TXNM ENERGY INC (TXNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TXNM - US69349H1077 - Common Stock
59.26 USD
-0.04 (-0.07%)
TXNM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of TXNM while its profitability can be described as average. While showing a medium growth rate, TXNM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- TXNM had positive earnings in the past year.
- 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's Return On Assets of 1.48% is on the low side compared to the rest of the industry. TXNM is outperformed by 86.96% of its industry peers.
- With a Return On Equity value of 5.16%, TXNM is not doing good in the industry: 86.96% of the companies in the same industry are doing better.
- TXNM has a worse Return On Invested Capital (3.00%) than 76.09% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TXNM is in line with the industry average of 4.58%.
| 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
- With a Profit Margin value of 8.39%, TXNM is not doing good in the industry: 80.43% of the companies in the same industry are doing better.
- 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.
- TXNM's Operating Margin has improved in the last couple of years.
| 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.
- TXNM has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TXNM has more shares outstanding
- TXNM has a worse debt/assets ratio than last year.
2.2 Solvency
- TXNM has an Altman-Z score of 0.80. 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 0.80, TXNM is in line with its industry, outperforming 50.00% of the companies in the same industry.
- TXNM has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
- TXNM has a Debt to Equity ratio of 1.46. This is comparable to the rest of the industry: TXNM outperforms 56.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.47
WACC6.34%
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 91.30% of its industry peers.
- A Quick Ratio of 0.36 indicates that TXNM may have some problems paying its short term obligations.
- The Quick ratio of TXNM (0.36) is worse than 89.13% 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 -20.99%.
- 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 10.65%.
- The Revenue has been growing slightly by 6.22% on average over the past years.
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
- The Earnings Per Share is expected to grow by 7.63% on average over the next years.
- The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y2.38%
EPS Next 2Y5.35%
EPS Next 3Y7.13%
EPS Next 5Y7.63%
Revenue Next Year0.19%
Revenue Next 2Y2.9%
Revenue Next 3Y3.04%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 28.63 indicates a quite expensive valuation of TXNM.
- Based on the Price/Earnings ratio, TXNM is valued expensively inside the industry as 82.61% of the companies are valued cheaper.
- TXNM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 19.49, 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 67.39% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. TXNM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.63 | ||
| Fwd PE | 19.49 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TXNM indicates a slightly more expensive valuation: TXNM is more expensive than 67.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.95 |
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)12.02
PEG (5Y)5.76
EPS Next 2Y5.35%
EPS Next 3Y7.13%
5. Dividend
5.1 Amount
- TXNM has a Yearly Dividend Yield of 2.85%.
- TXNM's Dividend Yield is comparable with the industry average which is at 2.90.
- TXNM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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
- 87.01% 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.
DP87.01%
EPS Next 2Y5.35%
EPS Next 3Y7.13%
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 of TXNM ENERGY INC (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.
Can you provide the PE and PB ratios for TXNM stock?
The Price/Earnings (PE) ratio for TXNM ENERGY INC (TXNM) is 28.63 and the Price/Book (PB) ratio is 1.88.
How financially healthy is TXNM ENERGY INC?
The financial health rating of TXNM ENERGY INC (TXNM) is 0 / 10.