Is txnm good investment now

TXNM Energy, Inc. (TXNM) does not present a strong investment case at this time. Here's why:

1. Financial Performance Concerns:
   • TXNM's net income has seen a decline of 5.14% year-over-year, which is a red flag for investors looking for growth.
   • The company's diluted EPS has been stagnant at $0.53, indicating a lack of earnings growth.
2. Market Valuation Challenges:
   • TXNM's P/E ratio is high at 48.8, which might make the stock seem attractive compared to the market average, but it also suggests that the stock is overvalued.
   • The company's ROCE is low at 2.4%, which underperforms the industry average, further questioning the efficiency of the company's capital employed.

3. Industry and Regulatory Risks:
   • TXNM operates in the Utilities sector, which is transitioning towards clean sources of fuel, but the company's performance and valuation are also influenced by regulatory environments in New Mexico and Texas.
   • The regulatory turnaround in New Mexico and the potential for capital expenditure in Texas are seen as positive catalysts, but these factors are not guaranteed and carry their own risks.
4. Analyst Sentiments and Price Targets:
   • Analysts have a mixed view, with a recent Sector Perform rating from Scotiabank and a Buy rating from Jefferies, indicating differing opinions on the stock's future performance.
   • The average analyst price target is $47.4, which is higher than the current trading price, suggesting potential upside, but this does not guarantee a positive return on investment.
5. Recent Company Developments:
   • TXNM has announced a robust infrastructure investment plan in Texas and New Mexico, which could be a positive sign for long-term growth, but the immediate impact on earnings is unclear.
   • The company's earnings have fallen in recent years, and while there is potential for a turnaround, this is not yet reflected in the financials.

In conclusion, while there are some positive aspects to TXNM's business and potential for growth, the high P/E ratio, lack of earnings growth, and regulatory risks make it a speculative investment at this time. Investors should carefully consider their risk tolerance and investment horizon before deciding whether TXNM is a good fit for their portfolio.