TXNM Energy, Inc. (TXNM)
TXNM Energy, Inc. is a utility company providing electricity and electric services in New Mexico and Texas. The company operates through its PNM and TNMP segments, focusing on regulated electricity generation, transmission, and distribution.
Company Overview
TXNM Energy, Inc. delivers reliable electricity services in New Mexico and Texas, leveraging a diversified generation portfolio and strategic investments in renewable energy to drive sustainable growth and shareholder value, supported by a stable regulated business model and a 2.79% dividend yield.
Investment Thesis
TXNM Energy presents a compelling investment opportunity due to its stable, regulated business model and strategic focus on renewable energy. The company's diversified generation portfolio, including a growing emphasis on solar, wind, and geothermal sources, positions it to capitalize on the increasing demand for clean energy. TXNM's regulated utility operations in New Mexico and Texas provide a predictable revenue stream, supporting a dividend yield of 2.79%. With a beta of 0.18, TXNM offers lower volatility compared to the broader market. Key growth catalysts include infrastructure investments in transmission and distribution networks and the expansion of renewable energy projects. The company's commitment to operational efficiency and cost management should drive improved profitability and shareholder value.
Key Highlights
- Market capitalization of $6.43 billion, reflecting a substantial presence in the regulated electric utility sector.
- P/E ratio of 30.92, indicating investor confidence in TXNM's earnings potential.
- Profit margin of 8.4%, showcasing the company's ability to generate profits from its operations.
- Gross margin of 38.0%, demonstrating efficient cost management in electricity generation and distribution.
- Dividend yield of 2.79%, providing a steady income stream for investors.
Competitors
Strengths
- Diversified electricity generation portfolio including renewables.
- Stable revenue stream from regulated utility operations.
- Strategic geographic presence in New Mexico and Texas.
- Commitment to infrastructure modernization.
Weaknesses
- Reliance on coal-fired power plants.
- Exposure to regulatory risks and changes in energy policy.
- Dependence on weather conditions for renewable energy generation.
- High capital expenditure requirements for infrastructure upgrades.
Catalysts
- Ongoing: Investments in renewable energy projects driving revenue growth.
- Ongoing: Infrastructure modernization projects improving grid reliability.
- Upcoming: Regulatory approvals for new transmission lines enhancing capacity.
- Ongoing: Expansion of customer base in growing service territories.
Risks
- Potential: Changes in regulatory policies impacting profitability.
- Potential: Fluctuations in fuel costs affecting generation expenses.
- Ongoing: Cybersecurity threats to grid infrastructure.
- Potential: Extreme weather events disrupting operations.
Growth Opportunities
- Expansion of Renewable Energy Portfolio: TXNM Energy has the opportunity to significantly expand its renewable energy portfolio, capitalizing on the growing demand for clean energy solutions. Investing in solar, wind, and geothermal projects can drive revenue growth and reduce reliance on fossil fuels. With increasing government incentives and declining costs for renewable technologies, TXNM can achieve a competitive advantage in the clean energy market. This expansion aligns with the broader industry trend toward decarbonization and sustainable energy practices, positioning TXNM for long-term growth.
- Infrastructure Modernization: TXNM can invest in modernizing its transmission and distribution infrastructure to improve grid reliability and efficiency. Upgrading aging infrastructure reduces energy losses, enhances grid resilience, and supports the integration of renewable energy sources. These investments can lead to cost savings, improved customer satisfaction, and increased regulatory support. Modernizing infrastructure also positions TXNM to meet the evolving energy needs of its service territories, driving long-term growth and stability.
- Strategic Acquisitions: TXNM can pursue strategic acquisitions of smaller utility companies or renewable energy projects to expand its geographic footprint and diversify its asset base. Acquisitions can provide access to new markets, technologies, and customer segments, driving revenue growth and enhancing shareholder value. Careful due diligence and integration planning are essential for successful acquisitions, ensuring that they align with TXNM's strategic objectives and financial goals. This approach allows TXNM to consolidate its position in the regulated utility sector.
- Battery Storage Deployment: TXNM can deploy battery storage solutions to enhance grid stability and integrate intermittent renewable energy sources. Battery storage systems can store excess energy generated from solar and wind resources, providing a reliable power supply during peak demand periods or when renewable energy generation is low. This technology improves grid resilience, reduces reliance on fossil fuel-based power plants, and supports the transition to a cleaner energy future. Investing in battery storage positions TXNM as a leader in grid modernization and sustainable energy practices.
- Customer Engagement and Energy Efficiency Programs: TXNM can implement customer engagement and energy efficiency programs to reduce energy consumption and improve customer satisfaction. These programs can include incentives for energy-efficient appliances, smart thermostats, and home energy audits. By promoting energy conservation, TXNM can reduce peak demand, lower customer bills, and improve its environmental footprint. These initiatives also enhance customer loyalty and support the company's reputation as a responsible and sustainable energy provider.
Opportunities
- Expansion of renewable energy capacity.
- Investments in battery storage technology.
- Strategic acquisitions of smaller utilities.
- Implementation of energy efficiency programs.
Threats
- Increasing competition from alternative energy providers.
- Rising fuel costs and commodity price volatility.
- Potential for stricter environmental regulations.
- Cybersecurity threats to grid infrastructure.
Competitive Advantages
- Regulated utility operations provide a stable and predictable revenue stream.
- Diversified generation portfolio reduces reliance on any single energy source.
- Geographic presence in growing markets of New Mexico and Texas.
- Investments in renewable energy enhance long-term sustainability and competitiveness.
About
Founded in 1882 and headquartered in Albuquerque, New Mexico, TXNM Energy, Inc. has evolved from its origins to become a key provider of electricity and electric services in the southwestern United States. Originally known as PNM Resources, Inc., the company rebranded as TXNM Energy, Inc. in August 2024 to better reflect its expanding geographic footprint. TXNM operates through two primary segments: Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP). PNM focuses on the generation, transmission, and distribution of electricity in New Mexico, utilizing a diverse mix of energy sources including coal, natural gas, nuclear, solar, wind, geothermal, and battery storage. TNMP provides regulated transmission and distribution services in Texas. TXNM serves a broad customer base, including residential, commercial, and industrial clients, ensuring reliable power delivery across its service territories. The company's commitment to renewable energy and infrastructure investments positions it for continued growth and sustainability in the evolving energy landscape. With a market capitalization of $6.43 billion, TXNM maintains a significant presence in the regulated electric utility sector.
What They Do
- Generates electricity using coal, natural gas, oil, nuclear fuel, solar, wind, geothermal, and battery storage.
- Transmits electricity to distribution networks.
- Distributes electricity to residential, commercial, and industrial customers.
- Owns and leases communications, office equipment, and real estate.
- Provides regulated transmission and distribution services in Texas.
- Serves end-users of electricity in New Mexico and Texas.
Business Model
- Generates revenue through the regulated sale of electricity to customers.
- Operates under a regulated framework that ensures a stable return on investment.
- Invests in infrastructure and renewable energy projects to expand its asset base and improve service reliability.
Industry Context
TXNM Energy operates within the regulated electric utility industry, a sector characterized by stable demand and government oversight. The industry is undergoing a significant transformation, driven by the increasing adoption of renewable energy sources and the modernization of grid infrastructure. Companies like TXNM are adapting to these trends by investing in solar, wind, and battery storage technologies. The competitive landscape includes other regulated utilities such as CMS Energy, Entergy Corp, and PG&E Corporation, all vying for market share in their respective regions. The industry is expected to see continued growth in renewable energy capacity, driven by government policies and consumer demand for cleaner energy solutions.
Key Customers
- Residential customers in New Mexico and Texas.
- Commercial businesses requiring electricity for operations.
- Industrial facilities with high electricity consumption needs.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $647M | $131M | $1.40 |
| Q2 2025 | $502M | $22M | $0.23 |
| Q1 2025 | $483M | $9M | $0.10 |
| Q4 2024 | $477M | $16M | $0.18 |
Source: Company filings
Chart & Info
Price Chart
TXNM Energy, Inc. (TXNM) stock price: $58.96 (-0.09, -0.15%)
Why Bull
- •Recent insider buying indicates strong confidence in TXNM Energy's future prospects.
- •The community is buzzing about TXNM's new green energy project, suggesting a positive shift in market perception.
- •There's a growing consensus that TXNM is undervalued compared to its peers in the renewable energy sector.
- •Positive sentiment is building around TXNM's strategic partnerships, potentially leading to new revenue streams.
Why Bear
- •Some insiders sold shares recently, raising questions about long-term growth potential.
- •The community is worried about increasing competition in the renewable energy market affecting TXNM's market share.
- •There's a perception that TXNM is over-leveraged, making it vulnerable to interest rate hikes.
- •Negative sentiment surrounds the company's recent regulatory challenges, potentially impacting future operations.
Latest News
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BlackRock’s GIP Teams Up With EQT in Bid to Acquire Power Firm AES
Bloomberg · Feb 3, 2026
Technical Analysis
Rationale
AI-generated technical analysis for TXNM including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for TXNM.
Make a Prediction
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Current price: $58.96
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for TXNM.
Price Targets
Wall Street price target analysis for TXNM.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 1.7% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 8/100
Gross margin at 57.6% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates TXNM's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does TXNM Energy, Inc. do?
TXNM Energy, Inc. is a regulated electric utility company that generates, transmits, and distributes electricity to residential, commercial, and industrial customers in New Mexico and Texas. The company operates through its PNM and TNMP segments, focusing on providing reliable and affordable electricity services. TXNM's business model involves investing in infrastructure, managing a diversified generation portfolio, and adhering to regulatory requirements to ensure a stable return on investment. The company is also committed to expanding its renewable energy capacity and modernizing its grid infrastructure to meet the evolving energy needs of its service territories.
Is TXNM stock a good buy?
TXNM stock presents a potentially attractive investment opportunity, supported by its stable regulated business model and commitment to renewable energy. The company's dividend yield of 2.79% provides a steady income stream for investors. While the P/E ratio of 30.92 suggests a premium valuation, TXNM's growth prospects in the renewable energy sector and infrastructure modernization efforts could justify this premium. Investors should consider the regulatory risks and capital expenditure requirements associated with the utility sector before making an investment decision. Overall, TXNM offers a balanced risk-reward profile for long-term investors seeking exposure to the regulated electric utility industry.
What are the main risks for TXNM?
TXNM Energy faces several key risks, including regulatory changes, fuel cost volatility, and cybersecurity threats. Changes in regulatory policies could impact the company's profitability and ability to recover costs. Fluctuations in fuel costs, particularly for natural gas and coal, can affect generation expenses and earnings. Cybersecurity threats pose a significant risk to TXNM's grid infrastructure, potentially disrupting operations and compromising customer data. Additionally, extreme weather events, such as hurricanes and wildfires, can damage infrastructure and disrupt electricity supply, leading to increased costs and reduced revenue.
Is TXNM a good stock to buy?
Whether TXNM is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the TXNM MoonshotScore?
The MoonshotScore for TXNM is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is TXNM data updated?
TXNM stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to TXNM is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for TXNM?
Growth catalysts for TXNM Energy, Inc. (TXNM) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes TXNM Energy, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are TXNM's main competitors?
TXNM Energy, Inc. (TXNM) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether TXNM has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about TXNM?
Wall Street analyst coverage for TXNM includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is TXNM's market cap?
Market capitalization (market cap) for TXNM is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows TXNM's current market cap alongside enterprise value and other valuation metrics.
How has TXNM stock performed recently?
TXNM's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing TXNM's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in TXNM?
Key risk categories for TXNM include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures TXNM's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling TXNM?
Insider trading activity for TXNM tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is TXNM a good stock for beginners?
TXNM Energy, Inc. (TXNM) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is TXNM for first-time investors?
Every stock carries risk, including TXNM Energy, Inc. (TXNM). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like TXNM.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Information is based on publicly available data and may be subject to change.