TXO Partners, L.P. Fundamental Analysis (NYSE: TXO)
TXO Partners, L.P. (NYSE: TXO) shows moderate financial fundamentals with a PE ratio of -9.81, profit margin of -20.88%, and ROE of -11.63%. The company generates $0.4B in annual revenue with strong year-over-year growth of 45.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 14.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TXO's fundamental strength across five key dimensions:
Efficiency Score
WeakTXO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTXO trades at attractive valuation levels.
Growth Score
ModerateTXO shows steady but slowing expansion.
Financial Health Score
ModerateTXO shows balanced financial health with some risks.
Profitability Score
WeakTXO struggles to sustain strong margins.
Key Financial Metrics
Is TXO Expensive or Cheap?
P/E Ratio
TXO trades at -9.81 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TXO's PEG of 0.17 indicates potential undervaluation.
Price to Book
The market values TXO Partners, L.P. at 1.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.43 times EBITDA. This signals the market has high growth expectations.
How Well Does TXO Make Money?
Net Profit Margin
For every $100 in sales, TXO Partners, L.P. keeps $-20.88 as profit after all expenses.
Operating Margin
Core operations generate -13.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-11.63 in profit for every $100 of shareholder equity.
ROA
TXO Partners, L.P. generates $-6.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TXO Partners, L.P. generates strong operating cash flow of $148.63M, reflecting robust business health.
Free Cash Flow
TXO Partners, L.P. generates strong free cash flow of $126.15M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.28 in free cash annually.
FCF Yield
TXO converts 16.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-9.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.12
vs 25 benchmark
ROA
Return on assets percentage
-0.06
vs 25 benchmark
ROCE
Return on capital employed
-0.05
vs 25 benchmark
How TXO Stacks Against Its Sector Peers
| Metric | TXO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -9.81 | 20.60 | Better (Cheaper) |
| ROE | -11.63% | 1363.00% | Weak |
| Net Margin | -20.88% | 1351.00% | Weak |
| Debt/Equity | 0.45 | -1.64 (disorted) | Distorted |
| Current Ratio | 0.63 | 2.16 | Weak Liquidity |
| ROA | -6.21% | 2679.00% | Weak |
TXO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TXO Partners, L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.03%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
93.35%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
213.06%
Industry Style: Cyclical, Value, Commodity
High Growth