TxnM Energy Inc.
THE COMPANY Overview TXNM Energy, Inc. ( TXNM ), is a holding company with two regulated electric utilities, PNM and TNMP, serving approximately 842,000 residential, commercial, and industrial customers in New Mexico and Texas. Vision, Values and Business Objectives TXNM s vision is to create a clean and bright energy future while fulfilling its purpose to work together with customers and commu…
$58.49
+$0.00 (+0.00%)
EOD Oct 21, 2026
20.37% operating margin is above average. ROIC at 4.92%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.
Revenue grew 9.9%, steady but not accelerating. Margins contracted 2.6pp, which offsets some of the top-line progress.
At 41x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Negative free cash flow of -$611M. The business is consuming cash, not generating it.
41.5x earnings. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$2.19B
▲ +9.9% YoY
Net Income (TTM)
$146M
▼ -37.5% YoY
Op. Margin
20.37%
▼ -2.6pp YoY
ROIC
4.92%
▼ -0.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$570M
▲ +17.2% YoY
Op. Cash Flow (TTM)
$596M
▲ +15.0% YoY
Net Debt
$5.76B
Cash & Equiv.
$6M
5Y CAGR: +7.3%
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SourceComputed from the 10-Q filed 1 May 2026, covering the period ending 31 Mar 2026, as reported to the SEC. Data last refreshed 3 Aug 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is TxnM Energy (TXNM) overvalued?
At a P/E of 41.5, TxnM Energy (TXNM)'s valuation is best read against its own history, its peers, and the growth its price implies. A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, TxnM Energy scores 18/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.8%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
Is TxnM Energy a high-quality business?+
TxnM Energy scores 18 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 20.4% operating margin and a 4.9% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does TxnM Energy (TXNM) pay a dividend, and how much?+
Yes, TxnM Energy pays a regular dividend of about $1.52 per share per year (typically in quarterly installments), a yield of roughly 2.8% at the current price. That is a payout ratio of about 117.4% of earnings, so the dividend is stretched at this level. TxnM Energy has grown the dividend at roughly 9.7% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For TXNM's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is TxnM Energy a good stock to buy right now?+
That depends on valuation and quality together, not either alone. you should weigh TXNM's valuation and scores 18/100 on quality (lower-quality). It also yields about 2.8%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Electric Services
Spot a number that looks wrong? Check it in TXNM's SEC filings or
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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