PNM RESOURCES INC (PNM) Stock Fundamental Analysis

NYSE:PNM • US69349H1077

41.77 USD
-0.44 (-1.04%)
At close: Aug 2, 2024
41.77 USD
0 (0%)
After Hours: 8/2/2024, 8:26:38 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to PNM. PNM was compared to 46 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.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • PNM had positive earnings in the past year.
  • In the past year PNM had a positive cash flow from operations.
  • Each year in the past 5 years PNM has been profitable.
  • Each year in the past 5 years PNM had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 0.78%, PNM is doing worse than 93.33% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 3.38%, PNM is doing worse than 93.33% of the companies in the same industry.
  • PNM has a worse Return On Invested Capital (2.70%) than 77.78% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for PNM is in line with the industry average of 4.58%.
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

  • The Profit Margin of PNM (4.37%) is worse than 86.67% of its industry peers.
  • In the last couple of years the Profit Margin of PNM has declined.
  • 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

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ROAROEROICOperating and Profit MarginShow most profitable peers

0

2. Health

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.
  • Compared to 1 year ago, PNM has a worse debt to assets ratio.
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

  • PNM has an Altman-Z score of 0.59. This is a bad value and indicates that PNM is not financially healthy and even has some risk of bankruptcy.
  • PNM's Altman-Z score of 0.59 is on the low side compared to the rest of the industry. PNM is outperformed by 77.78% of its industry peers.
  • A Debt/Equity ratio of 1.95 is on the high side and indicates that PNM has dependencies on debt financing.
  • The Debt to Equity ratio of PNM (1.95) is worse than 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.
  • 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.
  • 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

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

3

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.22% over the past year.
  • 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%.
  • PNM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.18% yearly.
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.
  • The Revenue is expected to grow by 4.85% on average over the next years.
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

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 14.81, PNM is valued correctly.
  • PNM's Price/Earnings ratio is a bit cheaper when compared to the industry. PNM is cheaper than 64.44% of the companies in the same industry.
  • PNM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.97.
  • 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.
  • PNM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.96.
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

  • PNM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PNM is more expensive than 68.89% of the companies 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. 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 2.82, 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 1.84.
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 been paying a dividend for at least 10 years, so it has 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.
  • 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%
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

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Find the best dividend stocksShow peers with best dividend

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 Change0.78%
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 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.