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TXNM Energy Inc

TXNM Energy Inc

TXNM
$57.67USD↓-0.33%-0.19 today

MARKET CAP

6.4B

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$58 – $58

52W RANGE

$56
$60

AI Summary

Stalk
Buy NowHigh

Despite being near 52-week highs and resistance, the short-term EMAs support a pullback entry around the 9/20/50 EMA cluster and pattern signals mean-reversion. Medium-term structure is bullish with higher highs/lows and a Bullish Pivot Point, anchored by a rising 200-day SMA. Execution favors buy now on minor pullbacks into the $57.50–$57.80 support zone, using the 9/20 EMA cluster as reference for acceptance.

  • ↑Q2 GAAP EPS $0.64 vs. $0.55 consensus on rising retail load.
  • ↑Revenue $548.6 M beats forecasts on stronger PNM and TNMP throughput.
  • ↓P/E ~43.9x vs. sector average ~22x suggests stock overvaluation.
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

TXNM Energy Inc. (formerly PNM Resources) is a prominent energy holding company headquartered in Albuquerque, New Mexico. The company provides electricity and electric services via its utilities, PNM and TNMP, primarily targeting markets in New Mexico and Texas. TXNM is undergoing an acquisition by Blackstone Infrastructure, positioning it at the intersection of increasing utility demands and infrastructure investments, amid ongoing regulatory scrutiny.

Bull says

  • ↑Q2 GAAP EPS $0.64 vs. $0.55 consensus on rising retail load.
  • ↑Revenue $548.6 M beats forecasts on stronger PNM and TNMP throughput.
  • ↑Quarterly dividend $0.4225 yields 2.92% with 5.8% five-year growth.
  • ↑Retail load growth drives infrastructure investments and healthy margins.
  • ↑Leverage supports grid expansion without compromising financial stability.
  • ↑High interest-rate sensitivity may boost valuation if rates ease.

Bear says

  • ↓P/E ~43.9x vs. sector average ~22x suggests stock overvaluation.
  • ↓Blackstone merger facing regulatory delays, now expected early 2027.
  • ↓Recent revenue, EPS and EBITDA declines fuel recovery skepticism.
  • ↓Liquidity constraints under merger complexity raise refinancing risks.
  • ↓Elevated short interest (15%) signals investor skepticism.
  • ↓Regulatory hurdles may impede M&A and infrastructure expansion.

Investment themes with TXNM

High Dividend Yield↓ -0.51%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q4 2023 · Mgmt. Guidance

Updated 02-22-2025neutral

Transcript signals

Bull points

  • 2023 ongoing earnings are $2.82 per share, a $0.13 increase from 2022, positively impacted by load growth and weather that added to PNM's and TNMP's combined earnings on a year-over-year basis.
  • lower operating costs as we transition our generation portfolio to carbon-free energy and higher transmission margins driven by increased usage of our system increased earnings year-over-year.
  • $2.65 to $2.75.

Bear points

  • Lower earnings at corporate reflect higher interest rates year-over-year, partially mitigated by the hedges we've previously put in place.
  • $0.12 to year-over-year earnings.
  • We issued a total of 4.4 million shares which has a $0.14 impact on year-over-year earnings per share.
Read full transcript analysis ›