PNM RESOURCES INC (PNM) Stock Fundamental Analysis
USA - New York Stock Exchange - 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 has a expensive valuation and it also scores bad on growth.
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 has a Return On Assets of 0.78%. This is amonst the worse of the industry: PNM underperforms 93.33% of its industry peers.
Looking at the Return On Equity, with a value of 3.38%, PNM is doing worse than 93.33% of the companies in the same industry.
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 in line with the industry average of 5.04%.
| 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
PNM has a worse Profit Margin (4.37%) than 86.67% of its industry peers.
In the last couple of years the Profit Margin of PNM has declined.
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.
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
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
Compared to 5 years ago, PNM has more shares outstanding
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.
The Altman-Z score of PNM (0.59) is worse than 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.
With a Debt to Equity ratio value of 1.95, PNM is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
| 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 worse Current ratio (0.37) 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.
Looking at the Quick ratio, with a value of 0.27, PNM is doing worse than 93.33% of the companies in the same industry.
| 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.
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.
PNM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.80%.
Measured over the past years, PNM shows a small growth in Revenue. The Revenue has been growing by 6.18% on average per year.
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
Based on estimates for the next years, PNM will show a small growth in Earnings Per Share. The EPS will grow by 4.62% on average per year.
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.
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
The Price/Earnings ratio is 14.81, which indicates a correct valuation of PNM.
Based on the Price/Earnings ratio, PNM is valued a bit cheaper than the industry average as 64.44% of the companies are valued more expensively.
PNM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.70 indicates a correct valuation of PNM.
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 (24.01), we can say PNM is valued slightly cheaper.
| 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 the industry average as 68.89% of the companies are valued more cheaply.
| 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%.
PNM's Dividend Yield is comparable with the industry average which is at 2.95.
PNM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector 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 paid a dividend for at least 10 years, which is 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 Change-0.08%
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.