A Business at a Glance
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TXNM ENERGY INC
TXNM
$6.0B
Mkt Cap
$58.40
+0.17%
TXNM ENERGY INC (TXNM) has a current P/E ratio of 39.5, compared to its historical median P/E of 26.7. The stock is currently considered Expensive based on its historical valuation range.
TXNM ENERGY INC (TXNM) has a 5-year average return on invested capital (ROIC) of 5.1%. This is below average and may indicate limited pricing power.
TXNM ENERGY INC (TXNM) has a market capitalization of $6.5B. It is classified as a mid-cap stock.
Yes, TXNM ENERGY INC (TXNM) pays a dividend with a trailing twelve-month yield of 2.65%. The company also returns capital through share buybacks, with a buyback yield of 0.17%.
Based on historical P/E analysis, TXNM ENERGY INC (TXNM) appears expensive. The current P/E of 39.5 is 48% above its historical median of 26.7. The estimated fair value CAGR (P/E method) is 4.3%.
TXNM ENERGY INC (TXNM) operates in the Electric Services industry, within the Utilities sector.
TXNM ENERGY INC (TXNM) reported annual revenue of $2.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
TXNM Energy operates two regulated utility segments—PNM (Public Service Company of New Mexico) and TNMP (Texas-New Mexico Power)—that distribute electricity to residential, commercial, and industrial customers across New Mexico and Texas. The company earns revenue through rate-regulated utility operations, recovering capital investments through base rates and semiannual cost-recovery mechanisms (TCOS and DCRF at TNMP, formula rate updates at PNM), with earnings driven by rate base growth, retail load expansion, and recovery of transmission and distribution infrastructure investments. The business model is capital-intensive, requiring substantial multi-year investment in grid modernization, transmission expansion, and renewable energy integration, with earnings supported by regulatory mechanisms that provide cost recovery and authorized returns on equity. Distribution is direct to end-use customers in defined service territories; competitive moat derives from regulated monopoly status, essential infrastructure, and regulatory approval requirements for major capital projects. Key customers include residential, commercial, and industrial users, with growing demand from data centers and industrial load in Texas; the company also serves wholesale markets through FERC-regulated transmission operations. Geographic footprint spans New Mexico (PNM retail and FERC transmission) and Texas (TNMP distribution and transmission), with significant growth opportunities tied to regional economic development and renewable energy transition.
【Infrastructure investment acceleration】 Management expects continued strong capital deployment across both utilities, with five-year investment plans increased to $7.8 billion to support transmission expansion, grid modernization, and renewable resource integration. Earnings growth is supported by recovery of substantial capital investments through regulatory mechanisms and anticipated rate implementations, with management confident in executing the 7%-9% EPS growth target through 2029. Regulatory processes remain on track, including rate decisions expected in mid-2025 at TNMP and mid-2025 at PNM, with new resource applications and transmission projects advancing through commission review. Load growth expectations remain constructive, driven by industrial customer demand, data center expansion in Texas, and residential growth, though management is mindful of customer rate impacts and balancing system needs with affordability. Financing plans include approximately $100 million of annual equity issuance and refinancing of corporate debt, with management targeting the upper half of the 7%-9% growth range supported by earnings power and disciplined capital allocation.
| Metric | Target | Period |
|---|---|---|
| EPS | $2.74–$2.84 | FY2025 |
| Long-term EPS growth | 7%–9% | FY2025 through FY2029 |
EPS (FY2025): “We are affirming our guidance for 2025 at a range of $2.74-$2.84 per share”
Long-term EPS growth (FY2025 through FY2029): “We continue to target EPS growth of 7%-9% from 2025 through 2029”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: Q4 FY2024 Earnings Call, Q3 FY2024 Earnings Call, Q2 FY2024 Earnings Call, Q1 FY2024 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.2B | 2.2B | 2.0B | 1.9B | 2.2B | 1.8B |
| Net Income | 146M | 151M | 242M | 88M | 170M | 196M |
| EPS | $1.35 | $1.48 | $2.67 | $1.02 | $1.97 | $2.27 |
| Free Cash Flow | -570M | -611M | -739M | -525M | -345M | -387M |
| ROIC | 4.9% | 5.1% | 5.8% | 3.6% | 5.9% | 5.1% |
| Gross Margin | - | 55.8% | 59.8% | 33.8% | 32.9% | 36.5% |
| Debt/Equity | 1.64 | 1.68 | 2.29 | 2.11 | 1.99 | 1.77 |
| Dividends/Share | $1.55 | $1.65 | $1.57 | $1.49 | $1.41 | $1.33 |
| Operating Income | 446M | 441M | 453M | 231M | 394M | 308M |
| Operating Margin | 20.4% | 20.4% | 23.0% | 11.9% | 17.5% | 17.3% |
| ROE | 4.2% | 5.1% | 9.9% | 3.9% | 7.8% | 9.3% |
| Shares Outstanding | 111M | 102M | 91M | 86M | 86M | 86M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.4B | 1.4B | 1.4B | 1.4B | 1.4B | 1.5B | 1.5B | 1.8B | 2.2B | 1.9B | 2.0B | 2.2B | 2.2B |
| Gross Margin | 67.2% | 67.7% | 55.1% | 55.3% | 48.8% | 46.5% | 39.8% | 36.5% | 32.9% | 33.8% | 59.8% | 55.8% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 171M | 179M | 185M | 178M | 188M | 189M | 216M | 230M | 227M | 228M | 247M | 274M | 281M |
| EBIT | 300M | 124M | 285M | 315M | 236M | 144M | 285M | 308M | 394M | 231M | 453M | 441M | 446M |
| Op. Margin | 20.9% | 8.6% | 20.9% | 21.8% | 16.4% | 9.9% | 18.7% | 17.3% | 17.5% | 11.9% | 23.0% | 20.4% | 20.4% |
| Net Income | 116M | 16M | 117M | 80M | 86M | 77M | 173M | 196M | 170M | 88M | 242M | 151M | 146M |
| Net Margin | 8.1% | 1.1% | 8.6% | 5.5% | 6.0% | 5.3% | 11.3% | 11.0% | 7.5% | 4.5% | 12.3% | 7.0% | 6.7% |
| Non-Recurring | 174M | 174M | 20M | 27M | -17M | 30M | 22M | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 5.2% | 2.1% | 5.1% | 4.8% | 5.2% | 3.2% | 5.4% | 5.1% | 5.9% | 3.6% | 5.8% | 5.1% | 4.9% |
| ROE | 6.8% | 0.9% | 7.0% | 4.7% | 5.1% | 4.6% | 9.3% | 9.3% | 7.8% | 3.9% | 9.9% | 5.1% | 4.2% |
| ROA | 2.0% | 0.3% | 1.9% | 1.2% | 1.3% | 1.1% | 2.3% | 2.4% | 1.9% | 0.9% | 2.3% | 1.3% | 1.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 415M | 387M | 408M | 523M | 428M | 503M | 486M | 548M | 567M | 551M | 508M | 584M | 596M |
| Free Cash Flow | -46M | -172M | -192M | 23M | -73M | -113M | -193M | -387M | -345M | -525M | -739M | -611M | -570M |
| Owner Earnings | 199M | 159M | 161M | 249M | 145M | 196M | 163M | 218M | 218M | 190M | 76M | 92M | 91M |
| CapEx | 461M | 559M | 600M | 500M | 501M | 616M | 679M | 935M | 913M | 1.1B | 1.2B | 1.2B | 1.2B |
| Maint. CapEx | 210M | 223M | 242M | 268M | 276M | 301M | 315M | 320M | 341M | 354M | 423M | 483M | 495M |
| Growth CapEx | 251M | 336M | 358M | 232M | 226M | 315M | 364M | 615M | 571M | 722M | 824M | 713M | 672M |
| D&A | 210M | 223M | 242M | 268M | 276M | 301M | 315M | 320M | 341M | 354M | 423M | 483M | 495M |
| CapEx/OCF | 111.0% | 144.4% | 144.4% | 95.6% | 117.0% | 122.5% | 139.8% | 170.7% | 160.9% | 195.2% | 245.4% | 204.6% | 195.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 59M | 64M | 71M | 78M | 85M | 93M | 99M | 113M | 120M | 127M | 140M | 163M | 172M |
| Dividend Yield | 3.8% | 4.0% | 3.6% | 3.2% | 3.4% | 3.0% | 3.3% | 3.1% | 3.3% | 3.5% | 4.0% | 3.0% | 2.7% |
| Share Buybacks | 17M | 18M | 15M | 14M | 13M | 9.9M | 12M | 10M | 8.0M | 9.6M | 8.5M | 12M | 11M |
| Buyback Yield | 1.0% | 1.0% | 0.7% | 0.5% | 0.0% | 0.3% | 0.4% | 0.3% | 0.2% | 0.3% | 0.2% | 0.2% | 0.2% |
| Stock-Based Comp | 5.9M | 4.9M | 5.6M | 6.2M | 7.1M | 6.4M | 8.1M | 9.4M | 7.8M | 7.2M | 9.5M | 8.7M | 11M |
| Debt Repayment | 125M | 333M | 304M | 274M | 750M | 407M | 978M | 1.4B | 180M | 910M | 820M | 3.2B | 3.2B |
| Balance Sheet | |||||||||||||
| Net Debt | 2.0B | 2.3B | 2.1B | 2.4B | 2.6B | 2.9B | 2.9B | 3.4B | 3.9B | 4.5B | 5.3B | 5.2B | 5.2B |
| Cash & Equiv. | 28M | 46M | 5.5M | 4.0M | 2.1M | 3.8M | 48M | 1.1M | 4.1M | 2.2M | 4.5M | 18M | 500M |
| Long-Term Debt | 1.6B | 2.0B | 2.1B | 2.2B | 2.7B | 2.5B | 2.7B | 3.5B | 3.9B | 4.2B | 4.3B | 5.1B | 5.1B |
| Debt/Equity | 1.20 | 1.42 | 1.60 | 1.62 | 1.72 | 1.98 | 1.68 | 1.77 | 1.99 | 2.11 | 2.29 | 1.68 | 1.64 |
| Interest Coverage | 2.5 | 1.1 | 2.2 | 2.5 | 1.9 | 1.2 | 2.5 | 3.2 | 3.1 | 1.2 | 2.0 | 1.6 | 66.6 |
| Equity | 1.7B | 1.7B | 1.7B | 1.7B | 1.7B | 1.7B | 2.0B | 2.2B | 2.2B | 2.3B | 2.5B | 3.4B | 3.5B |
| Total Assets | 5.8B | 6.0B | 6.5B | 6.6B | 6.9B | 7.3B | 7.9B | 8.7B | 9.3B | 10.3B | 11.2B | 12.1B | 12.1B |
| Total Liabilities | 4.0B | 4.3B | 4.7B | 4.9B | 5.1B | 5.5B | 5.8B | 6.4B | 7.0B | 7.8B | 8.6B | 8.6B | 8.6B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 609M | 560M | 605M | 634M | 644M | 628M | 699M | 810M | 829M | 787M | 888M | 867M | 824M |
| Working Capital | -298M | -256M | -427M | -541M | -210M | -673M | -600M | -340M | -479M | -755M | -1.3B | -453M | -461M |
| Current Assets | 406M | 386M | 378M | 294M | 303M | 294M | 377M | 325M | 411M | 476M | 499M | 565M | 562M |
| Current Liabilities | 704M | 641M | 805M | 836M | 512M | 967M | 978M | 664M | 890M | 1.2B | 1.8B | 1.0B | 1.0B |
| Per Share Data | |||||||||||||
| EPS | 1.45 | 0.20 | 1.46 | 1.00 | 1.07 | 0.97 | 2.15 | 2.27 | 1.97 | 1.02 | 2.67 | 1.48 | 1.35 |
| Owner EPS | 2.48 | 2.04 | 2.01 | 3.12 | 1.82 | 2.45 | 2.03 | 2.53 | 2.54 | 2.21 | 0.83 | 0.90 | 0.82 |
| Book Value | 21.47 | 21.16 | 20.94 | 21.22 | 21.09 | 21.05 | 25.50 | 25.13 | 25.47 | 27.28 | 27.97 | 33.28 | 31.30 |
| Cash Flow/Share | 5.17 | 4.95 | 5.10 | 6.55 | 5.35 | 6.31 | 6.04 | 6.35 | 6.59 | 6.40 | 5.60 | 5.72 | 5.79 |
| Dividends/Share | 0.76 | 0.82 | 0.90 | 0.99 | 1.09 | 1.18 | 1.25 | 1.33 | 1.41 | 1.49 | 1.57 | 1.65 | 1.55 |
| Shares Out. | 80.2M | 78.2M | 80.0M | 79.9M | 80.0M | 79.8M | 80.4M | 86.3M | 86.1M | 86.1M | 90.7M | 102.3M | 110.7M |
| Valuation | |||||||||||||
| P/E Ratio | 15.4 | 115.4 | 17.8 | 32.0 | 30.9 | 43.2 | 19.3 | 17.6 | 22.4 | 38.0 | 17.6 | 39.8 | 43.3 |
| P/FCF | N/A | N/A | N/A | 111.2 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EV/EBIT | 12.7 | 32.6 | 17.1 | 15.8 | N/A | 42.6 | 21.6 | 21.9 | 19.5 | 33.2 | 20.5 | 25.2 | 26.1 |
| Price/Book | 1.0 | 1.1 | 1.2 | 1.5 | N/A | 2.0 | 1.6 | 1.6 | 1.7 | 1.4 | 1.7 | 1.8 | 1.9 |
| Price/Sales | 1.1 | 1.1 | 1.5 | 1.7 | N/A | 2.2 | 2.0 | 2.0 | 1.6 | 1.9 | 1.8 | 2.6 | 3.0 |
| FCF Yield | -2.6% | -9.5% | -9.2% | 0.9% | -0.0% | -3.4% | -5.8% | -11.2% | -9.1% | -15.7% | -17.3% | -10.1% | -8.8% |
| Market Cap | 1.8B | 1.8B | 2.1B | 2.6B | 3.9T | 3.3B | 3.3B | 3.4B | 3.8B | 3.3B | 4.3B | 6.0B | 6.5B |
| Avg. Price | 19.39 | 20.41 | 24.82 | 30.60 | 31.08 | 39.48 | 37.57 | 42.18 | 41.73 | 42.16 | 38.46 | 54.06 | 58.40 |
| Year-End Price | 22.28 | 23.09 | 25.99 | 32.02 | 33.11 | 41.95 | 41.49 | 39.95 | 44.16 | 38.81 | 47.01 | 58.92 | 58.40 |
TXNM ENERGY INC passes 2 of 9 quality checks, indicating weak fundamentals.
TXNM ENERGY INC trades at 39.5x trailing earnings, compared to its 15-year median P/E of 26.7x, suggesting it is currently Expensive relative to its historical range. The company's 5-year average ROIC is 5.1% with a gross margin of 43.8%. Total shareholder yield (dividends + buybacks) is 2.8%. At current prices, the estimated annualized return to fair value is +4.3%.
TXNM ENERGY INC (TXNM) has a net profit margin of 7.0%. This is a modest margin.
TXNM ENERGY INC (TXNM) generated $-611 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
TXNM ENERGY INC (TXNM) has a debt-to-equity ratio of 1.68. This indicates higher leverage, which may increase financial risk.
TXNM ENERGY INC (TXNM) reported earnings per share (EPS) of $1.48 in its most recent fiscal year.
TXNM ENERGY INC (TXNM) has a return on equity (ROE) of 5.1%. This indicates moderate shareholder returns.
TXNM ENERGY INC (TXNM) has a 5-year average gross margin of 43.8%. This indicates decent pricing power.
The Ledger Terminal provides 17 years of financial data for TXNM ENERGY INC (TXNM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TXNM ENERGY INC (TXNM) has a book value per share of $33.28, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong capital deployment across both utilities, with five-year investment plans increased to $7.8 billion to support transmission expansion, grid modernization, and renewable resource integration. Earnings growth is supported by recovery of substantial capital investments through regulatory mechanisms and anticipated rate implementations, with management confident in executing the 7%-9% EPS growth target through 2029. Regulatory processes remain on track, including rate decisions expected in mid-2025 at TNMP and mid-2025 at PNM, with new resource applications and transmission projects advancing through commission review. Load growth expectations remain constructive, driven by industrial customer demand, data center expansion in Texas, and residential growth, though management is mindful of customer rate impacts and balancing system needs with affordability. Financing plans include approximately $100 million of annual equity issuance and refinancing of corporate debt, with management targeting the upper half of the 7%-9% growth range supported by earnings power and disciplined capital allocation.
Based on recent SEC filings and earnings calls, TXNM ENERGY INC (TXNM) has provided the following forward guidance: EPS: $2.74–$2.84 (FY2025); Long-term EPS growth: 7%–9% (FY2025 through FY2029).