Does TXNM Energy, Inc. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores TXNM Energy, Inc. (TXNM) 23.2 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 56, returns on capital 0, balance-sheet safety 0, capital discipline 33.

Is TXNM stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $18.89 per share versus a recent price of $57.41 — 204% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has TXNM's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 23.2 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

TXNM Energy, Inc.

TXNM · Utilities · $6.3B mkt cap · FY2025 filings · No moat ·

Doesn't clear the bar

No moat

The four filters

Pricing power56

Median gross margin 35.7% over 4y, stable.

Returns on capital0

Median ROIC 4.6%, above the 9% hurdle in 0% of years.

Balance-sheet safety0

Net debt/EBITDA 6.0x, interest coverage 2x.

Capital discipline33

Owner earnings +4.2%/yr, share count growing (dilution).

Margin of safety

Above valueOn sale

204% above value

Owner earnings (normalized): $185.2M
Est. intrinsic value / share: $18.89
Recent price: $57.41
Discount to value: 204% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

19 years of fundamentals

The business, in plain English

Across the filed record, revenue grew from $1.3B (FY2016) to $2.1B (FY2025) — about 5.9% a year compounded over 9 years.

It earned 4.6% on invested capital in FY2025, with a median of 4.7% across 18 filed years. The Returns on Capital filter above scores it 0/100.

The balance sheet carried $5.6B of total debt in FY2025 against $169.8M of owner earnings — roughly 33.0 years of owner earnings to retire it all. Balance-Sheet Safety scores it 0/100.

The share count rose 25.7% between FY2009 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 33/100.

Put together: Pricing Power is the strongest of the four filters (56/100) and Returns on Capital the weakest (0/100), which is how TXNM lands at 23/100 — a None moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$2.1B FY2025

Gross marginRevenue kept after cost of goods34.2% FY2023

Return on invested capitalOperating profit on the capital employed4.6% FY2025

Owner earningsCash an owner could take out$169.8M FY2025

Gaps in a line mean that item isn’t in TXNM’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale23.2 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — TXNM has read No moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Utilities context

#36 of 48 scored Utilities companies, ranked by Moat Score.

Nearest peers by Moat Score

#34ET Energy Transfer LP30.2 out of 100, No moatNo moat
#35CLNE CLEAN ENERGY FUELS CORP.28.2 out of 100, No moatNo moat
#37KNTK KINETIK HOLDINGS INC.22.9 out of 100, No moatNo moat
#38ORA ORMAT TECHNOLOGIES, INC.22.5 out of 100, No moatNo moat

Compare TXNM with its nearest peers →All Utilities companies on the Index →

Common questions about TXNM

Does TXNM Energy, Inc. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores TXNM Energy, Inc. (TXNM) 23.2 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 56, returns on capital 0, balance-sheet safety 0, capital discipline 33.
Is TXNM stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $18.89 per share versus a recent price of $57.41 — 204% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has TXNM's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 23.2 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell TXNM. See the disclaimer.