TXNM Energy Inc (TXNM) stock analysis

P/E above its 5-year median

TXNM Energy's P/E of 28.3 is above its own 5-year median of 25.4.

P/E above the industry

TXNM Energy's P/E of 28.3 is above the Electric Services median of 20.9.

EV/EBITDA below its 5-year median

TXNM Energy's EV/EBITDA of 11.7 is below its 5-year median of 12.5.

P/B below the industry

TXNM Energy's price-to-book of 1.78 is below the Electric Services median of 2.02.

Trading above fair value

The share price of $58.83 is above our fair value estimate of $57.09.

Margin of safety under 20%

The price is 3.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -1.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -9.1% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 10.0% over the last twelve months; the Electric Services median is 7.8%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was 5.5%, below the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

High debt

Debt is 165% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 162% five years ago to 165%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 10.2% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.0 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.81 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.84; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

TXNM Energy paid dividends worth 2.2% of the share price over the last twelve months.

Yield below Treasuries

The 2.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; TXNM Energy yields 2.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.