TXNM Energy, Inc. (TXNM) AI Stock Analysis

TXNM Energy, Inc., formerly known as PNM Resources, Inc, provides electricity and electric services in the United States. Through its subsidiaries, it engages in the generation, transmission, and distribution of electricity for retail customers, and provides regulated transmission and distribution services in Texas. The company owns and leases communications, office and other equipment, office space, vehicles, energy storage facilities, and real estate, serving residential, commercial, and industrial customers in New Mexico and Texas. Founded in 1882, the company is headquartered in Albuquerque, New Mexico.

TXNM grew annual revenue from $1.78B in FY2021 to $2.17B in FY2025, recording a 5-year revenue CAGR of 7.3%. Performance fluctuated over this span, including a 13.8% decline in FY2023 followed by a 9.9% rebound in FY2025. Net income was $151.4M in FY2025, down from $242.7M in FY2024, resulting in a net margin of 7.0% and EPS of $2.25. For the trailing twelve months, revenue reached $2.23B with a net profit margin of 8.8%. In the latest quarter ended June 30, 2026, quarterly revenue increased 9.2% year-over-year, while quarterly earnings surged 190.9%.

As of June 30, 2026, TXNM held $14.6M in cash and short-term investments against total debt of $752.7M, resulting in net debt of $738.1M. Shareholders' equity stood at $3.55B, yielding a debt-to-equity ratio of 0.21 and a current ratio of 0.56. During FY2025, operating cash flow was $584.5M, but capital expenditures of $1.20B led to free cash flow of -$611.4M. Capital returns included $163.4M in dividends paid and $12.0M in share buybacks, while the share count rose 29.3% over the past 5 years.

At $58.52 per share, TXNM trades at a trailing P/E of 33.6x and a forward P/E of 18.0x, compared to medians of 20.6x and 17.2x for its US-listed Utilities peers. Its enterprise value of $12.36B reflects an EV/EBITDA of 12.2x, matching closely with the peer median of 12.1x, while its price-to-sales multiple is 2.9x versus the peer median of 2.4x. Over the past year, TXNM gained 5.7%, trailing the S&P 500 (SPY) return of 16.8%, and its 5-year gain of 42.1% lagged the index return of 83.0%.

TXNM pays a quarterly dividend with an annualized forward payout of $1.69 per share, equating to a 2.89% dividend yield. The company has paid consecutive dividends for 31 years, delivering a 5-year annualized dividend growth rate of 5.8%. Its dividend payout ratio stands at 65.1%, with its last ex-dividend date on October 23, 2026.

Wall Street coverage consists of 5 analysts, with 1 Buy rating and 4 Hold ratings. The mean price target is $60.70, representing a 3.7% premium over the last close of $58.52. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $2.86 (up 22.7%) on revenue of $2.36B. For the subsequent year, 6 analysts anticipate EPS of $3.24 on revenue of $2.54B. TXNM beat EPS estimates in 1 of the last 4 quarters, and its next earnings report is scheduled for October 30, 2026.

This page is an AI-written research summary of TXNM Energy, Inc. (TXNM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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