.41%
PT rev (1m)0.58%
PT rev (3m)-0.7%
EPS NQ rev (1m)4.06%
EPS NQ rev (3m)5.9%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)-6.83%
Valuation
Industry RankSector Rank
PE 14.81
Fwd PE 14.7
P/S 2.06
P/FCF N/A
P/OCF 7.35
P/B 1.59
P/tB 1.8
EV/EBITDA 12.79
EPS(TTM)2.82
EY6.75%
EPS(NY)2.84
Fwd EY6.8%
FCF(TTM)-6.52
FCFYN/A
OCF(TTM)5.68
OCFY13.6%
SpS20.31
BVpS26.24
TBVpS23.16
PEG (NY)N/A
PEG (5Y)2.08
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 0.78%
ROE 3.38%
ROCE 3.16%
ROIC 2.7%
ROICexc 2.7%
ROICexgc 2.78%
OM 15.79%
PM (TTM) 4.37%
GM N/A
FCFM N/A
ROA(3y)1.65%
ROA(5y)1.64%
ROE(3y)6.8%
ROE(5y)6.67%
ROIC(3y)3.42%
ROIC(5y)3.56%
ROICexc(3y)3.42%
ROICexc(5y)3.57%
ROICexgc(3y)3.53%
ROICexgc(5y)3.7%
ROCE(3y)3.98%
ROCE(5y)4.14%
ROICexgc growth 3Y-7.78%
ROICexgc growth 5Y-6.77%
ROICexc growth 3Y-7.46%
ROICexc growth 5Y-6.53%
OM growth 3Y-5.96%
OM growth 5Y-5.73%
PM growth 3Y-26.37%
PM growth 5Y-5.34%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.18
Health
Industry RankSector Rank
Debt/Equity 1.95
Debt/FCF N/A
Debt/EBITDA 7.01
Cap/Depr 297.79%
Cap/Sales 60.07%
Interest Coverage 1.76
Cash Conversion 77.79%
Profit Quality N/A
Current Ratio 0.37
Quick Ratio 0.27
Altman-Z 0.59
F-Score4
WACC5.53%
ROIC/WACC0.49
Cap/Depr(3y)287.89%
Cap/Depr(5y)256.83%
Cap/Sales(3y)49.53%
Cap/Sales(5y)47.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.22%
EPS 3Y7.34%
EPS 5Y7.11%
EPS Q2Q%0%
EPS Next Y-3.73%
EPS Next 2Y0.39%
EPS Next 3Y2.6%
EPS Next 5Y4.62%
Revenue 1Y (TTM)-13.8%
Revenue growth 3Y8.39%
Revenue growth 5Y6.18%
Sales Q2Q%N/A
Revenue Next Year0.38%
Revenue Next 2Y3.29%
Revenue Next 3Y4.25%
Revenue Next 5Y4.85%
EBIT growth 1Y-32.05%
EBIT growth 3Y1.93%
EBIT growth 5Y0.1%
EBIT Next Year77.87%
EBIT Next 3Y29.73%
EBIT Next 5Y22.24%
FCF growth 1Y-48.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-11.33%
OCF growth 3Y4.31%
OCF growth 5Y5.18%

PNM RESOURCES INC / PNM Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for PNM RESOURCES INC?

ChartMill assigns a fundamental rating of 2 / 10 to PNM.


Can you provide the valuation status for PNM RESOURCES INC?

ChartMill assigns a valuation rating of 2 / 10 to PNM RESOURCES INC (PNM). This can be considered as Overvalued.


How profitable is PNM RESOURCES INC (PNM) stock?

PNM RESOURCES INC (PNM) has a profitability rating of 2 / 10.


What is the financial health of PNM RESOURCES INC (PNM) stock?

The financial health rating of PNM RESOURCES INC (PNM) is 0 / 10.


Can you provide the expected EPS growth for PNM stock?

The Earnings per Share (EPS) of PNM RESOURCES INC (PNM) is expected to decline by -3.73% in the next year.