El Paso Electric Stock Analysis, Valuation (NYSE:EE)

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$62.6 $0.85 (1.34%) EE stock closing price Aug 15, 2018 (Closing)

Investors can watch the Amigobulls El Paso Electric stock analysis video here. This is our analyst opinion covering the buy and sell arguments for EE stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

El Paso Electric Company Stock Rating 2.5/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for EE stock analysis. El Paso Electric valuation forms a crucial part of our stock analysis. El Paso Electric stock rating is our opinion about the business fundamentals of the company.

Should you buy EE stock?

  • Long term revenue growth has been strong with a 5 year compounded annual growth of 8.5.
  • The TTM operating margin was good at 20.22 for El Paso Electric.

Should you sell EE stock?

  • The EE stock currently trades at a PE of 28, which is expensive, compared to the sector average of 19.6.
  • The company is trading at a price to sales multiple of 2.8, which is higher in comparison to the Utilities sector average of 2, making EE stock expensive.
  • The company has a negative free cash flow margin of -3.7.

Comments on this video and El Paso Electric stock

Amigobulls El Paso Electric stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, El Paso Electric revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.