TXO PARTNERS LP (TXO)
US87313P1030
TXO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 208 industry peers in the Oil, Gas & Consumable Fuels industry. While TXO has a great health rating, there are worries on its profitability. TXO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TXO was profitable.
TXO had a positive operating cash flow in the past year.
1.2 Ratios
TXO has a Return On Assets of -22.23%. This is amonst the worse of the industry: TXO underperforms 94.23% of its industry peers.
The Return On Equity of TXO (-30.06%) is worse than 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.37%, TXO is doing worse than 75.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -22.23% | ||
| ROE | -30.06% | ||
| ROIC | 2.37% |
ROA(3y)-3.16%
ROA(5y)N/A
ROE(3y)-4.57%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TXO has a Operating Margin of 7.73%. This is in the lower half of the industry: TXO underperforms 70.67% of its industry peers.
TXO has a Gross Margin (51.30%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TXO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.73% | ||
| PM (TTM) | N/A | ||
| GM | 51.3% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.18%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TXO is destroying value.
TXO has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for TXO has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of TXO is 0.21, which is an excellent value as it means it would take TXO, only 0.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TXO (0.21) is better than 90.87% of its industry peers.
TXO has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TXO (0.01) is better than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC7.93%
2.3 Liquidity
TXO has a Current Ratio of 3.26. This indicates that TXO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.26, TXO belongs to the best of the industry, outperforming 82.21% of the companies in the same industry.
TXO has a Quick Ratio of 3.26. This indicates that TXO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TXO (3.26) is better than 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.26 | ||
| Quick Ratio | 3.26 |
3. Growth
3.1 Past
The earnings per share for TXO have decreased strongly by -241.85% in the last year.
Looking at the last year, TXO shows a very negative growth in Revenue. The Revenue has decreased by -24.96% in the last year.
Measured over the past years, TXO shows a very strong growth in Revenue. The Revenue has been growing by 51.84% on average per year.
EPS 1Y (TTM)-241.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-57.14%
Revenue 1Y (TTM)-24.96%
Revenue growth 3Y51.84%
Revenue growth 5YN/A
Sales Q2Q%-5.23%
3.2 Future
Based on estimates for the next years, TXO will show a very negative growth in Earnings Per Share. The EPS will decrease by -20.15% on average per year.
The Revenue is expected to grow by 6.25% on average over the next years.
EPS Next Y-65.82%
EPS Next 2Y-25.03%
EPS Next 3Y-20.15%
EPS Next 5YN/A
Revenue Next Year-10.07%
Revenue Next 2Y6.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.77, the valuation of TXO can be described as reasonable.
TXO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 30.59, TXO is valued rather cheaply.
The Price/Forward Earnings ratio is 7.51, which indicates a rather cheap valuation of TXO.
TXO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TXO is cheaper than 69.71% of the companies in the same industry.
TXO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
TXO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TXO is more expensive than 65.38% of the companies in the same industry.
TXO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.07 | ||
| EV/EBITDA | 10.05 |
4.3 Compensation for Growth
A cheap valuation may be justified as TXO's earnings are expected to decrease with -20.15% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-25.03%
EPS Next 3Y-20.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.49%, TXO is a good candidate for dividend investing.
TXO's Dividend Yield is rather good when compared to the industry average which is at 6.24. TXO pays more dividend than 95.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.26, TXO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.49% |
5.2 History
TXO is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of TXO are negative and hence is the payout ratio. TXO will probably not be able to sustain this dividend level.
DP-40.95%
EPS Next 2Y-25.03%
EPS Next 3Y-20.15%
TXO PARTNERS LP
NYSE:TXO (9/20/2024, 8:26:09 PM)
18.41
-0.34 (-1.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap707.13M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 7.51 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -22.23% | ||
| ROE | -30.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.73% | ||
| PM (TTM) | N/A | ||
| GM | 51.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.26 | ||
| Quick Ratio | 3.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-241.85%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-65.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-24.96%
Revenue growth 3Y51.84%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y