NYSE:PNM

Stock Analysis Report

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Executive Summary

PNM Resources, Inc., through its subsidiaries, engages in the energy and energy-related businesses in the United States.


Snowflake Analysis

Average dividend payer with weak fundamentals.


Similar Companies

Share Price & News

How has PNM Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PNM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

PNM

2.3%

US Electric Utilities

2.9%

US Market


1 Year Return

-18.4%

PNM

1.5%

US Electric Utilities

8.9%

US Market

Return vs Industry: PNM underperformed the US Electric Utilities industry which returned 1.5% over the past year.

Return vs Market: PNM underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

PNMIndustryMarket
7 Day-0.4%2.3%2.9%
30 Day9.2%9.6%10.6%
90 Day-21.6%-10.1%5.1%
1 Year-16.3%-18.4%4.8%1.5%11.4%8.9%
3 Year11.7%3.4%25.4%13.5%34.3%25.4%
5 Year87.0%63.7%72.3%44.5%60.7%42.7%

Price Volatility Vs. Market

How volatile is PNM Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PNM Resources undervalued compared to its fair value and its price relative to the market?

74.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PNM ($40.64) is trading above our estimate of fair value ($19.1)

Significantly Below Fair Value: PNM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PNM is poor value based on its PE Ratio (74.8x) compared to the Electric Utilities industry average (20x).

PE vs Market: PNM is poor value based on its PE Ratio (74.8x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PNM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PNM is overvalued based on its PB Ratio (2x) compared to the US Electric Utilities industry average (2x).


Next Steps

Future Growth

How is PNM Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PNM's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if PNM's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PNM's revenue (5.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: PNM's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PNM's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has PNM Resources performed over the past 5 years?

-11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNM has a large one-off loss of $17.3M impacting its March 31 2020 financial results.

Growing Profit Margin: PNM's current net profit margins (3%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: PNM's earnings have declined by -11.1% per year over the past 5 years.

Accelerating Growth: PNM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PNM had negative earnings growth (-50.7%) over the past year, making it difficult to compare to the Electric Utilities industry average (1.8%).


Return on Equity

High ROE: PNM's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is PNM Resources's financial position?


Financial Position Analysis

Short Term Liabilities: PNM's short term assets ($288.0M) do not cover its short term liabilities ($1.1B).

Long Term Liabilities: PNM's short term assets ($288.0M) do not cover its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: PNM's debt to equity ratio (194.7%) is considered high.

Reducing Debt: PNM's debt to equity ratio has increased from 123.7% to 194.7% over the past 5 years.

Debt Coverage: PNM's debt is not well covered by operating cash flow (14.9%).

Interest Coverage: PNM's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

What is PNM Resources's current dividend yield, its reliability and sustainability?

3.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PNM's dividend (3.03%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: PNM's dividend (3.03%) is low compared to the top 25% of dividend payers in the US market (4.32%).


Stability and Growth of Payments

Stable Dividend: PNM's dividends per share have been stable in the past 10 years.

Growing Dividend: PNM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (220.1%), PNM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PNM's dividends in 3 years are forecast to be covered by earnings (54.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure


CEO

Pat Vincent-Collawn (60yo)

10.25yrs

Tenure

US$5,031,193

Compensation

Ms. Patricia K. Vincent-Collawn, also known as Pat, has been the Chief Executive Officer of PNM Resources, Inc. since March 1, 2010 and has been its President since August 2008. Ms. Vincent-Collawn serves  ...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD5.03M) is about average for companies of similar size in the US market ($USD5.84M).

Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patricia Vincent-Collawn
Chairman10.25yrsUS$5.03m0.70% $22.7m
Patrick Apodaca
Senior VP10.42yrsUS$975.88k0.090% $2.9m
Charles Eldred
Executive Vice President of Corporate Development & Finance0.42yrUS$2.53m0.14% $4.7m
Ronald Darnell
Senior Vice President of Public Policy8.5yrsUS$852.56k0.036% $1.2m
Chris Olson
Senior Vice President of Utility Operations2.33yrsUS$839.93k0.016% $521.5k
Joseph Tarry
CFO & Senior VP0.42yrUS$689.93k0.017% $562.9k
Elisabeth Eden
Chief Information Officer & VP0.42yrno datano data
Lisa Goodman
Director of Investor Relationsno datano datano data
Becky Teague
Vice President of Human Resources0.42yrno datano data
Michael Mertz
VP & Treasurer0.42yrno datano data

0.4yrs

Average Tenure

61yo

Average Age

Experienced Management: PNM's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Patricia Vincent-Collawn
Chairman10.25yrsUS$5.03m0.70% $22.7m
Bruce Wilkinson
Lead Independent Director5.08yrsUS$211.50k0.059% $1.9m
Maureen Mullarkey
Independent Director6.08yrsUS$190.25k0.012% $403.3k
Donald Schwanz
Independent Director11.92yrsUS$194.00k0.045% $1.5m
Sidney Gutierrez
Independent Director5.08yrsUS$186.50k0.012% $403.0k
Alan Fohrer
Independent Director8.25yrsUS$201.50k0.024% $765.6k
E. Conley
Independent Director6.08yrsUS$194.00k0.022% $721.6k
Vicky Bailey
Independent Director1.42yrsUS$185.00kno data
Norman Becker
Independent Director4.08yrsUS$194.00k0.011% $347.0k
James Hughes
Independent Director1.42yrsUS$185.00kno data

5.6yrs

Average Tenure

65yo

Average Age

Experienced Board: PNM's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PNM Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PNM Resources, Inc.
  • Ticker: PNM
  • Exchange: NYSE
  • Founded: 1917
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$3.237b
  • Shares outstanding: 79.65m
  • Website: https://www.pnmresources.com

Number of Employees


Location

  • PNM Resources, Inc.
  • 414 Silver Avenue SW
  • Albuquerque
  • New Mexico
  • 87102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PNMNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
98PDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 12:09
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.