Latest Ratios: P/E Ratio 34.9x · EV/EBITDA 7.2x · 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 | $6.3B | $5.5B | $4.5B | $3.6B | $4.2B | $3.9B | $3.9B | $4.1B |
| Enterprise Value | $6.3B | $5.5B | $10.3B | $8.6B | $8.6B | $7.8B | $7.3B | $7.4B |
| P/E Ratio → | 34.92 | 36.35 | 18.42 | 40.78 | 24.77 | 20.09 | 22.57 | 52.64 |
| P/S Ratio | 2.89 | 2.53 | 2.26 | 1.85 | 1.87 | 2.21 | 2.56 | 2.79 |
| P/B Ratio | 1.55 | 1.61 | 1.72 | 1.49 | 1.86 | 1.76 | 1.84 | 2.32 |
| P/FCF | — | — | — | — | — | — | — | — |
| P/OCF | 10.71 | 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 | 7.23 | 6.33 | 11.61 | 13.06 | 11.68 | 12.38 | 12.15 | 12.42 |
| EV / EBIT | 14.20 | 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 | 3.1% | 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 | 2.9% | 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 | 3.3% | 3.2% | 3.3% | 3.8% | 3.0% | 3.1% | 2.8% | 2.5% |
| Shares Outstanding | — | $93M | $91M | $86M | $86M | $86M | $80M | $80M |
Regulatory lag and financing
With a trailing P/E of 35.27 and a dividend yield of 3.1%, TXNM's valuation appears disconnected from its recent earnings volatility, as reported in financial filings, suggesting that the market may be pricing in a recovery that remains contingent on future regulatory rate case outcomes.
The elevated P/E ratio relative to regional peers suggests that investors are paying a premium for the company's Texas-based growth potential, despite the significant earnings drag observed in New Mexico. This valuation may be unsustainable if the company fails to demonstrate a consistent path toward achieving its authorized ROE in upcoming regulatory cycles.
As evidenced by the erratic ROE performance, which dipped to 0.1% in 2026Q1, TXNM is currently struggling to bridge the gap between its actual returns and the regulatory authorized ROE, a trend that warrants close investigation by institutional investors monitoring the company's long-term earnings power.
The inability to consistently hit authorized return levels suggests that regulatory lag is effectively eroding the profitability of the company's capital-intensive grid modernization projects. This persistent under-earning may indicate that the current regulatory environment in New Mexico is less constructive than the market anticipates, potentially necessitating further rate relief.
Based on reported figures, the anomalous debt-to-capital ratio of 0.15 in 2026Q1 suggests a potential reporting distortion or temporary deleveraging event, which masks the underlying capital structure risks inherent in a utility that must fund massive infrastructure investments through a mix of debt and equity.
The low interest coverage ratio of 1.11 in 2026Q1 indicates that the company's ability to service its debt obligations is currently under pressure, likely exacerbated by the high cost of capital. Investors should monitor whether this leverage profile reflects a sustainable strategy or a temporary reliance on external financing to cover cash flow deficits.
According to recent cash flow statements, the dividend payout ratio has experienced extreme volatility, reaching 174.5% in 2025Q2, which suggests that the current dividend may not be fully supported by internal cash generation, forcing the company to rely on external capital to maintain its payout.
The reliance on external financing to fund both CAPEX and dividends is a red flag for long-term dividend quality, as it indicates that the utility's core operations are not yet self-funding. This dynamic may force management to choose between dividend growth and the necessary infrastructure investment required to satisfy regulatory mandates.
The most commonly misapplied ratio for TXNM is the P/E multiple, which fails to account for the significant non-cash regulatory assets and AFUDC credits that distort reported net income, thereby obscuring the true economic profitability of the regulated utility business for institutional analysts.
Instead of relying on P/E, analysts should focus on the relationship between the rate base growth and the earned ROE, as these metrics provide a more accurate picture of the company's ability to generate cash from its regulated assets. Using P/E as a primary valuation tool for this utility may lead to an overestimation of earnings quality during periods of high regulatory accounting adjustments.
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Quick answers to the most common questions about buying TXNM stock.
TXNM Energy, Inc.'s current P/E ratio is 34.9x. 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 7.2x. 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 34.9x. 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 3.10% 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.