Bedrijfsoverzicht
TXNM Energy, Inc. is a utility enterprise dedicated to the provision of electricity and electric services across the United States market. The company's operational model encompasses the full spectrum of power delivery, including generation, transmission, and distribution specifically for retail electric customers, alongside the ownership and leasing of communications and office equipment. This entity operates within the Utilities sector and the specific industry of Regulated Electric utilities, a classification that implies operations subject to government regulation regarding rates and service standards. In terms of scale, the company commands a market capitalization of $6.45B, generates annual revenue of $2.17B, and employs 1755 individuals. These valuation and revenue figures indicate that TXNM Energy, Inc. holds a significant position as a substantial player within the regulated electric sector, reflecting a mature business with established infrastructure and a substantial asset base relative to its peer group.
Financiële gezondheid
The financial performance of the company is characterized by a revenue stream of $2.17B in the trailing twelve months, which resulted in a net income of $151.36M and an EBITDA of $864.86M. The substantial gap between the $2.17B revenue and the $151.36M net income reveals a cost structure where operating expenses and taxes consume a significant portion of top-line earnings before reaching the bottom line. However, the EBITDA figure of $864.86M suggests a strong operational cash generation capability prior to capital expenditures and financing costs. Despite the positive EBITDA, the company reports a free cash flow of $-706,388,224, which indicates a current lack of financial flexibility as capital expenditures are outpacing operational cash generation. The company maintains a gross margin of 57.7%, an operating margin of 6.6%, and a profit margin of 7.0%, illustrating that while the cost of goods sold is managed efficiently, the high fixed costs inherent in utility regulation compress operating and profit margins. Regarding liquidity and leverage, the company holds $18.26M in cash against a total debt load of $5.74B, resulting in a debt-to-equity ratio of 166.01% that signifies a highly leveraged balance sheet. The current ratio stands at 0.56, indicating that the company's current assets are insufficient to cover its current liabilities without relying on external financing or asset liquidation. Return on equity is recorded at 5.6% and return on assets at 2.0%, metrics that suggest management effectiveness is constrained by the heavy debt burden and capital-intensive nature of the regulated electric business model.
Waarderingsbeoordeling
Valuation metrics for TXNM Energy, Inc. show a trailing P/E ratio of 39.99 and a forward P/E of 18.17. The significant disparity between the trailing and forward multiples implies that the market expects a substantial improvement in earnings trajectory in the coming years, likely driven by regulatory adjustments or operational efficiencies. The price-to-book ratio is 1.89, which indicates that the market prices the company at a premium of nearly double its book value, reflecting confidence in the value of its regulated assets and future cash flows. Alternative valuation measures include a price-to-sales ratio of 2.98 and an EV/EBITDA of 14.14, suggesting that the company is valued based on its earnings power and sales volume relative to its enterprise value. The stock price has fluctuated between a 52-week high of $59.52 and a 52-week low of $51.08, and depending on the current market price, the security trades within this established volatility range. The beta value of 0.17 indicates that the stock price exhibits very low volatility relative to the broader market, behaving more as a defensive instrument than a cyclical growth stock.
Growth & Income
The company reports a revenue growth rate of 11.8% year-over-year, while earnings growth is listed as N/A, indicating that the specific data point for earnings growth is not currently disclosed in the available financial records. The absence of reported earnings growth data prevents a direct comparison of growth rates between revenue and earnings, though the robust revenue expansion suggests top-line momentum is being achieved. As a dividend payer, the company offers a dividend yield of 2.9% with a payout ratio of 110.1%, a metric that suggests the dividend payments exceed the reported net income, requiring the use of cash reserves or debt financing to sustain the payout. This high payout ratio relative to net income raises questions regarding the immediate sustainability of the dividend without further operational leverage or access to capital markets. The overall growth and income profile is defined by strong revenue expansion supported by a high yield, albeit with earnings growth metrics that are not explicitly quantified in the current reporting period.