PNM Resources (PNM Resources) Gross Margin % : 51.21% (As of Dec. 2023)

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What is PNM Resources Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. PNM Resources's Gross Profit for the three months ended in Dec. 2023 was $211 Mil. PNM Resources's Revenue for the three months ended in Dec. 2023 was $412 Mil. Therefore, PNM Resources's Gross Margin % for the quarter that ended in Dec. 2023 was 51.21%.

Warning Sign:

PNM Resources Inc gross margin has been in long-term decline. The average rate of decline per year is -4.1%.

The historical rank and industry rank for PNM Resources's Gross Margin % or its related term are showing as below:

PNM' s Gross Margin % Range Over the Past 10 Years
Min: 49.53 Med: 58.52 Max: 62.29
Current: 53.91

During the past 13 years, the highest Gross Margin % of PNM Resources was 62.29%. The lowest was 49.53%. And the median was 58.52%.

PNM's Gross Margin % is ranked better than
85.69% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.6 vs PNM: 53.91

PNM Resources had a gross margin of 51.21% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for PNM Resources was -4.10% per year.

PNM Resources Gross Margin % Historical Data

The historical data trend for PNM Resources's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PNM Resources Gross Margin % Chart

PNM Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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61.90

61.57

55.68

49.53

53.91

PNM Resources Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															43.31	51.47	58.49	54.39	51.21

Competitive Comparison of PNM Resources's Gross Margin %

For the Utilities - Regulated Electric subindustry, PNM Resources's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

PNM Resources's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, PNM Resources's Gross Margin % distribution charts can be found below:

* The bar in red indicates where PNM Resources's Gross Margin % falls into.

PNM Resources Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

PNM Resources's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	1045.3	/	1939.198
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1939.198 - 893.871)	/	1939.198
	=	53.91 %

PNM Resources's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	211	/	412.114
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(412.114 - 201.075)	/	412.114
	=	51.21 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

PNM Resources (NYSE:PNM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

PNM Resources had a gross margin of 51.21% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

PNM Resources Gross Margin % Related Terms

Thank you for viewing the detailed overview of PNM Resources's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

PNM Resources (PNM Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » PNM Resources Inc (NYSE:PNM) » Definitions » Gross Margin %

Comparable Companies

MGEE POR IDA HE GNE VIA SUME OGE PNW EVRG NEE SO DUK LSE:NG. AEP PCG D BOM:532555 EXC PEG

Traded in Other Exchanges

98P:Germany

Address

414 Silver Avenue SW, Albuquerque, NM, USA, 87102-3289

Website

https://www.pnmresources.com

PNM Resources Inc, or PNMR, is a holding company that owns regulated utilities companies providing electricity and electric services. PNMR segments its operations by its two subsidiaries, PNM and TNMP. PNM provides electric generation, transmission, and distribution services mainly to areas of New Mexico. While PNM uses a variety of fuel sources across its power plant portfolio, its coal and gas-fueled sites produce most of the energy. TNMP owns and operates transmission and distribution services primarily in small to medium-sized communities in Texas. Both subsidiaries generate revenue for PNMR through the sale of electricity and transmission service fees fairly evenly split between residential and commercial customers. PNM generates the vast majority of PNMR's total revenue.

Executives

Elisabeth A Eden	officer: SVP, CFO & Treasurer	414 SILVER AVE SW, MS1295, ALBUQUERQUE NM 87102
Henry E Monroy	officer: VP & Corporate Controller	414 SILVER AVENUE SW, MS1015, ALBUQUERQUE NM 87102-3289
Charles N Eldred	officer: Chief Financial Officer	414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289
Joseph Don Tarry	officer: VP and Corporate Controller	414 SILVER AVE SW MS 1205, ALBUQUERQUE NM 87102-3289
Patrick V Apodaca	officer: SR VP, GEN COUNSEL & SECY	414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289
Ronald N. Darnell	officer: VICE PRESIDENT, REGULATORY AFF	414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289
Vicky A Bailey	director	2099 PENNSYLVANIA AVNUE, NW, SUITE 1000, WASHINGTON DC 20006
James Alton Hughes	director	350 W WASHINGTON STREET, SUITE 600, TEMPE AZ 85281
Norman P. Becker	director	3900 SINGER BOULEVARD N.E., ALBUQUERQUE NM 87109
Chris M Olson	officer: VP, Utility Operations	414 SILVER AVENUE SW, MS 1255, ALBUQUERQUE NM 87102-3289
Adelmo E Archuleta	director	414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289
Ronald E Talbot	officer: SR VP, CHIEF OPERATING OFFICER	414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289
Bruce W Wilkinson	director	1333 WEST LOOP SOUTH, STE 1700, HOUSTON TX 77027
Sidney M. Gutierrez	director	414 SILVER AVE SW, MS 1275, ALBUQUERQUE NM 87102-3289
Joan B Woodard	director	414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289