Tennessee Valley Authority (TVE) Stock Analysis
Tennessee Valley Authority
▾ What's in the 50/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). See the Financial Health section for the full balance-sheet read.
How to read TVE (regulated utility)
A regulator sets what a utility can earn, so its value tracks book value, dividend yield and payout — not a free-market DCF.
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Utility lens (P/B, yield, payout) ↓
These are the metrics utility-fund managers actually use.
Standard DCF doesn't fit TVE well — but that's expected for this kind of business. The Utility Valuation Lens below uses the metrics actually used by analysts who value electric utilities. Reverse DCF + Football Field also work as cross-checks.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
Regulated utilities carry high leverage backed by long-life assets and regulator-set rate-base returns — Altman Z flags both as distress signals even when the business is stable. See the Utility Lens above for the metrics that matter (P/B, dividend yield, payout ratio).
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
Piotroski F's checks (operating cash flow, gross-margin trend, current ratio, asset turnover) assume an industrial cost structure, so they misread asset-heavy or financial businesses like this one — a healthy REIT, utility, pipeline, BDC/fund or holding company can score low for reasons that aren't weakness. See the sector lens above for the metrics that actually matter.
A standard DCFDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → valuation is not meaningful for Tennessee Valley Authority (TVE) because it is a government-owned corporation, not publicly traded, and its financial structure is unique. While net income and operating cash flow are consistently positive, the market would likely focus on its role as a public utility, its debt levels, and its ability to fund infrastructure projects. The #1 quantifiable risk is its rising long-term debt, which increased from $18,463M to $22,057M.
As of 2 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Trends in long-term debt levels in future financial reports
- Changes in the current ratio above or below 1.0
- Announcements regarding major infrastructure projects and their funding
The trend, in plain numbers (2024 → 2025)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Net income grew +20% to $1.36B.
- Free cash flow is negative at -$1.13B — the cash burn widened vs last year.
Management & Leadership
Jeff Lyash serves as the President and Chief Executive Officer of the Tennessee Valley Authority, having been in the role since 2019. He oversees the operations and strategic direction of the federal corporation responsible for power generation and economic development in the Tennessee Valley region.
What They Make
The Tennessee Valley Authority (TVA) is a federally owned corporation in the United States that provides electricity, flood control, and economic development to the Tennessee Valley region. Its primary customers are local power companies and directly served industrial and governmental customers.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
What we use instead: earnings (P/E, EV/EBIT), book value (P/B) — computed from the figures this company does report, shown in the sections below. Those numbers are unaffected by the missing cash-flow data.
As a government-owned entity, TVE is not publicly traded, so its 'price' is not determined by market forces in the traditional sense. The market's perception, if it were tradable, would likely be driven by its consistent positive net income and operating cash flow, balanced against its rising long-term debt. Investors would focus on its public utility mandate and infrastructure investment needs rather than typical growth metrics for private companies.
Business Model & Valuation
How They Make Money
Dividend Discount
Utility (Electric Utilities): dividend discount model - growth is regulated and yield is the primary driver.
Show advanced inputs
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project rate-base growth, allowed ROE and dividend growth independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Net income has been positive for 5 out of 5 years, and operating cash flow has been positive for 5 out of 5 years.
Geography & Markets
The Tennessee Valley Authority operates within the Tennessee Valley region of the United States, serving parts of seven southeastern states: Tennessee, Alabama, Mississippi, Kentucky, Georgia, North Carolina, and Virginia.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)38.4NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BullishLine above signalThe fast trend is above the slow trend — short-term momentum is currently upward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (7 notes — click to expand/collapse)
Guardrail Notes (7)
- No dividend data. Assuming 3% yield.
- Shares from unknown — per-share values may be less accurate.
- Illiquidity discount 25% applied (small/micro-cap — harder to exit, demand a margin).
- Dividend data sparse; DDM using estimated yield. Confidence reduced.
- Shares/market cap missing or defaulted; per-share valuation unreliable.
- Shares defaulted to 1; IV is NOT meaningful — treat as data-unavailable.
- DATA UNAVAILABLE: per-share values suppressed due to missing/unreliable shares data.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From Tennessee Valley Authority's SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | — | 1.4B | — |
| 2024 | — | 1.1B | — |
| 2023 | 12.1B | 500.0M | — |
| 2022 | 12.5B | 1.1B | — |
| 2021 | 10.5B | 1.5B | — |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC & adj. | Free Cash Flow |
|---|---|---|---|---|
| 2025 | 3.3B | 4.5B | — | -1.1B |
| 2024 | 3.0B | 3.3B | — | -278.0M |
| 2023 | 2.9B | 2.5B | — | 346.0M |
| 2022 | 2.9B | 2.4B | — | 587.0M |
| 2021 | 3.3B | 2.0B | — | 1.3B |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a TTM dividend, not this single year.
Balance Sheet
| Total Assets | 60.9B |
| Total Liabilities | — |
| Equity | — |
| Total Debt | 22.1B |