PNM RESOURCES INC (PNM) Stock Fundamental Analysis
NYSE:PNM - New York Stock Exchange, Inc. - US69349H1077 - Common Stock - Currency: USD
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 is valued expensive and it does not seem to be growing.
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.
Each year in the past 5 years PNM had a positive operating cash flow.
1.2 Ratios
PNM's Return On Assets of 0.78% is on the low side compared to the rest of the industry. PNM is outperformed by 93.33% of its industry peers.
With a Return On Equity value of 3.38%, 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 Invested Capital (2.70%) than 77.78% of its industry peers.
PNM had an Average Return On Invested Capital over the past 3 years of 3.42%. This is significantly below the industry average of 38.54%.
| 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.
The Operating Margin of PNM (15.79%) is worse than 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.
The number of shares outstanding for PNM has been increased compared to 1 year ago.
The number of shares outstanding for PNM has been increased compared to 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.
The Altman-Z score of PNM (0.59) is worse than 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.
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
A Current Ratio of 0.37 indicates that PNM may have some problems paying its short term obligations.
PNM has a Current ratio of 0.37. This is amonst the worse of the industry: PNM underperforms 95.56% of its industry peers.
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'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 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
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
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.81, which indicates a correct valuation of PNM.
64.44% of the companies in the same industry are more expensive than PNM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.52. PNM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.70, which indicates a correct valuation of PNM.
PNM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.58. PNM is valued rather cheaply when compared to this.
| 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
With a Yearly Dividend Yield of 3.71%, PNM has a reasonable but not impressive dividend return.
PNM's Dividend Yield is comparable with the industry average which is at 3.64.
PNM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| 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 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 Change0%
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%