📊 TXNM Key Takeaways
Is Txnm Energy Inc. (TXNM) a Good Investment?
TXNM Energy faces critical financial distress with negative free cash flow of -$611.4M, dangerously low liquidity (current ratio 0.55x), and unsustainable capital spending of $1.2B against only $584.5M operating cash flow. Declining profitability (net income -10.9%, EPS -44.6% YoY) combined with high leverage (1.5x debt/equity) and weak interest coverage (2.1x) creates severe solvency risk.
Why Buy Txnm Energy Inc. Stock? TXNM Key Strengths
- Positive operating cash flow of $584.5M provides some near-term stability
- Solid operating margin of 20.4% and operating income of $441.2M demonstrate core business strength
- Modest revenue growth of 1.3% shows business remains operational despite challenges
TXNM Stock Risks: Txnm Energy Inc. Investment Risks
- Critical negative free cash flow (-$611.4M) with only $18.3M cash reserves creates imminent solvency risk
- Severe liquidity crisis with current ratio 0.55x and quick ratio 0.38x - unable to cover short-term obligations
- Unsustainable capital expenditure structure: $1.2B capex vs $584.5M operating cash flow requires external financing
- High leverage (1.5x debt/equity) with weak interest coverage (2.1x) leaves minimal headroom for operational stress
- Deteriorating profitability with net income down 10.9% and EPS down 44.6% YoY indicating fundamental business challenges
- Poor return on capital (ROE 4.4%, ROA 1.3%) suggests value destruction
Key Metrics to Watch
- Free cash flow trend and cash balance depletion rate
- Current ratio and liquidity position relative to debt obligations
- Operating cash flow sustainability and capex requirements
- Net income and EPS trajectory for stabilization
- Debt refinancing ability and interest expense pressure
- Return on equity improvement toward utility sector benchmarks
Txnm Energy Inc. (TXNM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
TXNM Profit Margin, ROE & Profitability Analysis
TXNM vs Utilities Sector: How Txnm Energy Inc. Compares
How Txnm Energy Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Txnm Energy Inc. Stock Overvalued? TXNM Valuation Analysis 2026
Based on fundamental analysis, Txnm Energy Inc. shows some fundamental concerns relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Txnm Energy Inc. Balance Sheet: TXNM Debt, Cash & Liquidity
TXNM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Txnm Energy Inc.'s revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.02 reflects profitable operations.
TXNM Revenue Growth, EPS Growth & YoY Performance
TXNM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $574.3M | $136.3M | $1.22 |
| Q2 2025 | $473.2M | $26.0M | $0.22 |
| Q1 2025 | $431.1M | $12.8M | $0.10 |
| Q3 2024 | $509.9M | $42.9M | $0.44 |
| Q2 2024 | $462.1M | $49.4M | $0.53 |
| Q1 2024 | $431.1M | $50.4M | $0.52 |
| Q3 2023 | $509.9M | $42.9M | $0.44 |
| Q2 2023 | $462.1M | $19.1M | $0.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Txnm Energy Inc. Dividends, Buybacks & Capital Allocation
TXNM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Txnm Energy Inc. (CIK: 0001108426)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TXNM
What is the AI rating for TXNM?
Txnm Energy Inc. (TXNM) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TXNM's key strengths?
Claude: Positive operating cash flow of $584.5M provides some near-term stability. Solid operating margin of 20.4% and operating income of $441.2M demonstrate core business strength.
What are the risks of investing in TXNM?
Claude: Critical negative free cash flow (-$611.4M) with only $18.3M cash reserves creates imminent solvency risk. Severe liquidity crisis with current ratio 0.55x and quick ratio 0.38x - unable to cover short-term obligations.
What is TXNM's revenue and growth?
Txnm Energy Inc. reported revenue of $2.2B.
Does TXNM pay dividends?
Txnm Energy Inc. pays dividends, with $163.4M distributed to shareholders in the trailing twelve months.
Where can I find TXNM SEC filings?
Official SEC filings for Txnm Energy Inc. (CIK: 0001108426) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TXNM's EPS?
Txnm Energy Inc. has a diluted EPS of $1.48.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TXNM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Txnm Energy Inc. has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TXNM stock overvalued or undervalued?
Valuation metrics for TXNM: ROE of 4.4% (sector avg: 10%), net margin of 7.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy TXNM stock in 2026?
Our dual AI analysis gives Txnm Energy Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TXNM's free cash flow?
Txnm Energy Inc.'s operating cash flow is $584.5M, with capital expenditures of $1.2B. FCF margin is -28.2%.
How does TXNM compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 7.0% (avg: 12%), ROE 4.4% (avg: 10%), current ratio 0.55 (avg: 0.8).
Is Txnm Energy Inc. carrying too much debt?
TXNM has a debt-to-equity ratio of 1.50x, which is above the Utilities sector average of 1.4x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.