The business behind the dividend
| Measure | TXNM | Median | Formula |
|---|---|---|---|
| Return on equity | 5.0% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 5.0% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-542.72m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-611.43m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 20.6% | 15.0% | Operating income ÷ revenue |
| Net margin | 7.9% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.59x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 1.62x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.55x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 3.44x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 5.0% | 10.2% | 4.5% | 8.4% | 9.8% | 9.1% | 5.5% | 6.0% | 4.7% | 7.0% | 6.0% |
| Return on capital employed | 5.0% | 6.1% | 3.4% | 6.3% | 5.3% | 5.3% | 3.1% | 5.4% | 7.6% | 7.0% | 5.3% |
| Operating margin | 20.6% | 23.1% | 12.1% | 17.5% | 17.7% | 18.9% | 10.5% | 17.4% | 23.8% | 22.3% | 17.7% |
| Net margin | 7.9% | 13.2% | 5.6% | 8.2% | 12.1% | 12.4% | 6.7% | 7.4% | 6.0% | 9.1% | 7.9% |
| Debt to equity | 1.59x | 1.94x | 1.92x | 1.86x | 1.71x | 1.61x | 1.79x | 1.58x | 1.44x | 1.43x | 1.61x |
| Current ratio | 0.55x | 0.28x | 0.39x | 0.46x | 0.49x | 0.39x | 0.30x | 0.59x | 0.35x | 0.47x | 0.39x |
| Cash conversion | 3.44x | 1.96x | 5.16x | 3.06x | 2.59x | 2.59x | 5.46x | 4.23x | 6.55x | 3.49x | 3.44x |
How it compares in utilities
Among the 57 utilities companies here measured on GAAP earnings, TXNM Energy pays out less than 1 of them. The median for that group is 61.5%, against this company’s 111.5%.
Closest on GAAP earnings
- Sempra (SRE) 93.8%
- Firstenergy (FE) 100.6%
- Antero Midstream (AM) 105.9%
- Algonquin Power & Utilities (AQN) 118.2%
Same sector and same denominator, so the figures are comparable. All 58 in utilities →