NYSE:PNM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


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


Market Performance


7 Day Return

1.9%

PNM

1.8%

US Electric Utilities

-0.2%

US Market


1 Year Return

29.7%

PNM

19.2%

US Electric Utilities

1.1%

US Market

PNM outperformed the Electric Utilities industry which returned 19.5% over the past year.

PNM outperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

PNMIndustryMarket
7 Day1.9%1.8%-0.2%
30 Day-0.3%3.0%2.5%
90 Day-1.3%3.9%1.6%
1 Year33.1%29.7%23.2%19.2%3.4%1.1%
3 Year60.3%48.1%37.2%23.3%45.2%35.8%
5 Year131.4%102.3%83.7%52.4%62.6%44.8%

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 based on future cash flows and its price relative to the stock market?

2.53x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

PNM Resources's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

PNM Resources's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

PNM Resources is loss making, we can't compare its value to the US Electric Utilities industry average.

PNM Resources is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for PNM Resources, we can't assess if its growth is good value.


Price Based on Value of Assets

PNM Resources is overvalued based on assets compared to the US Electric Utilities industry average.


Next Steps

Future Growth

How is PNM Resources expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

63.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PNM Resources's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).

PNM Resources's earnings are expected to grow significantly at over 20% yearly.

PNM Resources's revenue growth is positive but not above the United States of America market average.

PNM Resources's earnings growth is expected to exceed the United States of America market average.

PNM Resources's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

PNM Resources is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has PNM Resources performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PNM Resources does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare PNM Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare PNM Resources's 1-year growth to the US Electric Utilities industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if PNM Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

PNM Resources used its assets less efficiently than the US Electric Utilities industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if PNM Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is PNM Resources's financial position?


Financial Position Analysis

PNM Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

PNM Resources's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

PNM Resources's level of debt (184.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (111% vs 184.7% today).

Debt is not well covered by operating cash flow (15%, less than 20% of total debt).

PNM Resources is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

2.58%

Expected Dividend Yield


Dividend Yield and Payments Analysis

PNM Resources's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

PNM Resources's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of PNM Resources's salary, the management and board of directors tenure and is there insider trading?

6.1yrs

Average management tenure


CEO

Pat Vincent-Collawn (60yo)

9.5yrs

Tenure

US$4,754,536

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

Pat's remuneration is about average for companies of similar size in United States of America.

Pat's compensation has increased whilst company is loss making.


Management Age and Tenure

6.1yrs

Average Tenure

61yo

Average Age

The average tenure for the PNM Resources management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.8yrs

Average Tenure

65yo

Average Age

The tenure for the PNM Resources board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$017 May 19
GAMCO Investors, Inc.
EntityCompany
Shares1,196
Max PriceUS$48.23
SellUS$1,440,09617 May 19
GAMCO Investors, Inc.
EntityCompany
Shares135,315
Max PriceUS$47.99
SellUS$67,22711 Mar 19
Joseph Tarry
EntityIndividual
Role
Controller
VP of Finance
Shares1,493
Max PriceUS$45.23
SellUS$223,30008 Mar 19
Ronald Darnell
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Public Policy
Shares5,000
Max PriceUS$44.66
SellUS$212,73608 Mar 19
Patrick Apodaca
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares4,800
Max PriceUS$44.32
SellUS$581,03308 Mar 19
Charles Eldred
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares13,018
Max PriceUS$45.23

Ownership Breakdown


Management Team

  • Pat Vincent-Collawn (60yo)

    Chairman

    • Tenure: 9.5yrs
    • Compensation: US$4.75m
  • Chuck Eldred (65yo)

    Executive VP & CFO

    • Tenure: 12.2yrs
    • Compensation: US$2.21m
  • Chris Olson (61yo)

    Senior Vice President of Utility Operations

    • Tenure: 1.6yrs
    • Compensation: US$756.38k
  • Patrick Apodaca (67yo)

    Senior VP

    • Tenure: 9.7yrs
    • Compensation: US$988.09k
  • Ron Darnell (61yo)

    Senior Vice President of Public Policy

    • Tenure: 7.8yrs
    • Compensation: US$850.11k
  • Don Tarry (49yo)

    VP of Finance

    • Tenure: 4.4yrs
    • Compensation: US$689.93k
  • Lisa Eden (52yo)

    Vice President of Human Resources

    • Tenure: 1.7yrs
  • Jimmie Blotter

    Assistant Treasurer and Director of Investor Relations & Shareholder Services

    • Tenure: 0yrs
  • Michael Mertz

    VP & Chief Information Officer

    • Tenure: 2.3yrs

Board Members

  • Bruce Wilkinson (74yo)

    Lead Director

    • Tenure: 4.3yrs
    • Compensation: US$193.01k
  • Maureen Mullarkey (59yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$183.01k
  • Donald Schwanz (74yo)

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: US$180.51k
  • Sidney Gutierrez (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$174.89k
  • Al Fohrer (68yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$183.01k
  • Pat Vincent-Collawn (60yo)

    Chairman

    • Tenure: 9.5yrs
    • Compensation: US$4.75m
  • E. Conley (61yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$173.01k
  • Vicky Bailey (67yo)

    Independent Director

    • Tenure: 0.7yrs
  • Norm Becker (63yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$178.64k
  • James Hughes (56yo)

    Independent Director

    • Tenure: 0.7yrs

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$4.071b
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:19
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.