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 48 industry peers in the Electric Utilities industry. Both the profitability and financial health of PNM have multiple concerns. PNM has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
PNM had positive earnings in the past year.
PNM had a positive operating cash flow in the past year.
In the past 5 years PNM has always been profitable.
Each year in the past 5 years PNM had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.78%, PNM is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
PNM has a worse Return On Equity (3.38%) than 93.33% of its industry peers.
PNM's Return On Invested Capital of 2.70% is on the low side compared to the rest of the industry. PNM is outperformed by 77.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PNM is below the industry average of 5.43%.
| 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
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.
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
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 5 years ago, PNM has more shares outstanding
PNM has a worse debt/assets ratio than last year.
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.
PNM has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
PNM has a worse Debt to Equity ratio (1.95) than 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
A Current Ratio of 0.37 indicates that PNM may have some problems paying its short term obligations.
PNM's Current ratio of 0.37 is on the low side compared to the rest of the industry. PNM is outperformed by 95.56% of its industry peers.
A Quick Ratio of 0.27 indicates that PNM may have some problems paying its short term obligations.
The Quick ratio of PNM (0.27) is worse than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.22% over the past year.
PNM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.11% yearly.
The Revenue for PNM has decreased by -13.80% in the past year. This is quite bad
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.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.81, PNM is valued correctly.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.27, PNM is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.70, which 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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 14.7 |
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 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%.
Compared to an average industry Dividend Yield of 3.47, PNM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, PNM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
The dividend of PNM is nicely growing with an annual growth rate of 6.18%!
PNM has been paying a dividend for at least 10 years, so it has a reliable track record.
PNM has not decreased their dividend for at least 10 years, which is a reliable track record.
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 Change8.15%
Ins Owners0.68%
Ins Owner Change0%
Market Cap3.77B
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
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%
ROICexcg growth 3Y-7.78%
ROICexcg 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%