$PNM Resources (PNM.US)$ In the past 5 years, revenue grew s...

In the past 5 years, revenue grew slowly in the first 4 years, and increased 16.9% in 2021; operating profit declined slowly in 2018 and increased 8% in 2021; net profit was very low from 2017 to 2019. It doubled in 2020, and increased by 13% in 2021. However, the rapid growth in 2021 does not seem to continue. In 2022/Q1, revenue increased by 21.8%, operating profit increased by 58%, but net profit declined by 9.4%.

The 3-year decline in operating profit from 2018 was due to the increase in operating expenses exceeding the increase in revenue. Main business costs increased a lot in 2021, but gross profit increased slightly due to rapid revenue growth offsetting costs. However, gross margin continued to decline in 2022/Q1, and the sale of securities lost another 26.57 million, so net profit declined.

The current 20x price-earnings ratio needs to be supported by better growth data.