TXNM Energy, Inc. (TXNM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-194.3%

-$55.16

vs $58.52 price

Levered DCF

-$78.44

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

—

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	39.52×	18.42×	40.78×	24.77×	20×	22.47×	52.54×
P/B	1.76×	1.75×	1.52×	1.91×	1.8×	1.89×	2.4×
P/S	2.76×	2.26×	1.85×	1.87×	2.2×	2.55×	2.79×
EV / EBITDA	5.99×	11.06×	13.65×	12.59×	11.72×	11.4×	14.95×
Gross margin	38.1%	41.1%	32.3%	31.8%	35.2%	38.4%	38.7%
Operating margin	20.4%	23.5%	15.6%	17.5%	17.4%	18.8%	20.3%
Net margin	7.0%	12.3%	4.6%	7.6%	11.0%	11.4%	5.3%
Current ratio	0.19×	0.28×	0.39×	0.46×	0.49×	0.39×	0.3×
Debt / equity	0×	2.29×	2.11×	1.99×	1.77×	1.68×	1.97×
Interest coverage	1.32×	2.03×	1.59×	3.08×	3.19×	2.5×	2.44×
Dividend yield	2.7%	3.2%	3.5%	2.9%	2.9%	2.5%	2.3%
Payout ratio	107.9%	57.8%	143.4%	70.5%	57.5%	56.8%	119.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	4.4%	9.5%	3.7%	7.7%	9.0%	8.4%	4.6%
Return on invested capital	9.7%	3.9%	3.1%	3.8%	3.1%	3.2%	4.0%
Return on assets	3.5%	2.1%	0.8%	1.8%	2.2%	2.1%	1.0%
Free cash flow yield	-10.2%	-16.6%	-14.6%	-8.2%	-9.9%	-5.0%	-2.8%
Earnings yield	2.5%	5.4%	2.5%	4.0%	5.0%	4.5%	1.9%
Enterprise value	$6B	$10.3B	$8.6B	$8.6B	$7.8B	$7.3B	$7.4B
Net debt / EBITDA	0×	6.27×	7.94×	6.43×	5.82×	5.33×	6.73×
Cash conversion cycle (days)	0	33	22	8	8	8	30