TXNM Valuation

TXNM Energy Inc

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56.760

-0.34(-0.595%)1D

Overview
Forecast
Valuation
Earnings

TXNM Relative Valuation

TXNM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TXNM is overvalued; if below, it's undervalued.

Historical Valuation

TXNM Energy Inc (TXNM) is now in the Fair zone, suggesting that its current forward PE ratio of 20.33 is considered Fairly compared with the five-year average of 18.24. The fair price of TXNM Energy Inc (TXNM) is between 55.32 to 67.85 according to relative valuation methord.

Relative Value

Fair Zone

55.32-67.85

Current Price：56.76

Fair

20.33

Trailing

Forward

11.73

EV/EBITDA

TXNM Energy Inc. (TXNM) has a current EV/EBITDA of 11.73. The 5-year average EV/EBITDA is 11.37. The thresholds are as follows: Strongly Undervalued below 9.56, Undervalued between 9.56 and 10.47, Fairly Valued between 12.28 and 10.47, Overvalued between 12.28 and 13.19, and Strongly Overvalued above 13.19. The current Forward EV/EBITDA of 11.73 falls within the Historic Trend Line -Fairly Valued range.

20.64

EV/EBIT

TXNM Energy Inc. (TXNM) has a current EV/EBIT of 20.64. The 5-year average EV/EBIT is 18.73. The thresholds are as follows: Strongly Undervalued below 15.01, Undervalued between 15.01 and 16.87, Fairly Valued between 20.59 and 16.87, Overvalued between 20.59 and 22.45, and Strongly Overvalued above 22.45. The current Forward EV/EBIT of 20.64 falls within the Overvalued range.

2.71

TXNM Energy Inc. (TXNM) has a current PS of 2.71. The 5-year average PS is 2.11. The thresholds are as follows: Strongly Undervalued below 1.49, Undervalued between 1.49 and 1.80, Fairly Valued between 2.41 and 1.80, Overvalued between 2.41 and 2.72, and Strongly Overvalued above 2.72. The current Forward PS of 2.71 falls within the Overvalued range.

7.65

P/OCF

TXNM Energy Inc. (TXNM) has a current P/OCF of 7.65. The 5-year average P/OCF is 5.07. The thresholds are as follows: Strongly Undervalued below -0.38, Undervalued between -0.38 and 2.34, Fairly Valued between 7.80 and 2.34, Overvalued between 7.80 and 10.53, and Strongly Overvalued above 10.53. The current Forward P/OCF of 7.65 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

TXNM Energy Inc. (TXNM) has a current P/FCF of 0.00. The 5-year average P/FCF is -1.08. The thresholds are as follows: Strongly Undervalued below -10.64, Undervalued between -10.64 and -5.86, Fairly Valued between 3.69 and -5.86, Overvalued between 3.69 and 8.47, and Strongly Overvalued above 8.47. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

TXNM Energy Inc (TXNM) has a current Price-to-Book (P/B) ratio of 1.90. Compared to its 3-year average P/B ratio of 1.73 , the current P/B ratio is approximately 9.57% higher. Relative to its 5-year average P/B ratio of 1.83, the current P/B ratio is about 3.47% higher. TXNM Energy Inc (TXNM) has a Forward Free Cash Flow (FCF) yield of approximately -13.15%. Compared to its 3-year average FCF yield of -13.57%, the current FCF yield is approximately -3.11% lower. Relative to its 5-year average FCF yield of -10.59% , the current FCF yield is about 24.21% lower.

1.90

P/B

Median3y

1.73

Median5y

1.83

-13.15

FCF Yield

Median3y

-13.57

Median5y

-10.59

Competitors Valuation Multiple

The average P/S ratio for TXNM's competitors is 3.04, providing a benchmark for relative valuation. TXNM Energy Inc Corp (TXNM) exhibits a P/S ratio of 2.71, which is -10.98% above the industry average. Given its robust revenue growth of 2.93%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Brookfield Renewable Corp

Algonquin Power & Utilities Corp

Ormat Technologies Inc

Performance Decomposition

Market capitalization of TXNM increased by 39.73% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.87 to 29.87.

The secondary factor is the Revenue Growth, contributed 2.93%to the performance.

Overall, the performance of TXNM in the past 1 year is driven by P/E Change. Which is more unsustainable.

2.93%

488.10M → 502.42M

Revenue Growth

-51.36%

10.65 → 5.18

Margin Expansion

88.16%

15.87 → 29.87

P/E Change

39.73%