TXNM Energy (TXNM) AI Stock Analysis

• Market Cap: $5.99B
• Dividend Yield: 2.87%
• Average Volume (3M): 919.97K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.15
• Revenue Growth: 10.23%
• EPS Growth: 114.67%
• Country: US
• Employees: 1,695
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): N/A
• Shares Outstanding: 105,378,980
• 10 Day Avg. Volume: 770,039
• 30 Day Avg. Volume: 919,968
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $61.25
• Price Target Upside: 7.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $62.00 ▲(9.15% Upside)

TXNM Energy's overall score is driven by strong corporate events, including the Blackstone acquisition approval and strategic bond issuance. Financial performance shows robust revenue growth but is offset by high leverage and cash flow challenges. Technical analysis indicates a positive trend, while valuation remains a concern due to a high P/E ratio.

Positive Factors

Revenue Growth

The robust revenue growth indicates successful market expansion and increased demand for TXNM's renewable energy solutions, strengthening its market position.

Strategic Investments

Significant capital investments in infrastructure projects demonstrate TXNM's commitment to enhancing grid reliability and capacity, supporting long-term growth.

Legislative Support

Favorable legislative changes in New Mexico facilitate infrastructure development and risk management, aligning with TXNM's strategic objectives.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially limiting TXNM's ability to invest in growth opportunities and manage economic downturns.

Negative Free Cash Flow

Negative free cash flow indicates cash constraints, which may hinder TXNM's ability to fund operations and strategic initiatives without external financing.

Regulatory Challenges

Regulatory challenges in Texas could impact TXNM's revenue and profitability, requiring careful navigation to maintain financial stability.

TXNM Energy Business Overview & Revenue Model

Company Description

TXNM Energy, Inc., through its subsidiaries, provides electricity and electric services in the United States. It operates through Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment engages in the generation, transmission, and distribution of electricity. The segment owns and leases communications, office and other equipment, office space, vehicles, and real estate. It generates electricity using coal, natural gas and oil, and nuclear fuel and waste, as well as solar, wind, geothermal, and battery storage energy sources. The TNMP segment provides regulated transmission and distribution services. The segment also owns and leases vehicles, service facilities, and office locations throughout its service territory. The company serves residential, commercial, and industrial customers and end-users of electricity in New Mexico and Texas. The company was formerly known as PNM Resources, Inc and changed its name to TXNM Energy, Inc. in August 2024. TXNM Energy, Inc. was founded in 1882 and is based in Albuquerque, New Mexico.

How the Company Makes Money

TXNM Energy generates revenue through several key streams. Primarily, the company earns income from the sale of electricity generated from its renewable energy projects, which are often tied to long-term power purchase agreements (PPAs) with utility companies and large corporate clients. Additionally, TXNM benefits from tax incentives and subsidies related to renewable energy production, which enhance its profitability. The company also engages in the sale of renewable energy credits (RECs) to other companies looking to meet sustainability goals, providing another revenue channel. Strategic partnerships with technology providers and financial institutions further support its operations, aiding in project financing and the development of innovative energy solutions that drive additional revenue growth.

TXNM Energy Financial Statement Overview

Summary

TXNM Energy shows strong revenue growth and solid profitability margins. However, high leverage and negative free cash flow pose financial risks. The company needs to manage costs and improve cash flow to strengthen its financial position.

Income Statement

TXNM Energy's income statement shows a strong revenue growth rate of 71% in the TTM period, indicating robust top-line expansion. The gross profit margin remains healthy at approximately 64%, although it has slightly decreased from previous years. Net profit margin has declined to 8.76% in the TTM, down from 12.31% in 2024, reflecting increased costs or reduced pricing power. EBIT and EBITDA margins are solid, but have seen a slight decline, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.82 in the TTM, indicating significant leverage, which could pose financial risk. However, the company has improved its equity position, with stockholders' equity increasing over time. Return on equity has decreased to 6.64% in the TTM, down from 9.52% in 2024, suggesting reduced profitability on shareholders' investments. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

TXNM Energy's cash flow statement highlights challenges with negative free cash flow, which has worsened in the TTM period. The operating cash flow to net income ratio is 0.43, indicating that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is negative, reflecting cash flow constraints. Despite these issues, operating cash flow remains positive, providing some liquidity cushion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.03B	1.97B	1.94B	2.25B	1.78B	1.52B
Gross Profit	1.30B	1.29B	1.05B	1.11B	991.09M	937.79M
EBITDA	927.32M	929.21M	634.58M	682.44M	663.84M	639.95M
Net Income	177.94M	242.68M	88.35M	170.06M	196.36M	173.30M
Balance Sheet
Total Assets	11.68B	11.21B	10.25B	9.26B	8.67B	7.94B
Cash, Cash Equivalents and Short-Term Investments	22.17M	4.50M	2.21M	4.08M	1.10M	47.93M
Total Debt	5.80B	5.80B	4.96B	4.37B	3.84B	3.44B
Total Liabilities	8.45B	8.62B	7.84B	7.00B	6.43B	5.82B
Stockholders Equity	3.18B	2.55B	2.36B	2.20B	2.18B	2.06B
Cash Flow
Free Cash Flow	-790.59M	-738.88M	-524.64M	-345.27M	-387.14M	-193.33M
Operating Cash Flow	483.43M	508.16M	551.17M	567.28M	547.87M	485.70M
Investing Cash Flow	-1.31B	-1.17B	-1.09B	-950.35M	-952.26M	-733.80M
Financing Cash Flow	839.95M	684.35M	537.10M	386.04M	357.56M	292.19M

TXNM Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXNM, the sentiment is Positive. The current price of 56.8 is above the 20-day moving average (MA) of 56.51, above the 50-day MA of 56.39, and above the 200-day MA of 53.48, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.27 is Neutral, neither overbought nor oversold. The STOCH value of 13.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TXNM.

TXNM Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POR	―	$5.03B	16.83	8.02%	4.48%	9.78%	-6.19%
TXNM	―	$5.99B	29.24	6.36%	2.87%	10.23%	114.67%
IDA	―	$7.29B	23.72	9.31%	2.55%	-0.48%	6.40%
OGE	―	$9.34B	19.04	10.76%	3.72%	16.01%	19.05%
PNW	―	$10.83B	18.68	8.90%	3.87%	7.47%	-8.53%
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ENIC	―	$5.22B	37.02	2.89%	5.85%	-19.56%	-83.31%

TXNM Energy Corporate Events

TXNM Energy Terminates $500 Million Loan Agreement

On August 29, 2025, TXNM Energy, Inc. fully repaid and terminated its $500 million term loan agreement with Wells Fargo Bank, National Association, and other lenders. This financial move may impact the company’s financial flexibility and debt management strategy, potentially influencing its future operations and market positioning.

The most recent analyst rating on (TXNM) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on TXNM Energy stock, see the TXNM Stock Forecast page.

TXNM Energy Shareholders Approve Blackstone Acquisition

On August 28, 2025, TXNM Energy shareholders overwhelmingly approved the acquisition by Blackstone Infrastructure Partners at a special meeting, with 99.6% of the votes in favor. This approval allows TXNM shareholders to receive $61.25 in cash per share, and the acquisition is expected to close in the second half of 2026, pending regulatory approvals from various commissions and departments.

The most recent analyst rating on (TXNM) stock is a Hold with a $62.00 price target. To see the full list of analyst forecasts on TXNM Energy stock, see the TXNM Stock Forecast page.

TXNM Energy Enters $200M Distribution Agreement

On August 15, 2025, TXNM Energy, Inc. entered into a Distribution Agreement with several financial institutions, allowing the company to sell up to $200 million of its common stock through various sales methods, including at-the-market offerings. This agreement, along with potential forward stock purchase transactions, aims to provide TXNM Energy with strategic financial flexibility, though actual sales will depend on market conditions and other factors. The company is not obligated to sell shares, and the agreement can be terminated by either party with prior notice.

The most recent analyst rating on (TXNM) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on TXNM Energy stock, see the TXNM Stock Forecast page.

Uncertainty Looms Over Txnm Energy’s Proposed Merger with Blackstone Infrastructure

The completion of the proposed merger involving Txnm Energy, Inc. faces significant uncertainty due to various conditions outlined in the Merger Agreement, including shareholder and regulatory approvals. The possibility of these conditions not being met or waived, coupled with potential unilateral termination by either Txnm or Blackstone Infrastructure, poses a substantial risk to the merger’s finalization. Even with shareholder approval, unforeseen events or mutual agreement between the parties could lead to the termination of the merger. This uncertainty could impact Txnm Energy’s strategic direction and investor confidence.

TXNM Energy Reports Q2 2025 Earnings Amidst Blackstone Deal

TXNM Energy, an energy holding company based in Albuquerque, New Mexico, operates regulated utilities that deliver energy to over 800,000 homes and businesses across Texas and New Mexico.