EE  El Paso Electric Company

Exchange

NYSE

Sector

Public Utilities

Industry

Electric Utilities: Central

Market Cap.

1.426B

Growing Competitive Advantage over the past 10 years

EE is likely operating in an industry with medium to low barriers to entry, however it has a growing competitive advantage. This could be due to strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate.

Only $7.00 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Net Income 31.06M 20.62M 33.37M 36.62M 61.39M 74.75M 77.62M 66.93M 90.32M 103.54M
divided by
Revenue 690.09M 664.36M 708.63M 803.91M 816.46M 877.43M 1.04B 828.00M 877.25M 918.01M
Net Profit Margin 4.50% 3.10% 4.71% 4.55% 7.52% 8.52% 7.47% 8.08% 10.30% 11.28%

Strong Pricing Power over the past 10 years

EE has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$65.34 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Gross Profit 459.85M 443.40M 447.75M 461.00M 486.11M 499.81M 538.63M 533.56M 585.51M 918.01M
divided by
Revenue 690.09M 664.36M 708.63M 803.91M 816.46M 877.43M 1.04B 828.00M 877.25M 918.01M
Gross Margin 66.64% 66.74% 63.19% 57.34% 59.54% 56.96% 51.84% 64.44% 66.74% 100.00%

High Capital Intensity over the past 10 years

EE spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

242.13% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Capital Expenditure 65.07M 90.93M 88.33M 93.59M 107.42M 208.89M 240.35M 6.97M 224.22M 235.78M
divided by
Net Income 31.06M 20.62M 33.37M 36.62M 61.39M 74.75M 77.62M 66.93M 90.32M 103.54M
Capital Expenditure Ratio 209.50% 441.06% 264.70% 255.61% 174.99% 279.43% 309.65% 10.42% 248.26% 227.72%