TXNM Energy, Inc.
TXNM Energy, Inc. Fundamental Analysis
TXNM Energy, Inc. (TXNM) shows weak financial fundamentals with a PE ratio of 36.02, profit margin of 7.01%, and ROE of 4.85%. The company generates $2.5B in annual revenue with weak year-over-year growth of 1.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TXNM's fundamental strength across five key dimensions:
Efficiency Score
WeakTXNM struggles to generate sufficient returns from assets.
Valuation Score
ModerateTXNM shows balanced valuation metrics.
Growth Score
WeakTXNM faces weak or negative growth trends.
Financial Health Score
ModerateTXNM shows balanced financial health with some risks.
Profitability Score
WeakTXNM struggles to sustain strong margins.
Key Financial Metrics
Is TXNM Expensive or Cheap?
P/E Ratio
TXNM trades at 36.02 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TXNM's PEG of -2.21 indicates potential undervaluation.
Price to Book
The market values TXNM Energy, Inc. at 1.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.82 times EBITDA. This is generally considered low.
How Well Does TXNM Make Money?
Net Profit Margin
For every $100 in sales, TXNM Energy, Inc. keeps $7.01 as profit after all expenses.
Operating Margin
Core operations generate 20.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.85 in profit for every $100 of shareholder equity.
ROA
TXNM Energy, Inc. generates $3.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TXNM Energy, Inc. generates strong operating cash flow of $684.43M, reflecting robust business health.
Free Cash Flow
TXNM Energy, Inc. generates weak or negative free cash flow of $-715.98M, restricting financial flexibility.
FCF Per Share
Each share generates $-6.57 in free cash annually.
FCF Yield
TXNM converts -9.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How TXNM Stacks Against Its Sector Peers
| Metric | TXNM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.02 | 19.72 | Worse (Expensive) |
| ROE | 4.85% | 908.00% | Weak |
| Net Margin | 7.01% | 8804.00% | Weak |
| Debt/Equity | 0.00 | 1.80 | Strong (Low Leverage) |
| Current Ratio | 0.19 | 1.50 | Weak Liquidity |
| ROA | 3.50% | -6152.00% (disorted) | Weak |
TXNM outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TXNM Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
0.00%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-10.74%
Industry Style: Defensive, Dividend, Income
Declining