TXNM Energy (TXNM) AI Stock Analysis

• Market Cap: $6.30B
• Dividend Yield: 2.82%
• Average Volume (3M): 749.06K
• Price to Earnings (P/E): 33.8
• 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: 738,869
• 30 Day Avg. Volume: 749,058
• 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: 1.88
• Enterprise Value/Revenue: 5.62
• Enterprise Value/Gross Profit: 14.78
• Enterprise Value/Ebitda: 12.42
• 1Y Price Target: $61.25
• Price Target Upside: 6.08% 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 ▲(3.91% 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 leading energy company focused on providing innovative solutions in the renewable energy sector. Operating primarily within the solar and wind energy markets, TXNM develops, finances, and operates a diverse portfolio of clean energy projects. The company is committed to sustainability and reducing carbon emissions while delivering reliable energy to residential, commercial, and industrial customers. TXNM's core products include solar photovoltaic systems, wind turbines, and energy storage solutions, all designed to promote energy efficiency and independence.

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, 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: 57.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 57.74 is above the 20-day moving average (MA) of 57.17, above the 50-day MA of 56.71, and above the 200-day MA of 54.36, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 70.78 is Negative, neither overbought nor oversold. The STOCH value of 86.70 is Negative, 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
OGE	67 Neutral	$8.98B	17.88	10.69%	3.83%	18.03%	29.46%
PNW	67 Neutral	$10.67B	18.31	8.62%	4.02%	5.70%	-8.25%
POR	67 Neutral	$5.53B	17.82	7.99%	4.48%	7.53%	-17.59%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
IDA	62 Neutral	$6.93B	22.02	9.41%	2.72%	-1.58%	8.49%
TXNM	60 Neutral	$6.30B	33.80	6.02%	2.82%	10.65%	-10.67%
ENIC	56 Neutral	$5.34B	76.88	1.30%	5.81%	-25.78%	-91.93%

TXNM Energy Corporate Events

TXNM Energy’s Q3 2025 Earnings and Strategic Moves

TXNM Energy, Inc., based in Albuquerque, New Mexico, is an energy holding company that provides electricity to over 800,000 homes and businesses in Texas and New Mexico through its regulated utilities, TNMP and PNM.

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.

The most recent analyst rating on (TXNM) stock is a Hold with a $61.25 price target. To see the full list of analyst forecasts on TXNM Energy stock, see the TXNM Stock Forecast page.

Txnm Energy, Inc. Maintains Steady Risk Profile: Key Insights for Stakeholders

Txnm Energy, Inc. faces potential business risks that remain consistent with those previously disclosed in their annual reports, with no significant changes noted as of the current report date. This stability in risk factors suggests that the company has maintained a steady risk profile over the past year. However, stakeholders should remain vigilant for any updates or new disclosures that might arise in the future. Monitoring these risk factors is crucial for understanding the company’s operational and financial health.

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.