ScoreWhy is PNM Resources, Inc. ?
1
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
2
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 %
3
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 17.74%, its profits have risen by 30.1% ; the PEG ratio of the company is 1
Real-Time Research ReportHow 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.
17.13%
2.92
19.24%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.70%
EBIT Growth (5y)
5.37%
EBIT to Interest (avg)
2.44
Debt to EBITDA (avg)
6.32
Net Debt to Equity (avg)
2.33
Sales to Capital Employed (avg)
0.27
Tax Ratio
13.70%
Dividend Payout Ratio
58.74%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
5.27%
ROE (avg)
9.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
2.09
EV to EBIT
24.74
EV to EBITDA
12.58
EV to Capital Employed
1.33
EV to Sales
5.51
PEG Ratio
0.98
Dividend Yield
NA
ROCE (Latest)
5.37%
ROE (Latest)
8.94%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
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 %
-27What is not working for the Company
PRE-TAX PROFIT(Q)
At USD 27.34 MM has Fallen at -58.07%
NET PROFIT(Q)
At USD 21.71 MM has Fallen at -58.29%
INVENTORY TURNOVER RATIO(HY)
Lowest at 8.67 times
INTEREST COVERAGE RATIO(Q)
Lowest at 264.59
RAW MATERIAL COST(Y)
Grown by 9.42% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.85 times
INTEREST(Q)
Highest at USD 73.19 MM
Here's what is working for PNM Resources, Inc.
Dividend per share
Highest at USD 6.85 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Cash and Eqv
Highest at USD 49.94 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 182.18 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at USD 120.94 MM
in the last five periodsMOJO 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.
Pre-Tax Profit
At USD 27.34 MM has Fallen at -58.07%
over average net sales of the previous four periods of USD 65.2 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 21.71 MM has Fallen at -58.29%
over average net sales of the previous four periods of USD 52.04 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest
At USD 73.19 MM has Grown at 12.96%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 264.59
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Inventory Turnover Ratio
Lowest at 8.67 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Interest
Highest at USD 73.19 MM
in the last five periods and Increased by 12.96% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debtors Turnover Ratio
Lowest at 6.85 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 9.42% (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
Non Operating Income
Highest at USD 1.02 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
