Forensic Analysis · Electric Utilities · as of Nov 9, 2026
Txnm Energy Inc (TXNM)
A forensic read on Txnm Energy Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Clean
Earnings quality
5
Forensic signals
5.1%
ROE
9.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Txnm Energy Inc earns a C (Mixed — selective) forensic quality grade. 5 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
3.7%
FY2025
Return on invested capital.Return on invested capital is 3.7% in the latest fiscal year, against 2.2% in FY2023, having run between 2.2% and 4.2% across FY2023–FY2025 with no direction held. After-tax operating profit was $208M in FY2023 and $397M in FY2025, with operating income at 11.9% of revenue in FY2023, 23.0% in FY2024 and 20.4% in FY2025. The capital base behind it grew +15% across FY2023–FY2025, from $9.3B to $10.7B, and the return did not fall doing it, so the dollars added over that window earned at least the 2.2% the older base was already earning.
+8.9%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +19% over the last 2 years to FY2025 (+8.9%/yr). The count is growing — 86.4M shares in FY2023, 102.4M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~8.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~16%.
0.4% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 0.4% of revenue in FY2025 — about $0.09 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 8.9% a year across FY2023–FY2025 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
FCF ($611M)
FY2025
Shareholder returns.Returned $175M to shareholders (buybacks + dividends) in FY2025, but free cash flow was ($611M) after capex — there was no free cash flow to fund the payout from at all, though operating cash flow alone was $584M — 30% of that. Capex and the payout together ran $787M past operating cash flow — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of. New debt covered part of it: total debt rose $495M over FY2025, while cash rose $14M — $481M of the $787M. The FY2025 cash-flow statement filed $3.7B of debt issued against $3.2B repaid; $843M from shares issued; $714M of investments purchased; net cash used in investing activities of $1.2B; net cash provided by financing activities of $643M.
+16.4%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +16.4% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by receivables up +16% against revenue +10% and inventory up +9% on the year. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 5% of net operating assets, against an accruals ratio of 16.4%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
Key fundamentals
Latest Revenue$2.17B
Revenue Growth YoY+9.9%
Revenue CAGR (2yr)+5.7%
Net Margin7.0%
Free Cash Flow-$611.4M
Return on Equity5.1%
Debt / Equity1.59x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Txnm Energy Inc's actual 10-K/10-Q/8-K filings?