TXNM ENERGY INC (TXNM) Stock Fundamental Analysis
NYSE:TXNM - New York Stock Exchange, Inc. - US69349H1077 - Common Stock - Currency: USD
Overall TXNM gets a fundamental rating of 3 out of 10. We evaluated TXNM against 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of TXNM while its profitability can be described as average. While showing a medium growth rate, TXNM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TXNM was profitable.
TXNM had a positive operating cash flow in the past year.
Each year in the past 5 years TXNM has been profitable.
Each year in the past 5 years TXNM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TXNM (2.16%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.50%, TXNM is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
TXNM's Return On Invested Capital of 3.64% is in line compared to the rest of the industry. TXNM outperforms 50.00% of its industry peers.
TXNM had an Average Return On Invested Capital over the past 3 years of 3.28%. This is in line with the industry average of 4.68%.
The 3 year average ROIC (3.28%) for TXNM is below the current ROIC(3.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 9.5% | ||
| ROIC | 3.64% |
ROA(3y)1.62%
ROA(5y)1.86%
ROE(3y)6.97%
ROE(5y)7.66%
ROIC(3y)3.28%
ROIC(5y)3.22%
1.3 Margins
TXNM has a Profit Margin (12.28%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TXNM has grown nicely.
Looking at the Operating Margin, with a value of 23.46%, TXNM is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
In the last couple of years the Operating Margin of TXNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.46% | ||
| PM (TTM) | 12.28% | ||
| GM | N/A |
OM growth 3Y10.52%
OM growth 5Y2.97%
PM growth 3Y3.74%
PM growth 5Y18.26%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TXNM is destroying value.
The number of shares outstanding for TXNM has been increased compared to 1 year ago.
TXNM has more shares outstanding than it did 5 years ago.
TXNM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.63, we must say that TXNM is in the distress zone and has some risk of bankruptcy.
TXNM has a Altman-Z score of 0.63. This is comparable to the rest of the industry: TXNM outperforms 43.48% of its industry peers.
A Debt/Equity ratio of 1.94 is on the high side and indicates that TXNM has dependencies on debt financing.
TXNM has a Debt to Equity ratio of 1.94. This is in the lower half of the industry: TXNM underperforms 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.61
WACC5.92%
2.3 Liquidity
TXNM has a Current Ratio of 0.28. This is a bad value and indicates that TXNM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.28, TXNM is doing worse than 80.43% of the companies in the same industry.
TXNM has a Quick Ratio of 0.28. This is a bad value and indicates that TXNM is not financially healthy enough and could expect problems in meeting its short term obligations.
TXNM has a worse Quick ratio (0.19) than 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The earnings per share for TXNM have decreased by -2.84% in the last year.
TXNM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.97% yearly.
TXNM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.65%.
Measured over the past years, TXNM shows a small growth in Revenue. The Revenue has been growing by 6.22% on average per year.
EPS 1Y (TTM)-2.84%
EPS 3Y3.8%
EPS 5Y4.97%
EPS Q2Q%66.67%
Revenue 1Y (TTM)1.65%
Revenue growth 3Y3.46%
Revenue growth 5Y6.22%
Sales Q2Q%15.74%
3.2 Future
TXNM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.71% yearly.
Based on estimates for the next years, TXNM will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y3.94%
EPS Next 2Y6.86%
EPS Next 3Y7.91%
EPS Next 5Y7.71%
Revenue Next Year1.2%
Revenue Next 2Y3.35%
Revenue Next 3Y4.09%
Revenue Next 5Y7.2%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.35 indicates a rather expensive valuation of TXNM.
The rest of the industry has a similar Price/Earnings ratio as TXNM.
When comparing the Price/Earnings ratio of TXNM to the average of the S&P500 Index (27.75), we can say TXNM is valued slightly cheaper.
TXNM is valuated rather expensively with a Price/Forward Earnings ratio of 18.62.
TXNM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.49. TXNM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 18.62 |
4.2 Price Multiples
65.22% of the companies in the same industry are more expensive than TXNM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TXNM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.92
PEG (5Y)3.89
EPS Next 2Y6.86%
EPS Next 3Y7.91%
5. Dividend
5.1 Amount
TXNM has a Yearly Dividend Yield of 3.04%.
TXNM's Dividend Yield is slightly below the industry average, which is at 3.45.
Compared to an average S&P500 Dividend Yield of 2.44, TXNM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of TXNM has a limited annual growth rate of 5.66%.
TXNM has been paying a dividend for over 5 years, so it has already some track record.
As TXNM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.66%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
57.95% of the earnings are spent on dividend by TXNM. This is a bit on the high side, but may be sustainable.
TXNM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.95%
EPS Next 2Y6.86%
EPS Next 3Y7.91%
53.02
-0.18 (-0.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners111.14%
Inst Owner ChangeN/A
Ins Owners1.08%
Ins Owner Change4.18%
Market Cap4.91B
Analysts82.67
Price Target56.89 (7.3%)
Short Float %5.01%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend1.53
Dividend Growth(5Y)5.66%
DP57.95%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.07%
Min EPS beat(2)-7.48%
Max EPS beat(2)-0.67%
EPS beat(4)2
Avg EPS beat(4)-0.12%
Min EPS beat(4)-7.48%
Max EPS beat(4)6.31%
EPS beat(8)5
Avg EPS beat(8)6.15%
EPS beat(12)8
Avg EPS beat(12)6.6%
EPS beat(16)12
Avg EPS beat(16)20.54%
Revenue beat(2)0
Avg Revenue beat(2)-9.82%
Min Revenue beat(2)-14.41%
Max Revenue beat(2)-5.23%
Revenue beat(4)0
Avg Revenue beat(4)-9.87%
Min Revenue beat(4)-19.34%
Max Revenue beat(4)-0.52%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.29%
PT rev (3m)9.69%
EPS NQ rev (1m)-30.01%
EPS NQ rev (3m)-52.52%
EPS NY rev (1m)0%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)-3.15%
Revenue NY rev (3m)-3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 18.62 | ||
| P/S | 2.49 | ||
| P/FCF | N/A | ||
| P/OCF | 9.67 | ||
| P/B | 1.93 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 11.13 |
EPS(TTM)2.74
EY5.17%
EPS(NY)2.85
Fwd EY5.37%
FCF(TTM)-7.97
FCFYN/A
OCF(TTM)5.48
OCFY10.34%
SpS21.27
BVpS27.5
TBVpS24.49
PEG (NY)4.92
PEG (5Y)3.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 9.5% | ||
| ROCE | 4.9% | ||
| ROIC | 3.64% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 3.74% | ||
| OM | 23.46% | ||
| PM (TTM) | 12.28% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)1.62%
ROA(5y)1.86%
ROE(3y)6.97%
ROE(5y)7.66%
ROIC(3y)3.28%
ROIC(5y)3.22%
ROICexc(3y)3.28%
ROICexc(5y)3.23%
ROICexgc(3y)3.38%
ROICexgc(5y)3.34%
ROCE(3y)4.33%
ROCE(5y)4.19%
ROICexcg growth 3Y6.04%
ROICexcg growth 5Y-0.01%
ROICexc growth 3Y6.28%
ROICexc growth 5Y0.31%
OM growth 3Y10.52%
OM growth 5Y2.97%
PM growth 3Y3.74%
PM growth 5Y18.26%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.58 | ||
| Cap/Depr | 294.8% | ||
| Cap/Sales | 63.26% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 57.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 0.63 |
F-Score6
WACC5.92%
ROIC/WACC0.61
Cap/Depr(3y)288.83%
Cap/Depr(5y)274.85%
Cap/Sales(3y)53.1%
Cap/Sales(5y)51.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.84%
EPS 3Y3.8%
EPS 5Y4.97%
EPS Q2Q%66.67%
EPS Next Y3.94%
EPS Next 2Y6.86%
EPS Next 3Y7.91%
EPS Next 5Y7.71%
Revenue 1Y (TTM)1.65%
Revenue growth 3Y3.46%
Revenue growth 5Y6.22%
Sales Q2Q%15.74%
Revenue Next Year1.2%
Revenue Next 2Y3.35%
Revenue Next 3Y4.09%
Revenue Next 5Y7.2%
EBIT growth 1Y52.5%
EBIT growth 3Y14.34%
EBIT growth 5Y9.38%
EBIT Next Year102.76%
EBIT Next 3Y34.43%
EBIT Next 5Y26.83%
FCF growth 1Y-40.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.8%
OCF growth 3Y-2.48%
OCF growth 5Y0.2%