TXNM Energy Inc. Common Stock (TXNM)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

TXNM Energy is a regulated electric utility, a business I generally like because demand is steady and regulators allow a fair return. But I must judge the numbers before me. In fiscal FY2025, revenue was $2.1B and net income $169.8M, down from $258.7M in FY2024, though above $106.9M in FY2023. In fiscal Q2 2026, revenue was $548.6M and net income $71.4M, while in fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $487.8M and net income only $8.0M. That volatility is not what I want in a utility. FairStock’s Lynch category calls it a slow grower, with profits shrinking 1.9% a year over five years despite 7.2% revenue growth. The moat is a regulated service territory, but regulators and capital costs cap returns. Financial health is mixed: debt-to-equity of 1.66, negative free cash flow of $502.0M TTM, and FCF yield -7.7%. Growth is being funded externally. At the 2026-10-13 close of $58.53, FairStock calculates P/E 31.98, P/B 1.83, Graham Number $36.36, and margin of safety -60.97%. The dividend yield is 2.89%. Piotroski 6/9 and Altman Z 0.56 suggest some accounting strength but real leverage risk. I want utility stability, but the price already assumes a lot. Rate-base growth may help, but it must be earned.

In plain English: TXNM Energy is a regulated electric utility serving customers in the United States. Sales have been rising, but profits have bounced around and the company is spending more cash than it brings in. At the recent price of $58.53, the stock looks expensive compared with its profits and accounting value, and the dividend yield is modest.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer