TXNM Energy (TXNM) AI Stock Analysis

• Market Cap: $6.34B
• Dividend Yield: 2.8%
• Average Volume (3M): 695.48K
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.15
• Revenue Growth: 10.65%
• EPS Growth: -10.67%
• Country: US
• Employees: 1,695
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.33
• Shares Outstanding: 108,921,360
• 10 Day Avg. Volume: 677,375
• 30 Day Avg. Volume: 695,478
• PEG Ratio: 0.11
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 2.26
• P/FCF Ratio: -6.04
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 5.62
• Enterprise Value/Gross Profit: 14.78
• Enterprise Value/Ebitda: 12.42
• 1Y Price Target: $61.25
• Price Target Upside: 5.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.66
• Revenue Forecast (FY): $2.15B

• Rating: 60 Neutral
• Price Target: $60.00 ▲(3.04% Upside)

TXNM Energy's overall stock score reflects solid financial performance with strong revenue growth and improved debt management. However, challenges such as declining net profit margins, negative free cash flow, and a high P/E ratio weigh on the score. The technical indicators suggest a positive trend, but the overbought condition indicates caution. The absence of recent earnings call insights or notable corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial health.

Debt Management

Improved debt management enhances financial stability and reduces risk, providing a solid foundation for future growth.

Regulatory Developments

Regulatory approvals in key regions support revenue stability and expansion opportunities, bolstering long-term growth prospects.

Negative Factors

Net Profit Margin Decline

Declining net profit margins suggest rising costs or inefficiencies, which could pressure future profitability and cash flow.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth and manage debt.

Profitability Metrics Weakening

Weakened profitability metrics like ROE can impact investor confidence and limit the company's ability to attract capital.

TXNM Energy Business Overview & Revenue Model

Company Description

TXNM Energy (TXNM) is a dynamic player in the energy sector, focusing on providing sustainable energy solutions and innovative technologies. The company operates primarily in the renewable energy market, with a strong emphasis on solar and wind energy generation. TXNM is dedicated to reducing carbon emissions and promoting energy efficiency through its diverse portfolio of products and services, which includes energy management systems, solar panel installations, and consulting services for businesses and residential clients. By leveraging cutting-edge technology and strategic partnerships, TXNM aims to lead the transition to a greener energy future.

How the Company Makes Money

TXNM Energy generates revenue through multiple streams, primarily from the sale and installation of renewable energy systems, such as solar panels and wind turbines. The company also earns money by providing energy management solutions that help clients optimize their energy usage, leading to cost savings. Additionally, TXNM may engage in power purchase agreements (PPAs) with commercial and industrial customers, where they supply energy at a fixed rate over a specified period, ensuring predictable cash flow. Significant partnerships with technology providers and governmental incentives for renewable energy projects further enhance TXNM's earnings potential, allowing them to capitalize on the growing demand for sustainable energy solutions.

TXNM Energy Financial Statement Overview

Summary

TXNM Energy shows strong revenue growth and solid profitability margins, but faces challenges with high leverage and negative free cash flow. The company has improved its equity position, but cash flow constraints could impact future financial flexibility.

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	2.11B	1.97B	1.94B	2.25B	1.78B	1.52B
Gross Profit	801.17M	810.16M	627.10M	714.73M	625.65M	584.24M
EBITDA	953.94M	929.21M	627.71M	682.44M	663.84M	639.95M
Net Income	177.45M	242.68M	88.35M	170.06M	196.36M	173.30M
Balance Sheet
Total Assets	11.97B	11.55B	10.59B	9.63B	9.02B	8.33B
Cash, Cash Equivalents and Short-Term Investments	32.07M	4.50M	2.21M	4.08M	1.10M	47.93M
Total Debt	5.75B	5.83B	4.99B	4.39B	3.87B	3.46B
Total Liabilities	8.50B	8.95B	8.18B	7.37B	6.78B	6.21B
Stockholders Equity	3.43B	2.55B	2.36B	2.20B	2.18B	2.06B
Cash Flow
Free Cash Flow	-642.21M	-738.88M	-524.64M	-345.27M	-387.14M	-193.33M
Operating Cash Flow	585.43M	508.16M	551.17M	567.28M	547.87M	485.70M
Investing Cash Flow	-1.26B	-1.17B	-1.09B	-950.35M	-952.26M	-733.80M
Financing Cash Flow	697.15M	684.35M	537.10M	386.04M	357.56M	292.19M

TXNM Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 58.23 is above the 20-day moving average (MA) of 57.94, above the 50-day MA of 57.13, and above the 200-day MA of 54.92, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 63.16 is Neutral, 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	71 Outperform	$5.46B	17.62	7.99%	4.22%	7.53%	-17.59%
OGE	67 Neutral	$8.91B	17.39	10.69%	3.82%	18.03%	29.46%
PNW	66 Neutral	$10.55B	18.11	8.62%	4.08%	5.70%	-8.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
IDA	61 Neutral	$6.85B	21.77	9.41%	2.73%	-1.58%	8.49%
TXNM	60 Neutral	$6.34B	34.03	6.02%	2.80%	10.65%	-10.67%
ENIC	56 Neutral	$5.58B	78.09	1.30%	5.81%	-25.78%	-91.93%

TXNM Energy Corporate Events

TXNM Energy Announces Marketing of Junior Subordinated Notes

On December 2, 2025, TXNM Energy, Inc. announced the commencement of marketing for a potential offering of fixed-to-fixed reset rate junior subordinated notes to institutional buyers and non-U.S. persons. The company is also evaluating a pension risk transfer transaction that could transfer up to $100 million of pension obligations from the PNM Resources, Inc. Employees’ Retirement Plan. This transaction, if completed, would result in a non-cash charge to net income of approximately $65 million. However, there is no assurance that either the notes offering or the pension transfer will be completed.

TXNM Energy’s TNMP Subsidiary Issues $70M Mortgage Bonds

On November 18, 2025, TXNM Energy‘s subsidiary, TNMP, agreed to issue $70 million in First Mortgage Bonds due in 2031, with a 4.69% interest rate, in a private placement to institutional investors. The proceeds will be used for repaying short-term debt and other corporate purposes, with the bonds secured by a first mortgage lien on TNMP’s property. The issuance is subject to customary conditions and includes provisions for default and bond repurchase events.

TXNM Energy’s PNM Secures $120 Million Term Loan

On November 10, 2025, PNM, a subsidiary of TXNM Energy, entered into a $120 million term loan agreement to refinance its 2024 Term Loan. The loan includes covenants and default provisions, impacting PNM’s financial management and obligations.

TXNM Energy Amends Mortgage Indenture with Bondholder Consent

On November 6, 2025, TNMP, a subsidiary of TXNM Energy, entered into the Twenty-Fifth Supplemental Indenture to amend various sections of its First Mortgage Indenture. These amendments include changes to financial reporting requirements, the definition of change in control, and the incorporation of a covenant for financial statement availability. TNMP secured the necessary consents from bondholders to proceed with these amendments, which may impact its operational transparency and stakeholder relations.