PNM RESOURCES INC (PNM) Stock Fundamental Analysis
USA - NYSE:PNM - US69349H1077 - Common Stock
41.77 USD
-0.44 (-1.04%)
41.77 USD
0 (0%)
Taking everything into account, PNM scores 2 out of 10 in our fundamental rating. PNM was compared to 47 industry peers in the Electric Utilities industry. Both the profitability and financial health of PNM have multiple concerns. PNM does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year PNM was profitable.
In the past year PNM had a positive cash flow from operations.
PNM had positive earnings in each of the past 5 years.
PNM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PNM has a Return On Assets of 0.78%. This is amonst the worse of the industry: PNM underperforms 93.33% of its industry peers.
PNM's Return On Equity of 3.38% 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 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 5.02%.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 4.37%, PNM is doing worse than 86.67% of the companies in the same industry.
In the last couple of years the Profit Margin of PNM has declined.
PNM has a Operating Margin of 15.79%. This is in the lower half of the industry: PNM underperforms 66.67% of its industry peers.
PNM's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PNM is destroying value.
PNM has more shares outstanding than it did 1 year ago.
PNM has more shares outstanding than it did 5 years ago.
PNM has a worse debt/assets ratio than last year.
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 has a Debt to Equity ratio of 1.95. This is amonst the worse of the industry: PNM underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.59 |
ROIC/WACC0.49
WACC5.53%
2.3 Liquidity
PNM has a Current Ratio of 0.37. This is a bad value and indicates that PNM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.37, PNM is not doing good in the industry: 95.56% of the companies in the same industry are doing better.
PNM has a Quick Ratio of 0.37. This is a bad value and indicates that PNM is not financially healthy enough and could expect problems in meeting its short term obligations.
PNM has a worse Quick ratio (0.27) than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.27 |
3. Growth
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.
The Revenue for PNM has decreased by -13.80% in the past year. This is quite bad
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
PNM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.62% yearly.
PNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.81, the valuation of PNM can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of PNM indicates a somewhat cheap valuation: PNM is cheaper than 64.44% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PNM to the average of the S&P500 Index (25.89), we can say PNM is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.70 indicates a correct valuation of PNM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNM is on the same level as its industry peers.
PNM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 14.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PNM is valued a bit more expensive than 68.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.08
EPS Next 2Y0.39%
EPS Next 3Y2.6%
5. Dividend
5.1 Amount
PNM has a Yearly Dividend Yield of 3.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.22, 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 2.36.
| Industry Rank | Sector 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
5.3 Sustainability
PNM pays out 162.66% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PNM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP162.66%
EPS Next 2Y0.39%
EPS Next 3Y2.6%
41.77
-0.44 (-1.04%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.18%
Inst Owner Change1.46%
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 FAQ
Can you provide the ChartMill fundamental rating for PNM RESOURCES INC?
ChartMill assigns a fundamental rating of 2 / 10 to PNM.
What is the valuation status for PNM stock?
ChartMill assigns a valuation rating of 2 / 10 to PNM RESOURCES INC (PNM). This can be considered as Overvalued.
Can you provide the profitability details for PNM RESOURCES INC?
PNM RESOURCES INC (PNM) has a profitability rating of 2 / 10.
What are the PE and PB ratios of PNM RESOURCES INC (PNM) stock?
The Price/Earnings (PE) ratio for PNM RESOURCES INC (PNM) is 14.81 and the Price/Book (PB) ratio is 1.59.
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.