PNM RESOURCES INC (PNM) Stock Fundamental Analysis

USA • New York Stock Exchange • 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
Fundamental Rating

2

PNM gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 46 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.


Dividend Valuation Growth Profitability Health

2

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.
  • In the past 5 years PNM has always been profitable.
  • PNM had a positive operating cash flow in each of the past 5 years.
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.
  • The Return On Equity of PNM (3.38%) is worse than 93.33% of its industry peers.
  • PNM has a Return On Invested Capital of 2.70%. This is in the lower half of the industry: PNM underperforms 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 4.57%.
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

  • 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.
  • PNM's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 15.79%, PNM is doing worse than 66.67% of the companies in the same industry.
  • 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

0

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PNM 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

  • 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.
  • A Debt/Equity ratio of 1.95 is on the high side and indicates that PNM has dependencies on debt 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

  • 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.
  • 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

3

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.
  • Looking at the last year, PNM shows a very negative growth in Revenue. The Revenue has decreased by -13.80% in the last year.
  • The Revenue has been growing slightly by 6.18% on average over the past years.
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

  • 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.
  • 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

2

4. Valuation

4.1 Price/Earnings Ratio

  • PNM is valuated correctly with a Price/Earnings ratio of 14.81.
  • 64.44% of the companies in the same industry are more expensive than PNM, based on the Price/Earnings ratio.
  • PNM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
  • PNM is valuated correctly with a Price/Forward Earnings ratio of 14.70.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PNM.
  • When comparing the Price/Forward Earnings ratio of PNM to the average of the S&P500 Index (25.57), we can say PNM is valued slightly cheaper.
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

  • Based on the Enterprise Value to EBITDA ratio, PNM is valued a bit more expensive than the industry average as 68.89% of the companies are valued more cheaply.
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

5

5. Dividend

5.1 Amount

  • PNM has a Yearly Dividend Yield of 3.71%.
  • Compared to an average industry Dividend Yield of 2.90, 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 1.83.
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 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
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

More info and screens

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.