PNM RESOURCES INC (PNM)
US69349H1077 - Common Stock
Taking everything into account, PNM scores 2 out of 10 in our fundamental rating. PNM was compared to 45 industry peers in the Electric Utilities industry. PNM may be in some trouble as it scores bad on both profitability and health. PNM is valued expensive and it does not seem to be growing. Finally PNM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PNM was profitable.
PNM had a positive operating cash flow in the past year.
PNM had positive earnings in each of the past 5 years.
In the past 5 years PNM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.86%, PNM is doing worse than 93.33% of the companies in the same industry.
PNM has a Return On Equity of 3.72%. This is amonst the worse of the industry: PNM underperforms 88.89% of its industry peers.
The Return On Invested Capital of PNM (2.86%) is worse 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 5.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 3.72% | ||
| ROIC | 2.86% |
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
PNM has a Profit Margin of 4.53%. This is amonst the worse of the industry: PNM underperforms 86.67% of its industry peers.
PNM's Profit Margin has declined in the last couple of years.
PNM's Operating Margin of 15.64% is on the low side compared to the rest of the industry. PNM is outperformed by 68.89% of its industry peers.
PNM's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.64% | ||
| PM (TTM) | 4.53% | ||
| 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.
The number of shares outstanding for PNM has been increased compared to 1 year ago.
Compared to 5 years ago, PNM has more shares outstanding
Compared to 1 year ago, PNM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.57, we must say that PNM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.57, PNM is doing worse than 77.78% of the companies in the same industry.
PNM has a Debt/Equity ratio of 1.92. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.92, PNM is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.57 |
ROIC/WACC0.51
WACC5.59%
2.3 Liquidity
A Current Ratio of 0.39 indicates that PNM may have some problems paying its short term obligations.
With a Current ratio value of 0.39, PNM is not doing good in the industry: 97.78% of the companies in the same industry are doing better.
A Quick Ratio of 0.31 indicates that PNM may have some problems paying its short term obligations.
PNM has a Quick ratio of 0.31. This is amonst the worse of the industry: PNM underperforms 95.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.31 |
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%.
The Earnings Per Share has been growing slightly by 7.11% on average over the past years.
Looking at the last year, PNM shows a very negative growth in Revenue. The Revenue has decreased by -13.80% in the last year.
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 growth Q2Q0%
Revenue 1Y (TTM)-13.8%
Revenue growth 3Y8.39%
Revenue growth 5Y6.18%
Revenue growth Q2QN/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.
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-4.38%
EPS Next 2Y0.24%
EPS Next 3Y2.55%
EPS Next 5Y4.62%
Revenue Next Year7.74%
Revenue Next 2Y7.39%
Revenue Next 3Y6.56%
Revenue Next 5Y4.85%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 13.65, PNM is valued correctly.
68.89% of the companies in the same industry are more expensive than PNM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.15, PNM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.58, the valuation of PNM can be described as correct.
62.22% of the companies in the same industry are more expensive than PNM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PNM to the average of the S&P500 Index (20.20), we can say PNM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 13.58 |
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 64.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.2 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.92
EPS Next 2Y0.24%
EPS Next 3Y2.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.06%, PNM is a good candidate for dividend investing.
PNM's Dividend Yield is a higher than the industry average which is at 3.98.
PNM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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 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 144.28% 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.
DP144.28%
EPS Next 2Y0.24%
EPS Next 3Y2.55%
PNM RESOURCES INC
NYSE:PNM (5/17/2024, 7:20:37 PM)
After market: 38.49 0 (0%)38.49
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 13.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 3.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.64% | ||
| PM (TTM) | 4.53% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)5.22%
EPS 3Y7.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.8%
Revenue growth 3Y8.39%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y