GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » TXNM Energy Inc (NYSE:TXNM) » Definitions » Altman Z-Score

TXNM (TXNM Energy) Altman Z-Score : 0.64 (As of Dec. 15, 2024)


View and export this data going back to 1972. Start your Free Trial

What is TXNM Energy Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 0.64 is in distress zone. This implies bankruptcy possibility in the next two years.

TXNM Energy has a Altman Z-Score of 0.64, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for TXNM Energy's Altman Z-Score or its related term are showing as below:

TXNM' s Altman Z-Score Range Over the Past 10 Years
Min: 0.55   Med: 0.77   Max: 0.9
Current: 0.64

During the past 13 years, TXNM Energy's highest Altman Z-Score was 0.90. The lowest was 0.55. And the median was 0.77.


TXNM Energy Altman Z-Score Historical Data

The historical data trend for TXNM Energy's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

TXNM Energy Altman Z-Score Chart

TXNM Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.73 0.79 0.78 0.79 0.59

TXNM Energy Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.63 0.59 0.55 0.55 0.60

Competitive Comparison of TXNM Energy's Altman Z-Score

For the Utilities - Regulated Electric subindustry, TXNM Energy's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


TXNM Energy's Altman Z-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, TXNM Energy's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where TXNM Energy's Altman Z-Score falls into.



TXNM Energy Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

TXNM Energy's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0806+1.4*0.0838+3.3*0.0375+0.6*0.533+1.0*0.1758
=0.64

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2024:
Total Assets was $10,843 Mil.
Total Current Assets was $496 Mil.
Total Current Liabilities was $1,370 Mil.
Retained Earnings was $909 Mil.
Pre-Tax Income was 159.82 + 60.935 + 37.795 + -74.826 = $184 Mil.
Interest Expense was -59.664 + -55.828 + -53.762 + -53.695 = $-223 Mil.
Revenue was 569.256 + 488.102 + 436.877 + 412.114 = $1,906 Mil.
Market Cap (Today) was $4,437 Mil.
Total Liabilities was $8,324 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(495.694 - 1369.643)/10843.481
=-0.0806

X2=Retained Earnings/Total Assets
=908.693/10843.481
=0.0838

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(183.724 - -222.949)/10843.481
=0.0375

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4436.957/8323.904
=0.533

X5=Revenue/Total Assets
=1906.349/10843.481
=0.1758

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

TXNM Energy has a Altman Z-Score of 0.64 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


TXNM Energy  (NYSE:TXNM) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


TXNM Energy Altman Z-Score Related Terms

Thank you for viewing the detailed overview of TXNM Energy's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


TXNM Energy Business Description

Traded in Other Exchanges
N/A
Address
414 Silver Avenue SW, Albuquerque, NM, USA, 87102-3289
TXNM Energy Inc is a holding company that owns regulated utility companies providing energy to houses and businesses across Texas and New Mexico using its utilities.
Executives
Norman P. Becker director 3900 SINGER BOULEVARD N.E., ALBUQUERQUE NM 87109
Elisabeth A Eden officer: SVP, CFO & Treasurer 414 SILVER AVE SW, MS1295, ALBUQUERQUE NM 87102
Henry E Monroy officer: VP & Corporate Controller 414 SILVER AVENUE SW, MS1015, ALBUQUERQUE NM 87102-3289
Charles N Eldred officer: Chief Financial Officer 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289
Joseph Don Tarry officer: VP and Corporate Controller 414 SILVER AVE SW MS 1205, ALBUQUERQUE NM 87102-3289
Patrick V Apodaca officer: SR VP, GEN COUNSEL & SECY 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289
Ronald N. Darnell officer: VICE PRESIDENT, REGULATORY AFF 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289
Vicky A Bailey director 2099 PENNSYLVANIA AVNUE, NW, SUITE 1000, WASHINGTON DC 20006
James Alton Hughes director 350 W WASHINGTON STREET, SUITE 600, TEMPE AZ 85281
Chris M Olson officer: VP, Utility Operations 414 SILVER AVENUE SW, MS 1255, ALBUQUERQUE NM 87102-3289
Adelmo E Archuleta director 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289
Ronald E Talbot officer: SR VP, CHIEF OPERATING OFFICER 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289
Bruce W Wilkinson director 1333 WEST LOOP SOUTH, STE 1700, HOUSTON TX 77027
Sidney M. Gutierrez director 414 SILVER AVE SW, MS 1275, ALBUQUERQUE NM 87102-3289
Joan B Woodard director 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289