TXNM ENERGY INC (TXNM) Stock Fundamental Analysis
USA - NYSE:TXNM - US69349H1077 - Common Stock
56.865 USD
+0.04 (+0.06%)
We assign a fundamental rating of 3 out of 10 to TXNM. TXNM was compared to 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.
1. Profitability
1.1 Basic Checks
In the past year TXNM was profitable.
TXNM had a positive operating cash flow in the past year.
TXNM had positive earnings in each of the past 5 years.
TXNM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TXNM's Return On Assets of 1.52% is on the low side compared to the rest of the industry. TXNM is outperformed by 89.36% of its industry peers.
TXNM has a worse Return On Equity (5.58%) than 87.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.02%, TXNM is doing worse than 78.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TXNM is in line with the industry average of 4.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.52% | ||
| ROE | 5.58% | ||
| ROIC | 3.02% |
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
The Profit Margin of TXNM (8.73%) is worse than 76.60% of its industry peers.
In the last couple of years the Profit Margin of TXNM has grown nicely.
Looking at the Operating Margin, with a value of 20.49%, TXNM is in line with its industry, outperforming 53.19% 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 | 20.49% | ||
| PM (TTM) | 8.73% | ||
| 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
TXNM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TXNM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TXNM has been increased compared to 5 years ago.
TXNM has a worse debt/assets ratio than last year.
2.2 Solvency
TXNM has an Altman-Z score of 0.76. This is a bad value and indicates that TXNM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.76, TXNM is doing worse than 63.83% of the companies in the same industry.
A Debt/Equity ratio of 1.62 is on the high side and indicates that TXNM has dependencies on debt financing.
With a Debt to Equity ratio value of 1.62, TXNM is not doing good in the industry: 61.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.49
WACC6.1%
2.3 Liquidity
TXNM has a Current Ratio of 0.51. 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 0.51 is on the low side compared to the rest of the industry. TXNM is outperformed by 91.49% of its industry peers.
A Quick Ratio of 0.36 indicates that TXNM may have some problems paying its short term obligations.
With a Quick ratio value of 0.36, TXNM is not doing good in the industry: 91.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.36 |
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%.
Measured over the past 5 years, TXNM shows a small growth in Earnings Per Share. The EPS has been growing by 4.97% on average per year.
The Revenue has grown by 10.23% in the past year. This is quite good.
The Revenue has been growing slightly by 6.22% on average over the past years.
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
TXNM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.80% yearly.
TXNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.20% yearly.
EPS Next Y1.34%
EPS Next 2Y5.21%
EPS Next 3Y6.94%
EPS Next 5Y7.8%
Revenue Next Year0.83%
Revenue Next 2Y3.03%
Revenue Next 3Y3.46%
Revenue Next 5Y7.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.21 indicates a quite expensive valuation of TXNM.
Compared to the rest of the industry, the Price/Earnings ratio of TXNM indicates a rather expensive valuation: TXNM more expensive than 85.11% of the companies listed in the same industry.
TXNM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.75 indicates a rather expensive valuation of TXNM.
The rest of the industry has a similar Price/Forward Earnings ratio as TXNM.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, TXNM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 18.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXNM is valued a bit more expensive than 63.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TXNM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)19.63
PEG (5Y)5.27
EPS Next 2Y5.21%
EPS Next 3Y6.94%
5. Dividend
5.1 Amount
TXNM has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.23, TXNM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, TXNM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector 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
5.3 Sustainability
TXNM pays out 82.27% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TXNM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP82.27%
EPS Next 2Y5.21%
EPS Next 3Y6.94%
NYSE:TXNM (10/30/2025, 12:26:32 PM)
56.865
+0.04 (+0.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.78%
Inst Owner ChangeN/A
Ins Owners0.9%
Ins Owner Change2.29%
Market Cap5.99B
Revenue(TTM)2.03B
Net Income(TTM)177.41M
Analysts78.18
Price Target61.31 (7.82%)
Short Float %5.76%
Short Ratio6.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend1.53
Dividend Growth(5Y)5.66%
DP82.27%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.53%
Min EPS beat(2)-40.51%
Max EPS beat(2)-4.56%
EPS beat(4)0
Avg EPS beat(4)-13.3%
Min EPS beat(4)-40.51%
Max EPS beat(4)-0.67%
EPS beat(8)4
Avg EPS beat(8)-1.97%
EPS beat(12)6
Avg EPS beat(12)0.28%
EPS beat(16)10
Avg EPS beat(16)5.08%
Revenue beat(2)2
Avg Revenue beat(2)7.24%
Min Revenue beat(2)6.11%
Max Revenue beat(2)8.36%
Revenue beat(4)2
Avg Revenue beat(4)-1.29%
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)0.33%
PT rev (3m)0.33%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)0.41%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)1.17%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 18.75 | ||
| P/S | 2.95 | ||
| P/FCF | N/A | ||
| P/OCF | 12.4 | ||
| P/B | 1.88 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 12.89 |
EPS(TTM)2.17
EY3.82%
EPS(NY)3.03
Fwd EY5.33%
FCF(TTM)-7.5
FCFYN/A
OCF(TTM)4.59
OCFY8.07%
SpS19.28
BVpS30.2
TBVpS27.56
PEG (NY)19.63
PEG (5Y)5.27
Graham Number38.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.52% | ||
| ROE | 5.58% | ||
| ROCE | 3.94% | ||
| ROIC | 3.02% | ||
| ROICexc | 3.02% | ||
| ROICexgc | 3.1% | ||
| OM | 20.49% | ||
| PM (TTM) | 8.73% | ||
| 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%
ROICexgc growth 3Y6.04%
ROICexgc 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-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.93 | ||
| Cap/Depr | 281.93% | ||
| Cap/Sales | 62.72% | ||
| Interest Coverage | 1.71 | ||
| Cash Conversion | 55.68% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 0.76 |
F-Score7
WACC6.1%
ROIC/WACC0.49
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 Y1.34%
EPS Next 2Y5.21%
EPS Next 3Y6.94%
EPS Next 5Y7.8%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y3.46%
Revenue growth 5Y6.22%
Sales Q2Q%2.93%
Revenue Next Year0.83%
Revenue Next 2Y3.03%
Revenue Next 3Y3.46%
Revenue Next 5Y7.2%
EBIT growth 1Y39.31%
EBIT growth 3Y14.34%
EBIT growth 5Y9.38%
EBIT Next Year107.81%
EBIT Next 3Y33.36%
EBIT Next 5Y26.83%
FCF growth 1Y-106.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-18.32%
OCF growth 3Y-2.48%
OCF growth 5Y0.2%
TXNM ENERGY INC / TXNM FAQ
What is the fundamental rating for TXNM stock?
ChartMill assigns a fundamental rating of 3 / 10 to TXNM.
What is the valuation status for TXNM stock?
ChartMill assigns a valuation rating of 1 / 10 to TXNM ENERGY INC (TXNM). This can be considered as Overvalued.
How profitable is TXNM ENERGY INC (TXNM) stock?
TXNM ENERGY INC (TXNM) has a profitability rating of 4 / 10.
What are the PE and PB ratios of TXNM ENERGY INC (TXNM) stock?
The Price/Earnings (PE) ratio for TXNM ENERGY INC (TXNM) is 26.21 and the Price/Book (PB) ratio is 1.88.
Can you provide the financial health for TXNM stock?
The financial health rating of TXNM ENERGY INC (TXNM) is 0 / 10.