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 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


Market Performance


7 Day Return

1.6%

PNM

-0.1%

US Electric Utilities

0.5%

US Market


1 Year Return

30.4%

PNM

16.1%

US Electric Utilities

6.8%

US Market

Return vs Industry: PNM exceeded the US Electric Utilities industry which returned 16.1% over the past year.

Return vs Market: PNM exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

PNMIndustryMarket
7 Day1.6%-0.1%0.5%
30 Day1.0%-0.4%-0.8%
90 Day4.0%5.5%-0.9%
1 Year33.8%30.4%20.0%16.1%9.2%6.8%
3 Year76.0%62.6%44.8%30.3%45.6%36.2%
5 Year113.6%86.7%71.1%41.9%63.2%45.4%

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?

2.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PNM ($52.03) is trading above our estimate of fair value ($17.88)

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


Price To Earnings Ratio

PE vs Industry: PNM is unprofitable, so we can't compare its PE Ratio to the Electric Utilities industry average.

PE vs Market: PNM is unprofitable, so we can't compare its PE Ratio to the US market.


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 (2.6x) compared to the US Electric Utilities industry average (2.3x).


Next Steps

Future Growth

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

50.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PNM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PNM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PNM's revenue (1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PNM's revenue (1% 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 (9.7%).


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

Earnings Trend: PNM is unprofitable, and losses have increased over the past 5 years at a rate of -8.3% per year.

Accelerating Growth: Unable to compare PNM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PNM is unprofitable, making it difficult to compare its past year earnings growth to the Electric Utilities industry (4.2%).


Return on Equity

High ROE: PNM has a negative Return on Equity (-0.66%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PNM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PNM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is PNM Resources's financial position?


Financial Position Analysis

Short Term Liabilities: PNM's short term assets ($299.1M) do not cover its short term liabilities ($666.5M)

Long Term Liabilities: PNM's short term assets (299.1M) do not cover its long term liabilities (4.7B)


Debt to Equity History and Analysis

Debt Level: PNM's debt to equity ratio (184.7%) is considered high

Reducing Debt: PNM's debt to equity ratio has increased from 111% to 184.7% over the past 5 years.

Debt Coverage: PNM's debt is not well covered by operating cash flow (15%).

Interest Coverage: PNM is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: PNM has a high level of physical assets or inventory.

Debt Coverage by Assets: PNM's 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?

2.23%

Current Dividend Yield


Upcoming Dividend Payment

Purchase PNM Resources before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PNM's dividend (2.23%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PNM's dividend (2.23%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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: PNM is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PNM's dividends in 3 years are forecast to be covered by earnings (56.6% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Pat Vincent-Collawn (60yo)

9.6yrs

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

Compensation vs. Market: Pat's total compensation ($USD4.75M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Pat's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.5yrs

Average Tenure

60.5yo

Average Age

Experienced Management: PNM's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

65yo

Average Age

Experienced Board: PNM's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

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


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
Shares13,018
Max PriceUS$45.23

Ownership Breakdown


Management Team

  • Pat Vincent-Collawn (60yo)

    Chairman

    • Tenure: 9.6yrs
    • Compensation: US$4.75m
  • Chris Olson (61yo)

    Senior Vice President of Utility Operations

    • Tenure: 1.7yrs
    • Compensation: US$756.38k
  • Patrick Apodaca (67yo)

    Senior VP

    • Tenure: 9.8yrs
    • 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: 4.5yrs
    • Compensation: US$689.93k
  • Lisa Eden (52yo)

    Vice President of Human Resources

    • Tenure: 1.8yrs
  • 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: 4.4yrs
    • Compensation: US$193.01k
  • Maureen Mullarkey (59yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$183.01k
  • Donald Schwanz (74yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$180.51k
  • Sidney Gutierrez (67yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$174.89k
  • Al Fohrer (68yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$183.01k
  • Pat Vincent-Collawn (60yo)

    Chairman

    • Tenure: 9.6yrs
    • Compensation: US$4.75m
  • E. Conley (61yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$173.01k
  • Vicky Bailey (67yo)

    Independent Director

    • Tenure: 0.8yrs
  • Norm Becker (63yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$178.64k
  • James Hughes (56yo)

    Independent Director

    • Tenure: 0.8yrs

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$4.139b
  • 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 Analysis2019/10/21 23:41
End of Day Share Price2019/10/21 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.