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TXNM ENERGY INC (TXNM) Stock Fundamental Analysis

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

56.39  +0.12 (+0.21%)

After market: 56.39 0 (0%)

Fundamental Rating

2

Overall TXNM gets a fundamental rating of 2 out of 10. We evaluated TXNM against 47 industry peers in the Electric Utilities industry. While TXNM is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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.
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

The Return On Assets of TXNM (1.79%) is worse than 87.23% of its industry peers.
With a Return On Equity value of 8.10%, TXNM is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
The Return On Invested Capital of TXNM (3.45%) is worse than 76.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 has a worse Profit Margin (10.11%) than 70.21% of its industry peers.
TXNM's Profit Margin has improved in the last couple of years.
TXNM has a Operating Margin (22.27%) which 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

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.
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.
TXNM's Altman-Z score of 0.64 is on the low side compared to the rest of the industry. TXNM is outperformed by 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/WACC0.42
WACC8.13%
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

A Current Ratio of 0.29 indicates that TXNM may have some problems paying its short term obligations.
TXNM has a worse Current ratio (0.29) than 95.74% of its industry peers.
TXNM has a Quick 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 Quick ratio of 0.19 is on the low side compared to the rest of the industry. TXNM is outperformed by 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 slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.97%.
TXNM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.97% yearly.
The Revenue has grown by 10.10% 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)-5.97%
EPS 3Y3.8%
EPS 5Y4.97%
EPS Q2Q%-53.66%
Revenue 1Y (TTM)10.1%
Revenue growth 3Y3.46%
Revenue growth 5Y6.22%
Sales Q2Q%10.51%

3.2 Future

The Earnings Per Share is expected to grow by 7.80% on average over the next years.
TXNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.20% yearly.
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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
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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1

4. Valuation

4.1 Price/Earnings Ratio

TXNM is valuated rather expensively with a Price/Earnings ratio of 22.38.
TXNM's Price/Earnings ratio is rather expensive when compared to the industry. TXNM is more expensive than 80.85% of the companies in the same industry.
TXNM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.37, TXNM is valued on the expensive side.
TXNM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TXNM is more expensive than 72.34% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.43, TXNM is valued at the same level.
Industry RankSector Rank
PE 22.38
Fwd PE 18.37
TXNM Price Earnings VS Forward Price EarningsTXNM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

TXNM's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.88
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)10.19
PEG (5Y)4.5
EPS Next 2Y5.84%
EPS Next 3Y7.36%

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4

5. Dividend

5.1 Amount

TXNM has a Yearly Dividend Yield of 2.88%.
TXNM's Dividend Yield is slightly below the industry average, which is at 3.70.
Compared to an average S&P500 Dividend Yield of 2.43, TXNM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.88%

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
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.
TXNM's earnings are growing more than its dividend. This makes the dividend growth 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 (6/26/2025, 8:04:00 PM)

After market: 56.39 0 (0%)

56.39

+0.12 (+0.21%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)05-09 2025-05-09/bmo
Earnings (Next)07-29 2025-07-29/bmo
Inst Owners106.61%
Inst Owner ChangeN/A
Ins Owners1.08%
Ins Owner Change5.48%
Market Cap5.23B
Analysts78.33
Price Target60.36 (7.04%)
Short Float %5.95%
Short Ratio3.29
Dividend
Industry RankSector Rank
Dividend Yield 2.88%
Yearly Dividend1.53
Dividend Growth(5Y)5.66%
DP70.21%
Div Incr Years5
Div Non Decr Years5
Ex-Date04-25 2025-04-25 (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)6.1%
PT rev (3m)9.59%
EPS NQ rev (1m)3.94%
EPS NQ rev (3m)-16.95%
EPS NY rev (1m)-1.6%
EPS NY rev (3m)-1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.11%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-3.37%
Valuation
Industry RankSector Rank
PE 22.38
Fwd PE 18.37
P/S 2.59
P/FCF N/A
P/OCF 9.39
P/B 2.08
P/tB 2.34
EV/EBITDA 11.88
EPS(TTM)2.52
EY4.47%
EPS(NY)3.07
Fwd EY5.44%
FCF(TTM)-8.03
FCFYN/A
OCF(TTM)6.01
OCFY10.65%
SpS21.77
BVpS27.15
TBVpS24.15
PEG (NY)10.19
PEG (5Y)4.5
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
WACC8.13%
ROIC/WACC0.42
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)-5.97%
EPS 3Y3.8%
EPS 5Y4.97%
EPS Q2Q%-53.66%
EPS Next Y2.2%
EPS Next 2Y5.84%
EPS Next 3Y7.36%
EPS Next 5Y7.8%
Revenue 1Y (TTM)10.1%
Revenue growth 3Y3.46%
Revenue growth 5Y6.22%
Sales Q2Q%10.51%
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 Year102.05%
EBIT Next 3Y33.34%
EBIT Next 5Y26.5%
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%