(TXNM) TXNM Energy - Overview
Sector: Utilities | Industry: Utilities - Regulated Electric | Exchange: NYSE (USA) | Market Cap: 6.584m USD | Total Return: 7.6% in 12m
Avg Turnover: 71.9M
EPS Trend: -84.1%
Qual. Beats: -2
Rev. Trend: 92.6%
Qual. Beats: 0
Warnings
High Debt/EBITDA (6.0) with thin interest coverage (1.5)
High Debt while negative Cash Flow
Altman Z'' 0.69 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
TXNM Energy, Inc., formerly known as PNM Resources, Inc., is a regulated utility holding company headquartered in Albuquerque, New Mexico. The company operates through subsidiaries to provide electricity generation, transmission, and distribution services to residential, commercial, and industrial customers across New Mexico and Texas. Its business model relies on rate-regulated infrastructure assets, which provide essential services under oversight from state regulatory commissions.
The company maintains a diverse portfolio of physical assets, including energy storage facilities, service centers, and extensive transmission networks. As a participant in the Electric Utilities sub-industry, TXNM Energy operates within a capital-intensive sector where revenue is largely driven by approved rates of return on infrastructure investments. The recent rebranding in August 2024 reflects the companys dual geographic focus on its primary service territories.
Investors can evaluate the underlying valuation metrics and historical performance of these utility assets by reviewing the detailed data on ValueRay. Given the regulated nature of the industry, TXNM Energy’s stability is closely tied to regional economic growth and evolving energy policies in the Southwestern United States.
- New Mexico rate case outcomes determine regulated utility return on equity
- Infrastructure investment in Texas transmission grid fuels long-term rate base growth
- Federal interest rate shifts impact capital costs for utility debt financing
- Renewable energy transition and coal plant retirements drive capital expenditure requirements
- Load growth from Texas data centers increases demand for high-voltage transmission services
| Net Income: 146.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.05 > 0.02 and ΔFCF/TA 1.84 > 1.0 |
| NWC/Revenue: -21.06% < 20% (prev -59.73%; Δ 38.67% < -1%) |
| CFO/TA 0.05 > 3% & CFO 596.4m > Net Income 146.7m |
| Net Debt (5.73b) to EBITDA (949.1m): 6.04 < 3 |
| Current Ratio: 0.55 > 1.5 & < 3 |
| Outstanding Shares: last quarter (93.2m) vs 12m ago 0.0% < -2% |
| Gross Margin: 38.47% > 18% (prev 0.40%; Δ 3.81k% > 0.5%) |
| Asset Turnover: 18.60% > 50% (prev 17.71%; Δ 0.89% > 0%) |
| Interest Coverage Ratio: 1.52 > 6 (EBITDA TTM 949.1m / Interest Expense TTM 337.3m) |
| A: -0.04 (Total Current Assets 562.2m - Total Current Liabilities 1.02b) / Total Assets 12.1b |
| B: 0.07 (Retained Earnings 823.9m / Total Assets 12.1b) |
| C: 0.04 (EBIT TTM 512.3m / Avg Total Assets 11.8b) |
| D: 0.40 (Book Value of Equity 3.46b / Total Liabilities 8.61b) |
| Altman-Z'' = 0.69 = B |
| DSRI: 1.06 (Receivables 275.7m/239.7m, Revenue 2.19b/2.02b) |
| GMI: 1.03 (GM 38.47% / 39.80%) |
| AQI: 0.97 (AQ_t 0.17 / AQ_t-1 0.17) |
| SGI: 1.08 (Revenue 2.19b / 2.02b) |
| TATA: -0.04 (NI 146.7m - CFO 596.4m) / TA 12.1b) |
| Beneish M = -2.94 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 59.47 with a total of 931,502 shares traded.
Over the past week, the price has changed by +0.37%,
over one month by +1.49%,
over three months by +1.35% and
over the past year by +7.56%.
TXNM Energy has received a consensus analysts rating of 3.88. Therefore, it is recommended to buy TXNM.
- StrongBuy: 3
- Buy: 1
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 60.8 | 2.2% |
P/E Forward = 20.6612
P/S = 3.0093
P/B = 1.9001
P/EG = 2.9499
Revenue TTM = 2.19b USD
EBIT TTM = 512.3m USD
EBITDA TTM = 949.1m USD
Long Term Debt = 5.11b USD (from longTermDebt, last quarter)
Short Term Debt = 573.7m USD (from shortTermDebt, last quarter)
Debt = 5.73b USD (corrected: LT Debt 5.11b + ST Debt 573.7m) + Leases 48.7m
Net Debt = 5.73b USD (calculated: Debt 5.73b - CCE 5.62m)
Enterprise Value = 12.3b USD (6.58b + Debt 5.73b - CCE 5.62m)
Interest Coverage Ratio = 1.52 (Ebit TTM 512.3m / Interest Expense TTM 337.3m)
EV/FCF = -21.62x (Enterprise Value 12.3b / FCF TTM -569.6m)
FCF Yield = -4.63% (FCF TTM -569.6m / Enterprise Value 12.3b)
FCF Margin = -26.04% (FCF TTM -569.6m / Revenue TTM 2.19b)
Net Margin = 6.71% (Net Income TTM 146.7m / Revenue TTM 2.19b)
Gross Margin = 38.47% ((Revenue TTM 2.19b - Cost of Revenue TTM 1.35b) / Revenue TTM)
Gross Margin QoQ = 34.83% (prev 35.63%)
Tobins Q-Ratio = 1.01 (Enterprise Value 12.3b / Total Assets 12.1b)
Interest Expense / Debt = 5.88% (Interest Expense 337.3m / Debt 5.73b)
Taxrate = 5.66% (10.2m / 180.0m)
NOPAT = 483.3m (EBIT 512.3m * (1 - 5.66%))
Current Ratio = 0.55 (Total Current Assets 562.2m / Total Current Liabilities 1.02b)
Debt / Equity = 1.66 (Debt 5.73b / totalStockholderEquity, last quarter 3.46b)
Debt / EBITDA = 6.04 (Net Debt 5.73b / EBITDA 949.1m)
Debt / FCF = -10.06 (negative FCF - burning cash) (Net Debt 5.73b / FCF TTM -569.6m)
Total Stockholder Equity = 3.37b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.25% (Net Income 146.7m / Total Assets 12.1b)
RoE = 4.35% (Net Income TTM 146.7m / Total Stockholder Equity 3.37b)
RoCE = 6.04% (EBIT 512.3m / Capital Employed (Equity 3.37b + L.T.Debt 5.11b))
RoIC = 4.14% (NOPAT 483.3m / Invested Capital 11.7b)
WACC = 5.98% (E(6.58b)/V(12.3b) * Re(6.35%) + D(5.73b)/V(12.3b) * Rd(5.88%) * (1-Tc(0.06)))
Discount Rate = 6.35% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 68.03 | Cagr: 2.35%
[DCF] Fair Price = unknown (Cash Flow -569.6m)
EPS Correlation: -84.07 | EPS CAGR: -9.71% | SUE: -1.60 | # QB: -2
Revenue Correlation: 92.65 | Revenue CAGR: 5.68% | SUE: -0.38 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.48 | Chg30d=-4.15% | Revisions=N/A | Analysts=1
EPS next Quarter (2026-09-30): EPS=1.40 | Chg30d=-3.17% | Revisions=N/A | Analysts=1
EPS current Year (2026-12-31): EPS=3.00 | Chg30d=+4.20% | Revisions=N/A | GrowthEPS=+28.8% | GrowthRev=+7.5%
EPS next Year (2027-12-31): EPS=3.30 | Chg30d=+1.17% | Revisions=+0% | GrowthEPS=+9.8% | GrowthRev=+8.0%
[Analyst] Revisions Ratio: +0%