📊 TXNM Key Takeaways
Is Txnm Energy Inc. (TXNM) a Good Investment?
TXNM faces a critical liquidity crisis with current ratio of 0.55x and negative free cash flow of -$159.5M, indicating inability to fund operations and debt service from internal cash generation. Profitability is collapsing (net income down 10.9%, EPS down 44.6%) while massive capex ($312.7M) exceeds operating cash flow, creating unsustainable financing dependency.
Why Buy Txnm Energy Inc. Stock? TXNM Key Strengths
- Positive operating cash flow of $153.2M provides some debt service capacity
- Operating margin of 15.3% demonstrates core business competitiveness
- Debt-to-Equity ratio of 1.48x is manageable for utility sector
TXNM Stock Risks: Txnm Energy Inc. Investment Risks
- Critical liquidity crisis: current ratio of 0.55x indicates inability to meet short-term obligations
- Negative free cash flow of -$159.5M is unsustainable without external financing
- Interest coverage of 1.1x leaves minimal cushion for debt service defaults
- Profitability deteriorating with net margin of 0.7% despite 133% gross margin (data quality concern)
- Minimal cash reserves of $5.6M inadequate for $312.7M annual capex
Key Metrics to Watch
- Quarterly free cash flow and trend in capex spending
- Current ratio and working capital changes
- Interest coverage ratio and debt refinancing activity
- Quarterly revenue and net margin trends
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 |
|---|---|---|---|
| Q1 2026 | $480.4M | $8.0M | $0.03 |
| 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 |
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 SELL with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TXNM's key strengths?
Claude: Positive operating cash flow of $153.2M provides some debt service capacity. Operating margin of 15.3% demonstrates core business competitiveness.
What are the risks of investing in TXNM?
Claude: Critical liquidity crisis: current ratio of 0.55x indicates inability to meet short-term obligations. Negative free cash flow of -$159.5M is unsustainable without external financing.
What is TXNM's revenue and growth?
Txnm Energy Inc. reported revenue of $505.0M.
Does TXNM pay dividends?
Txnm Energy Inc. pays dividends, with $46.2M 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 $0.03.
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 May 2026, Txnm Energy Inc. has a SELL rating with 70% 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 0.1% (sector avg: 10%), net margin of 0.7% (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 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 $153.2M, with capital expenditures of $312.7M. FCF margin is -31.6%.
How does TXNM compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 0.7% (avg: 12%), ROE 0.1% (avg: 10%), current ratio 0.55 (avg: 0.8).