TXNM Energy TXNM
United StatesUtilities · Utilities - Regulated ElectricUSD
60.70 USD (+3.7%)
5 analysts
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TXNM Energy is a utility holding company that, through its subsidiaries, generates, transmits, and distributes electricity and natural gas to residential and commercial customers in New Mexico and Texas, operating under a regulated business model.
Key points
from its scores- ✓Favourable backdrop8.7
- ✓Strong growth8.0
- ✕Demanding valuation3.5
- ✕Little competitive advantage3.7
- ✕Little or no dividend4.9
AI analysis
bottom line, main risk, context and newsGrowth is strong, but high leverage and interest rate sensitivity limit the stock's appeal in the current environment.
TXNM Energy shows exceptional earnings growth (190.9%) and a healthy operating margin (22.48%), but its high leverage (Net Debt/EBITDA of 6.36) and regulated utility nature make it vulnerable to the current rising interest rate environment, which is reflected in downward-adjusted financial health and valuation.
The main risk is its high leverage (Net Debt/EBITDA of 6.36) in a rising interest rate environment, which increases the cost of debt service and could pressure its financial health and its ability to maintain the dividend.
Context and risks
TXNM is a regulated electric and gas utility in New Mexico and Texas. Its business is subject to rate reviews by state regulatory commissions, which introduces an inherent regulatory risk to the sector. Furthermore, its high leverage (Net Debt/EBITDA of 6.36) makes it sensitive to the rising interest rate environment, increasing the cost of its debt service and refinancing.
Is TXNM Energy stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 41% above the Utilities median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 33.6 | 19.1 | +76% |
| EV / EBITDA | 12.8 | 12.2 | +5% |
| Price / book | 1.8 | 1.9 | −6% |
| Price / sales | 2.9 | 2.6 | +11% |
Sector: median of the 92 Utilities companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.5 out of 10 (median for Utilities: 4.8).
Average analyst target: 60.70 USD, +3.7% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 3.7 (sector 3.8), Growth 8.0 (sector 5.8).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Utilities medianValuation
- P/E
- 33.6
- Forward P/E
- 18.0
- EV / EBITDA
- 12.8
- Price / book
- 1.8
- Price / sales
- 2.9
- PEG
- 2.55
- Market cap
- 6.4B USD
- Enterprise value
- 12.1B USD
Profitability
- ROE
- 6.3%
- ROA
- 2.3%
- ROIC (approx.)
- 5.3%
- Gross margin
- 59.4%
- Operating margin
- 22.5%
- Net margin
- 8.8%
- Free cash flow
- −529.2M USD
- FCF yield
- −8.2%
- Cash conversion
- −56%
Solvency
- Total debt
- 6.0B USD
- Net debt
- 6.0B USD
- Cash
- 14.6M USD
- EBITDA
- 938.9M USD
- Net debt / EBITDA
- 6.36
- Debt / equity
- 165.51
- Current ratio
- 0.56
- Quick ratio
- 0.28
Growth
- Revenue growth
- +9.2%
- Earnings growth
- +190.9%
- EPS (TTM)
- 1.74 USD
- EPS (forward)
- 3.25 USD
Dividend
- Dividend yield
- 2.9%
- Payout
- 95.4%
Risk and market
- Beta
- 0.17
- Analyst consensus
- none (5)
- Target price
- 60.70 USD
- 52-week range
- 55.64 – 59.53
Recent news
All TXNM news →Compare it with its sector
All 92 in Utilities →Frequently asked questions about TXNM Energy
Is TXNM Energy stock cheap or expensive?
On P/E and EV / EBITDA, it trades 41% above the Utilities median on average. Valuation score: 3.5 out of 10 (median for Utilities: 4.8). Average analyst target: 60.70 USD, +3.7% versus the price. This is not investment advice.
What score does TXNM Energy get on MeridIAn Screener?
It scores 5.3 out of 10, rank 1,562 of 2,130 (better than 26% of the companies analysed). Its strongest category is Risk & Context (8.7) and its weakest, Valuation (3.5). Analysis of 08/10/2026.
What is TXNM Energy's P/E ratio?
Its P/E is 33.6: the share price equals 33.6 times earnings per share over the last 12 months. The Utilities median is 19.1. Based on the earnings analysts expect, the forward P/E is 18.0.
How much is TXNM Energy worth on the stock market?
Its market capitalisation is 6.4B USD and its enterprise value, debt included, is 12.1B USD.
How much debt does TXNM Energy have?
Its net debt (debt minus cash) is 6.0B USD. That is 6.36 times its EBITDA; the Utilities median is 5.33.
Does TXNM Energy pay a dividend?
Yes: its dividend yield is 2.89% and it pays out 95% of its earnings.
How has TXNM Energy stock performed over the last year?
It has risen 6.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 55.64 and 59.53 USD. Past performance does not guarantee future results.
What do analysts think of TXNM Energy?
5 analysts cover it; their average recommendation is “none” and their average target is 60.70 USD (+3.7% versus the price). It is an estimate, not market data.