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.

Pinnacle West Capital Corp.

Ormat Technologies, Inc.

Alliant Energy Corp.

Avangrid, Inc.

IDACORP, Inc.

Portland General Electric Co.

Evergy, Inc.

OGE Energy Corp.

PNM Resources, Inc.

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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is PNM Resources, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

PNM Resources, Inc.

1.34%

2.98

19.07%

S&P 500

22.24%

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)

7.30%

EBIT Growth (5y)

8.99%

EBIT to Interest (avg)

2.44

Debt to EBITDA (avg)

6.32

Net Debt to Equity (avg)

2.33

Sales to Capital Employed (avg)

0.25

Tax Ratio

13.70%

Dividend Payout Ratio

111.28%

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

27.15

EV to EBITDA

12.94

EV to Capital Employed

1.33

EV to Sales

5.52

PEG Ratio

Dividend Yield

ROCE (Latest)

4.88%

ROE (Latest)

4.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 596.43 MM

DIVIDEND PER SHARE(HY)

Highest at USD 8.49

DIVIDEND PAYOUT RATIO(Y)

Highest at 1,276.44%

RAW MATERIAL COST(Y)

Fallen by -5.92% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 165.28 %

-18What is not working for the Company

INTEREST(HY)

At USD 195.12 MM has Grown at 59.52%

PRE-TAX PROFIT(Q)

At USD 8 MM has Fallen at -82.16%

NET PROFIT(Q)

At USD 3.87 MM has Fallen at -89.77%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.53 times

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

Operating Cash Flow

Highest at USD 596.43 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 8.49 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Debt-Equity Ratio

Lowest at 165.28 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 1,276.44%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -5.92% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Pre-Tax Profit

At USD 8 MM has Fallen at -82.16%

over average net sales of the previous four periods of USD 44.82 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 3.87 MM has Fallen at -89.77%

over average net sales of the previous four periods of USD 37.81 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 195.12 MM has Grown at 59.52%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 7.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio