TXNM (TXNM Energy) ROCE %: 2.77% (As of Mar. 2026)


TXNM TXNM Energy Inc TXNM
76 GF Score
Price $57.56
GF Value $44.98
Valuation Modestly Overvalued
! 13 Warning Signs
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What is TXNM Energy ROCE %?

TXNM Energy TXNM +0.16% 76 ROCE % is 2.77% as of Mar. 2026. GuruFocus rates TXNM with a GF Score™ of 76/100 and a GF Value™ of $44.98 (Modestly Overvalued). The stock has 13 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. TXNM Energy's annualized ROCE % for the quarter that ended in Mar. 2026 was 2.77%.

TXNM Energy  (NYSE:TXNM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

TXNM Energy ROCE % Related Terms

TXNM Energy ROCE % Historical Data

* Premium members only.

The historical data trend for TXNM Energy's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

TXNM Energy ROCE % Chart

TXNM Energy Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.56 4.14 3.23 5.51 4.41

TXNM Energy Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.23 3.92 8.45 1.81 2.77
TXNM
76GF Score
TXNM Energy Inc TXNM
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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TXNM Energy ROCE % Calculation

TXNM Energy's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=451.535/( ( (11211.733 - 1775.098) + (12059.285 - 1017.537) )/ 2 )
=451.535/( (9436.635+11041.748)/ 2 )
=451.535/10239.1915
=4.41 %

TXNM Energy's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=306.364/( ( (12059.285 - 1017.537) + (12138.37 - 1022.905) )/ 2 )
=306.364/( ( 11041.748 + 11115.465 )/ 2 )
=306.364/11078.6065
=2.77 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 2.77% mean?
TXNM Energy (TXNM) has a ROCE % of 2.77% as of Mar. 2026.
Is TXNM Energy's ROCE % too high?
TXNM Energy's current ROCE % is 2.77%. The Utilities - Regulated industry median ROCE % is 6.95. TXNM Energy's value of 2.77% is 60.1% below this industry median. Overall, TXNM Energy has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TXNM Energy's ROCE % compare to POR and IDA?
TXNM Energy's ROCE % of 2.77% can be compared against companies in the Utilities - Regulated industry. The industry median ROCE % is 6.95. TXNM Energy's value of 2.77% is 60.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Utilities - Regulated company?
The median ROCE % among Utilities - Regulated companies is 6.95, based on 505 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TXNM Energy's current ROCE % of 2.77% is 60.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Utilities - Regulated industry, the median ROCE % is 6.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TXNM Energy's current ROCE % is 2.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TXNM Energy stock overvalued right now?
Based on GuruFocus' analysis, TXNM Energy (TXNM) is currently considered Modestly Overvalued. The stock's GF Value™ is $44.98, compared to a current price of $57.56 — trading 28% above its estimated fair value. The current ROCE % is 2.77% and 60.1% below the Utilities - Regulated industry median of 6.95. TXNM Energy's overall GF Score™ is 76/100 with 13 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For TXNM Energy (TXNM), the current ROCE % is 2.77% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is TXNM Energy (TXNM) Overvalued in 2026?

Based on GuruFocus' analysis, TXNM Energy stock appears to be overvalued. The current stock price of $57.56 is trading 28% above its estimated GF Value™ of $44.98. GuruFocus considers TXNM Energy to be Modestly Overvalued.

Key valuation signals for TXNM:

  • ROCE %: 2.77%
  • GF Value™: $44.98 vs. price of $57.56 (28% above fair value)
  • GF Score™: 76/100 with 13 warning signs
  • Industry Position: 60.1% below the Utilities - Regulated median

No single metric tells the full story. See the TXNM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

TXNM Energy Business Description

Address 414 Silver Avenue SW, Albuquerque, NM, USA, 87102-3289
TXNM Energy Inc is a holding company that owns regulated utility companies providing energy to houses and businesses across Texas and New Mexico using its utilities.
76GF Score

Get the complete analysis for TXNM

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$57.56
Price
$44.98
GF Value