TXNM ENERGY INC (TXNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TXNM - US69349H1077 - Common Stock
58.93 USD
+0.18 (+0.31%)
58.93 USD
0 (0%)
Overall TXNM gets a fundamental rating of 3 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 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.
In the past year TXNM had a positive cash flow from operations.
TXNM had positive earnings in each of the past 5 years.
Each year in the past 5 years TXNM had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.48%, TXNM is not doing good in the industry: 89.36% of the companies in the same industry are doing better.
TXNM's Return On Equity of 5.16% is on the low side compared to the rest of the industry. TXNM is outperformed by 89.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.00%, TXNM is doing worse than 78.72% of the companies in the same industry.
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 5.04%.
| 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 amonst the worse of the industry: TXNM underperforms 80.85% of its industry peers.
TXNM's Profit Margin has improved in the last couple of years.
TXNM's Operating Margin of 19.97% is in line compared to the rest of the industry. TXNM outperforms 48.94% of its industry peers.
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.
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.
Compared to 1 year ago, TXNM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that TXNM is in the distress zone and has some risk of bankruptcy.
TXNM has a Altman-Z score (0.79) which is in line with its industry peers.
A Debt/Equity ratio of 1.46 is on the high side and indicates that TXNM has dependencies on debt financing.
TXNM has a Debt to Equity ratio (1.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.48
WACC6.29%
2.3 Liquidity
A Current Ratio of 0.51 indicates that TXNM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.51, TXNM is doing worse than 93.62% of the companies in the same industry.
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 worse Quick ratio (0.36) than 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 -20.99%.
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.
Looking at the last year, TXNM shows a quite strong growth in Revenue. The Revenue has grown by 10.65% in the last year.
Measured over the past years, TXNM shows a small growth in Revenue. The Revenue has been growing by 6.22% on average per year.
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.
Based on estimates for the next years, TXNM will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y1.89%
EPS Next 2Y4.86%
EPS Next 3Y7.13%
EPS Next 5Y7.63%
Revenue Next Year1.53%
Revenue Next 2Y2.94%
Revenue Next 3Y3.68%
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
TXNM is valuated quite expensively with a Price/Earnings ratio of 28.47.
TXNM's Price/Earnings ratio is rather expensive when compared to the industry. TXNM is more expensive than 85.11% 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 26.61, which is the current average of the S&P500 Index.
TXNM is valuated rather expensively with a Price/Forward Earnings ratio of 19.56.
72.34% of the companies in the same industry are cheaper than TXNM, based on the Price/Forward Earnings ratio.
TXNM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.47 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
72.34% 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 TXNM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)15.08
PEG (5Y)5.73
EPS Next 2Y4.86%
EPS Next 3Y7.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.87%, TXNM has a reasonable but not impressive dividend return.
TXNM's Dividend Yield is comparable with the industry average which is at 2.95.
TXNM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| 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
87.01% 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.
DP87.01%
EPS Next 2Y4.86%
EPS Next 3Y7.13%
58.93
+0.18 (+0.31%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners92.45%
Inst Owner ChangeN/A
Ins Owners0.87%
Ins Owner Change2.96%
Market Cap6.42B
Revenue(TTM)2.11B
Net Income(TTM)176.92M
Analysts73.33
Price Target61.46 (4.29%)
Short Float %5.7%
Short Ratio7.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)0.24%
PT rev (3m)1.81%
EPS NQ rev (1m)-1.51%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)1.54%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)12.36%
Revenue NQ rev (3m)-9.91%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.47 | ||
| Fwd PE | 19.56 | ||
| P/S | 3.04 | ||
| P/FCF | N/A | ||
| P/OCF | 10.96 | ||
| P/B | 1.87 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 12.9 |
EPS(TTM)2.07
EY3.51%
EPS(NY)3.01
Fwd EY5.11%
FCF(TTM)-5.9
FCFYN/A
OCF(TTM)5.37
OCFY9.12%
SpS19.37
BVpS31.47
TBVpS28.91
PEG (NY)15.08
PEG (5Y)5.73
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
WACC6.29%
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 Y1.89%
EPS Next 2Y4.86%
EPS Next 3Y7.13%
EPS Next 5Y7.63%
Revenue 1Y (TTM)10.65%
Revenue growth 3Y3.46%
Revenue growth 5Y6.22%
Sales Q2Q%13.69%
Revenue Next Year1.53%
Revenue Next 2Y2.94%
Revenue Next 3Y3.68%
Revenue Next 5Y7.2%
EBIT growth 1Y3.47%
EBIT growth 3Y14.34%
EBIT growth 5Y9.38%
EBIT Next Year104.35%
EBIT Next 3Y33.12%
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 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 28.47 and the Price/Book (PB) ratio is 1.87.
Can you provide the financial health for TXNM stock?
The financial health rating of TXNM ENERGY INC (TXNM) is 0 / 10.