Latest Ratios: P/E Ratio 36.1x · EV/EBITDA 7.5x · ROE 5.0%. (2019–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.5B | $5.5B | $4.5B | $3.6B | $4.2B | $3.9B | $3.9B | $4.1B |
| Enterprise Value | $6.5B | $5.5B | $10.3B | $8.6B | $8.6B | $7.8B | $7.3B | $7.4B |
| P/E Ratio → | 36.06 | 36.35 | 18.42 | 40.78 | 24.77 | 20.09 | 22.57 | 52.64 |
| P/S Ratio | 2.99 | 2.53 | 2.26 | 1.85 | 1.87 | 2.21 | 2.56 | 2.79 |
| P/B Ratio | 1.60 | 1.61 | 1.72 | 1.49 | 1.86 | 1.76 | 1.84 | 2.32 |
| P/FCF | — | — | — | — | — | — | — | — |
| P/OCF | 11.06 | 9.39 | 8.77 | 6.52 | 7.41 | 7.17 | 8.02 | 8.09 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.53 | 5.21 | 4.42 | 3.82 | 4.38 | 4.80 | 5.08 |
| EV / EBITDA | 7.46 | 6.33 | 11.61 | 13.06 | 11.68 | 12.38 | 12.15 | 12.42 |
| EV / EBIT | 14.66 | 10.65 | 20.30 | 31.31 | 25.18 | 22.68 | 22.46 | 38.21 |
| EV / FCF | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.1% | 38.1% | 41.1% | 32.3% | 31.8% | 35.2% | 38.4% | 38.7% |
| Operating Margin | 20.4% | 20.4% | 23.5% | 15.6% | 17.5% | 17.4% | 18.8% | 20.3% |
| Net Profit Margin | 7.0% | 7.0% | 12.3% | 4.6% | 7.6% | 11.0% | 11.4% | 5.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 5.0% | 5.0% | 9.7% | 3.8% | 7.6% | 9.0% | 8.9% | 4.4% |
| ROA | 1.9% | 1.9% | 2.2% | 0.9% | 1.8% | 2.3% | 2.2% | 1.0% |
| ROIC | 5.6% | 5.6% | 4.4% | 3.2% | 4.6% | 4.0% | 4.0% | 4.4% |
| ROCE | 6.3% | 6.3% | 4.8% | 3.4% | 4.6% | 3.9% | 4.1% | 4.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.00 | 0.00 | 2.25 | 2.07 | 1.95 | 1.73 | 1.63 | 1.90 |
| Debt / EBITDA | 0.00 | 0.00 | 6.58 | 7.59 | 5.97 | 6.14 | 5.75 | 5.59 |
| Net Debt / Equity | — | 0.00 | 2.24 | 2.07 | 1.95 | 1.73 | 1.61 | 1.90 |
| Net Debt / EBITDA | 0.00 | 0.00 | 6.58 | 7.59 | 5.97 | 6.14 | 5.67 | 5.59 |
| Debt / FCF | — | — | — | — | — | — | — | — |
| Interest Coverage | 1.54 | 1.54 | 2.22 | 1.44 | 2.67 | 3.55 | 2.84 | 1.60 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.19 | 0.19 | 0.28 | 0.39 | 0.46 | 0.49 | 0.39 | 0.30 |
| Quick Ratio | 0.19 | 0.19 | 0.19 | 0.31 | 0.39 | 0.39 | 0.32 | 0.22 |
| Cash Ratio | 0.02 | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 | 0.05 | 0.00 |
| Asset Turnover | — | 0.50 | 0.17 | 0.18 | 0.23 | 0.20 | 0.18 | 0.19 |
| Inventory Turnover | — | — | 6.96 | 13.38 | 23.00 | 17.74 | 14.13 | 11.46 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.0% | 3.0% | 3.2% | 3.5% | 2.9% | 2.9% | 2.5% | 2.3% |
| Payout Ratio | 107.9% | 107.9% | 57.8% | 143.4% | 70.5% | 57.5% | 56.8% | 119.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 2.8% | 5.4% | 2.5% | 4.0% | 5.0% | 4.4% | 1.9% |
| FCF Yield | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.2% | 0.2% | 0.2% | 0.3% | 0.2% | 0.3% | 0.3% | 0.2% |
| Total Shareholder Yield | 3.2% | 3.2% | 3.3% | 3.8% | 3.0% | 3.1% | 2.8% | 2.5% |
| Shares Outstanding | — | $93M | $91M | $86M | $86M | $86M | $80M | $80M |
Includes 30+ ratios · 7 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TXNM stock.
TXNM Energy, Inc.'s current P/E ratio is 36.1x. The historical average is 30.8x. This places it at the 57th percentile of its historical range.
TXNM Energy, Inc.'s current EV/EBITDA is 7.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.4x.
TXNM Energy, Inc.'s return on equity (ROE) is 5.0%. The historical average is 6.9%.
Based on historical data, TXNM Energy, Inc. is trading at a P/E of 36.1x. This is at the 57th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
TXNM Energy, Inc.'s current dividend yield is 3.00% with a payout ratio of 107.9%.
TXNM Energy, Inc. has 38.1% gross margin and 20.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
TXNM Energy, Inc.'s Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Regulatory lag and merger overhang
Metrics are mathematically derived from official filings.
Premium P/E Reflects Texas Growth Hopes
TXNM trades at 35.3x trailing earnings versus 19.8x forward, implying the market expects a sharp earnings rebound. According to recent market data, the 3.1% dividend yield lags peers, suggesting investors are paying up for growth.
The wide gap between trailing and forward P/E indicates that the market is looking past the depressed 2025Q4 earnings and pricing in a recovery to normalized regulated earnings. The forward multiple of 19.8x is in line with mid-cap utility peers like IDA (23.8x) and NWE (23.6x), but the trailing multiple is distorted by the one-time loss. The dividend yield of 3.1% is below the peer average of approximately 3.5%, which may reflect the market's expectation of above-average rate base growth in Texas, or it could signal that the dividend is not fully trusted given the volatile payout ratio.
Earned ROE Volatile Around Authorized Levels
Quarterly ROE swung from -0.3% in 2025Q4 to 3.9% in 2025Q3, per reported figures, indicating that earned returns are highly volatile and often below the typical authorized ROE of 9-10% for regulated utilities.
The annualized ROE for 2025Q3 was approximately 15.6% (3.9% quarterly), which is above the typical authorized ROE, but the 2025Q4 loss dragged the trailing twelve-month ROE to around 2.0%. This volatility suggests that regulatory lag and seasonal factors are causing significant deviations from the authorized return. The company's ability to earn its allowed ROE on a consistent basis appears strained, which may indicate that the New Mexico regulatory environment is not fully supportive of timely cost recovery. Investors should monitor the outcome of upcoming rate cases to see if the earned ROE stabilizes closer to the authorized level.
Operating Margin Swings Reflect Recovery Timing
Operating margin ranged from 14.5% in 2025Q2 to 31.2% in 2025Q3, as per financial statements, indicating that cost recovery is lumpy and subject to regulatory timing, with fuel and purchased power costs often passed through.
The wide swings in operating margin are typical for utilities with fuel pass-through mechanisms, but the magnitude suggests that TXNM may be experiencing delays in recovering costs through rates. The gross margin of 38.09% indicates that a significant portion of revenue is consumed by energy procurement, leaving a relatively thin buffer for operating expenses and returns. The company's ability to maintain stable margins depends on the efficiency of its regulatory riders and the speed of rate case approvals. The recent trend of declining margins in 2026Q1 and Q2 (15.3% and 22.5%) compared to the 2025Q3 peak may indicate that the company is facing higher costs that have not yet been recovered.
Leverage Data Anomaly Masks True Capital Structure
Reported debt-to-capital fell from 0.69 in 2024Q3 to 0.00 in 2025Q4, then rose to 0.17 in 2026Q2, per data, which appears anomalous for a utility and likely reflects a data error or a temporary financing event.
The sudden drop in debt-to-capital to zero in 2025Q4 is inconsistent with the company's capital-intensive business model and its ongoing capex program. This anomaly likely distorts leverage-based valuation screens and should be verified against the latest 10-Q. Excluding the anomalous quarter, the debt-to-capital ratio has been trending downward from 0.69 to 0.17, which may indicate a deliberate deleveraging or a shift in financing mix. However, given the persistent negative free cash flow, the company will likely need to issue additional debt or equity to fund its capex program, which could push leverage back up. The interest coverage ratio of 2.25x in 2026Q2 is below the typical 3x threshold for investment-grade utilities, suggesting that credit metrics are under pressure.
Dividend Coverage Thin Amid Earnings Volatility
Dividend payout ratio swung from 174.5% in 2025Q2 to 4.2% in 2025Q1, based on reported figures, indicating that dividend coverage is highly variable and may be strained during periods of low earnings.
The average payout ratio over the last ten quarters is approximately 45%, but the extreme volatility suggests that the dividend is not consistently covered by earnings. In 2025Q2, the payout ratio exceeded 100%, meaning the company paid out more than it earned, which is unsustainable over the long term. However, the company's operating cash flow has been more stable, with OCF-to-dividend coverage averaging 3.3x, indicating that the dividend is well-covered from a cash perspective. The company's ability to maintain its dividend while funding a large capex program will depend on its access to external financing and the timely recovery of regulatory assets. The current yield of 3.1% is below the peer average, which may reflect the market's concern about dividend sustainability.
Misapplied P/E Ignores Regulatory Earnings Distortions
The most misapplied ratio for TXNM is the trailing P/E, which is distorted by non-recurring items and regulatory accounting, as evidenced by the 2025Q4 net loss. Analysts should use forward P/E or P/B instead.
The trailing P/E of 35.3x is misleading because it is based on depressed earnings that include a one-time loss in 2025Q4 and significant fluctuations from regulatory deferrals and AFUDC. For utilities, the P/E should be anchored to the authorized ROE and rate base growth, not to short-term earnings volatility. A more appropriate valuation metric is P/B, which at 1.57x is in line with peers like PNW (1.71x) and IDA (2.15x), reflecting the market's assessment of the company's ability to earn its allowed return. Additionally, EV/EBITDA of 7.31x is lower than the peer average of approximately 12x, which may indicate that the market is applying a discount due to regulatory and merger overhangs. Investors should focus on the forward P/E of 19.8x, which better reflects normalized earnings power.