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TXNM ENERGY INC (TXNM) Stock Fundamental Analysis

NYSE:TXNM - New York Stock Exchange, Inc. - US69349H1077 - Common Stock - Currency: USD

57.06  0 (0%)

Fundamental Rating

2

TXNM gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of TXNM while its profitability can be described as average. TXNM is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

TXNM had positive earnings in the past year.
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.
TXNM Yearly Net Income VS EBIT VS OCF VS FCFTXNM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M -600M

1.2 Ratios

TXNM's Return On Assets of 1.79% is on the low side compared to the rest of the industry. TXNM is outperformed by 87.23% of its industry peers.
Looking at the Return On Equity, with a value of 8.10%, TXNM is doing worse than 70.21% of the companies in the same industry.
TXNM has a worse Return On Invested Capital (3.45%) than 76.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXNM is significantly below the industry average of 38.54%.
The last Return On Invested Capital (3.45%) for TXNM is above the 3 year average (3.28%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.79%
ROE 8.1%
ROIC 3.45%
ROA(3y)1.62%
ROA(5y)1.86%
ROE(3y)6.97%
ROE(5y)7.66%
ROIC(3y)3.28%
ROIC(5y)3.22%
TXNM Yearly ROA, ROE, ROICTXNM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

1.3 Margins

TXNM's Profit Margin of 10.11% is on the low side compared to the rest of the industry. TXNM is outperformed by 70.21% of its industry peers.
TXNM's Profit Margin has improved in the last couple of years.
The Operating Margin of TXNM (22.27%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TXNM has grown nicely.
Industry RankSector Rank
OM 22.27%
PM (TTM) 10.11%
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
TXNM Yearly Profit, Operating, Gross MarginsTXNM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

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0

2. Health

2.1 Basic Checks

TXNM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TXNM has more shares outstanding
The number of shares outstanding for TXNM has been increased compared to 5 years ago.
Compared to 1 year ago, TXNM has a worse debt to assets ratio.
TXNM Yearly Shares OutstandingTXNM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
TXNM Yearly Total Debt VS Total AssetsTXNM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

Based on the Altman-Z score of 0.64, we must say that TXNM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TXNM (0.64) is worse than 68.09% of its industry peers.
A Debt/Equity ratio of 2.06 is on the high side and indicates that TXNM has dependencies on debt financing.
TXNM has a Debt to Equity ratio of 2.06. This is amonst the worse of the industry: TXNM underperforms 89.36% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.06
Debt/FCF N/A
Altman-Z 0.64
ROIC/WACC0.57
WACC6.04%
TXNM Yearly LT Debt VS Equity VS FCFTXNM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

2.3 Liquidity

TXNM has a Current Ratio of 0.29. 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's Current ratio of 0.29 is on the low side compared to the rest of the industry. TXNM is outperformed by 95.74% of its industry peers.
A Quick Ratio of 0.19 indicates that TXNM may have some problems paying its short term obligations.
TXNM has a worse Quick ratio (0.19) than 95.74% of its industry peers.
Industry RankSector Rank
Current Ratio 0.29
Quick Ratio 0.19
TXNM Yearly Current Assets VS Current LiabilitesTXNM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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4

3. Growth

3.1 Past

TXNM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.51%.
The Earnings Per Share has been growing slightly by 4.97% on average over the past years.
TXNM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.23%.
TXNM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.22% yearly.
EPS 1Y (TTM)-20.51%
EPS 3Y3.8%
EPS 5Y4.97%
EPS Q2Q%-58.33%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y3.46%
Revenue growth 5Y6.22%
Sales Q2Q%2.93%

3.2 Future

The Earnings Per Share is expected to grow by 7.80% on average over the next years.
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 Y2.2%
EPS Next 2Y5.84%
EPS Next 3Y7.36%
EPS Next 5Y7.8%
Revenue Next Year0.97%
Revenue Next 2Y3.01%
Revenue Next 3Y3.23%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
TXNM Yearly Revenue VS EstimatesTXNM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B
TXNM Yearly EPS VS EstimatesTXNM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 26.29 indicates a quite expensive valuation of TXNM.
TXNM's Price/Earnings ratio is rather expensive when compared to the industry. TXNM is more expensive than 82.98% of the companies in the same industry.
When comparing the Price/Earnings ratio of TXNM to the average of the S&P500 Index (26.99), we can say TXNM is valued inline with the index average.
The Price/Forward Earnings ratio is 18.59, which indicates a rather expensive current valuation of TXNM.
63.83% of the companies in the same industry are cheaper than TXNM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.36. TXNM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 26.29
Fwd PE 18.59
TXNM Price Earnings VS Forward Price EarningsTXNM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

TXNM's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.95
TXNM Per share dataTXNM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)11.97
PEG (5Y)5.29
EPS Next 2Y5.84%
EPS Next 3Y7.36%

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5. Dividend

5.1 Amount

TXNM has a Yearly Dividend Yield of 2.87%.
Compared to an average industry Dividend Yield of 3.59, TXNM is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, TXNM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.87%

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.
TXNM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)5.66%
Div Incr Years5
Div Non Decr Years5
TXNM Yearly Dividends per shareTXNM Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

70.21% of the earnings are spent on dividend by TXNM. This is not a sustainable payout ratio.
The dividend of TXNM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP70.21%
EPS Next 2Y5.84%
EPS Next 3Y7.36%
TXNM Yearly Income VS Free CF VS DividendTXNM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M -600M
TXNM Dividend Payout.TXNM Dividend Payout, showing the Payout Ratio.TXNM Dividend Payout.PayoutRetained Earnings

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TXNM ENERGY INC

NYSE:TXNM (8/7/2025, 10:10:25 AM)

57.06

0 (0%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)08-01 2025-08-01/bmo
Earnings (Next)10-30 2025-10-30/bmo
Inst Owners106.61%
Inst Owner ChangeN/A
Ins Owners1.08%
Ins Owner Change5.48%
Market Cap5.29B
Analysts78.33
Price Target60.36 (5.78%)
Short Float %6.19%
Short Ratio2.99
Dividend
Industry RankSector Rank
Dividend Yield 2.87%
Yearly Dividend1.53
Dividend Growth(5Y)5.66%
DP70.21%
Div Incr Years5
Div Non Decr Years5
Ex-Date08-08 2025-08-08 (0.4075)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.02%
Min EPS beat(2)-7.48%
Max EPS beat(2)-4.56%
EPS beat(4)1
Avg EPS beat(4)-1.6%
Min EPS beat(4)-7.48%
Max EPS beat(4)6.31%
EPS beat(8)4
Avg EPS beat(8)2.62%
EPS beat(12)7
Avg EPS beat(12)4.04%
EPS beat(16)11
Avg EPS beat(16)16.74%
Revenue beat(2)1
Avg Revenue beat(2)-3.03%
Min Revenue beat(2)-14.41%
Max Revenue beat(2)8.36%
Revenue beat(4)1
Avg Revenue beat(4)-2.95%
Min Revenue beat(4)-14.41%
Max Revenue beat(4)8.36%
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)0%
PT rev (3m)6.1%
EPS NQ rev (1m)-2.49%
EPS NQ rev (3m)-17.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.67%
Revenue NQ rev (1m)1.48%
Revenue NQ rev (3m)-7.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.23%
Valuation
Industry RankSector Rank
PE 26.29
Fwd PE 18.59
P/S 2.62
P/FCF N/A
P/OCF 9.5
P/B 2.1
P/tB 2.36
EV/EBITDA 11.95
EPS(TTM)2.17
EY3.8%
EPS(NY)3.07
Fwd EY5.38%
FCF(TTM)-8.03
FCFYN/A
OCF(TTM)6.01
OCFY10.53%
SpS21.77
BVpS27.15
TBVpS24.15
PEG (NY)11.97
PEG (5Y)5.29
Profitability
Industry RankSector Rank
ROA 1.79%
ROE 8.1%
ROCE 4.63%
ROIC 3.45%
ROICexc 3.45%
ROICexgc 3.55%
OM 22.27%
PM (TTM) 10.11%
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 RankSector Rank
Debt/Equity 2.06
Debt/FCF N/A
Debt/EBITDA 5.88
Cap/Depr 299.46%
Cap/Sales 64.48%
Interest Coverage 2.13
Cash Conversion 62.99%
Profit Quality N/A
Current Ratio 0.29
Quick Ratio 0.19
Altman-Z 0.64
F-Score6
WACC6.04%
ROIC/WACC0.57
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)-20.51%
EPS 3Y3.8%
EPS 5Y4.97%
EPS Q2Q%-58.33%
EPS Next Y2.2%
EPS Next 2Y5.84%
EPS Next 3Y7.36%
EPS Next 5Y7.8%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y3.46%
Revenue growth 5Y6.22%
Sales Q2Q%2.93%
Revenue Next Year0.97%
Revenue Next 2Y3.01%
Revenue Next 3Y3.23%
Revenue Next 5Y7.2%
EBIT growth 1Y55.35%
EBIT growth 3Y14.34%
EBIT growth 5Y9.38%
EBIT Next Year107.81%
EBIT Next 3Y33.68%
EBIT Next 5Y26.83%
FCF growth 1Y-93.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-4.39%
OCF growth 3Y-2.48%
OCF growth 5Y0.2%