TXNM ENERGY INC (TXNM) Stock Fundamental Analysis
NYSE:TXNM - US69349H1077 - Common Stock
56.96 USD
+0.09 (+0.16%)
TXNM gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. TXNM has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year TXNM had a positive cash flow from operations.
TXNM had positive earnings in each of the past 5 years.
In the past 5 years TXNM always reported a positive cash flow from operatings.
1.2 Ratios
TXNM has a worse Return On Assets (1.52%) than 89.36% of its industry peers.
With a Return On Equity value of 5.58%, TXNM is not doing good in the industry: 87.23% of the companies in the same industry are doing better.
TXNM has a Return On Invested Capital of 3.02%. This is amonst the worse of the industry: TXNM underperforms 80.85% 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 5.06%.
| 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
TXNM has a Profit Margin of 8.73%. This is in the lower half of the industry: TXNM underperforms 76.60% of its industry peers.
In the last couple of years the Profit Margin of TXNM has grown nicely.
TXNM has a Operating Margin (20.49%) which is in line with its industry peers.
TXNM's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TXNM is destroying value.
TXNM has more shares outstanding than it did 1 year ago.
TXNM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TXNM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that TXNM is in the distress zone and has some risk of bankruptcy.
TXNM has a Altman-Z score of 0.76. This is comparable to the rest of the industry: TXNM outperforms 42.55% of its industry peers.
TXNM has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
TXNM's Debt to Equity ratio of 1.62 is on the low side compared to the rest of the industry. TXNM is outperformed by 61.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.49
WACC6.14%
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.
With a Current ratio value of 0.51, TXNM is not doing good in the industry: 91.49% of the companies in the same industry are doing better.
TXNM has a Quick 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 has a Quick ratio of 0.36. This is amonst the worse of the industry: TXNM underperforms 91.49% of its industry peers.
| 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.
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
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 Y2.2%
EPS Next 2Y5.84%
EPS Next 3Y7.36%
EPS Next 5Y7.8%
Revenue Next Year1.02%
Revenue Next 2Y3.06%
Revenue Next 3Y3.24%
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.
4. Valuation
4.1 Price/Earnings Ratio
TXNM is valuated quite expensively with a Price/Earnings ratio of 26.25.
Based on the Price/Earnings ratio, TXNM is valued more expensive than 85.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of TXNM to the average of the S&P500 Index (27.03), we can say TXNM is valued inline with the index average.
A Price/Forward Earnings ratio of 18.56 indicates a rather expensive valuation of TXNM.
70.21% of the companies in the same industry are cheaper than TXNM, based on the Price/Forward Earnings ratio.
TXNM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
65.96% of the companies in the same industry are cheaper than TXNM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.9 |
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)11.95
PEG (5Y)5.28
EPS Next 2Y5.84%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
TXNM has a Yearly Dividend Yield of 2.87%.
Compared to an average industry Dividend Yield of 4.09, TXNM is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.45, TXNM has a dividend comparable with the average S&P500 company.
| 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.
TXNM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.27%
EPS Next 2Y5.84%
EPS Next 3Y7.36%
NYSE:TXNM (9/11/2025, 10:10:46 AM)
56.96
+0.09 (+0.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners106.43%
Inst Owner ChangeN/A
Ins Owners1.02%
Ins Owner Change2%
Market Cap6.00B
Analysts78.33
Price Target60.36 (5.97%)
Short Float %5.65%
Short Ratio4.28
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%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 18.56 | ||
| P/S | 2.95 | ||
| P/FCF | N/A | ||
| P/OCF | 12.42 | ||
| P/B | 1.89 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 12.9 |
EPS(TTM)2.17
EY3.81%
EPS(NY)3.07
Fwd EY5.39%
FCF(TTM)-7.5
FCFYN/A
OCF(TTM)4.59
OCFY8.05%
SpS19.28
BVpS30.2
TBVpS27.56
PEG (NY)11.95
PEG (5Y)5.28
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%
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-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
WACC6.14%
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 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 Year1.02%
Revenue Next 2Y3.06%
Revenue Next 3Y3.24%
Revenue Next 5Y7.2%
EBIT growth 1Y39.31%
EBIT growth 3Y14.34%
EBIT growth 5Y9.38%
EBIT Next Year107.81%
EBIT Next 3Y33.68%
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%