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El Paso Electric

NYSE:EE
Snowflake Description

Second-rate dividend payer with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EE
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Utilities
Company description

El Paso Electric Company, a public utility company, engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. The last earnings update was 12 days ago. More info.


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EE Share Price and Events
7 Day Returns
-1.1%
NYSE:EE
1.7%
US Electric Utilities
-0.7%
US Market
1 Year Returns
6.2%
NYSE:EE
17.1%
US Electric Utilities
3%
US Market
EE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
El Paso Electric (EE) -1.1% 0.2% 9.1% 6.2% 38.4% 60.2%
US Electric Utilities 1.7% 0.6% 4.4% 17.1% 19.7% 39.2%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • EE underperformed the Electric Utilities industry which returned 17.1% over the past year.
  • EE outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
EE
Industry
5yr Volatility vs Market

Value

 Is El Paso Electric undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of El Paso Electric to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for El Paso Electric.

NYSE:EE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:EE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.23
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.235 (1 + (1- 21%) (63.24%))
0.566
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:EE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for El Paso Electric is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:EE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 19.61 Est @ 11.74% 18.24
2020 21.38 Est @ 9.03% 18.50
2021 22.91 Est @ 7.14% 18.44
2022 24.24 Est @ 5.82% 18.15
2023 25.43 Est @ 4.89% 17.71
2024 26.50 Est @ 4.24% 17.18
2025 27.51 Est @ 3.79% 16.58
2026 28.46 Est @ 3.47% 15.96
2027 29.39 Est @ 3.25% 15.33
2028 30.30 Est @ 3.09% 14.70
Present value of next 10 years cash flows $170.80
NYSE:EE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $30.30 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$652.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $652.78 ÷ (1 + 7.5%)10
$316.78
NYSE:EE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $170.80 + $316.78
$487.58
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $487.58 / 40.89
$11.92
NYSE:EE Discount to Share Price
Calculation Result
Value per share (USD) From above. $11.92
Current discount Discount to share price of $59.00
= -1 x ($59.00 - $11.92) / $11.92
-394.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of El Paso Electric is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for El Paso Electric's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are El Paso Electric's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:EE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.39
NYSE:EE Share Price ** NYSE (2019-05-17) in USD $59
United States of America Electric Utilities Industry PE Ratio Median Figure of 26 Publicly-Listed Electric Utilities Companies 21.55x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of El Paso Electric.

NYSE:EE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:EE Share Price ÷ EPS (both in USD)

= 59 ÷ 2.39

24.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • El Paso Electric is overvalued based on earnings compared to the US Electric Utilities industry average.
  • El Paso Electric is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does El Paso Electric's expected growth come at a high price?
Raw Data
NYSE:EE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
7.9%per year
United States of America Electric Utilities Industry PEG Ratio Median Figure of 23 Publicly-Listed Electric Utilities Companies 3.02x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:EE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.64x ÷ 7.9%

3.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • El Paso Electric is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on El Paso Electric's assets?
Raw Data
NYSE:EE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $28.42
NYSE:EE Share Price * NYSE (2019-05-17) in USD $59
United States of America Electric Utilities Industry PB Ratio Median Figure of 29 Publicly-Listed Electric Utilities Companies 2.09x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:EE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:EE Share Price ÷ Book Value per Share (both in USD)

= 59 ÷ 28.42

2.08x

* Primary Listing of El Paso Electric.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • El Paso Electric is good value based on assets compared to the US Electric Utilities industry average.
X
Value checks
We assess El Paso Electric's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. El Paso Electric has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is El Paso Electric expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is El Paso Electric expected to grow at an attractive rate?
  • El Paso Electric's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • El Paso Electric's earnings growth is positive but not above the United States of America market average.
  • El Paso Electric's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:EE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:EE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 7.9%
NYSE:EE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 3.6%
United States of America Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 8.3%
United States of America Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 2.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:EE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:EE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 1,002 1
2020-12-31 977 111 2
2019-12-31 952 99 1
NYSE:EE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 902 286 97
2018-12-31 904 285 84
2018-09-30 909 291 106
2018-06-30 906 295 92
2018-03-31 921 289 95
2017-12-31 917 289 98
2017-09-30 909 273 97
2017-06-30 934 258 112
2017-03-31 900 243 98
2016-12-31 887 231 96
2016-09-30 876 247 91
2016-06-30 842 227 74

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • El Paso Electric's earnings are expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).
  • El Paso Electric's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:EE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from El Paso Electric Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 3.04 3.04 3.04 1.00
2020-12-31 2.70 2.79 2.60 2.00
2019-12-31 2.50 2.60 2.39 2.00
NYSE:EE Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.39
2018-12-31 2.07
2018-09-30 2.61
2018-06-30 2.28
2018-03-31 2.35
2017-12-31 2.42
2017-09-30 2.40
2017-06-30 2.77
2017-03-31 2.43
2016-12-31 2.39
2016-09-30 2.27
2016-06-30 1.83

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if El Paso Electric will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess El Paso Electric's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
El Paso Electric has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has El Paso Electric performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare El Paso Electric's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • El Paso Electric's year on year earnings growth rate has been positive over the past 5 years.
  • El Paso Electric's 1-year earnings growth is less than its 5-year average (2.3% vs 3.3%)
  • El Paso Electric's earnings growth has not exceeded the US Electric Utilities industry average in the past year (2.3% vs 9.7%).
Earnings and Revenue History
El Paso Electric's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from El Paso Electric Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 902.25 97.07 -3.32
2018-12-31 903.60 84.02 -3.27
2018-09-30 908.93 105.72 -0.29
2018-06-30 906.13 92.17
2018-03-31 921.18 94.91 -3.79
2017-12-31 916.80 97.89 -2.88
2017-09-30 908.69 97.01 -2.16
2017-06-30 934.44 112.00
2017-03-31 900.46 98.25 -2.07
2016-12-31 886.94 96.45 -2.44
2016-09-30 875.80 91.50
2016-06-30 842.29 73.63
2016-03-31 843.93 72.41
2015-12-31 849.87 81.68
2015-09-30 869.53 85.25
2015-06-30 863.46 80.99
2015-03-31 895.76 89.97
2014-12-31 917.53 91.13
2014-09-30 911.26 88.08
2014-06-30 910.28 86.20
2014-03-31 898.59 85.30
2013-12-31 890.36 88.33
2013-09-30 888.87 91.96
2013-06-30 873.46 93.18
2013-03-31 861.59 94.88
2012-12-31 852.88 90.59
2012-09-30 855.74 91.20
2012-06-30 896.13 97.44

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • El Paso Electric has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • El Paso Electric used its assets less efficiently than the US Electric Utilities industry average last year based on Return on Assets.
  • El Paso Electric has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess El Paso Electric's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
El Paso Electric has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is El Paso Electric's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up El Paso Electric's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • El Paso Electric's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • El Paso Electric's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of El Paso Electric's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from El Paso Electric Company Filings, last reported 1 month ago.

NYSE:EE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,157.89 1,525.61 8.51
2018-12-31 1,164.10 1,434.43 12.90
2018-09-30 1,197.20 1,404.62 15.97
2018-06-30 1,138.20 1,465.60 11.92
2018-03-31 1,119.63 1,429.18 2.57
2017-12-31 1,142.17 1,369.52 6.99
2017-09-30 1,135.98 1,363.77 7.06
2017-06-30 1,085.83 1,457.90 11.28
2017-03-31 1,063.06 1,413.01 5.17
2016-12-31 1,074.40 1,360.23 8.42
2016-09-30 1,075.08 1,333.67 10.04
2016-06-30 1,010.94 1,379.92 9.61
2016-03-31 999.74 1,365.50 41.31
2015-12-31 1,016.54 1,264.40 8.15
2015-09-30 1,020.80 1,252.95 12.57
2015-06-30 984.68 1,277.30 10.36
2015-03-31 975.27 1,207.55 7.97
2014-12-31 984.25 1,163.71 40.50
2014-09-30 1,015.86 1,089.22 13.41
2014-06-30 973.83 1,097.44 12.70
2014-03-31 948.99 1,045.59 13.39
2013-12-31 943.83 1,013.97 25.59
2013-09-30 893.70 1,015.09 61.95
2013-06-30 848.43 1,025.90 11.65
2013-03-31 829.48 1,024.60 43.68
2012-12-31 825.00 1,021.69 111.06
2012-09-30 830.27 911.38 8.66
2012-06-30 782.19 960.58 10.08
  • El Paso Electric's level of debt (131.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (110.2% vs 131.8% today).
  • Debt is not well covered by operating cash flow (18.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).
X
Financial health checks
We assess El Paso Electric's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. El Paso Electric has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is El Paso Electric's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.44%
Current annual income from El Paso Electric dividends. Estimated to be 2.85% next year.
If you bought $2,000 of El Paso Electric shares you are expected to receive $49 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • El Paso Electric's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • El Paso Electric's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:EE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 3.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:EE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.82 1.00
2021-12-31 1.72 1.00
2020-12-31 1.66 2.00
2019-12-31 1.55 1.00
NYSE:EE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-31 1.440 2.508
2018-11-28 1.440 2.782
2018-07-19 1.440 2.410
2018-05-25 1.440 2.466
2018-02-01 1.340 2.628
2017-10-26 1.340 2.388
2017-07-27 1.340 2.426
2017-05-26 1.340 2.551
2017-01-27 1.240 2.507
2016-11-18 1.240 2.682
2016-07-22 1.240 2.716
2016-05-26 1.240 2.680
2016-01-28 1.180 2.722
2015-12-04 1.180 3.106
2015-07-23 1.180 3.188
2015-05-28 1.180 3.338
2015-01-30 1.120 2.985
2014-11-21 1.120 2.857
2014-07-31 1.120 3.000
2014-05-29 1.120 2.902
2014-01-24 1.060 2.953
2013-11-22 1.060 3.019
2013-11-07 1.060 3.034
2013-11-06 1.060 3.005
2013-05-09 1.060 2.984
2013-01-18 1.000 2.926
2012-10-24 1.000 3.134
2012-08-01 1.000 2.963
2012-05-31 1.000 3.040
2012-02-01 0.880 2.774
2011-11-18 0.880 2.586
2011-07-28 0.880 2.686
2011-04-28 0.880 2.816

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, El Paso Electric has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but El Paso Electric only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of El Paso Electric's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess El Paso Electric's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can El Paso Electric afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. El Paso Electric has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of El Paso Electric's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mary Kipp
COMPENSATION $3,112,601
AGE 51
TENURE AS CEO 3.4 years
CEO Bio

Ms. Mary E. Kipp serves as a Director of Federal Reserve Bank Of Dallas since July 2018. Ms. Kipp has been Chief Executive Officer of El Paso Electric Company since December 15, 2015 and has been its President since May 25, 2017. Ms. Kipp served as the President of El Paso Electric Company from September 18, 2014 to December 2015. Ms. Kipp served as the Chief Compliance Officer at El Paso Electric Co. from December 7, 2009 to September 18, 2014 and Senior Vice President and General Counsel from June 2010 to September 18, 2014. Ms. Kipp served as Chief Legal Officer at El Paso Electric Co. since December 7, 2009. Ms. Kipp served as a Vice President of Legal at El Paso Electric Co. from December 7, 2009 to June 2010 and also served as its Assistant General Counsel and Director of FERC Compliance since December 2007. She joined El Paso Electric in 2007 and has overseen many divisions of the company, including legal and compliance, regulatory and rates, human resources, external affairs, public relations, and environmental, health and safety. Prior to joining El Paso Electric, Ms. Kipp was a Senior Attorney in the Federal EnergyRegulatory Commission's Office of Enforcement in Washington, DC. Before entering government service, Ms. Kipp was an attorney at Greenberg Traurig, LLP and El Paso Natural Gas Company. Ms. Kipp has been a Director of First National Bank. She served as Director at WestStar Bank and Weststar Bank Holding Company, Inc. Ms. Kipp has been Director of El Paso Electric Co. since December 15, 2015. Ms. Kipp is active in numerous community organizations, including serving on the boards of the Sun Bowl Association, Borderplex Binational Economic Alliance. Kipp spent four years as a senior enforcement attorney in the Federal Energy Regulatory Commission’s Office of Enforcement in Washington, D.C., where she investigated and prosecuted violations of federal energy laws. She serves on the board of Landis+Gyr and on the executive committee of the Texas Business Leadership Council. She is chair-elect of the Smart Electric Power Alliance. Ms. Kipp received her BA cum laude from Williams College, her JD from the University of Texas School of Law and is an alumnus of Exeter College, University of Oxford.

CEO Compensation
  • Mary's compensation has been consistent with company performance over the past year.
  • Mary's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the El Paso Electric management team in years:

4
Average Tenure
51
Average Age
  • The tenure for the El Paso Electric management team is about average.
Management Team

Mary Kipp

TITLE
President
COMPENSATION
$3M
AGE
51
TENURE
3.4 yrs

Nathan Hirschi

TITLE
Senior VP & CFO
COMPENSATION
$1M
AGE
55
TENURE
5.6 yrs

Steven Buraczyk

TITLE
Senior Vice President of Operations
COMPENSATION
$934K
AGE
51
TENURE
5.6 yrs

Rocky Miracle

TITLE
Senior VP of Corporate Development & Chief Compliance Officer
COMPENSATION
$771K
AGE
65
TENURE
4.7 yrs

Adrian Rodriguez

TITLE
Senior VP
COMPENSATION
$854K
AGE
40
TENURE
2 yrs

Elaina Ball

TITLE
Senior VP & Chief Administrative Officer
AGE
43
TENURE
1.1 yrs

Lisa Budtke

TITLE
Director-Treasury Services and Investor Relations

Victor Rueda

TITLE
Vice President of Human Resources
TENURE
0.3 yrs

Henry Soza

TITLE
VP of Compliance & Chief Risk Officer
TENURE
12.7 yrs

Jessica Goldman

TITLE
Corporate Secretary
Board of Directors Tenure

Average tenure and age of the El Paso Electric board of directors in years:

4.3
Average Tenure
61
Average Age
  • The tenure for the El Paso Electric board of directors is about average.
Board of Directors

Charles Yamarone

TITLE
Chairman of the Board
COMPENSATION
$394K
AGE
59
TENURE
4.3 yrs

Mary Kipp

TITLE
President
COMPENSATION
$3M
AGE
51
TENURE
3.4 yrs

Edward Escudero

TITLE
Vice Chairman of the Board
COMPENSATION
$351K
AGE
47
TENURE
4.3 yrs

Jim Cicconi

TITLE
Director
COMPENSATION
$289K
AGE
65
TENURE
22.3 yrs

Eric Siegel

TITLE
Director
COMPENSATION
$302K
AGE
61
TENURE
23.3 yrs

Steve Wertheimer

TITLE
Director
COMPENSATION
$296K
AGE
67
TENURE
23.3 yrs

Cathy Allen

TITLE
Director
COMPENSATION
$284K
AGE
71
TENURE
10 yrs

Paul Barbas

TITLE
Director
COMPENSATION
$267K
AGE
61
TENURE
2 yrs

Raymond Palacios

TITLE
Director
COMPENSATION
$277K
AGE
57
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess El Paso Electric's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. El Paso Electric has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Read This Before Buying El Paso Electric Company (NYSE:EE) For Its Dividend

Dividend paying stocks like El Paso Electric Company (NYSE:EE) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. With a 2.4% yield and a eight-year payment history, investors probably think El Paso Electric looks like a reliable dividend stock. While the yield may not look too great, the relatively long payment history is interesting. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … NYSE:EE Historical Dividend Yield, May 13th 2019 Payout ratios Dividends are usually paid out of company earnings. … Conclusion To summarise, shareholders should always check that El Paso Electric's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

El Paso Electric Company (NYSE:EE): Time For A Financial Health Check

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as El Paso Electric Company (NYSE:EE), with a market cap of US$2.5b, often get neglected by retail investors. … Don’t forget that this is a general and concentrated examination of El Paso Electric’s financial health, so you should conduct further analysis. … Check out our latest analysis for El Paso Electric

Simply Wall St -

Is El Paso Electric Company (NYSE:EE) Creating Value For Shareholders?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Should We Worry About El Paso Electric Company's (NYSE:EE) P/E Ratio?

To keep it practical, we'll show how El Paso Electric Company's (NYSE:EE) P/E ratio could help you assess the value on offer. … El Paso Electric has a price to earnings ratio of 28.18, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

2 Days Left To Cash In On El Paso Electric Company (NYSE:EE) Dividend

El Paso Electric Company (NYSE:EE) will be distributing its dividend of US$0.36 per share on the 29 March 2019, and will start trading ex-dividend in 2 days time on the 14 March 2019. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St -

Update: El Paso Electric Stock Gained59% In The Last Five Years

For example, the El Paso Electric Company (NYSE:EE) share price is 59% higher than it was five years ago, which is more than the market average. … One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price. … Over half a decade, El Paso Electric managed to grow its earnings per share at 2.9% a year.

Simply Wall St -

Why El Paso Electric Company's (NYSE:EE) CEO Pay Matters To You

Mary Kipp became the CEO of El Paso Electric Company (NYSE:EE) in 2015. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Mary Kipp's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What You Must Know About El Paso Electric Company's (NYSE:EE) Financial Strength

Mid-caps stocks, like El Paso Electric Company (NYSE:EE) with a market capitalization of US$2.0b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … See our latest analysis for El Paso Electric. … Take the survey and be part of one of the most advanced studies of stock market investors to date

Simply Wall St -

What El Paso Electric Company's (NYSE:EE) ROE Can Tell Us

To keep the lesson grounded in practicality, we'll use ROE to better understand El Paso Electric Company (NYSE:EE). … El Paso Electric has a ROE of 8.9%, based on the last twelve months. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.089 in profit.

Simply Wall St -

With 9.0% Earnings Growth, Did El Paso Electric Company (NYSE:EE) Outperform The Industry?

Examining El Paso Electric Company's (NYSE:EE) past track record of performance is a useful exercise for investors. … Below, I will assess EE's latest performance announced on 30 September 2018 and weight these figures against its longer term trend and industry movements. … How Did EE's Recent Performance Stack Up Against Its Past.

Simply Wall St -

Company Info

Description

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, and coal, as well as solar photovoltaic panels and wind turbines with a generating capability of approximately 2,085 megawatts. The company also sources electricity from purchased power. The company owns and has ownership interests in four 345 kilovolt (kv) transmission lines in New Mexico and Arizona; and three 500 kV lines in Arizona. It serves approximately 425,000 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.

Details
Name: El Paso Electric Company
EE
Exchange: NYSE
Founded: 1901
$2,412,427,990
40,888,610
Website: http://www.epelectric.com
Address: El Paso Electric Company
Stanton Tower,
100 North Stanton,
El Paso,
Texas, 79901,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE EE Common Stock New York Stock Exchange US USD 02. Feb 1996
DB EPG Common Stock Deutsche Boerse AG DE EUR 02. Feb 1996
Number of employees
Current staff
Staff numbers
1,100
El Paso Electric employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:46
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/09
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.