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TXNM Energy
(NYSE:TXNM)
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Rating:52Neutral
Price Target:
$59.00
â–²(2.59% Upside)
Action:Reiterated
Date:09/06/26
The score is held back primarily by weak cash-flow quality (deeply negative free cash flow) and leverage risk alongside a sharp TTM revenue decline. Technicals are modestly supportive with price above key moving averages and positive MACD, but valuation is not compelling with a relatively high P/E despite a ~2.9% yield. Corporate events are mixed: refinancing actions improve flexibility, while regulatory setbacks around the PIPE/merger add uncertainty.
Positive Factors
Regulated essential-service model
TXNM Energy provides an essential service through regulated transmission and distribution networks, creating a durable operating foundation. Regulatory frameworks can support recovery of prudently incurred costs and an allowed return on invested grid capital, helping underpin earnings visibility over the next several quarters.
Negative Factors
Persistently negative free cash flow
Deeply negative free cash flow indicates that capital spending continues to exceed internally generated cash, making the utility reliant on external funding. Persistent funding needs can constrain financial flexibility, increase financing exposure, and limit the cash available for debt reduction or shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated essential-service model
TXNM Energy provides an essential service through regulated transmission and distribution networks, creating a durable operating foundation. Regulatory frameworks can support recovery of prudently incurred costs and an allowed return on invested grid capital, helping underpin earnings visibility over the next several quarters.
Read all positive factors
TXNM Energy (TXNM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.44B
Dividend Yield2.86%
Average Volume (3M)1.44M
Price to Earnings (P/E)32.4
Beta (1Y)0.14
Revenue Growth9.97%
EPS Growth-7.29%
CountryUS
Employees1,755
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.80
Shares Outstanding110,125,755
10 Day Avg. Volume2,029,563
30 Day Avg. Volume1,438,850
Financial Highlights & Ratios
PEG Ratio-0.89
Price to Book (P/B)1.76
Price to Sales (P/S)2.76
P/FCF Ratio-9.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$61.00Price Target Upside6.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.92
Revenue Forecast (FY)$2.38B
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 Co...
How the Company Makes Money
TXNM Energy primarily makes money through regulated utility revenues tied to providing electric service. Its core revenue stream is retail electricity service to residential, commercial, and industrial customers, where charges typically include co...
TXNM Energy Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
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.
Read all updates
Q1-2025 Updates
Positive
Negative
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%.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
52
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.23B | 2.17B | 1.97B | 1.94B | 2.25B | 1.78B |
| Gross Profit | 883.71M | 824.79M | 810.16M | 627.10M | 714.73M | 625.65M |
| EBITDA | 1.01B | 940.66M | 929.21M | 627.71M | 682.44M | 663.84M |
| Net Income | 196.39M | 151.36M | 242.68M | 88.35M | 170.06M | 196.36M |
Balance Sheet | ||||||
| Total Assets | 12.51B | 4.35B | 11.55B | 10.59B | 9.63B | 9.02B |
| Cash, Cash Equivalents and Short-Term Investments | 14.59M | 1.62M | 4.50M | 2.21M | 4.08M | 1.10M |
| Total Debt | 752.70M | 2.60M | 5.83B | 4.99B | 4.39B | 3.87B |
| Total Liabilities | 8.89B | 953.99M | 8.95B | 8.18B | 7.37B | 6.78B |
| Stockholders Equity | 3.55B | 3.40B | 2.55B | 2.36B | 2.20B | 2.18B |
Cash Flow | ||||||
| Free Cash Flow | -501.97M | -611.43M | -738.88M | -524.64M | -345.27M | -387.14M |
| Operating Cash Flow | 662.71M | 584.49M | 508.16M | 551.17M | 567.28M | 547.87M |
| Investing Cash Flow | -1.19B | -1.22B | -1.17B | -1.09B | -950.35M | -952.26M |
| Financing Cash Flow | 513.62M | 642.52M | 684.35M | 537.10M | 386.04M | 357.56M |
TXNM Energy Technical Analysis
Positive
57.51
Price Trends
57.74
Positive
57.71
Positive
57.83
Positive
Market Momentum
0.24
Negative
60.59
Neutral
54.13
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 57.51 is below the 20-day moving average (MA) of 58.12, below the 50-day MA of 57.74, and below the 200-day MA of 57.83, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 60.59 is Neutral, neither overbought nor oversold. The STOCH value of 54.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TXNM.
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 0 New Risks
TXNM Energy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $5.51B | 20.46 | 6.30% | 4.59% | 2.95% | -17.06% | |
62 Neutral | $4.23B | 24.67 | 5.92% | 3.88% | 10.69% | -24.15% | |
60 Neutral | $7.51B | 21.00 | 9.36% | 2.71% | -1.11% | 8.18% | |
58 Neutral | $16.49B | 20.06 | 11.04% | 3.32% | 6.83% | -2.08% | |
57 Neutral | $11.12B | 17.24 | 9.04% | 3.97% | 5.69% | 6.83% | |
52 Neutral | $6.44B | 32.45 | 5.67% | 2.86% | 9.97% | -7.29% |
* Utilities Sector Average
TXNM
TXNM Energy
58.52
3.56
6.47%
LNT
Alliant Energy
63.60
-1.16
-1.80%
IDA
IdaCorp
129.78
2.38
1.86%
NWE
Northwestern
68.84
12.93
23.13%
PNW
Pinnacle West Capital
91.74
7.36
8.72%
POR
Portland GE
46.85
5.35
12.88%
TXNM Energy Corporate Events
Business Operations and StrategyPrivate Placements and Financing
TXNM Energy Prices Equity Offering to Refinance Debt
Positive
Sep 2, 2026
On August 31, 2026, TXNM Energy launched and priced an underwritten public offering of its common stock, agreeing to sell 7,079,646 shares at $55.935 per share through Wells Fargo Securities. The offering, registered under an existing shelf, close...
Private Placements and Financing
TXNM Energy Announces New Note and Bond Financings
Positive
Aug 19, 2026
On August 19, 2026, PNM entered into a private Note Purchase Agreement with institutional investors for $200 million of senior unsecured notes across three series maturing between 2029 and 2038, with fixed coupons ranging from 5.44% to 6.12%. The ...
Business Operations and StrategyPrivate Placements and Financing
TXNM Energy Secures New Term Loan Financing
Positive
Jul 21, 2026
On July 21, 2026, PNM entered into a $195.0 million term loan agreement with a syndicate of lenders, with Canadian Imperial Bank of Commerce, New York Branch, acting as administrative agent. The loan is effective as of July 21, 2026, and must be r...
Legal ProceedingsM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
TXNM Energy PIPE Void Halts Blackstone-Backed Merger
Negative
Jul 6, 2026
On May 18, 2025, TXNM Energy agreed to merge with Troy Merger Sub Inc., an affiliate of Blackstone Infrastructure Partners, and to become a wholly owned subsidiary of Troy ParentCo, LLC, alongside a $400 million PIPE investment via 8 million newly...
Executive/Board ChangesShareholder Meetings
TXNM Energy Shareholders Back Board, Auditors and Pay
Positive
Jun 11, 2026
On June 10, 2026, TXNM Energy held its Annual Meeting of Shareholders, where investors voted on board elections, auditor ratification, and executive compensation matters. Shareholders elected ten director nominees to one-year terms expiring at the...
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.