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%)
PNM gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. PNM has a bad profitability rating. Also its financial health evaluation is rather negative. PNM does not seem to be growing, but still is valued expensively.
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.
In the past 5 years PNM has always been profitable.
PNM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PNM has a Return On Assets of 0.78%. This is amonst the worse of the industry: PNM underperforms 93.33% of its industry peers.
PNM has a worse Return On Equity (3.38%) than 93.33% of its industry peers.
With a Return On Invested Capital value of 2.70%, PNM is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for PNM is in line with the industry average of 4.90%.
| 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.
PNM's Profit Margin has declined in the last couple of years.
The Operating Margin of PNM (15.79%) is worse than 66.67% of its industry peers.
In the last couple of years the Operating Margin of PNM has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PNM is destroying value.
Compared to 1 year ago, PNM has more shares outstanding
PNM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PNM is higher compared to a year ago.
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 has a worse Altman-Z score (0.59) 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.
The Debt to Equity ratio of PNM (1.95) is worse 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.
PNM has a Quick ratio of 0.27. This is amonst the worse of the industry: PNM underperforms 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%.
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
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
A Price/Earnings ratio of 14.81 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.
PNM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.89.
The Price/Forward Earnings ratio is 14.70, which indicates a correct valuation of PNM.
The rest of the industry has a similar Price/Forward Earnings ratio as PNM.
PNM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, 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
68.89% of the companies in the same industry are cheaper than PNM, based on the Enterprise Value to EBITDA ratio.
| 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%. Purely for dividend investing, there may be better candidates out there.
PNM's Dividend Yield is comparable with the industry average which is at 3.23.
Compared to an average S&P500 Dividend Yield of 2.31, 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
162.66% of the earnings are spent on dividend by PNM. 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 Change0.01%
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 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
Graham NumberN/A
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%
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 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%
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.
What is the valuation status for PNM stock?
ChartMill assigns a valuation rating of 2 / 10 to PNM RESOURCES INC (PNM). This can be considered as Overvalued.
Can you provide the profitability details for PNM RESOURCES INC?
PNM RESOURCES INC (PNM) has a profitability rating of 2 / 10.
What are the PE and PB ratios of PNM RESOURCES INC (PNM) stock?
The Price/Earnings (PE) ratio for PNM RESOURCES INC (PNM) is 14.81 and the Price/Book (PB) ratio is 1.59.
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.