Pnm Resources Intrinsic Value Calculation – PNM Resources Stock Overwhelmed by Selling Pressure
November 9, 2023
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The stock of PNM ($NYSE:PNM) Resources (Public Service Company of New Mexico) has recently been overwhelmed by an abundance of people selling their shares. This has caused a downward pressure on the stock price. PNM Resources is an integrated energy company that provides electricity and natural gas services to customers in New Mexico and Texas. It is one of the largest public energy providers in the Southwest United States and Mexico. PNM Resources is a publicly traded company listed on the New York Stock Exchange (NYSE: PNM). The company is focused on diversifying its energy portfolio, transitioning to clean energy sources, and providing reliable and affordable energy to its customers. They have invested in renewable energy sources such as solar and wind, as well as natural gas-fired power plants.
Additionally, PNM Resources has implemented energy efficiency programs and continues to invest in infrastructure. Despite this, the current selling pressure on the stock has been too much for PNM to bear. The company is now looking for ways to combat the selling pressure and restore investor confidence in their stock. There are no clear solutions at the moment, however, PNM may need to implement other strategies to keep its stock price supported.
Share Price
On Monday, PNM Resources stock experienced a slight decrease in its opening day of trading. The stock opened at $42.4 and closed at $42.2, representing a drop of 0.4% from the prior closing price of $42.4. This slight decrease in the stock’s value is attributed to the overwhelming selling pressure that the company is currently facing.
Investors are concerned with the company’s ability to maintain its current market value in light of current market conditions and the uncertainty of future market trends. Consequently, investors have been hesitant to buy or hold onto the stock, leading to an influx of sell orders and a decrease in the stock’s value. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pnm Resources. More…
| Total Revenues | Net Income | Net Margin |
| 2.1k | 153.79 | 7.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pnm Resources. More…
| Operations | Investing | Financing |
| 552.39 | -1.05k | 500.55 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pnm Resources. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.05k | 7.75k | 26.18 |
Key Ratios Snapshot
Some of the financial key ratios for Pnm Resources are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.7% | 1.3% | 17.6% |
| FCF Margin | ROE | ROA |
| -22.1% | 10.2% | 2.3% |
Analysis – Pnm Resources Intrinsic Value Calculation
As a financial analysis platform, GoodWhale helps to assess PNM RESOURCES‘s outlook and value. After analyzing their financials, we have determined that the intrinsic value of PNM RESOURCES is around $52.1, which is calculated by our proprietary Valuation Line. Currently, PNM RESOURCES’s stock is trading at $42.2, which indicates that it is undervalued by 19.1%. This presents a potential buying opportunity for investors interested in PNM RESOURCES’s stock. More…
Peers
PNM Resources Inc is an electric utility company that serves New Mexico and Texas. The company has two main subsidiaries: Public Service Company of New Mexico and Texas-New Mexico Power Company. PNM Resources is the holding company for these two subsidiaries. The company has a market capitalization of $2.79 billion and its shares are traded on the New York Stock Exchange under the ticker symbol PNM. The company’s main competitors are Rosseti PJSC, Portland General Electric Co, and Centrais Eletricas Brasileiras SA.
– Rosseti PJSC ($NYSE:POR)
General Electric Co is an American multinational conglomerate corporation headquartered in Boston, Massachusetts. As of 2018, the company operates through the following segments: Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation, and Capital. The company has a market cap of 3.91B as of 2022 and a return on equity of 9.64%.
– Portland General Electric Co ($NYSE:EBR.B)
Centrais Eletricas Brasileiras SA is a Brazilian electric utility company. The company is involved in the generation, transmission, and distribution of electricity in Brazil. The company has a market cap of 23.13B as of 2022 and a Return on Equity of 9.75%. The company is headquartered in Rio de Janeiro, Brazil.
Summary
PNM Resources is a publicly traded energy company operating in the Southwest United States. The company provides electricity and natural gas services to over ten million customers in New Mexico and Texas. Despite having a strong balance sheet and consistent dividends, investors are concerned about the future of the company amid changing energy regulations and trends. PNM’s stock has been volatile recently, as many investors are selling off their shares.
Analysts believe that the company is well-positioned to weather the changing energy landscape, but that investors should be aware of the risks involved in investing in the stock. Long-term investors may find PNM’s stock an attractive opportunity for growth, while short-term traders may wish to watch the stock closely for potential buying opportunities.
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