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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Ormat Technologies, Inc.

PNM Resources, Inc.

Avangrid, Inc.

IDACORP, Inc.

Portland General Electric Co.

Evergy, Inc.

Alliant Energy Corp.

OGE 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.

0.75%

2.98

19.07%

S&P 500

22.36%

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 662.72 MM

DIVIDEND PER SHARE(HY)

Highest at USD 7.48

PRE-TAX PROFIT(Q)

At USD 87.67 MM has Grown at 102.15%

NET PROFIT(Q)

At USD 71.4 MM has Grown at 95.52%

RAW MATERIAL COST(Y)

Fallen by -13.76% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 166.86 %

-5What is not working for the Company

INTEREST(9M)

At USD 265 MM has Grown at 35.54%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.4 times

DIVIDEND PAYOUT RATIO(Y)

Lowest at 65.94%

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

Operating Cash Flow

Highest at USD 662.72 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)

Pre-Tax Profit

At USD 87.67 MM has Grown at 102.15%

over average net sales of the previous four periods of USD 43.37 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 71.4 MM has Grown at 95.52%

over average net sales of the previous four periods of USD 36.52 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Dividend per share

Highest at USD 7.48 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 166.86 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -13.76% (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

Depreciation

Highest at USD 127.61 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.

Inventory Turnover Ratio

Lowest at 7.4 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

At USD 265 MM has Grown at 35.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Dividend Payout Ratio

Lowest at 65.94%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)