PNM:NYE-PNM Resources, Inc (USD)

COMMON STOCK | Utilities—Regulated Electric | NYE

Last Closing Price

USD 36.20

Change

-1.80 (-4.74)%

Market Cap

USD 3.15B

Volume

0.86M

Average Target Price

USD 51.00 (+40.88%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

PNM Resources, Inc., through its subsidiaries, engages in the energy and energy-related businesses in the United States. It operates through Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment is primarily involved in the generation, transmission, and distribution of electricity. It generates electricity using coal, natural gas and oil, nuclear fuel, solar, wind, and geothermal energy sources. As of December 31, 2018, this segment had owned or leased facilities with a total net generation capacity of 2,102 megawatts; and owned 3,206 miles of electric transmission lines, 6,067 miles of distribution overhead lines, 5,885 miles of underground distribution lines, and 255 substations. It also owns and leases office and other equipment, office space, vehicles, and real estate. The TNMP segment provides regulated transmission and distribution services. As of December 31, 2018, this segment owned 997 miles of overhead electric transmission lines, 7,151 miles of overhead distribution lines, 1,260 miles of underground distribution lines, and 122 substations. It also owns and leases vehicles, service facilities, and office locations throughout its service territory. The company serves approximately 782,000 residential, commercial, and industrial customers, as well as end-users of electricity in New Mexico and Texas. PNM Resources, Inc. was founded in 1917 and is headquartered in Albuquerque, New Mexico.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-04-01 )

Largest Industry Peers for Utilities—Regulated Electric

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
NEE NextEra Energy, Inc

-22.39 (-9.31%)

USD117.66B 31.01 16.80
DUK-PA Duke Energy Corporation

-0.35 (-1.35%)

USD64.05B 5.14 7.78
DUK Duke Energy Corporation

-3.31 (-4.09%)

USD59.37B 15.99 11.66
SO The Southern Company

-4.00 (-7.39%)

USD57.08B 12.03 12.70
AEP American Electric Power Compan..

-5.41 (-6.76%)

USD39.58B 20.61 13.98
WEC WEC Energy Group, Inc

-4.61 (-5.23%)

USD27.80B 24.62 16.30
ED Consolidated Edison, Inc

-0.39 (-0.50%)

USD26.03B 19.12 11.39
ES Eversource Energy

-2.22 (-2.84%)

USD20.54B 22.15 13.95
EIX Edison International

-3.52 (-6.42%)

USD20.07B 14.68 10.53
PPL PPL Corporation

-1.78 (-7.21%)

USD19.52B 10.73 9.44

ETFs Containing PNM

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Utilities—Regulated Electric)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -28.61% 38% F 51% F
Dividend Return 0.61% 13% F 35% F
Total Return -28.01% 38% F 51% F
Trailing 12 Months  
Capital Gain -21.86% 45% F 56% F
Dividend Return 2.54% 11% F 59% F
Total Return -19.32% 45% F 56% F
Trailing 5 Years  
Capital Gain 23.26% 55% F 85% B
Dividend Return 16.95% 22% F 63% D
Total Return 40.20% 48% F 87% B+
Average Annual (5 Year Horizon)  
Capital Gain 15.76% 77% C+ 86% B
Dividend Return 2.83% 30% F 60% D-
Total Return 18.59% 77% C+ 87% B+
Risk Return Profile  
Volatility (Standard Deviation) 13.73% 49% F 61% D-
Risk Adjusted Return 135.35% 80% B- 96% A
Market Capitalization 3.15B 24% F 75% C
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Utilities—Regulated Electric)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 40.91 14% F 11% F
Price/Book Ratio 1.88 30% F 30% F
Price / Cash Flow Ratio 6.27 70% C- 46% F
EV/EBITDA 14.92 14% F 21% F
Management Effectiveness  
Return on Equity 5.21% 19% F 36% F
Return on Invested Capital 3.63% 14% F 32% F
Return on Assets 1.23% 11% F 28% F
Debt to Equity Ratio 149.96% 16% F 22% F
Technical Ratios  
Short Ratio 6.42 12% F 10% F
Short Percent 7.46% 8% F 49% F
Beta 0.37 53% F 82% B-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.