TXNM ENERGY INC (TXNM)
US69349H1077 - Common Stock
We assign a fundamental rating of 2 out of 10 to TXNM. TXNM was compared to 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 valued expensive and it does not seem to be growing.
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.
Each year in the past 5 years TXNM has been profitable.
Each year in the past 5 years TXNM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TXNM (1.63%) is worse than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.13%, TXNM is doing worse than 71.11% of the companies in the same industry.
The Return On Invested Capital of TXNM (3.59%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TXNM is in line with the industry average of 4.67%.
The last Return On Invested Capital (3.59%) for TXNM is above the 3 year average (3.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 7.13% | ||
| ROIC | 3.59% |
ROA(3y)1.65%
ROA(5y)1.64%
ROE(3y)6.8%
ROE(5y)6.67%
ROIC(3y)3.42%
ROIC(5y)3.56%
1.3 Margins
The Profit Margin of TXNM (9.24%) is worse than 73.33% of its industry peers.
In the last couple of years the Profit Margin of TXNM has declined.
TXNM has a better Operating Margin (21.35%) than 62.22% of its industry peers.
TXNM's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.35% | ||
| PM (TTM) | 9.24% | ||
| GM | N/A |
OM growth 3Y-5.96%
OM growth 5Y-5.73%
PM growth 3Y-26.37%
PM growth 5Y-5.34%
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.
TXNM has more shares outstanding than it did 5 years ago.
TXNM has a worse debt/assets ratio than last year.
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 has a worse Altman-Z score (0.64) than 71.11% of its industry peers.
TXNM has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
TXNM has a Debt to Equity ratio of 2.02. This is amonst the worse of the industry: TXNM underperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.64 |
ROIC/WACC0.6
WACC6.01%
2.3 Liquidity
TXNM has a Current Ratio of 0.36. This is a bad value and indicates that TXNM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TXNM (0.36) is worse than 95.56% of its industry peers.
TXNM has a Quick Ratio of 0.36. 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 0.27. This is amonst the worse of the industry: TXNM underperforms 95.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
TXNM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.09%.
Measured over the past 5 years, TXNM shows a small growth in Earnings Per Share. The EPS has been growing by 7.11% on average per year.
Looking at the last year, TXNM shows a decrease in Revenue. The Revenue has decreased by -9.35% in the last year.
Measured over the past years, TXNM shows a small growth in Revenue. The Revenue has been growing by 6.18% on average per year.
EPS 1Y (TTM)-6.09%
EPS 3Y7.34%
EPS 5Y7.11%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y8.39%
Revenue growth 5Y6.18%
Sales Q2Q%12.53%
3.2 Future
TXNM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.83% yearly.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y-1.4%
EPS Next 2Y0.38%
EPS Next 3Y2.97%
EPS Next 5Y4.83%
Revenue Next Year0.47%
Revenue Next 2Y2.24%
Revenue Next 3Y3.12%
Revenue Next 5Y4.85%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.63, which indicates a rather expensive current valuation of TXNM.
TXNM's Price/Earnings ratio is a bit more expensive when compared to the industry. TXNM is more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. TXNM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.18, TXNM is valued on the expensive side.
TXNM's Price/Forward Earnings ratio is in line with the industry average.
TXNM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 17.18 |
4.2 Price Multiples
TXNM's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.62
EPS Next 2Y0.38%
EPS Next 3Y2.97%
5. Dividend
5.1 Amount
TXNM has a Yearly Dividend Yield of 3.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.68, TXNM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, TXNM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
The dividend of TXNM is nicely growing with an annual growth rate of 6.18%!
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)6.18%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
TXNM pays out 77.71% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TXNM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP77.71%
EPS Next 2Y0.38%
EPS Next 3Y2.97%
TXNM ENERGY INC
NYSE:TXNM (12/24/2024, 7:42:50 PM)
After market: 48.81 0 (0%)48.81
+0.58 (+1.2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.97%
Inst Owner ChangeN/A
Ins Owners1.08%
Ins Owner Change2.71%
Market Cap4.40B
Analysts78.75
Price Target50.26 (2.97%)
Short Float %6.48%
Short Ratio7.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Dividend Growth(5Y)6.18%
DP77.71%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.82%
Min EPS beat(2)-0.67%
Max EPS beat(2)6.31%
EPS beat(4)3
Avg EPS beat(4)6.81%
Min EPS beat(4)-0.67%
Max EPS beat(4)20.25%
EPS beat(8)5
Avg EPS beat(8)6.08%
EPS beat(12)9
Avg EPS beat(12)10.01%
EPS beat(16)12
Avg EPS beat(16)20.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.87%
Min Revenue beat(2)-5.23%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-12.62%
Min Revenue beat(4)-25.39%
Max Revenue beat(4)-0.52%
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)5.34%
PT rev (3m)N/A
EPS NQ rev (1m)-4.16%
EPS NQ rev (3m)8.52%
EPS NY rev (1m)0.5%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)-10.93%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 17.18 | ||
| P/S | 2.31 | ||
| P/FCF | N/A | ||
| P/OCF | 9.02 | ||
| P/B | 1.78 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 11.5 |
EPS(TTM)2.62
EY5.37%
EPS(NY)2.84
Fwd EY5.82%
FCF(TTM)-7.6
FCFYN/A
OCF(TTM)5.41
OCFY11.09%
SpS21.13
BVpS27.4
TBVpS24.32
PEG (NY)N/A
PEG (5Y)2.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 7.13% | ||
| ROCE | 4.3% | ||
| ROIC | 3.59% | ||
| ROICexc | 3.59% | ||
| ROICexgc | 3.7% | ||
| OM | 21.35% | ||
| PM (TTM) | 9.24% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)1.65%
ROA(5y)1.64%
ROE(3y)6.8%
ROE(5y)6.67%
ROIC(3y)3.42%
ROIC(5y)3.56%
ROICexc(3y)3.42%
ROICexc(5y)3.57%
ROICexgc(3y)3.53%
ROICexgc(5y)3.7%
ROCE(3y)3.98%
ROCE(5y)4.14%
ROICexcg growth 3Y-7.78%
ROICexcg growth 5Y-6.77%
ROICexc growth 3Y-7.46%
ROICexc growth 5Y-6.53%
OM growth 3Y-5.96%
OM growth 5Y-5.73%
PM growth 3Y-26.37%
PM growth 5Y-5.34%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.14 | ||
| Cap/Depr | 289.69% | ||
| Cap/Sales | 61.55% | ||
| Interest Coverage | 2.25 | ||
| Cash Conversion | 60.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.64 |
F-Score6
WACC6.01%
ROIC/WACC0.6
Cap/Depr(3y)287.89%
Cap/Depr(5y)256.83%
Cap/Sales(3y)49.53%
Cap/Sales(5y)47.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.09%
EPS 3Y7.34%
EPS 5Y7.11%
EPS Q2Q%-7.14%
EPS Next Y-1.4%
EPS Next 2Y0.38%
EPS Next 3Y2.97%
EPS Next 5Y4.83%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y8.39%
Revenue growth 5Y6.18%
Sales Q2Q%12.53%
Revenue Next Year0.47%
Revenue Next 2Y2.24%
Revenue Next 3Y3.12%
Revenue Next 5Y4.85%
EBIT growth 1Y19.5%
EBIT growth 3Y1.93%
EBIT growth 5Y0.1%
EBIT Next Year78.13%
EBIT Next 3Y28.12%
EBIT Next 5Y22.25%
FCF growth 1Y-19.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.9%
OCF growth 3Y4.31%
OCF growth 5Y5.18%