PNM Resources, Inc. (PNM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The AES Corp.

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Avangrid, Inc.

PNM Resources, Inc.

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Ormat Technologies, Inc.

OGE Energy Corp.

Alliant Energy Corp.

NRG Energy, Inc.

Why is PNM Resources, Inc. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.27%

Poor long term growth as Operating profit has grown by an annual rate 5.37% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.32 times

Positive results in Jun 25

DIVIDEND PER SHARE(HY) Highest at USD 6.85
CASH AND EQV(HY) Highest at USD 49.94 MM
DEBT-EQUITY RATIO (HY) Lowest at 182.18 %

With ROCE of 5.37%, it has a very expensive valuation with a 1.33 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 21.13%, its profits have risen by 30.1% ; the PEG ratio of the company is 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to PNM Resources, Inc. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is PNM Resources, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

PNM Resources, Inc.

8.19%

2.98

19.07%

S&P 500

16.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.95%

EBIT Growth (5y)

5.15%

EBIT to Interest (avg)

2.44

Debt to EBITDA (avg)

6.32

Net Debt to Equity (avg)

2.33

Sales to Capital Employed (avg)

0.26

Tax Ratio

13.70%

Dividend Payout Ratio

58.74%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

5.27%

ROE (avg)

9.43%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.86

EV to EBIT

27.94

EV to EBITDA

13.20

EV to Capital Employed

1.33

EV to Sales

5.58

PEG Ratio

Dividend Yield

ROCE (Latest)

4.78%

ROE (Latest)

5.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

PRE-TAX PROFIT(Q)

At USD 154.52 MM has Grown at 172.06%

NET PROFIT(Q)

At USD 130.2 MM has Grown at 186.64%

OPERATING CASH FLOW(Y)

Highest at USD 585.44 MM

DIVIDEND PER SHARE(HY)

Highest at USD 6.98

DEBT-EQUITY RATIO (HY)

Lowest at 166.69 %

NET SALES(Q)

Highest at USD 647.16 MM

OPERATING PROFIT(Q)

Highest at USD 327.99 MM

-5What is not working for the Company

NET PROFIT(9M)

At USD 160.96 MM has Grown at -31.95%

INTEREST(9M)

At USD 208.12 MM has Grown at 28.23%

RAW MATERIAL COST(Y)

Grown by 8.93% (YoY

Here's what is working for PNM Resources, Inc.

Pre-Tax Profit

At USD 154.52 MM has Grown at 172.06%

over average net sales of the previous four periods of USD 56.8 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 130.2 MM has Grown at 186.64%

over average net sales of the previous four periods of USD 45.42 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Dividend per share

Highest at USD 6.98 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 585.44 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 647.16 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 647.16 MM has Grown at 27.43%

over average net sales of the previous four periods of USD 507.86 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 327.99 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Debt-Equity Ratio

Lowest at 166.69 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 125.85 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for PNM Resources, Inc.

Interest

At USD 208.12 MM has Grown at 28.23%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 8.93% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales