TXNM Energy (TXNM) AI Stock Analysis

TXNM Energy

(BMV:TXNM)

Rating:―N/A

Action:N/A

Date:―

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Positive Factors

Regulated utility infrastructureTXNM operates essential electricity transmission and distribution businesses in regulated service territories, creating a durable operating framework. Commission oversight supports recovery of prudently incurred costs and approved investment returns, while critical infrastructure demand can underpin long-term customer and rate-base economics.

Negative Factors

Persistent negative free cash flowSustained negative free cash flow shows that operating cash generation has not covered the company’s ongoing investment requirements. This can limit internally funded growth, increase dependence on external financing, and leave less flexibility for debt reduction or other capital-allocation priorities over the coming quarters.

TXNM Energy (TXNM) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 6.43B
Dividend Yield: 2.90%
Average Volume (3M): ―
Price to Earnings (P/E): 27.4
Beta (1Y): 0.09
Revenue Growth: -1.15%
EPS Growth: 13.32%
Country: Mexico
Employees: 1,755
Sector: Utilities
Sector Strength: 66
Industry: Regulated Electric

TXNM Energy Business Overview & Revenue Model

Company Description

TXNM Energy, Inc., through its various subsidiaries, supplies electricity and related services across the United States. Its operations are organized into two main divisions: Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Compa...

TXNM Energy Earnings Call Summary

Earnings Call Date:May 08, 2025(Q1-2025)|Next Earnings Date:Feb 18, 2027

Earnings Call SentimentPositive

The earnings call presented a generally positive outlook with strong growth metrics, successful regulatory approvals, and supportive legislative developments. However, challenges such as transmission pressures, insurance costs, and ongoing regulatory lag concerns were noted.

Positive Updates

Ongoing Earnings and Growth Targets

Ongoing earnings for Q1 were $0.19, in line with expectations, affirming guidance for 2025 at $2.74 to $2.84 per share with a long-term EPS growth target of 7% to 9%.

Negative Updates

Transmission and Demand Charge Pressures

Lower transmission margins and higher demand charges from energy storage agreements impacted earnings, though mitigated by deferrals.

Company Guidance

During the TXNM Energy Q1 2025 Conference Call, the company reaffirmed its guidance for 2025 with an earnings per share (EPS) range of $2.74 to $2.84, alongside a long-term EPS growth target of 7% to 9%. The company reported ongoing earnings of $0.19 per share for the first quarter, highlighting progress in regulatory approvals and capital investments. TXNM Energy's system resiliency plan, approved for $546 million, and the Permian Basin Reliability Study, involving a $750 million investment by 2030, were key highlights. The company noted a 22% increase in TNMP's system peak and a 9.7% growth in demand-based load, largely driven by commercial growth in North and West Texas. The legislative environment was favorable, with new bills passed to support infrastructure development and wildfire prevention. TXNM Energy plans to maintain its five-year capital plan, increasing from $600 million in 2025 to over $1 billion by 2028, to support a 17% rate base growth.

TXNM Energy Risk Analysis

TXNM Energy disclosed 36 risk factors in its most recent earnings report. TXNM Energy reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk

1.As of the date of this report, there have been no material changes with regard to the Risk Factors disclosed in TXNM’s, PNM’s, and TNMP’s Annual Reports on Form 10-K for the year ended December 31, 2025.Q2, 2026

TXNM Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

MX:TXNM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNW	68Neutral	$12.88B	19.98	9.04%	3.44%	5.69%	6.83%
IDA	66Neutral	$8.56B	21.83	9.94%	2.42%	3.69%	13.21%
LNT	66Neutral	$18.58B	19.85	12.41%	2.99%	5.36%	13.51%
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NWE	59Neutral	$4.91B	28.61	5.92%	3.35%	10.69%	-24.15%
POR	56Neutral	$5.29B	18.82	6.54%	4.85%	2.51%	-15.35%

* Utilities Sector Average

Performance Comparison

MX:TXNM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:TXNM	Txnm Energy, Inc.	1082.21	59.62	5.83%
LNT	Alliant Energy Corporation	71.65	7.19	11.16%
IDA	IdaCorp	145.38	19.03	15.06%
NWE	Northwestern	79.81	22.04	38.14%
PNW	Pinnacle West Capital	106.28	19.27	22.15%
POR	Portland General Electric	44.42	-0.52	-1.16%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

TXNM Energy AI Stock Analysis