TXNM Valuation

TXNM Energy Inc

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57.070

+0.12(0.211%)1D

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 20.64 is considered Fairly compared with the five-year average of 18.21. The fair price of TXNM Energy Inc (TXNM) is between 56.15 to 68.40 according to relative valuation methord.

Relative Value

Fair Zone

56.15-68.40

Current Price：56.90

Fair

20.64

Trailing

Forward

12.14

EV/EBITDA

TXNM Energy Inc. (TXNM) has a current EV/EBITDA of 12.14. The 5-year average EV/EBITDA is 11.43. The thresholds are as follows: Strongly Undervalued below 9.65, Undervalued between 9.65 and 10.54, Fairly Valued between 12.32 and 10.54, Overvalued between 12.32 and 13.21, and Strongly Overvalued above 13.21. The current Forward EV/EBITDA of 12.14 falls within the Historic Trend Line -Fairly Valued range.

20.57

EV/EBIT

TXNM Energy Inc. (TXNM) has a current EV/EBIT of 20.57. The 5-year average EV/EBIT is 18.67. The thresholds are as follows: Strongly Undervalued below 15.06, Undervalued between 15.06 and 16.86, Fairly Valued between 20.48 and 16.86, Overvalued between 20.48 and 22.28, and Strongly Overvalued above 22.28. The current Forward EV/EBIT of 20.57 falls within the Overvalued range.

56.95

TXNM Energy Inc. (TXNM) has a current PS of 56.95. The 5-year average PS is 2.44. The thresholds are as follows: Strongly Undervalued below -5.82, Undervalued between -5.82 and -1.69, Fairly Valued between 6.56 and -1.69, Overvalued between 6.56 and 10.69, and Strongly Overvalued above 10.69. The current Forward PS of 56.95 falls within the Strongly Overvalued range.

7.57

P/OCF

TXNM Energy Inc. (TXNM) has a current P/OCF of 7.57. The 5-year average P/OCF is 5.06. The thresholds are as follows: Strongly Undervalued below -0.43, Undervalued between -0.43 and 2.32, Fairly Valued between 7.81 and 2.32, Overvalued between 7.81 and 10.56, and Strongly Overvalued above 10.56. The current Forward P/OCF of 7.57 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 -1.09. The thresholds are as follows: Strongly Undervalued below -10.66, Undervalued between -10.66 and -5.88, Fairly Valued between 3.70 and -5.88, Overvalued between 3.70 and 8.49, and Strongly Overvalued above 8.49. 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 1.82. Compared to its 3-year average P/B ratio of 1.73 , the current P/B ratio is approximately 5.07% higher. Relative to its 5-year average P/B ratio of 1.82, the current P/B ratio is about -0.39% higher. TXNM Energy Inc (TXNM) has a Forward Free Cash Flow (FCF) yield of approximately -10.35%. Compared to its 3-year average FCF yield of -13.56%, the current FCF yield is approximately -23.67% lower. Relative to its 5-year average FCF yield of -11.01% , the current FCF yield is about -5.93% lower.

1.82

P/B

Median3y

1.73

Median5y

1.82

-10.35

FCF Yield

Median3y

-13.56

Median5y

-11.01

Competitors Valuation Multiple

The average P/S ratio for TXNM's competitors is 62.71, providing a benchmark for relative valuation. TXNM Energy Inc Corp (TXNM) exhibits a P/S ratio of 56.95, which is -9.18% above the industry average. Given its robust revenue growth of 13.69%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Algonquin Power & Utilities Corp

Ormat Technologies Inc

Portland General Electric Co

Performance Decomposition

Market capitalization of TXNM increased by 16.11% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 27.25 to 31.21.

The secondary factor is the Revenue Growth, contributed 13.69%to the performance.

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

13.69%

569.26M → 647.16M

Revenue Growth

-12.10%

23.96 → 21.06

Margin Expansion

14.52%

27.25 → 31.21

P/E Change

16.11%