El Paso Electric Company, a public utility company, engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico.
Unattractive dividend payer with concerning outlook.
Share Price & News
How has El Paso Electric's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: EE has not had significant price volatility in the past 3 months.
7 Day Return
US Electric Utilities
1 Year Return
US Electric Utilities
Return vs Industry: EE matched the US Electric Utilities industry which returned 2.5% over the past year.
Return vs Market: EE underperformed the US Market which returned 9.3% over the past year.
Price Volatility Vs. Market
How volatile is El Paso Electric's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 year ago | Simply Wall StDoes El Paso Electric Company's (NYSE:EE) Recent Track Record Look Strong?
1 year ago | Simply Wall StRead This Before Buying El Paso Electric Company (NYSE:EE) For Its Dividend
1 year ago | Simply Wall StEl Paso Electric Company (NYSE:EE): Time For A Financial Health Check
Is El Paso Electric undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EE ($67.95) is trading above our estimate of fair value ($33.28)
Significantly Below Fair Value: EE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: EE is poor value based on its PE Ratio (33.9x) compared to the Electric Utilities industry average (19.8x).
PE vs Market: EE is poor value based on its PE Ratio (33.9x) compared to the US market (15.7x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate EE's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: EE is overvalued based on its PB Ratio (2.4x) compared to the US Electric Utilities industry average (2x).
How is El Paso Electric forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if EE's forecast earnings growth is above the savings rate (2.2%).
Earnings vs Market: Insufficient data to determine if EE's earnings are forecast to grow faster than the US market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: EE's revenue (12% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: EE's revenue (12% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if EE's Return on Equity is forecast to be high in 3 years time
How has El Paso Electric performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EE has a large one-off loss of $39.0M impacting its March 31 2020 financial results.
Growing Profit Margin: EE's current net profit margins (9.6%) are lower than last year (10.8%).
Past Earnings Growth Analysis
Earnings Trend: EE's earnings have grown by 3.6% per year over the past 5 years.
Accelerating Growth: EE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EE had negative earnings growth (-16.1%) over the past year, making it difficult to compare to the Electric Utilities industry average (1.8%).
Return on Equity
High ROE: EE's Return on Equity (7%) is considered low.
How is El Paso Electric's financial position?
Financial Position Analysis
Short Term Liabilities: EE's short term assets ($208.9M) do not cover its short term liabilities ($429.7M).
Long Term Liabilities: EE's short term assets ($208.9M) do not cover its long term liabilities ($2.3B).
Debt to Equity History and Analysis
Debt Level: EE's debt to equity ratio (139.1%) is considered high.
Reducing Debt: EE's debt to equity ratio has increased from 123.9% to 139.1% over the past 5 years.
Debt Coverage: EE's debt is not well covered by operating cash flow (15.2%).
Interest Coverage: EE's interest payments on its debt are well covered by EBIT (6x coverage).
What is El Paso Electric's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EE's dividend (2.27%) is higher than the bottom 25% of dividend payers in the US market (1.69%).
High Dividend: EE's dividend (2.27%) is low compared to the top 25% of dividend payers in the US market (4.55%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, EE has been paying a dividend for less than 10 years.
Growing Dividend: EE's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (76.9%), EE's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Adrian Rodriguez (41yo)
Mr. Adrian J. Rodriguez has been Interim Chief Executive Officer of El Paso Electric Company since August 1, 2019. Mr. Rodriguez has been General Counsel and Assistant Secretary at El Paso Electric Company ...
CEO Compensation Analysis
Compensation vs Market: Adrian's total compensation ($USD1.25M) is below average for companies of similar size in the US market ($USD5.87M).
Compensation vs Earnings: Adrian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Interim CEO||0.83yr||US$1.25m||0.055% $1.5m|
|Senior VP & CFO||6.67yrs||US$1.52m||0.086% $2.4m|
|Senior VP & Interim COO||0.83yr||US$964.13k||0.014% $398.3k|
|Senior VP of Corporate Development & Chief Compliance Officer||5.75yrs||US$1.07m||0.095% $2.6m|
|Senior Vice President of Operations||no data||US$1.71m||0.089% $2.5m|
|Director-Treasury Services and Investor Relations||no data||no data||no data|
|Vice President of Human Resources||1.33yrs||no data||no data|
|VP of Compliance & Chief Risk Officer||13.75yrs||no data||no data|
|Corporate Secretary||no data||no data||no data|
|VP & Controller||5.75yrs||no data||0.023% $645.4k|
Experienced Management: EE's management team is seasoned and experienced (5.8 years average tenure).
|Interim CEO||0.83yr||US$1.25m||0.055% $1.5m|
|Independent Director||23.42yrs||US$308.03k||0.18% $5.0m|
|Independent Director||3.08yrs||US$291.56k||0.026% $713.5k|
|Independent Chairman of the Board||5.33yrs||US$407.53k||0.042% $1.2m|
|Independent Director||24.42yrs||US$316.53k||0.078% $2.2m|
|Independent Director||24.42yrs||US$306.06k||0.068% $1.9m|
|Independent Vice Chairman of the Board||5.33yrs||US$363.53k||0.042% $1.2m|
|Independent Director||3.08yrs||US$295.03k||0.029% $817.4k|
Experienced Board: EE's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
El Paso Electric Company's company bio, employee growth, exchange listings and data sources
- Name: El Paso Electric Company
- Ticker: EE
- Exchange: NYSE
- Founded: 1901
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: US$2.779b
- Shares outstanding: 40.90m
- Website: https://www.epelectric.com
Number of Employees
- El Paso Electric Company
- Stanton Tower
- 100 North Stanton
- El Paso
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|EE||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Feb 1996|
|EPG||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Feb 1996|
El Paso Electric Company, a public utility company, engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. It generates electricity through nuclear fuel, natural gas, purchased power, and solar photovoltaic panels. The company owns or has ownership interests in electrical generating facilities with a net generating capacity of approximately 2,085 megawatts; four 345 kilovolt (kv) transmission lines in New Mexico and Arizona; and three 500 kV lines in Arizona. It serves approximately 432,800 residential, commercial, industrial, public authority, and wholesale customers; and distributes electricity to retail customers. El Paso Electric Company was founded in 1901 and is based in El Paso, Texas.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/06/02 03:14|
|End of Day Share Price||2020/06/01 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.