Stock fact sheet · data as of
TXNM Energy, Inc. (TXNM): fair value, margin of safety and Wheel Score
Ticker symbol TXNM · Utilities · Regulated Electric · United States · Blend
Is TXNM undervalued?
TXNM Energy, Inc. (TXNM) closed at 58.49 on 5 Nov 2026, 107% above the GLS average fair value of 28.25. 6 of the 6 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
There is a wide gap between GLS Growth (0.4432) and Graham Growth (58.40). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for TXNM, so the nightly engine files it under Blend (value score 28, growth score 30, out of 100).
Nine valuation models for TXNM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 41.06 | -30% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 58.40 | -0% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 20.63 | -65% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.4432 | -99% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 24.87 | -57% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 24.13 | -59% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -8.55 | -115% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 53.31 | -9% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
TXNM Energy, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. On durability TXNM scores 5.5/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are thin or negative - ROIC 4.4%, ROE 4.4%, ROA 3.5% - with debt at 0.00 times equity and negative free cash flow.
The dividend yield is 2.89% at a payout ratio of 79%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Electricity 83%, Electric Transmission Service 11%, Wholesale Energy Sales 6% (quarter Q3 FY2026).
Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 4.4% |
|---|---|---|---|
| GLS Moat | 5.5 / 10 | ROE | 4.4% |
| Debt / equity | 0.00 | ROA | 3.5% |
| Free-cash-flow yield | -9.4% | Payout ratio | 79% |
| Institutions | 5 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 28: Weak
With a Wheel Score of 28 TXNM Energy, Inc. sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (911 open interest, 148 a day); and filter 3, below fair value - trades 107% above our fair value; Value (weak) is its weakest part.
Implied volatility is 27% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is thin - 911 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 1.0M shares a day on a market cap of $6.4B, with a beta of 0.17 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (911 open interest, 148 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 107% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 107% above fair value | |
| Premium | Fair | implied volatility 27% | |
| Moat | Fair | moat 5.5/10 | |
| Health | Strong | Piotroski 8/9 | |
| Red Flags | Weak | Red Flags score 65/100 | |
| Option trading | Weak | 148 contracts a day, 911 open interest | |
| Stability | Good | beta 0.17, $6.4B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for TXNM in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Regulated Electric
The 12 companies below are the closest to TXNM Energy, Inc. by market cap within the Regulated Electric industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CMSD CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | 20.27 | 30.83 | +34% | 29No options | $6.4B |
| UEPEN Union Electric Company | 61.50 | 51.19 | -20% | 20No options | $6.3B |
| CMSC CMS Energy Corporation 5.875% J | 20.36 | 30.94 | +34% | 30No options | $6.2B |
| UEPEM Union Electric Company | 60.05 | 52.24 | -15% | 20No options | $6.1B |
| UEPCP Union Electric Company | 66.75 | 52.87 | -26% | 20No options | $6.8B |
| ENIC Enel Chile S.A. | 4.39 | 5.18 | +15% | 35Weak | $6.1B |
| UEPEP Union Electric Company | 68.75 | 53.42 | -29% | 20No options | $7.0B |
| POR Portland General Electric Company | 46.00 | 27.26 | -69% | 27Weak | $5.5B |
| UEPEO Union Electric Company | 69.10 | 51.30 | -35% | 19No options | $7.8B |
| UELMO Union Electric Company | 59.26 | 47.21 | -26% | 19No options | $7.8B |
| UEPCN Union Electric Company | 76.00 | 54.17 | -40% | 21No options | $7.8B |
| CIG Companhia Energética de Minas Gerais | 1.82 | 4.36 | +58% | 44Weak | $5.2B |
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Start free See the Sunday ScanQuestions about TXNM
Is TXNM undervalued right now?
No: at 58.49 the stock trades 107% above the GLS average fair value of 28.25 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of TXNM and what does it mean?
TXNM scores 28 out of 100 (Weak) - it fails Wheel Trade Filters 1, 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for TXNM?
28.25 per share as of 5 Nov 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does TXNM Energy, Inc. report earnings next?
No upcoming earnings date is recorded for TXNM in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does TXNM have listed options, and how liquid are they?
Yes. The nightly snapshot found 54 listed contracts with 911 open interest across all expiries and implied volatility of 27% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.