Critical Review: TXNM Energy (TXNM) versus The Competition

TXNM Energy (NYSE:TXNM – Get Free Report) is one of 104 public companies in the “Electric Utilities” industry, but how does it weigh in compared to its competitors? We will compare TXNM Energy to related businesses based on the strength of its dividends, institutional ownership, profitability, earnings, risk, valuation and analyst recommendations.

Earnings and Valuation

This table compares TXNM Energy and its competitors revenue, earnings per share (EPS) and valuation.

TXNM Energy’s competitors have higher revenue and earnings than TXNM Energy. TXNM Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

TXNM Energy pays an annual dividend of $1.69 per share and has a dividend yield of 2.9%. TXNM Energy pays out 80.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electric Utilities” companies pay a dividend yield of 3.1% and pay out 64.3% of their earnings in the form of a dividend. TXNM Energy lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of current ratings and recommmendations for TXNM Energy and its competitors, as reported by MarketBeat.com.

As a group, “Electric Utilities” companies have a potential upside of 4.22%. Given TXNM Energy’s competitors higher possible upside, analysts plainly believe TXNM Energy has less favorable growth aspects than its competitors.

Volatility & Risk

TXNM Energy has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500. Comparatively, TXNM Energy’s competitors have a beta of -2.29, meaning that their average stock price is 329% less volatile than the S&P 500.

Profitability

This table compares TXNM Energy and its competitors’ net margins, return on equity and return on assets.

Insider and Institutional Ownership

91.7% of TXNM Energy shares are held by institutional investors. Comparatively, 60.0% of shares of all “Electric Utilities” companies are held by institutional investors. 1.1% of TXNM Energy shares are held by insiders. Comparatively, 6.2% of shares of all “Electric Utilities” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

TXNM Energy competitors beat TXNM Energy on 10 of the 15 factors compared.

About TXNM Energy

(Get Free Report)

TXNM Energy, Inc., through its subsidiaries, provides electricity and electric services in the United States. It operates through Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment engages in the generation, transmission, and distribution of electricity. The segment owns and leases communications, office and other equipment, office space, vehicles, and real estate. It generates electricity using coal, natural gas and oil, and nuclear fuel and waste, as well as solar, wind, geothermal, and battery storage energy sources. The TNMP segment provides regulated transmission and distribution services. The segment also owns and leases vehicles, service facilities, and office locations throughout its service territory. The company serves residential, commercial, and industrial customers and end-users of electricity in New Mexico and Texas. The company was formerly known as PNM Resources, Inc and changed its name to TXNM Energy, Inc. in August 2024. TXNM Energy, Inc. was founded in 1882 and is based in Albuquerque, New Mexico.