TXNM ENERGY INC (TXNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TXNM - US69349H1077 - Common Stock
58.13 USD
-0.08 (-0.14%)
58.13 USD
0 (0%)
Taking everything into account, TXNM scores 2 out of 10 in our fundamental rating. TXNM was compared to 48 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 valied quite expensively at the moment, while 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.
In the past 5 years TXNM has always been profitable.
TXNM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TXNM (1.48%) is worse than 91.67% of its industry peers.
TXNM has a worse Return On Equity (5.16%) than 89.58% of its industry peers.
TXNM's Return On Invested Capital of 3.00% is on the low side compared to the rest of the industry. TXNM is outperformed by 79.17% 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 4.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 5.16% | ||
| ROIC | 3% |
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 8.39%. This is in the lower half of the industry: TXNM underperforms 79.17% of its industry peers.
In the last couple of years the Profit Margin of TXNM has grown nicely.
TXNM has a Operating Margin (19.97%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TXNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.97% | ||
| PM (TTM) | 8.39% | ||
| 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.
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.
TXNM has a worse debt/assets ratio than last year.
2.2 Solvency
TXNM has an Altman-Z score of 0.79. This is a bad value and indicates that TXNM is not financially healthy and even has some risk of bankruptcy.
TXNM's Altman-Z score of 0.79 is in line compared to the rest of the industry. TXNM outperforms 45.83% of its industry peers.
A Debt/Equity ratio of 1.46 is on the high side and indicates that TXNM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.46, TXNM is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.48
WACC6.21%
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 has a worse Current ratio (0.51) than 93.75% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.36, TXNM is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The earnings per share for TXNM have decreased strongly by -20.99% 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.
Looking at the last year, TXNM shows a quite strong growth in Revenue. The Revenue has grown by 10.65% in the last year.
TXNM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.22% yearly.
EPS 1Y (TTM)-20.99%
EPS 3Y3.8%
EPS 5Y4.97%
EPS Q2Q%-6.99%
Revenue 1Y (TTM)10.65%
Revenue growth 3Y3.46%
Revenue growth 5Y6.22%
Sales Q2Q%13.69%
3.2 Future
Based on estimates for the next years, TXNM will show a small growth in Earnings Per Share. The EPS will grow by 7.63% on average per year.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y0.35%
EPS Next 2Y4.87%
EPS Next 3Y6.65%
EPS Next 5Y7.63%
Revenue Next Year0.79%
Revenue Next 2Y2.99%
Revenue Next 3Y3.53%
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
The Price/Earnings ratio is 28.08, which means the current valuation is very expensive for TXNM.
87.50% of the companies in the same industry are cheaper than TXNM, based on the Price/Earnings ratio.
TXNM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
TXNM is valuated rather expensively with a Price/Forward Earnings ratio of 19.29.
TXNM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TXNM is more expensive than 70.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, TXNM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.08 | ||
| Fwd PE | 19.29 |
4.2 Price Multiples
68.75% 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 | 12.82 |
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)81.15
PEG (5Y)5.65
EPS Next 2Y4.87%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
TXNM has a Yearly Dividend Yield of 2.80%. Purely for dividend investing, there may be better candidates out there.
TXNM's Dividend Yield is slightly below the industry average, which is at 3.33.
TXNM's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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
TXNM pays out 87.01% 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.
DP87.01%
EPS Next 2Y4.87%
EPS Next 3Y6.65%
58.13
-0.08 (-0.14%)
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 Change0.3%
Market Cap6.33B
Revenue(TTM)2.11B
Net Income(TTM)176.92M
Analysts73.33
Price Target61.31 (5.47%)
Short Float %5.7%
Short Ratio7.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend1.53
Dividend Growth(5Y)5.66%
DP87.01%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.12%
Min EPS beat(2)-40.51%
Max EPS beat(2)-11.74%
EPS beat(4)0
Avg EPS beat(4)-16.07%
Min EPS beat(4)-40.51%
Max EPS beat(4)-4.56%
EPS beat(8)3
Avg EPS beat(8)-4.63%
EPS beat(12)5
Avg EPS beat(12)-1.31%
EPS beat(16)9
Avg EPS beat(16)3.49%
Revenue beat(2)2
Avg Revenue beat(2)4.44%
Min Revenue beat(2)2.76%
Max Revenue beat(2)6.11%
Revenue beat(4)3
Avg Revenue beat(4)0.71%
Min Revenue beat(4)-14.41%
Max Revenue beat(4)8.36%
Revenue beat(8)3
Avg Revenue beat(8)-5.96%
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)1.57%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)3.38%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-1.81%
Revenue NQ rev (1m)-11%
Revenue NQ rev (3m)-19.83%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.08 | ||
| Fwd PE | 19.29 | ||
| P/S | 3 | ||
| P/FCF | N/A | ||
| P/OCF | 10.82 | ||
| P/B | 1.85 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 12.82 |
EPS(TTM)2.07
EY3.56%
EPS(NY)3.01
Fwd EY5.18%
FCF(TTM)-5.9
FCFYN/A
OCF(TTM)5.37
OCFY9.25%
SpS19.37
BVpS31.47
TBVpS28.91
PEG (NY)81.15
PEG (5Y)5.65
Graham Number38.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 5.16% | ||
| ROCE | 3.9% | ||
| ROIC | 3% | ||
| ROICexc | 3% | ||
| ROICexgc | 3.08% | ||
| OM | 19.97% | ||
| PM (TTM) | 8.39% | ||
| 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-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 261.1% | ||
| Cap/Sales | 58.2% | ||
| Interest Coverage | 1.9 | ||
| Cash Conversion | 65.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 0.79 |
F-Score6
WACC6.21%
ROIC/WACC0.48
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)-20.99%
EPS 3Y3.8%
EPS 5Y4.97%
EPS Q2Q%-6.99%
EPS Next Y0.35%
EPS Next 2Y4.87%
EPS Next 3Y6.65%
EPS Next 5Y7.63%
Revenue 1Y (TTM)10.65%
Revenue growth 3Y3.46%
Revenue growth 5Y6.22%
Sales Q2Q%13.69%
Revenue Next Year0.79%
Revenue Next 2Y2.99%
Revenue Next 3Y3.53%
Revenue Next 5Y7.2%
EBIT growth 1Y3.47%
EBIT growth 3Y14.34%
EBIT growth 5Y9.38%
EBIT Next Year107.81%
EBIT Next 3Y33.36%
EBIT Next 5Y26.83%
FCF growth 1Y-38.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.98%
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 2 / 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 28.08 and the Price/Book (PB) ratio is 1.85.
Can you provide the financial health for TXNM stock?
The financial health rating of TXNM ENERGY INC (TXNM) is 0 / 10.